My husband and I live in a retirement rich area. We are young (27), professional individuals both with full time jobs but would like to start a business where we cook for the elderly/retired in the evenings. We can make food for the week, or food for the night, etc. We would have a variety of options. We have a lot of ideas but basically would love to hear advice from other business owners about how to get started, etc. Thanks so much!!! :)
      Answer1:Before you do anything else check with the local Health Department and see what their requirements are in regards to facilities, equipment, procedures and personnel.Next, do some research and try to determine the size of the market for the type of service you are planning on providing and how much people would be willing to pay. Another thing to consider is that most new businesses have a negative cash flow so you should both keep your daytime jobs until the business starts bringing in more than it pays out.If it still looks like an attractive business opportunity go for it.Hope this helpsJerry-the-bookkeeper
      Answer2:There are a lot of steps but none are overly complicated. Planning, research, adequate financial resources, and a personality that is compatible in having an income that is based on factors you can control and many factors you can not control is a must.First determine if there is a need? Just because you think there is a need doesnt mean there really is a need. If there is a need what is the average $ amount the prospective clients will be willing to pay? After that is determined. Make some test dinners within that price point and get feedback from prospective clients. As a rough guideline (not Knowing the food business) a 50% gross profit bench mark is a good place to start your price point. Find out what other food businesses gross profit margin is. The smaller the business the higher the GPM must be.I would suggest you have an income other than the business for period of at least a year. Once you start develop a cash reserve of 3 months cost of doing business. Limit borrowing to no more than 30% of your total assets. Take some small business classes. Learn how to read a balance sheet. Understand the importance of gross profit, break even points, quick ratio. Become an expert in marketing, business financial manager, and production management.Good luck - this could very well be the funnest thing you ever do.