My Donut Business.com

Posts Tagged ‘franchise donuts’

Happy belated donut day everyone....  here is a video update of what we have been up to and where we are headed with us....

Be sure to check out MyConcessionBusiness.com

We talked yesterday about the benefits of having a doughnut businessness franchise. Today we will discuss the downfalls of having a doughnut franchise. There are many reasons why going with a franchise may not benefit you or be best for your particular situation. The first reason why having a donut franchise May not be the best idea are the very high startup costs. Not only will you have a high startup costs, but the donut franchise will expect you to have a reasonable cash flow and high net worth. These two things alone will keep many people from being able to afford a donut business franchise. Opening a good business franchise usually requires that you have been successful in either another business or your job. Often times you can pool the resources of a few people in order to meet the requirements. It is never a good idea to get into a business, especially a franchise situation, when you are strapped for cash or do not have your financial affairs in order. Another downfall of the franchise system is you lose some level of control over your business. You will be told when to do it and how to do it, after all is not your brand, and you do not own the brand. If the franchise wants you to change the look of your restaurant, you will have to comply with their request. Anything that the donut franchise would want you to do, you will need to pretty much do what they say. You have little if any control over what they may request. You are at their mercy most of the time. Not only will the donut franchise control how you run your business, but they take a chunk of your revenue as a royalty. This royalty is rarely negotiated and is Told to you up front before you buy into the franchise. The cost of doing business under a donut franchise system is very high. You have the cost of the building, utilities and several employees to be concerned about. We want to keep things small and simple, this is why we are going with the single menu item donut business model. The cost or low end of profits can potentially be very high. When you start having to build buildings and being involved in a franchise it gets very expensive very quickly. You will need much more money in order to survive opening a franchise.

There are many benefits to having a doughnut business. We are focusing on the small doughnut business, and not the franchise donut business model. The franchise donut business model Is not an effective way to sell small doughnuts, which typically are just one product. People who sell small doughnuts may sell milk, coffee or a different flavor donut but that is the extent of what they sell.

One good thing about the doughnut business are the low startup costs. You can typically buy the equipment anywhere from $5000-$20,000, depending on the route you want to go. If you just want a small fryer to set up shop at flea markets or even in your kitchen selling doughnuts, then you can get by with investing $5000 or less. If you want a concession type stand for your doughnut business then you will spend $20,000 or more on start up cost. Donut stands are good if you are selling your doughnuts at festivals, fairs, carnivals, sporting events or any other outdoor activity. Having a doughnut concession stand is a good way to generate a lot of revenue very quickly.

Doughnuts sell! As long as you have a crowd or an audience for your doughnuts, they will pretty much sell themselves. It is hard to avoid the smell of the doughnut, this is what gets them to your stand. Once they are there people can barely resist buying your doughnuts. The overhead is low for making doughnuts. You will have very little cost on the ingredients and equipment. The return on investment can be quite high.

If you can find a good place to sell your doughnuts, with a lot of traffic, you will make money. You will need to keep in mind the rent you are paying and how much you pay your employees for their time. As with all business endeavors, you will need to keep check of all expenses. Another thing that you will need to find, is a good donut recipe. You can try the recipes that can be found on the banner below this post, that website also will teach you how to start and operate your donut business. It is an excellent way to get the support and ideas from someone without having to purchase a franchise. It is well worth the money to invest in the system.

It is a very important component of any business, but especially for the donut business.... the business needs to be where the people are gathered. This is no different with the doughnut business. There are many places you can set up shop, anywhere from flea markets to mall locations. Of course the location you choose will often depend on how much money you are willing to spend on securing your desired location.

Carnivals and other outdoor activities are an ideal place to sell doughnuts. Also, any place where a large crowd has gathered. If you can locate your doughnut shop near a football, basketball or other outdoor activity, you will well be on your way to getting consistent revenue. If you have a lot of traffic, chances are real good that you will be able to sell your mini doughnuts. People just cannot resist the smell and taste of these delicacies. Carnivals and outdoor activities are easy to set up, easy to manage any overhead is very low. You may want to get a trailer or simply setup your doughnut fryer on a secure table. There are many manufacturers that will sell doughnut or concession equipment to you. It is not difficult to find equipment for the donut business.

Of course we are speaking about setting up our will allAnd in and in and in and indonut business at carnivals or other places where outdoor activities are held, but you may be interested in a stand-alone building. This would be a huge undertaking and the help of a franchise would help you get your feet wet in the donut business. There are advantages to standalone donut shops, but the overhead is a lot more than if you simply sell your doughnuts at carnivals, flea markets or other outdoor activities. The goal is to not have a huge amount of overhead when you first start out.

Another way you can get your doughnuts out to the public would be to offer them to churches, or other religious groups. You can market to churches, perhaps split the profits with them, and get the word out about your delicious doughnuts. Churches are an excellent avenue to sell your doughnuts. Word can spread fast when your doughnuts are exposed even to just one religious organization. If you got big enough you could even and lest someone to do your marketing for you, while you are location helping sell the doughnuts.

Location, location, location, as you know, in business it is very important. It is no exception with a doughnut business. If you have a good location, market your doughnut business with precision, you'll will be on your way to increased profits.