Entrepreneurs who desire to open a smoothie business can meet the needs of smoothie lovers all over America or simply in their locale. If you want to start a smoothie business, you have to consider several factors, including the possibility of starting a franchise, the location of your business and the amount of money you currently have to invest. If you would like to have your own company, you interact well with people of various backgrounds and you are able to make delicious smoothies, you can begin a smoothie business.
Conduct your due diligence. Contact other smoothie shops that are at least 30 to 40 miles away from your planned location via phone, so that you are not speaking with store owners with whom you will be directly competing. Pick the brains of the smoothie-shop owners you speak with by asking them the types of smoothies that bring in the most revenue, the number of hours they work each week and the number of years they have been in the business. Build friendships with these owners and travel to their stores to determine what kind of business they are doing.
Find a suitable place to open your smoothie business. Choose an area that many people frequent on a consistent basis, such as a strip mall or a main road in your town. If you are not sure where you want to locate your business, consider leasing a spot that you can move from at a later date if you are not satisfied with that location.
Determine the amount of money it will take to open your business. Keep in mind that start-up costs can be more than $300,000 depending on the size of your store. Another important factor to consider is the area where your shop will be located, because high-traffic areas may come with a higher rental or purchase price.
Consider starting a franchise. Be sure you understand that opening a smoothie franchise requires you to submit to certain requirements, such as the exact ingredients used in each smoothie and the use of company logos on all advertising copy. You also must pay the company from which you buy your smoothie franchise a fee of up to 5%, which is taken out of your gross earnings.
Obtain your business license and permits. Contact the Department of Business located in your state to determine what licenses and permits are required, as policies vary depending on your location. Keep in mind you will also need to contact an insurance broker to choose the business insurance plan that will work best for your smoothie business.