Food Business
The Food Business segment offers specialized tools and support to help aspiring restaurateurs, food trucks, catering businesses, and market vendors navigate health regulations, permits, and successful business practices.
phase: planning
Step One: Research & business plan
Begin by conducting thorough market research to understand the food industry, competition, and target audience. Use this information to craft a solid business plan that outlines your business model, goals, operational strategy, and financial projections.
Tasks
Lessons Learned: Step One
phase: planning
Step Two: form your entity
Choose the appropriate legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. Register your business with the State of Michigan, obtain a tax ID number (EIN), and ensure you meet all legal requirements for your chosen structure. Set up a commercial bank account. Properly insure the entity, property, and equipment. This step also includes applying for any food-specific licenses or permits.
Tasks
Helpful Resources
- U.S. Small Business Administration (SBA)
- U.S. Food and Drug Administration (FDA)
- Michigan Department of Agriculture and Rural Development (MDARD)
- Calhoun County Public Health Department
- Calhoun County Clerk and Register of Deeds
- Licensing and Regulatory Affairs (LARA)
- Internal Revenue Service (IRS)
- City Income Tax Department
Lessons Learned: Step Two
phase: location
Step Three: choose your location
Decide on the type of location that best suits your food business needs—whether it’s a physical restaurant, food truck/trailer/tent, or a commercial commissary kitchen. Consider factors such as customer accessibility, foot traffic, zoning requirements, proximity to suppliers, affordability, or other key resources. For online businesses, this may involve setting up a digital storefront or e-commerce platform.
Lessons Learned: Step Three
phase: location
Step Four: site selection & approval
Once you’ve identified a potential location, ensure it meets local zoning laws and is approved for a food business. This process might involve submitting plans to local authorities or applying for site approval based on business and operational needs, like health department approvals.
Lessons Learned: Step Four
phase: construction
Step Five: Design & Construction Estimates
If your location requires buildout or renovations, this is the stage to manage design and estimate construction costs. Work with contractors, architects, and builders to thoroughly develop detailed specifications and cost estimates. Cost estimates will help determine the scope of the project and help identify financial needs.
Lessons Learned: Step Five
phase: construction
Step Six: Permits, Construction & Inspections
Ensure you acquire all necessary permits and comply with safety and health regulations. No demolition or construction can start before planned review is completed by Planning/Zoning, Building Inspections and the Health Department. Before opening, you’ll need to pass rough and final inspections to ensure your food business meets all legal, health, and safety standards. This might involve health inspections, fire safety checks, and building code compliance.
Tasks
Lessons Learned: Step Six
phase: operation
Step Seven: operation
Once you’ve passed inspections and completed all setup steps, it’s time to officially open your business. Focus on daily operations, staffing, marketing, and customer service. Establish processes for managing finances, inventory, and customer relations to ensure smooth operations. Monitor business performance and adjust strategies as needed for growth and sustainability.