How to Start a Candy Store Business
Are you planning to start a candy store? Well, that could be a lovely business idea as almost everyone loves candy! I’m not just talking about kids here, even adults love to eat candy. The best part about having a sweet tooth is that no matter the location you might be, there’s a candy shop to cater to your needs. If you were ever a kid and you watched the movie ‘Willy Wonka and the Cholate Factory’, then you would know that a candy business is an exciting one.
The best part about this business is that you’re always assured that you would be making someone happy every time you sell a candy. It is a business that never goes out of style as is shown in the fact that candy-making industries make more than $20 billion every year. In this line of business, you’re sure to find ‘sweet’ success at all times.
The best part about a candy store business is that there are no restrictions on what you can sell, you can sell chocolate or jelly beans or even bubblegum; whatever treats people want. A lot of people go into the candy store business as a hobby and while it is very exciting and fun, it is important to plan out the steps to take in opening your own candy store.
While it can be profitable, the wrong steps can take you down the wrong path. The market is always growing and the competition becomes fiercer with every passing day; a solid plan will help you not only do what you love and be surrounded with sweetness all day but also help you make as much money as you can from the venture.
Below are crucial steps you will need to follow to start a candy store business and be successful at it. The best part about a candy store is that they are always in business. People don’t visit candy stores only when they have a celebration or an occasion. Some people eat candy just for the hell of it and some go into a candy store when they want to feel like kids again. Follow these steps and soon you will become many people’s plug for candies whenever they need it.
Find Out What You’re Dealing With
When starting a candy store business, you have to keep in mind that your first customers will come from your locality. You have to first find out what your competition is; it would surprise you just how many people are already in the business. Make sure you carry out extensive research about what everyone is selling. Check online stores also and find out what sells and what does not.
When you have done ample research and you’re armed with information, then it will be easier to decide what you want to sell. Supplying what your competition has in low supply is always a good strategy and even if you want to supply what your competition and the general market does, then you have to find a way to make yours different. Carve out a unique niche for yourself and you have the market at your fingertips.
Evaluate the Cost
Even though a candy store is meant to be all magical and also fun, it can be pretty expensive to start with. A candy store is meant to be colorful, so a significant amount of the capital is meant to go into the decoration and design of the store. Make an estimation of how much it will cost to make up the store. Also bear in mind the cost of buying products you would like to get; how much will it take to buy enough candies to start with?
Also bear in mind the cost of rent, marketing, insurance, display cases, packaging, and other important stuff. If you intend to hire staff, then it is important to also estimate how much you will need to pay them. Add the expenses all together to have a good idea of how much you will need to efficiently start a candy store. You don’t want to be left behind or stuck once you start, do you? Knowing your starting cost and your ongoing cost is an important step in starting your candy store business.
What’s Your Business Name?
This is another important part of starting your candy store business. You need a name for your business and since candy stores are meant to be exciting, a catchy name is important. When picking a name, make sure that your chosen business name hasn’t already been picked by someone else. This is important especially if you have plans to open an online store; you don’t want the name you pick to already be the domain name of another store.
The trick is to keep it simple yet classy; don’t choose a long and complicated name for your business as that might cause potential customers to have difficulty pronouncing the name of your store. You should also pick something that stands out, so that it sticks to the mind of everyone who passes by or visits your store. Your business name represents your business, so make it count.
Figure Out Your Target Market
This falls in tune with your location, what demography are you targeting? Are you focusing on just children or you intend to target adults also? These are questions that need answers. You need to make a decision if you intend to sell a particular kind of candy alone or you’re intending to explore varieties. Are you targeting high-class clients or you intend to cater to the middle class also.
To start, however, it is advised that you keep your options open. Try to cater to every demography to garner customers in your first few months and then you can become exclusive with time after accumulating customers. If your target market is teenagers, then it is important to also make sure your store doesn’t look like a kid store also.
Bring it all Together
This is the part where you make all your information come together; you need to make a business plan. A detailed business plan will help you develop a sense of direction and makes it even more real. Your business plan will contain the complete evaluation of business cost, information about your target market, and also the information about the business which you gathered.
Your business name is not left out also, it should be at the very top. Apart from this vital information, you also need to add to the business plan how you plan to make money for your candy store and how much you will be charging the customers. These require detailed research so that your business plan can cover all grounds. Also, include your long term plans and your short term plan into the business plan so that you can use it as a landmark whenever you achieve something.
Your business plan is not set in stone and so, can be reviewed from time to time. Without a detailed business plan, your direction is unknown but when prepared rightly, then it serves as a compass for your business and will ensure you don’t get stranded before your business picks off.
Find other Sources for Funds
Apart from your savings, you must have other options where you can get funds from for your candy store business. Some people try to have all the capital they need before they start their candy store business but if you don’t have enough funds to cover all the costs, then you should find other sources for your funds.
A popular source for funds is loans; this can be gotten from credit unions or even banks. Check out the interest rate offered by whichever organization you plan to borrow from before proceeding. Also, calculate how long it will take you to pay back the loan to ensure that your candy store is not deep in debt before long.
You can also choose to get loans from willing friends and families; this is far more casual and will save you time and the stress of a formal proceeding. A family member can also choose to invest in your business if they’re convinced. Another source of funds is getting investment from outsiders. If you pitch your business right enough, you might be lucky to garner the right kind of interest.
Read Also: Funding Options for Small Businesses
A Walk Down the Legal Path
Once you have the funds and other sources you can get funds to start your business as well as your business plan, then it’s time to make your business legal. The first step to take is to get your business insured against any form of problems and unforeseen accidents. Setting up an LLC which helps you bypass whatever legal issues that might arise against your store by making sure you’re not liable for issues. You can also decide to get the services of a registered agent which will make sure that your privacy is ensured and remain compliant.
Taxes Registration
Taxes are unavoidable when you intend to start a business; they are everywhere and each one is just as important as the other. There are taxes on the state level as well as the federal level which you need to register for if you want to be on the right side of the law when you open your business. Of course, to register for taxes, it is essential that you first get an EIN. But that is as easy as a walk in the pack and the best part is that it is completely free.
Bank Account For Your Business
It is always advised that you don’t attempt to use your personal account for your business. This is for your own good and will protect your personal assets. In the case of a lawsuit, your personal assets are endangered if you use the same account for your business and personal use. This is called piercing your corporate veil in business laws and is always the smart thing to do.
Open a new account for your business to protect your assets and also make it easy when you want to carry out accounting or pay your taxes. When you open a business account, you also need to get a credit card as it helps you keep expenses that are personal and business on different cards. This will make accounting far easier in the long run.
Another reason why this is important is that it helps you build up a credit history for your business. With this, it becomes much easier to get investors as time goes on, and raising money for your business becomes far easier.
Read Also: Importance of Bank Reconciliation
Get Your Permits
This is also another important step of staying on the right side of the law; not having the right permits and licenses can end wrongly for you in the long run. The end result is always bad; you might be required to pay a huge sum of money as a fine or your business might also be shut down in the end. Keep in mind that since you’re selling edibles, the health department might come for inspections at any time.
These inspections are to ensure that you remain clean and comply with the local health laws, this is to avoid stores selling contaminated food to their customers. The health department sends down an inspector to inspect your premises and if you pass the test; you will be able to obtain your permits and license. The common licenses that are needed are the state business license and also the city business license.
Develop A Relationship With the Right Supplier
Now that you know the kind of candies you want to sell, you must create connections with suppliers who will keep the candies coming in whenever you need them. Developing a good relationship with suppliers is profitable in the long run since you plan to patronize them for a very long time. If you’re looking to sell an assortment of candies, then you should find someone who supplies different brands.
This allows you to work with one supplier instead of having to find different suppliers for different brands. You can find out which distributors are more popular and also check reviews of the different distributors before picking one to stick with.
Finding the Right Location
Now that you have the permits, a supplier, capital, and a detailed business plan, it is time to make the candy store a reality by finding the right location to open your store. Make sure the chosen location is in line with your target market. If your target market is children, then your chosen location must have a lot of children who might come across your store.
Choose a location that is in the center of the city if you intend to attract as many customers as possible. Contact a professional real estate agent to get the right store. When you find a store, make sure your lawyer checks out the agreement before you sign and agree to the terms and conditions.
Set up Accounting
It is important to have an up-to-date record of all the expenses you incur from the beginning of opening your candy store. This will help you keep track of how much you’ve spent and if you’re still staying within your budget or if you’ve spent more than you planned. Finance is a tricky thing and a comprehensive record will make it easier to gauge how well your business is performing in terms of business.
Another part where business accounting helps is in terms of taxes. When your accounts are accurate, paying your annual tax becomes much simpler. Keeping the right records will help you cut down spending if you’re overstepping your budgets also. When your business kicks off, it will make it easier to know when you’ve started making profits, and if you’re not.
Create a Marketing Plan
Now that you’ve settled issues concerning your finances and also location, the next thing to do is create a plan for marketing. Everyone is going online lately as people get to spend a significant amount of their days on the internet. Creating a website for your store is always a great idea as it will place your store in the right spot to get more customers.
You don’t necessarily have to sell your candies on the internet, you simply have to drive prospective customers to your platform by providing information about your stores online like your location and also what time you’re available. Another way to get people to visit your website is to run a blog that provides information about the products you sell.
Another method of marketing is by opening social media pages for your store and then carrying out promotions that will boost your posts to the right demography. This creates quick awareness for your candy store and is a good way to garner customers when starting out.
Opening Your Magical Doors
Now for the official opening of your store since you have all your plans ready, licenses complete and your finance in check. It is very tempting most of the time to want to splurge on an opening when starting a business but the best way to do it is to start softly and then tread slowly till you’re assured you’ve got a firm footing.
You need to make a good impression on your customers the first time you open. No one wants to be kept waiting or delayed because of one issue or another the first time they come around. Make sure you only open when you feel ready to take on the workload. The wrong impressions can be damaging for your candy store in the long run and might get you the wrong kind of attention when customers drop bad reviews about your services.
If you want to attract attention to your opening, then it might be a good idea to make it fun and exciting. Making games available for kids will surely make them want to stay longer. You can also release a press report and make announcements on all your social media pages and your new website. Another way to get people to come down for the opening is to offer something to them, like a coupon or a good discount on purchases.
You can also offer sampling to prospective customers to get them hooked on the amazing candies you have to offer them. You can also get your chosen suppliers to send sales reps to your opening to give prospective clients detailed information about your products. If you’re looking to sell locally, this is a good strategy that is very effective.
Pricing
This is another part of starting a candy store, you need to decide how much you plan to sell the products you have to offer. The candies you sell must be affordable by your customers or they’ll be sitting on your counters for a very long time. Consult how much the prices are on the average and stick to that. Prices depend on the products you’re selling and the size of the package. Make sure your prices are not higher than that of your competition to ensure you don’t drive off your customers’ right from the beginning.
How To Make More Profits
Now that your business is up and running, there are several strategies you can employ as a candy store owner to make more profits from your business. Gifts baskets are always a good idea and you can also offer delivery as well as pickup. You can also offer to take special orders for special events and occasions.
In addition to candies, a candy store owner can also choose to sell yogurt as well as ice cream next to their candies, so that customers can have a real treat when they walk into the candy store. Holidays are also a good time to make profits by offering special treats for the season. When you also choose to host parties and events, you tend to make more profits. This is because many parties and weddings these days are known to offer a candy buffet for their guests to enjoy.
Read also: How to Start a Mini Supermarket or Grocery Store
Also selling wholesale could make you a lot of profits, contact restaurants, grocery stores, and other stores and offer to supply them all the candies they need. You could also choose to partner with other businesses related to yours and then benefit from their customers while they benefit from yours also. This is a great way to create a connection with other store owners.