Jamaica Gleaner News - Smallbiz: Brass-tacks planning for selling food - Sunday

Rudolph Brown/Chief Photographer
William Lawrence, director, professional services, Mona School of Business.

So, you think you could make a success of selling meals? You should know that just because you have the idea in your head, does not mean that you should actually do it.

So warns William Lawrence, director of professional services at the Mona School of business in Kingston.

Even though 'people must eat', there is no guarantee that they would buy what you produce to sate hunger.

Viability of your idea

You must first check on the viability of your idea, which involves making simple checks such as:

Whether there is a demand for the price and quality of food you intend to offer.

Many people forget that a need is not the same thing as a demand. You need to establish whether customers are really willing to buy at the price and quality you offer.

Determine demand by checking the cost of what you want to do, putting on a mark-up of 10 - 15 per cent and then checking the prices of your competition.

If your price is not below or near that of your competition, you may not be able to sell your meals - no matter how tasty your food.

It is only after people get to know you that prices can be adjusted.

Be honest with yourself. will you make money?

Some, only after using their own money and credit cards to make the investment, realise that the returns are not adequate.

Cash-budget forecast

Do a cash-budget forecast, including what you expect to sell, spend and collect. If there is no profit, forget it!

Check out your potential clients. One of the biggest problems in Jamaica is collecting money. People go missing. The fact that you have sold something does not mean that you are going to collect.

Ask yourself, how is inflation going to affect my budget? The dollar started at J$81-US$1 on January 1, 2009. Today it is nearing $90-US$1.

The food-input prices for restaurants may change every week

What is in it for the consumer?

When it comes to food, people do not compromise. They will never buy your food if it does not meet certain standards of taste and presentation. If you find the winning formula, people will follow the crowd to your place.

Food is highly perishable. Factor this into your plans. Invest in proper storage and manage your inventory in such a way that whatever was bought first is used first.

Beware of shrinkage or theft. An allowance may have to be made for goods which grow feet and walk away.

Prepare for the hard times.

All businesses experience them. Learn the strategies of survival, including how to keep your blood pressure down. Plan an exit strategy.

There are several ways to get into selling food.

Instead of starting your own restaurant from scratch, you may buy an existing business - part or all - and then change the menu, if you wish.

You may also approach companies which are doing well and ask for a franchise, to be operated in another location.

Get all the help and training you can.

avia.ustanny@gleanerjm.com

SMALLBIZ SEMINAR

The Mona School of Business, along with the Small business Association of Jamaica and the Jamaica Business Development Company will hold a two-day seminar - 'Prosperity through Small Business' - on March 11-12 in Kingston, and March 18-19 in Montego Bay. All the basics should be covered.

For more, email: William Lawrence at williamlawrence@cwjamaica.com.