Small business loans Funding your Food business How to get started

– [Damian] Hey, guys. It’s Damian from Marketing Food Online. Just finishing up a day here in the shop. So I wanna cover a really
super, super important topic and it’s about funding. When you first start your food business, the biggest question
you wanna ask yourself after you figured out what you wanna do is how am I going to fund this? So that is exactly what
I’m gonna cover right now in Marketing Food Online. (serene music) Hey, guys. All right, so let me
head on over to our desk and oops, let me just cover
this really quick topic. It’s super important to understand where is it that you’re
going to get your funds from and how are you going to fund it if you haven’t even sold anything yet and you’re really not sure whether or not a product is going to sell. So that’s a great, great question. So let me give you a little rundown about my experience with this process. Of course, as you may or may not know, my wife and I owned and
operated a retail bakery for a few years and we
funded that ourselves. Was it a right decision or a
good decision or bad decision? It really wasn’t a question about that. Would I do it again? Probably not. I would have probably
planned a little bit more. But using our own funds, it was definitely a learning
experience and as always, I don’t look at anything that I do if it doesn’t work out the
way that I wanted it to, I don’t look at that as a failure, I simply learn from it and move on. So basically, I personally
would probably recommend you have a little bit of traction, have a little bit of sales history on a very small scale
before you seek out funding or try to ask for funds
outside of your own money that you may or may not have available. Now, of course, there’s a lot of different ways to get funding. Some people take out home equity lines, some people use their credit cards. If I would recommend anything to you guys as you sit and watch this video and you’re just starting out is to take very small financial steps and very small steps with your business. And they kinda coincide,
they kinda go hand-in-hand. When you get to the point where you can get some traction moving and you get a lot of
interest in your product and you begin to sell what you’re making, so you’re making a little bit of profit, it may be small but you’re
selling through what you have, that would be a great time
to maybe look at the idea of putting together a business plan and then sitting down with
either a financial institution or some type of investor
that you may or may not have outside of your family or friends. Some people actually go the route of creating a product, selling it, and they begin to have a
little bit of a sales history and then they approach family and friends and say, look, I really wanna
make this business happen, do you guys have any funds
available you want to loan us and that we would repay? Now, keep this in mind that
that’s a very fine line that you’re treading on. And what I mean by that is when you start to dig
into other people’s money, friends and families, those who are not obviously a
bank or something like that, you wanna create a plan
to repay that back. And it’s also a great idea to create that and add that portion to your business plan when you approach them
because what it’s gonna do is it’s not only good for you to really have a good foundation, a solid foundation of where
you wanna take your product, where you wanna take your business, but your friends and family, those that are giving you their money, it’s gonna give them a solid footing that you obviously have
thought about this. It’s not some crazy plan that’s something that you’ve
actually sat down and created, you have a vision for it, you have an idea maybe five years, maybe three years, seven years out, you know where you wanna
go with the business. So having a little bit more planning time is really gonna give you a
better footing believe it or not. It’s really gonna help a lot. I, personally, when I first started, my wife and I were let go from our jobs so I needed to make some income fast. So I didn’t do a lot of planning, I simply just said, “Let’s go open this “and let’s do this and
let’s make it happen.” and it worked out really good but it didn’t work out as
great as I really wanted it to so that was a really
great learning experience. And of course, you kind
of just brush that off and you focus on where you are today and you wanna move forward. I don’t believe in dwelling on things, I don’t look at what I did yesterday. Today is today and I need
to go forward with it and we just moved on from there. So sit down, make a plan figuring out exactly what you wanna do and understand business plans are something that evolve over time. When you wanna seek funding, you wanna get that money from
whether friends or family or even a financial institution, the more information that
you have spelled out, the more detailed it is, it’s gonna be a better way
for you to get those funds from whomever it is you’re approaching. But if you’re gonna use your own money, keep in mind like I
always, always try to say is it takes small steps. This is not a business idea
that’s gonna happen overnight. It’s gonna take a few
years before it begins to really come to fruition or at least a good one to two years before you can really
begin to get traction so don’t expect this to be
some type of overnight success or from five months from now, you’re gonna be in a situation where you’re gonna have a profit, you’re gonna have the
ability to gain investors or get the interest from other people. Give it some time to really happen and do it locally, do it small because you may realize you know what, you may love to cook,
you may love to bake, you may love to make food, but do you wanna do it as a business? Do you wanna rely on
yourself so much to the point that this food product
or these line of products are gonna be all of the money
coming in the front door to pay your bills? And you may realize
that it’s not something you’re that passionate about
and then you can just step out, you can back out of it if
that’s something you wanna do. Being a food entrepreneur
is a huge challenge. Trust me. I can attest to a lot of times when I was about to just call it a day and go another direction
but if you stick with it, if you believe enough
in what you’re doing, it will definitely come true, it’ll definitely be profitable, you can definitely make a
very good living doing it. But remember that it has to be something you’re really passionate about and that’s gonna drive you to start small and keep your ideas big and then reach for that step-by-step. So I hope that gives you
a little understanding about where you should seek
funding and how you should do it and take your time doing it. If you have any questions about this, definitely, as always,
let me know down below.

2 comments on “Small business loans Funding your Food business How to get started”

  1. Marketing Food Online says:

    Funding your food business can be a HUGE challenge here is what I learned and how to get yours underway!

  2. S.C. Beatty says:

    Wow, that’s some first rate food porn! Now we need those crepe, syrup, and pancake recipes. Although the commentary alone is worth the view 👍

Leave a Reply

Your email address will not be published. Required fields are marked *