8 Tips for Starting a Food Business From Home

Alice Tuffery, writer

Published at 14/03/2019, Updated on 04/05/2022 , Reading time: 7 min

8 Tips for Starting a Food Business From Home — Photo © starting-food-business.jpeg

Do you want the excitement of starting a food business and the freedom of a home-based role? Well, you can have both by starting a food company from home. Read on to find out more about this type of business venture and how you can get involved.

If you want to start your own business in the food sector, there’s no reason why you can’t manage it from the comfort of your own home. In this article, we’ll take a closer look at the process of launching a food business from home and share our top tips to make sure it runs smoothly.

According to Forbes, 52 percent of registered businesses are operated from home in the UK. Thanks to new technology, entrepreneurs are increasingly able to set up new ventures without leaving the house. In fact, it’s thought that the number of home-based businesses has increased by 23 percent in the last decade (CEBR and Vonage). But what exactly is a home-based business?

What are home-based food businesses?

Firstly, when we think of food franchises, many of us picture national fast food and restaurant chains. They play a big role, but there’s a lot more to the sector than brands like McDonald’s and KFC. While fast food restaurants are a popular form of franchise, there is a growing number of franchises that specialise in healthier food options too.

But what do home-based businesses look like in the food sector? Often, they provide food delivery services. This could involve transporting foodstuffs grown or produced by a single supplier or a variety of delicious cuisines cooked by a range of businesses. Alternative business models include mobile food trucks and vending machine companies.

Of course, businesses we class as ‘home-based’ can rarely be entirely managed from home – but they don’t need costly business premises. In many situations, you would oversee operations and manage the administrative side of the business at home and then carry out daily duties outside of the house. You might deliver food or collect funds from your vending machines, for example.

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The internet has enabled businesses to operate from home

In recent years, the internet has had a huge impact on the way we buy and consume food. Most UK consumers have access to the internet wherever they go, and the food sector is just one industry that has benefitted enormously from the ubiquity of digital technology.

Examples of popular businesses that offer their services online include Wiltshire Farm Foods. They both specialise in bringing fresh produce straight from farms to customers around the country. Meanwhile, One Delivery is a fast-food delivery business that works alongside some of the top fast-food franchises to deliver orders to their customers.

Franchises can give franchisees the chance to work from home

So, how do franchises fit in? Well, by allowing franchisees to manage their business online, food franchises can attract a new generation of talented workers who demand flexibility in their work arrangements. Online food franchises can offer lower overheads and investment costs, making them an attractive prospect for those who don’t want to invest a lot of money in their new venture.

Tips for starting a food business from home

Here are our top tips for starting a home-based food business or franchise unit:

1. Work out your budget

First of all, you’ll need to know what kind of capital you have at your disposal – and what you're willing to invest. This will help you see what options are open to you and what type of franchise you can afford.

However, try not to rush into things. If you've got a particular franchise in mind but can’t afford it at the moment, don’t settle for second best. Bide your time and wait until you’re able to invest in a project you’re really passionate about.

2. Decide what kind of food business you want to start

One of the most fundamental things to get right is choosing the right type of food business for you. You need to decide what kind of food you’ll offer and whether you want to run a company that’s exclusively online or that operates both online and from a physical site. Also, you should think about whether you are happy working independently or whether you’d like to manage a small team.

Remember that your answer will affect the investment you’ll have to make. For example, if you opt to start a mobile food business, you’ll need to buy a vehicle, obtain the necessary hygiene and safety certificates and perfect your own cookery skills. If you want to hire delivery drivers, you’ll probably need to invest in liveried vehicles and take out insurance to keep your employees safe on the roads.

3. Make sure you want to work from home

Working from home and working remotely are not necessarily the same thing. While working from home can often seem like the most convenient arrangement, it can be more difficult than you think. For those who lack self-discipline or find it challenging to keep up motivation all day, working from home can be difficult.

Also, some business owners find working from home isolating and need to have people around them to work at their best. So, take some time to think about your personality traits and assess whether you are well-suited to working at home.

4. Make sure you have a dedicated workspace

Working from home can be difficult if you have a busy family. For this reason, try to make sure you have your own desk – ideally in a dedicated study room – where you can concentrate on your business.

If you live with others, let them know that it’s important you get your work done and ask them not to distract you or use your study space. Running a business while raising young children can be tough at times, so make sure you make time to play with them outside of your working hours.

5. Do your research

As with any business arrangement, it's essential you do thorough research before making any important decisions. This will involve investigating the wider world to find out which businesses operate in your chosen sector and what the future of the industry looks like.

Don’t rely on information provided by franchisors who want to encourage you to invest; always perform independent research to confirm key facts and statistics yourself.

6. Complete your due diligence

Alongside research, it's necessary to carry out thorough due diligence. This process is used to make sure a business venture is financially viable. You will need to collect all the relevant financial information available for franchisees, including forecasts, predicted expenditure and typical start-up costs.

Once you've got this, you should be able to calculate whether the business is likely to meet your minimum requirements for profitability.

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7. Talk to the franchisor and existing franchisees

All prospective franchisees should talk to both the franchisor and existing franchisees. You'll be working very closely with the franchisor and need to make sure you can form an effective partnership that allows for open and honest communication.

Talking to franchisees will help you work out whether the franchisor is being transparent and will also give you the chance to ask any questions you still have. This is the perfect opportunity to double-check the financial performance projections you’ve been given and to establish whether there’s anything else you should know before signing the franchise agreement.

8. Seek legal and financial guidance

Before you sign any franchise agreement, it’s a sensible idea to seek professional legal and financial advice. All legal documents should be checked by a professional who understands franchising, and you may also want to ask an accountant to check your profit projections and other financial data.

Home-based food businesses to get involved in

There are a number of food franchises that you can operate from home. Two of the best are:

The Incredible Ice Cream Company – This food franchise sets up mobile ice cream bars in high footfall areas and caters for private, public and corporate events across the UK. That means you can be a food vendor without the hassle of renting business premises. The investment cost sits at around £18,000 and you can expect to make between £50,000 and £100,000 per year. Find out more about a franchise with The Incredible Ice Cream Company.
Tubz – If you want to manage your own network of vending machines from the comfort of your own home, step this way. Tubz is looking to add to its 300 franchisees operating across the UK and Europe. You’ll need to make a total investment of £2,995 to get started, so it’s a really affordable opportunity. Fnd out more about a Tubz franchise.

Alice Tuffery, writer

Food and Beverage