How to Start a Food Business in 5 Simple Steps

Launching a food business in India can be a daunting yet rewarding endeavor. Not only does it demand a significant investment, but it also requires extensive knowledge of the intricacies involved in starting and running a successful food enterprise. In this article, we will take you through the entire process, from ideation to closure, ensuring you are well-equipped to navigate the complexities of the food industry. And with the support of our expert CA firm in Hyderabad, your financial considerations will be seamlessly integrated into your business strategy.

Why should I choose the food business industry
Well, everyone has their own reasons for starting a food business. For some, its a way to share their recipes with a wider audience and indulge their passion for cooking. If youre a business person looking for opportunities in the food industry in India, the potential for growth and success is definitely a compelling reason. The food industry in India has been booming in recent years and is predicted to continue growing in the coming years. Even if you have a unique way of serving or offering food, starting your own food business can be a great choice. Finding a reason to start a food business shouldnt be difficult, especially in a country like India where people have a strong love for tasty and delicious foods. The food industry in India is always in demand, and you can even check out surveys that support this. Its projected that the size of the food industry will exceed Rs 5 lakh Crore by 2025. The future looks bright, but it ultimately depends on how you navigate this path. Hopefully, you now have a clear reason for entering this industry. Lets take the next step and delve into some basic details about it. How to Start a Food Business in India Starting something new can be really tough if you dont have a clear plan. But if you approach it with the right strategy, planning, and focus, it can be really rewarding. This guide will give you a simple overview of how to start a food business from scratch. Even if you dont understand everything right away, it will give you a good idea of how things work in the food industry. Lets start from square one, where you have no knowledge or idea about the food business, and you havent even decided on what kind of business you want to start. The first step understand the different types of food businesses you can explore in India. Then we can move on to finding the best location, figuring out the costs, and other important factors. 

1. Selection of Type of Food Business If you believe that the food industry is limited to traditional dine-in restaurants, then its time to wake up! In 2024, there are countless new and innovative food businesses that have emerged. While we cant cover all of them, well provide you with some of the top food business ideas that can thrive in 2024. So lets not waste any more time discussing the various types of food businesses and dive into the 7 best ideas for this year

 1. Home Tiffin Business 2. Pastry Shop or Bakery Business 3. Food Franchising Business 4. Food Delivery Business 5. Food Truck Business 6.Open a Traditional Restaurant 7. Ice-cream Parlour No matter which type of food business you choose, always consider its current and future demand in the market. Once youve selected a business type and secured the necessary investment, the next step is to find the perfect location for your venture.

2. Selection of Location
Knowing how much you can invest in your food business can be really helpful when it comes to choosing the right location. Picking the perfect spot is crucial for a successful startup, sometimes even more important than having top-notch infrastructure, service, and ambiance. Its not recommended to start a business in remote areas since it requires a lot of marketing efforts. Instead, you should aim for a location that is surrounded by potential customers. In India, our love for delicious food runs deep, so all you need to do is find the perfect place to satisfy those cravings. Before finalizing the location for your food business, make sure to consider factors

1.Visibility 2.Parking  3.Space size  4.Accessibility 5.Affordability.

3. Arrangement of Supplier for Food Business
Once youve reached this stage, its time to pick out the suppliers for your business. Youll require furniture, Point-Of-Sale equipment (POS systems), kitchen and restaurant appliances, and various machinery and tools. This means youll have to deal with a diverse range of suppliers. Its important to select reputable suppliers who offer top-notch products. Luckily, there are plenty of suppliers available who can offer you reasonable prices and high-quality items for your business.

4. Evaluate Costing
Once youve sorted out your vendors and suppliers and found a great location for your business, the next step is to assess the operational costs. There are three main types of costs to consider

1. Food Cost: This includes the expenses for all the raw ingredients used in your dishes. Its important to factor in these costs when determining the menu prices.
2.  Labour Cost: This one is pretty straightforward. It covers the salaries of your employees and any additional labor-related expenses. 3. Overhead Cost: This category is quite extensive. It includes expenses like rent for the premises, costs for kitchen equipment and furniture, as well as any licensing and marketing expenses. 
3. Evaluating these costs is crucial for effective planning and smooth operation of your food business. Its essential to keep a close eye on how much you spend on each of these aspects. 

5. Obtain Licenses and Registrations
Its important to remember that being in the last position doesnt make something less important, especially when it comes to opening a Food Business in India. In fact, getting approval from the government should be the very first step when preparing to start any business. This applies to the food business as well. There are a number of legally approved licenses that one must have before officially opening their food business.

Take the hassle out of tax and compliance tasks with Sribalajitaxservices Our comprehensive services include GST registration, ESI and PF filings, and IT filings, ensuring your business stays on track without any stress. Trust us to handle the paperwork while you focus on growing your business

Business Name Registration

Registering your business name is just as crucial as incorporating your company. Its essential to legally protect the name youll be using for your operations. One way to achieve this is by registering your business logo or trademark. The benefits that a trademark or brand name can have on your startup or business are truly remarkable.

FSSAI License
The Food Standard and Safety of India (FSSAI) is the governing body in charge of ensuring food safety in India. Every food business operator (FBO) is required to obtain a 14-digit FSSAI registration/license number based on their specific business activity and turnover. This registration/license number is a crucial requirement for food businesses involved in manufacturing, storage, distribution, transportation, or retailing of food products.

GST Registration
GST stands for Goods and Services Tax, which combines various taxes like Sales tax, Service tax, Excise duty, and more into one. If your annual sales exceed Rs. 20 Lakh, it is mandatory to register for GST. However, even if your sales are below Rs. 20 Lakh, we recommend that you choose to register for GST voluntarily.

MSME Registration
Having the MSME certificate allows any business to apply for and receive numerous benefits and subsidies from different government departments, including Electricity. Additionally, it plays a crucial role in the tender application process. The central government frequently introduces schemes to support MSMEs, like the credit guarantee scheme.

Shop License
Once youve got all the necessary licenses, chosen the perfect location, decided on the type of food business, sorted out the costs, organized suppliers and vendors, and set up your business, youre ready to greet your first customer with open arms. Remember, every shop and establishment in India must obtain a registration certificate within 90 days of starting their business.