Self employed venture....

Options
Afternoon all.
I am hoping to gain some advice if possible.

Soon to be mummy that won't be returning to work after maternity leave. Have always loved the idea of being my own boss and working from home.

I love to bake and know what I would make to sell.

The only problem is I have NO Idea where to start! I wouldn't know how to cost things, work out what you would charge., what is needed for me to sell things from home, how to work out postage, what I'd have to pay out.... So basically everything.

If anyone has any insightful information I would be so appreciative.

X
«1

Comments

  • tastyhog
    tastyhog Posts: 847 Forumite
    First Anniversary Name Dropper First Post
    edited 8 April 2018 at 4:39PM
    Options
    firstly you'll need to register with the local council to have your kitchen inspected and rated, this needs to be done at least 28 days prior to beginning trading, you may need a second sink put in (dependent on council) and have things like fire blankets, extinguishers etc

    you'll need a food hygiene / safety certification, get on to reed.co.uk and get an online one for £20 from the training terminal, wont take long to complete online, take me 30 minutes to whiz through when I update mine, mainly common sense stuff.

    you'll need to get this https://www.food.gov.uk/business-industry/sfbb (free downloadable) it's a decent all in way to show health inspectors etc that you're complying with the law.

    you'll need to have public and product liability insurance of 5 million if you want to work most markets, car boots and other events, this is about £60 a year, or you can join something like the NMTF - national market traders federation, costs £120 a year and gives you all the required insurances and employer insurance, along with policies that will pay for assistance if you're investigated by HMRC etc etc

    costing / charging etc etc is easy in catering, stick to the rule of 1/3rds, 1/3 in costs for the product, 1/3 for overheads, 1/3 for profit, standard things int he catering industry.

    work out your cost for a batch of your cookies or whatever, work out the cost for whatever size unit you're selling, then treble the price and that's your figure you want to be aiming for, of course some things can be sold for more, some for less, things can be sold for more in different places etc etc but aiming for 1/3 for ingredients and 2/3 for other costs and profits is a decent starting point

    take a look here - for margins do 66 to 70%
    https://www.brake.co.uk/your-business/tools/gross-profit-calculator

    if you wish to sell from your actual home you'll likely need permission from the council / housing association / mortgage company etc to run a business from your property.

    take a look at startuploans.co.uk for helpful guides and other things and for funding and mentoring for small start ups.
  • Carer
    Carer Posts: 296 Forumite
    First Anniversary
    Options
    tastyhog wrote: »
    you'll need a food hygiene / safety certification, get on to reed.co.uk and get an online one for £20 from the training terminal, wont take long to complete online, take me 30 minutes to whiz through when I update mine, mainly common sense stuff.

    Don't do this until you've spoken to your local council inspector. We've just gone through this process and there's only a small number of these online course providers that our council will accept.

    The council inspection is worth doing first before you spend any money as some premises will just not be suitable however hard you try.
  • dont_use_vistaprint
    dont_use_vistaprint Posts: 601 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    edited 8 April 2018 at 5:35PM
    Options
    Hi Lottie

    I have quite a few friends doing this.

    Go with what you have a passion for and what your friends and family will buy and help spread the word initially. There's load of competition with baking, but still load of niches still not fully monetised online, zero waste, vegan, high protein, artisan and allergen foods to name a few. You will need a niche to do anything online.

    You should also look at what you can leverage locally or through contacts, loan of specialist kit, capital to buy etc, do you live near a mill or anything like that, to give you an advantage or differentiating factor over similar companies.

    Costs are down to how you intend to compete - generally only three ways to compete - on cost (not a good idea), quality or innovation. The last two yield higher margins and lower turnover = less cooking :-)

    Regarding the basic hygiene, virtual college do the C&G approved one online, but as suggested ask your local council what accreditation bodies they accept before signing up.

    Good luck :-)
    "It is not the critic who counts..." - Theodore Roosevelt
  • System
    System Posts: 178,100 Community Admin
    Photogenic Name Dropper First Post
    Options
    Thank you so much for all the information :)
    Just wondering if I want to put the feelers put for who would be interested do I have to set up first? Or would I just have to make some and give them to people without exchanging money to see of its popular?
  • motorguy
    motorguy Posts: 22,479 Forumite
    Name Dropper First Anniversary First Post
    Options
    Thank you so much for all the information :)
    Just wondering if I want to put the feelers put for who would be interested do I have to set up first? Or would I just have to make some and give them to people without exchanging money to see of its popular?

    Be careful when you get to this point - friends and family will sit like nodding dogs and smile telling you they're fantastic but the real proof of the pudding (pun intended) is whether or not they'd actually pay the asking price for them.
  • Carer
    Carer Posts: 296 Forumite
    First Anniversary
    Options
    My personal opinion would be to apply for the licence first. It costs nothing and the inspector will be hugely helpful (or ours was) in how to proceed with things.

    If you kitchen turns out not to be suitable then you won't have wasted time and money on things.

    Here's where we started from - it has all the steps you need. https://www.food.gov.uk/business-industry/startingup
  • Savvy_Sue
    Savvy_Sue Posts: 46,066 Forumite
    Name Dropper First Post First Anniversary
    Options
    tastyhog wrote: »
    if you wish to sell from your actual home you'll likely need permission from the council / housing association / mortgage company etc to run a business from your property.
    I think that even if you don't intend to sell from home you probably should have the permission of your mortgage lender or landlord to run a business from home. Permission should not be unreasonably refused, but if the business will result in more callers to the home than before then that might cause 'nuisance', perhaps especially if your road has parking problems.

    Insurance: you should also tell your household insurer, especially if you're going to have business visitors to the house. I'm guessing you won't need to keep huge amounts of stock / supplies at home, so be ready to outline exactly how little additional impact the business will have on your insurance needs.

    Think of contingency plans: what if you / the baby / your partner are taken ill and you can't complete a job? For that reason, give yourself plenty of time to complete things and refuse last minute rush jobs ... Build up an emergency fund: if your Kenwood dies, you probably want to be able to replace it pdq. And so on.
    Signature removed for peace of mind
  • tastyhog
    tastyhog Posts: 847 Forumite
    First Anniversary Name Dropper First Post
    Options
    Carer wrote: »
    Don't do this until you've spoken to your local council inspector. We've just gone through this process and there's only a small number of these online course providers that our council will accept.

    The council inspection is worth doing first before you spend any money as some premises will just not be suitable however hard you try.

    as long as it's ROSPA approved or approved via one of the other schemes then you'll be fine.

    the one mentioned does and is accepted by councils.

    if they kick up a stink, which they won't, ask them what regulation they are trying to enforce considering a formal course isn't even needed to prove competence, let alone once from a certain source. then tell them go hawk their overpriced in house course elsewhere.
  • System
    System Posts: 178,100 Community Admin
    Photogenic Name Dropper First Post
    Options
    Looking on Reed would this be the course

    Food Safety Level 2 - ROSPA & Institute of Hospitality Endorsed
  • tastyhog
    tastyhog Posts: 847 Forumite
    First Anniversary Name Dropper First Post
    edited 9 April 2018 at 3:54PM
    Options
    Looking on Reed would this be the course

    Food Safety Level 2 - ROSPA & Institute of Hospitality Endorsed


    yes, it's listed under various titles, this is the one I got last time and the guy that done our last inspection said it was fine

    it's not instant access, you'll get a code to redeem by the end of the next day.

    https://www.reed.co.uk/courses/level-2-food-safety-and-hygiene-for-catering-rospa-institute-of-hospitality-approved/187742
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.5K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.6K Work, Benefits & Business
  • 608.5K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards