How to Start a Chocolate Business

Starting a business with a timeless product like chocolate can be very rewarding. Like all new businesses, you will need to do your homework and get sound advice regarding the myriad of decisions you'll be making.

Difficulty:

Moderately Challenging

Instructions

Things You'll Need

• IRS publications for starting a small business
• Legal expertise
• A business location
• marketing portfolio

1. The Internal Revenue Service provides a list of Recommended Reading for Small Businesses, both by .pdf format and web page viewing. You should begin any business by understanding what type of structure you want, i.e., sole proprietorship, LLC, etc. Understanding your liability and tax responsibilities is essential. If you need help understanding the terms you can contact the Small Business Administration or a tax attorney for advice.

2. The next step is to decide if your business will need a location or if it will be a home based business. If you are looking for a commercial spot, pay attention to the these three considerations: 1) Does the area support a traffic flow for the type of business I'm opening, 2) will I be competing with any local established businesses that offer my same product or services, and 3) are the operating expenses in the area within my budget just starting out?

3. Chocolate, in and of itself, already has public appeal. But that doesn't mean that you can rest on chocolate's laurels. You'll need to be inventive, creative and find something that sets you apart from the rest. Chocolatiers usually have trade secrets to their wonderful tastes and this is assuming you will have developed your own prior to looking into opening your own business. But packaging, styling, promotions and marketing can give you an edge on getting noticed in the world of rich and yummy.

4. Unless you already have your own start-up money, you'll need the help of a lender to get your chocolate dreams off the ground. This will require a business proposal that shows them exactly what your product and/or services are about as well as your projected earnings. The articles below can help you get acquainted with how to draft a winning business proposal.

5. Lastly, you'll need passion. No new business can survive, irregardless of how brilliant the product or service might be, if the owner isn't in it 110%. There will be days that make you second guess your efforts. There will be long hours with little to show for it in the short term. But if you seriously want to use your love and talent for chocolate to build a business, you must be ready to give it all you have until the day you realize your business has truly won the golden ticket!

Tips & Warnings

• Talk to others who have opened small businesses successfully

• Brainstorm ideas for making your business unique and separate from the rest

• When looking for a commercial spot to open your business, remember the real estate rule: Location, location, location!

• Operating a business requires an understanding of state and federal guidelines and laws. You should seek the advice of a professional as a first step to pursuing your goal.

• Food industry businesses have specific guidelines. Be sure you do you homework to find out what those are!

Resources

• Recommended Reading for Small Business (IRS)
• Kiplinger.com, Six Steps to Starting Your Own Business