Do you enjoy eating chocolates and candies and thinking of starting a business? If so, read this detailed guide on the different steps you need to follow to start a chocolate making business.
The demand for chocolates is on the rise. As per industry experts, the people of the United States alone will consume more than 1,600 million Kg in volume by the year 2023.
The chocolate and candy industry remained strong through the recent recession. Considered a luxury, chocolate surprised many industry observers with continued sales strength over the last several years. But one thing you must remember, there is stiff competition in the chocolate industry. If you want to be successful in this business, you must plan it carefully. Find below list of basic steps to be followed to start a successful chocolate making business.
10 Steps to Start a Chocolate Making Business
1. Research the Market
Before you start candy or chocolate making business, it is extremely important to understand the demand of the immediate market you will be targetting. Go for extensive research on the local market and understand the taste of the local chocolate loving people. If possible, talk to local distributors and retailers and take feedback regarding which kind of chocolate items are in demand. In addition, have a look at the online market and read stories of successful chocolatiers.
2. Create a Chocolate Making Business Plan
Based on your findings after researching the market, start writing your own business plan for the business. A properly written business plan is a very important document for your venture, as it will guide in running your business in expected lines. Additionally, if you are looking for a fund, it will come in handy.
3. Name Your chocolate/ Candy Making Company
Though otherwise ignored as a not so important factor in starting a chocolate-making business, it is mostly found that most successful businesses have a relatable and easy to connect business names. Search the internet for profitable chocolate companies, you will find the answer. Check this guide to learn more about different steps in naming a business.
4. Learn the Process of Chocolate Making
Most successful entrepreneurs in the chocolate industry created a unique recipe for their chocolate items. If you have one, give it a test-run with people you know and take feedbacks.
If you are a newbie and does not have the knowledge of making chocolates, it is a must to learn the techniques. You can attend classes from someone who teaches the process. If you don’t have, search the internet, you will find plenty of trainers conducting online courses on chocolate making.
5. Make Your Chocolate Making Company Legal
If you are into the business of making or selling chocolates and candies, you will need to acquire certain licenses and permits from local authorities. Since you are dealing with food items, check with local authorities and get those permissions from the competent authorities.
6. Register Your Chocolate Company
Every state and country have different sets of rules for forming a company. Check with local relevant authorities and form a legal company. If you are from the United States, for example, forming an LLC will provide you with certain extra benefits.
7. Fix Space
If you have extra space at your home, you can consider starting from there only. But, you need to ensure the chocolate making kitchen space is always cleaned and properly handled. You can also rent commercial kitchens in a nearby location. For selling your chocolate products for a wider audience, consider renting retail space.
8. Fix Pricing
Pricing will play an important role in making your business profitable. There are many pricing methods you can apply like mark up pricing, value-based pricing, etc. Check this article to know more about fixing pricing for a product.
9. Set Proper Accounting Systems
To run a profitable any business, you need to have a clean and hassle-free accounting system. It is no different in running chocolate or a candy company. Choose proper accounting software to set up a proper bookkeeping system.
10. Promote Your Chocolate Making Products
If you are starting with a low budget, a carefully planned marketing strategy is critical. There are many low-cost ways of promoting your chocolate making business. You need to decide which ones will work best in your locality.
In addition, set up your distribution network with distributors and retailers and offer them benefits so that they are enthused to sell your chocolate products.