Posts Tagged ‘capital’
Mini Donuts are PERFECT for Concession Stands
December 29, 2010 | 
Author The easiest way to make a profit is to choose selling concessions with low overhead such as mini donuts. These offer a fantastic opportunity to create easy, fun and favorite food for fairs, festivals or anywhere else hungry people are in abundance. Selling concessions with low overhead like mini donuts require very little start-up capital and are quite simple to run.
You will first need to create a business plan including short and long-term goals. Update this as necessary and allow it to guide you. Then you will want to determine the most profitable location. Also, if you happen to be able to travel any type of distance, you can consider taking your concession stand to regional or state fairs.
Even though selling concessions with low overhead are simple, you will still want to compile market data consisting of analysis and trends of the mini donut business. The easiest way to do this is to observe your competitors including set up and pricing. Chances are, you won't be the only stand selling mini donuts so keep your pricing competitive. Also, always be looking for any new industry developments.
Mini donuts are considered selling concessions with low overhead because they require a minimum amount of inventory. All you need to keep in hand is enough to meet demand. It is helpful to evaluate statistics including the average number of attendees where you will run your concession, this will help you determine your inventory needs. Supply companies can often help provide insight as well.
Even though mini donuts are labeled selling concessions with low overhead, it is still important to properly train yourself and your employees to reduce inventory loss and also guarantee happy customers.
Be sure to obtain proper insurance, you need to protect your funnel cake business and consider the safety of your employees and customers.
Mini donuts are the perfect food if you want to open selling concessions with low overhead. Your fryers are generally the most costly expense but there are also start-up packages that are available from concession stand suppliers.
Posted in Starting a Donut Business, Starting a Donut Business - Legal Issues | 
Tags: analysis, business, capital, Chances, donut, location, state, type, Update, way | 
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Getting Capital for your Donut Business
You have an excellent donut recipe, You have a location and an audience to sell your too... and you are certain that they will sell very well. Now you just need to get equipment licensing and other things rolling in order to get your business started. Yet found a great place to get equipment, but you have found that it can be very expensive. If you do not have any money saved but you are financially secure, i.e. you have enough money to make ends meet. Then he may want to get the capital to run your donut business from other sources.
Do you have good or decent credit? If so, then you may be able to get a small business loan from your local bank. Local banks are usually easier to deal with than big banks that just look at numbers. Credit unions are excellent places to get loans for $10,000 or less. If possible attempt to get a loan at a bank that you frequent often. You may be surprised how easy it is. They will want to know what the money is for of course and what you intend on doing with it. This will help you get the necessary capital that is required to get your business venture up and running.
If getting a loan from a bank or credit union is not an option, Have you considered borrowing the money from a family member? Maybe you can borrow the money from a close friend who could possibly be a business partner? We explained the differences between a business partner and a venture capitalist and a previous post. But to summarize, when someone invests (capital) in your company they will have little control over the day-to-day operations of the business. It is simply your responsibility to pay the loan off when you start to make money, or whatever arrangement that you may have with the venture capitalists. Having a business partner can be a sticky situation if you are not careful. The business partner in your donut business could be difficult to work with or have different ideas on how things should be handled. As previously mentioned you can pay a higher rate on the loan than giving 50% of the company to someone who will not be actively involved in it. Be very careful about taking money from people and the contracts that you sign.
The business partner model has worked for us and our situation, but it may not for you. Assess your needs and what everyone brings to the table before you make a decision. This lone decision Could mean the success or failure of your venture. Not to mention the overall happiness that you will have our not have by going into the doughnut business.
