Over the past few decades, the prepared food industry has boomed as consumers increasingly rely on quick and easy meals to accommodate their busy schedules. Pizzas, one of the most popular prepared foods, can be tailored to fit numerous tastes and has become a staple product of thousands of take-out and delivery pizza businesses. However, it’s important for any entrepreneur to be aware that the majority of new prepared food businesses fail in their first year due to lack of essential business strategy and management skills. Read the steps below to learn how to start a pizza business and avoid common start-up mistakes.
1 Learn how to make a good pizza.
Though you don’t need any certification to start a pizza business, it’s a good idea to attend a culinary trade school where you’ll learn to cook more than pizza. Offering additional dishes on the menu could attract more customers for your own pizza business.
Spend some time learning the ropes at another pizza business. The insights you’ll gain about not only how to make a good pizza, but also how to run a business, will be useful for your own endeavor.
If possible, create a unique type of pizza or use a family recipe that sets you apart from other pizza businesses
Decide what type of pizza business you want to start. The most cost-effective types are take-out and delivery pizza businesses.
Write a business plan that includes a description of your pizza business, the market you intend to sell to, your marketing strategy, projected revenue, taxes and start-up costs.
Obtain the capital you need to open a pizza business by getting a business loan from your bank or private investors.
Choose a location for your pizza business that is accessible, visible, and provides plenty of traffic to attract customers. Check with your city to see if it’s zoned for a food company before you sign any lease agreement.
Apply for an employer’s identification number (EIN) from the appropriate tax authority. You’ll need an EIN to legally hire employees.
Schedule an appointment with your local health and safety authority to check your location. If all is in compliance with health and safety regulations, you will be issued a permit that allows you to conduct business. Also make sure to register your pizza business with your city to obtain a business license.
Buy equipment for your pizza business. You’ll need a refrigerator and freezer, gas ovens, dough mixer, butcher block table, pans and racks, measuring cups, flat bottom ladles, pizza boxes, napkins, and if you’re planning to deliver pizzas, a delivery vehicle.
Create a menu with assorted pizzas and other Italian dishes.
Interview employees, and hire those that are reliable, personable, and efficient.
Advertise your pizza business in the local media, on flyers, and on the Internet.
Open your pizza business.