How to Start a Food Mail Order Business

Chocolates are one of the most common foods ordered in the mail.

Starting a food mail order business requires considerable thought. Why? Most food-related businesses fail in the first year. These failures often result from poor planning. If you want to start one, set goals and map out your path.

Instructions

1. Write a business plan. It should fully describe your food mail order business, including its location, type of food, beverages (if any) and service level. Additionally, list your goals and state how long you believe it will take for you to make a profit and expand. Also have at least one sentence summarizing your overall business. This very specific sentence should read, for example: "My food mail order business will serve healthy dishes to the New York area for under $8 per meal."

2. Calculate your starting costs. How much will it cost you to purchase or rent a location, hire staff, order food, obtain any equipment and market your business? Most businesses don't make a profit the first year, so figure in "cushion" money to help you stay afloat until your business is profitable. Include a line in your budget for emergency costs such as kitchen floods, employee walk-outs or a delivery of spoiled products. Every food business has them.

3. Raise funds for your business. The cost of starting a food mail order business varies, but most businesses need at least $10,000. Either approach a bank or secure investments from other people. Try not to use your own funds, in case your business does not achieve the success you expect.

4. Obtain a business license that deals directly with food. Specifically, you will need to obtain a restaurant and food license. If you sell alcohol with your food, you will need a liquor license. At your local city hall or on your state's website, apply for licenses and get further detail from specially trained representatives.

5. Select a food source. You will need to do this if you don’t plan on making the food yourself. Be sure it follows state health codes for cleanliness and food preparation and has a good reputation.

6. Find a distributor. If you aren’t sure where to look, ask other local food mail order services. They will be able to lead you in the right direction and possibly mentor you.

7. Pick a service location. Make sure it's big enough for all your equipment and staff. The location should be less expensive than a retail space since you are mainly dealing with mail-in requests, not walk-in customers. Don't be afraid to work out of your home. Many people do in the beginning to reduce expenses. You don't need a lot of space initially, as your customer base will probably be under 100 people.

8. Set up a customer service base. Fill positions with friendly, reliable people who know how to process mail order requests efficiently. They will need to be computer literate and understand how to operate a Windows-based system. Also, employees should be able to take accurate notes and type at least 30 words per minute in order to take orders quickly. If you can’t find these human resources locally, use an administrative services company.

9. Launch a website. It should list the specifics of your food mail order service. Make the site user-friendly: People with basic computer skills should be able to navigate it easily, clearly see how to order food and understand how much they will be paying.

Tips & Warnings

• Start off slowly and gradually build up your customer base.

Resources

• Mail Order Food Safety