Several years back, you may have enjoyed making meals and bringing lunch to work. However, nowadays, where the demands of your jobs and the busy schedule have made cooking a luxury, online food delivery business is gaining widespread popularity. More and more people are attracted to meal delivery subscriptions, especially for its convenience. In addition, food delivery businesses generally offer home-cooked meals, which are healthier choices than their fast-food delivery counterparts offer. If you are planning to start an online food delivery business, then here are a few steps to start an online food business.
Basics of Selling Food Online
Selling food online can mean big sales for small businesses, so it makes sense to think of eCommerce as the next big step for your popcorn shop, candy store, or bakery. It is not a small undertaking, though, so it is always better to research before starting.
1. Among the various steps to start an online food business, the first important step is to research your target market. Just like any other business, you must start by researching your target market. Find out what it is that your target market would love to have for their meals. Also, study the locality in which your target market is located. For instance:
If your target market is students studying in the nearby university, you may want to focus more on light and snacks. Or, your target market is the employees working in an adjacent office building, you may want to provide healthy lunch and snacks. If your target market is the residents of a nearby residential building, then you must consider their meal requirements, like whether they have kids or not.
Once you decide the market you are going to target, then choose an attractive name for your business to appeal that target customer. Then, customize your meals based on your target market requirements.
When you customize your meals as per your target market requirements, you can ensure that you will have a constant following of orders for the delivery of meals. Once you know the market’s food requirements, you can keep them satisfied with the price that they pay for convenience.
2. The great thing about an online food delivery business is that you do not need a huge amount of money to start your business. You do not even have yo buy a lot of materials or utensils or appliances. Most of the utensils that you will require for preparing your meals are available in your home. You may need these:
- Cardboard or plastic meal containers and utensils for delivery
- Big pans and pots that allow you to cook meals in huge batches
- Large food containers where you can store the food after cooking
3. Develop a marketing strategy- One of the important steps to start an online food business from home is to create a marketing strategy. Every business needs a marketing strategy, and your food delivery business is not an exception. You must have a marketing strategy to determine how to reach your target market in an effective way, mainly if you are starting a business. Your marketing strategy can focus on these things:
- Word of mouth by friends and neighbors
- Online marketing through social media, like Instagram and Facebook page
- Leaving posters and flyers in nearby offices, residential areas, and schools
No matter whether you want to start a food business from home or any business for that matter, you will require a great looking, affordable logo design.
4. Create a business as well as a meal plan- One of the important steps to start an online food business is to design a business plan along with a meal plan. Though you are just starting a small business, a business plan is the most important thing required. Create a meal plan for every week. When you have a business plan, you can predict if your food delivery business will actually have a return or if you will simply be receiving a break-even amount. These below things must be included in your business plan:
- Cost of selling every packet of food, per location and per meal
- Grocery list and cost of every ingredient
- Other necessary expenses, like, electricity labor, and gas
- Labor expense for your staff if you require one, like a part-time assistant for cooking and delivery
With a weekly meal and business plan, you will be able to compare your returns every day. You can determine if you may be going negative or if there is a continuous opportunity for expansion.
5. Find out what to sell- Like all retail businesses, when you are starting your own online food ordering business, you must have a product that sells. At the same time, you must have something unique to offer. Check out the list of foods that are prohibited from being sold in your target area. Also, check out what foods your target customers would love to buy online.
6. Procure or manufacture?- The next step is to find out where you will be attaining your product. Will you be preparing it yourself or getting it from suppliers? Here, you must consider a bit of cost. Manufacturing will involve the cost of preparation, packaging, and raw materials.
Procuring reduces the need to do the above, as they are already done by the supplier. However, you still need to compare the costs of making and procuring the food products that you want to sell. In addition to costs, you must also consider production quality, time frames, taste, and so on to make sure your customers are satisfied with the product and the well-timed delivery. On the contrary, if the product you are selling is your own creation like a special blend of spices or a family recipe for preparing energy bars, you must consider the grade off supplies to utilize control costs accordingly.
7. Cost and shipping your products- It is vital to consider shipping charges you will incur while setting prices for your online store. Discuss options with major carriers- UPS, FedEx, USPS to determine what your rates need to recover shipping expenses.
Online shoppers are accustomed to “free” shipping, so if you can provide that option without inflating your costs over your customers’ expenditure threshold, that is ideal. If you can’t, try to provide shipping deals if a customer buys a certain weight of a product or give coupons for use on a second order.
8. Digital Marketing for your Online Food Business- When you are all set to list your products online, appoint a good photographer to take good pictures of your product. It is ok if you do not find any professional for this- you could ask around at local colleges for art students who may charge a low fee in return to include the works in their portfolio. But, it is important to have good photos on your website as online customers cannot taste the product. Also, consider search engine optimization- again, there is no need to hire a digital marketing agency if you have a low budget, but write concise descriptions of your products using clear language and include common terms people use while speaking about and searching for your foods, like “gourmet popcorn.”
You can also start to set small budgets for marketing on social media as well as pay-per-click ads through search engines. Focusing on local keywords, like “gourmet popcorn in your city” will help to keep your budget manageable and still spread your message.
9. Spreading the word to existing customers and beyond- Once your website is up and running, make sure to inform your current customers about it and ask them to inform about this to their friends too. Mention your company’s website on business cards and packaging also, and post about your business on social media frequently, connecting to products and announcing online sales.
And don’t underestimate the power of email. Ask your customers to provide their email address at the time of checkout and make sure you include a signup link on your website. Use your email list to send discount coupons, announce special offers, and thank people for their immense love and support.
Overall, offer quality products at reasonable prices, ship them within a scheduled time, and address customer queries and concerns fast, and you will be on your way to create a successful business- both in-store and online.