My Donut Business.com

As we have already discussed the donut business can be quite profitable. When you are selling mini cake doughnuts there is a high profit margin and low overhead. Depending on where you are selling your doughnuts, the overhead can be very low or very high. We are planning on starting small, Getting a machine that makes the doughnuts, and finding a place to sell them. We are focusing our attention on two places, a popular entertainment area that has movies, restaurants and some smaller shops. It is one of the open mall concepts where everything is outside, and people walk around the complex.

Another place we are thinking about selling our doughnuts, is the flea market in our local area. As you probably can imagine there is a lot of traffic that flows through the flea market. Anywhere there is traffic you can be assured that you will sell a lot of doughnuts. The problem is, or what we have found, is getting into these places to sell the doughnuts. Once we get into the place of our choice, we plan on purchasing the doughnut machine and setting up shop there. That is the only thing that has stopping us from continuing this project. There are other ways we can get the doughnuts out into the marketplace, but we would rather have somewhere to sell the doughnuts right from the start.

So now that that is out of the way, should we sell anything else but doughnuts? We have thought about this, and each one of us have varying opinions. We all do agree however, that the menu should be very limited. We will not sell 100 varities of doughnuts, we all agree on that. It is just not in our business model, the more choices you give the consumer, the more overhead that you have. We have studied other businesses that offer small doughnuts, and they have a very limited menus themselves. We will probably model Our donut business After what they are doing. We have noticed that the doughnut shops that are in business today have been around for quite some time now. None of them have changed much, and have not added things to their menu. They offer one or two varieties of small doughnuts, and perhaps a couple varieties of drinks to go along with the doughnuts.

We have facts about offering milk, juice or coffee to our menu but we have mixed feelings about this. We are leaning toward just producing the doughnuts and offering two different kinds of flavors. We will most likely have sugared and cinnamon flavored doughnuts. Depending on our location, we may offer milk or coffee but we are afraid of the overhead cost of adding these drinks to the menu. We may do it as a market test and see how it goes. But as mentioned the more items you have on the menu, the more overhead that you incur. If the doughnuts do not sell as well as we anticipate, we could potentially have a lot of waste as far as the drinks go. If the doughnuts sell well, then the drinks will complement the doughnuts and we can start selling drinks as well. Basically, selling drinks will depend on the net sales. Then we will go from there.