Culinary business is lasting throughout human civilization. No wonder, culinary business continues to appear like a mushroom in the rainy season. The lure of bright prospects and success in the future encourages many people to join in building culinary business. After all, not a few people who discourage to build a culinary business.
It’s no secret, one of the reasons why many people cancel their intention to open a business, whether culinary or other business, is a view that identifies businessmen with people who have thick pockets. Understandably, to build a business to success does require a lot of capital.
However, that view is also not entirely true. Henky Eko Sriyantono, experts and business practitioners, said the capital is often a barrier aka mental block to start a business. In fact, the main capital in starting a business actually: the courage to start.
Erwin Halim, franchise observer from Proverb Consulting, agrees, money is not the main capital in building a business. Expertise, network or good relations, and knowledge can also be a capital in building a culinary business.
If you do not have sufficient funds as business capital, Erwin said, you can work with people who have the capital but have no ability, knowledge, or network.
“If you have expertise in the field of culinary, you can invite partners who have the capital with the pattern of cooperation for the results,” added Henky, founder of the franchise network Bakso Malang Kota Cak Eko.
After all, Hendy Setiono, Founder and Chief Executive Officer (CEO) Baba Rafi Enterprise, said the role of capital for prospective culinary entrepreneurs is not large. Capital accounts for only about 10 percent in ensuring the success of the culinary business.
“The rest, determined by experience, knowledge, skill, courage, creativity, and innovation, and spirit,” said Hendy.
Capital also does not always have to be in the form of fresh funds. The culinary entrepreneurs agree, the various assets that you have today can be business capital.
For example, inheritance recipes and secret recipes can be a valuable capital in building a culinary business.
Similarly, the kitchen equipment you already have can be a capital instead of you have to buy new equipment. Similarly, skills and knowledge of cooking or managing the store. Other assets such as homes can also be used as a place to open the store.
Setting up capital
Armed with the belief that effort can be built without large budgets, you should not have to hesitate to build a culinary business. After all, big money capital does not guarantee your business will be successful and lasting.
Even so, business capital, whatever the form, should be prepared from the beginning. Of course, the capital does not have to come from your own pocket.
Therefore, there are currently quite a lot of capital facilities with fairly easy requirements. This is very helpful for those of you who have limited capital in planning a culinary business.
Well, before starting a business, Hendy said, you should have a clear business plan. For example, you want to open a food stall. You have to count how much capital to build and run the business.
Erwin says, you should start a business by preparing business capital first. A good business capital will offer unique value and has more value than its competitors.
Of course, in this business plan there are business strategies, product uniqueness, product delivery, and marketing planning and organizational planning. This includes financial planning.
“Consider the turning point of capital, the period needed to cover investment capital, and business profitability,” he said.
Well, what kind of steps to prepare capital in building a culinary business? Check out these tips:
Type of capital
In building a culinary business, there are three types of capital needs.
First, investment capital. This type of capital is a capital that you must meet in the early days of business pioneering and is usually used for the long term. For example, movable and immovable assets, such as restaurant buildings, kitchen utensils, restaurant furniture.
Secondly, working capital is capital used to buy or make products you sell. Take for example, you open a chicken porridge. So you need working capital in the form of rice, chicken meat, and other ingredients used to mix chicken porridge.
Third, operational capital. This type of capital is the funds you spend to pay the business monthly operating costs. For example, paying employee salaries, electricity costs, telephone costs, buying gas, and so forth.
Of the three types of capital, usually the investment capital suck the needs of funds in the largest amount. In addition, investment capital is also the type of capital that you must first prepare first.