When I was in high school in the 1980’s, a career in the food industry was not considered to be a practical choice for ambitious students. Back then, you only took Home Economics if you were struggling with those ‘prestigious’ subjects that would lead you to more profitable professions.

Today, it’s almost fashionable to declare that you want to make money with food. Thanks to cable TV food shows, the resurgence of fine dining, as well as notable recognition programmes such as the annual Jamaica Observer Food Awards, many persons are now proud to be earning with food.

However, while your co-workers may rave about the bread pudding that you sell on Fridays, it may not necessarily mean that you should venture into opening a dessert business. Earning part-time income from your hobby is one thing, but starting an enterprise requires careful deliberation.

If you have always wanted to make your fortune in food, you have to move beyond the pleasure that you get from providing your offering and focus on the business side of the food industry. Let’s look at some of the considerations that will help you to make money from your passion with food.

Determine the demand

First, you should do some research to see if there is a sustainable demand for the food you wish to sell. In business, demand is people’s desire for your product or service, backed by willingness and ability to pay for your offering. You need to know if enough people want to buy what you’re selling.

You must also have a clear picture of what your target customer looks like. Target customers are the persons who are most likely to buy your offering, although they may not always be the ones to consume your food. For example, parents will buy birthday cakes or sweets for their children.

If you don’t have the resources to hire a company to carry out market research, you can still design your own survey to test your business idea. Enlist the help of family and friends to find persons who can give feedback on your offering and advise you if they would become your customers.

Go around to offices and give out food samples or provide your service for free, and ask persons for their honest opinions. Utilise social media to get a wider cross section of viewpoints about the feasibility of your concept. You must be confident about the demand before you get started.

Know your numbers

Once you have ascertained that there is a reasonable demand for your offering, then consider the financial aspects that will determine your success. In business, you must be aware of your costs so that you can calculate your selling prices and know how much you have to sell to generate a profit.

For example, if you want to open a patty shop, you need work out how many patties need to be sold each week to pay your bills. Since there is a ceiling to the price that people are willing to pay for this food item, you need to ensure that you can generate enough sales to justify your operation.

Businesses often fail not because the ideas are flawed, but because the owners do not use basic accounting principles. Budgeting is a key element of running a business, as it helps you to plan for your spending over a year. You can download a sample business budget at financiallysmart.org.

If your budget indicates that your business idea will not adequately cover your expected costs, then you may have to adjust your plans. You could decide to scale down your concept, expand your range of offerings or provide a different product or service which may attract premium pricing.

Utilise efficient processes

Knowing your target market and understanding your input costs are key determinants that will help you to make decisions about the best way to present your offering to the public. In business, you have to design efficient procedures and use optimal processes to ensure that you make profit.

Let’s say that you want to open an eatery to sell your signature line of soups. You don’t want to find out after you have opened that your customers won’t come to your location or that your overheads are too high. Being aware of your market and costs will help you to find the right way to operate.

In this scenario, it may be advisable for you to invest in a food truck so that you can travel directly to your customers and lower some of the expenses associated with a physical location. It may also be more cost effective to only cater to a lunch crowd instead of remaining open all day.

Managing your processes also involves making the right decisions about hiring staff, maintaining accounting records, advertising to the public, and keeping your property secure. You may need to get guidance from a business advisor to design optional systems which can boost your profits.

In the fickle food fraternity, it is essential for you to update and innovate to stay relevant. Strategic planning for the future must be an integral part of your business process, as you have to keep abreast of trends and developments in the industry if you want to create a fortune with food.

Copyright © 2015 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, May 28, 2015.

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl