How to Start a Gourmet Chocolate Business

Become known as a local chocolatier.

You are passionate about chocolate. You have been hemming and hawing about starting your own business, worrying about the state of the economy and other concerns. In 2009, "Specialty Food Magazine" surveyed its readers and discovered that 65 percent would rather have a little bit of premium, than a lot of average chocolate. They defined premium chocolate as priced higher than $16 per pound. Therefore, the economy poses no real obstacle to launching your gourmet chocolate business.

Instructions

1. Visit all competitors within a 60-mile radius. Sample their product lines and note their prices and packaging. When you set your own prices, stay close to the going rate. If you are making your own chocolate, experiment with packaging. If consumers are willing to spend $16 per pound, they expect tasteful packaging. If you are setting up a retail business, select products that will sell in your community.

2. Focus on what makes your chocolate so unique. Do you emphasize that it contains a healthy dose of antioxidants? Are you planning to sell only Fair Trade chocolate? Do people automatically associate your name with chocolate? When selecting a name for your business, you must also consider state and local requirements. You cannot infringe upon the rights of another business name. Many states require that a sole proprietor use her own name for the business name, unless she formally files to use a trade name or fictitious name.

3. Call your local planning department to find out the zoning on the property you selected. Whether you have opted for a storefront or are operating from home at first, taking orders by phone or email, you must comply with zoning ordinances and regulations. These laws define and restrict how you can use your property. Hire a local land use attorney if you must seek a zoning change.

4. Apply for the appropriate licenses and permits. You will require a state business license for tax purposes. If your state has an income tax, register and obtain an employer identification number from your state department of revenue or treasury department. You will also need a sales tax license. The U.S. Small Business Administration (SBA) offers advice and training throughout the country. You can also visit them online.

5. Hire professionals. An accountant can help you navigate the constantly changing IRS rules about taxes, income and deductions. Ask him to help you set up a realistic start-up budget that includes only what is absolutely necessary to start. Hire a graphic artist and website designer to create a professional-looking website and business cards, brochures and other advertising.

6. Spend your money on advertising. Do not depend exclusively on homemade fliers tacked on the supermarket bulletin board to attract customers. Classified advertising can be extremely cost effective. Most papers have a "local business" section where you can run an ad for a very reasonable cost. Consider advertising in local coupon packs. A set number of local households--usually 10,000 per area--will receive these packs. Because they are valued and well known, these packs do get opened. You can offer new customers a 10 or 20 percent discount.

7. Grow your business. If you are making the chocolate, experiment with different shapes and flavors. Keep up with the latest chocolate trends and become known as a local chocolatier or expert. Be prepared to discuss the cacao content of each chocolate in your shop and recommend the best liqueur-filled chocolate from Europe.

References

• Small Business Administration: "Small Business Planner"
• "Real Home-Based Business"; Dan Furman; 2007
• Specialty Food Magazine: "Bite-Sized treats and Expanded Channels Shift Premium Chocolate Sales"; 2009
• Bureau of Labor Statistics: "Considering Self-Employment: What to think before starting a business"

Resources

• National Association for the Self-Employed
• American Association of Home-Based Businesses