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11 Key Tips For Setting Up A Sweets Business
If you’re here it’s safe to assume that you’re at least curious about setting up a sweets business. Having been in the business since 1962, we know a thing or two about the world of sweets here at Hancocks. From the legal bits to industry tips and things you may not have thought about, we’re here to answer all of your questions. Here are the 11 things you need to know before sinking your teeth into starting a sweets business.
1. Create a business plan and identify your business model
There are always opportunities in the confectionery world. Even with such a diversity of businesses already out there, we are always seeing new and inventive sweets businesses popping up! So if you’ve got an amazing idea, whether it revolves around the most popular sweets, a funky new take on pick n mix, or making and selling bespoke chocolate hampers online, we’ve got your back here at Hancocks!
You’ll need to undertake market research and decide what is special about your idea, identify your target audience and decide on your approach. There is the more traditional brick-and-mortar approach of settling into a physical shop, having a storage facility and online shopfront, or the more recent trend of selling from home. You’ll have to think about a whole range of factors that will influence your decisions. However, sweets appeal so diversely that once you find your groove you can enjoy success.
You’ll need to undertake market research and decide what is special about your idea, identify your target audience and decide on whether you are going to sell in-store, online, or take a hybrid approach.
2. Register your business
Regardless of the type of sweets business you start up, you will need to register it with the government. This applies to any business in the UK that handles food. Whether you store, cook, prepare, or distribute food in any capacity. Selling sweets from home, in physical customer-facing premises, from a temporary stall or mobile unit, or online are all required to register with their local authority a minimum of 28 days before they start production or trading. If your business will utilise more than one site, each of them needs to be registered. This may sound daunting, but there’s no need to worry. The process is free and can be done online – but it is a legal requirement.
This may seem like a lot to take in, but it is important stuff. You can find a more detailed breakdown of all of the requirements on the Food Standards Agency website. When you feel that you are ready, it is time to set up your business and then register as a food business. Whilst you are brushing up on various regulations, don’t forget the food labelling guidelines, too.
3. Take the required food safety, health and safety, and food allergens courses
Wherever you set up shop, so to speak, you will also have to prove your understanding of food safety laws – and a food safety certificate is a simple way to clearly demonstrate your compliance. The courses are inexpensive, and an accredited CPD Food Safety and Hygiene for Retail Level 2 course can be done online in only a few hours or at your own pace. Not only that, but the accreditation is a strong signal of trust to your customers – especially those you’ll see in-store.
An awareness of best practices for allergy requirements is also vital for employees of any food-handling business. If you’re selling pre-packed sweets and chocolate this may not seem like something you’d need to know about, but it absolutely is. There’s every chance that you’ll have customers with allergies asking if certain lines are safe for them – in this instance, knowledge is highly valuable. To get prepared, you can take free food allergy and intolerance training with the Food Standards Agency.
If you are thinking of selling irresistible goodies from home, there are a few things that you will need to get approval for before you get started. You’ll need to get permission to run a business from your home from either your landlord or mortgage provider. The local council must also give approval, and if you’re going to be self-employed HMRC need to know, too. Once you have council approval, the local food safety team will be notified and be in touch to arrange a visit to inspect your place of business (where appropriate). Be aware that these appointments could take a couple of months to schedule, so make sure that you’re on the ball with your planning!
4. Take out business insurance
If you’ve been through the process of creating a business before, you’ll know the importance of business insurance. You’ll also be aware that the various types on offer cover you in a range of situations.
Protecting you if any consumers make claims for losses or damage suffered as a result of your business, public liability insurance can give you and your sweets business peace of mind. You’ll be covered in the eventuality of anybody getting hurt in your store, but also if there is a complication that comes from any deliveries, too.
Businesses with employees are advised to look into employer’s liability insurance, too. This covers you in the event that a member of staff raises a complaint against you, providing help with the financial aspects of any compensation or legal fees.
You can also get insurance for business stock and equipment, which can be invaluable to businesses starting up. Whether it’s new packing equipment or even a company phone or laptop, cover against theft or damages can be the difference between surviving misfortune and not. Both in a shop and at home, this cover is worthwhile to protect your assets and peace of mind.
5. Website and social media
We mentioned it briefly before, but online activity is essential for modern sweet businesses. Obviously, a website is vital for online stores, however, it is essential for brick and mortar shops, too. Both new and potential customers may want to know more about your business – and a website makes you findable online. Not only that, but you can tell shoppers about your business in your own words. Obviously, if you plan to sell your sweets and chocolates online, a website will be the e-commerce platform through which you do business.
It is unlikely that many could have predicted just how integral social media would have become for modern businesses, but it provides an instant line of communication between your company and consumers. Whether getting messages out to customers or responding to queries, it is a vital – and very accessible – communication tool. Not only that, but it offers insight and information about your customer base that can help you make informed decisions and better meet the needs of your target demographic.
6. Create a marketing plan
A strong and identifiable online presence is key for modern sweets businesses – whether in a bricks and mortar setting, the digital marketplace or both. It provides a valuable point of contact with both existing and new customers and is the most effective way of maintaining and building new relationships.
You can’t simply jump in at the deep end, though. It is important to know your target customers, and this isn’t possible without undertaking market research. This can then help you to decide on your branding strategy as well as identify the most appropriate marketing channels for your business. With confectionery appealing to such a diverse customer base, both traditional and digital methods can be an effective way to gain attention and build your base. From flyers or radio ads to email marketing and optimising the SEO (search engine optimisation) of your website, there are so many viable ways to reach your audience.
7. Start small and scale over time
In the early stages of any business there will be creases to iron out, and scaling operations over time is a great way to avoid pitfalls and limit risks.
There will undoubtedly be sizeable costs involved in taking the steps needed to head towards your goals. With this in mind, it is in your best interest to build up the size of operations over time. For instance, if you are planning on delivering orders yourself, being overly ambitious at the beginning might cause issues you may not have thought of – such as fuel costs eating into profits and delivery runs taking up too much of your time.
For many businesses that are just starting out, it is entirely possible that you will be working other jobs too whilst you find your feet. This factor may limit the time that you can pour into your passion project, which is another reason to ease your way into things. Conversely, it can add security for your peace of mind and manage the pressure and expectations on your new adventure.
We know that you’ll be excited to get going with your new business, but having patience and building up over time not only avoids the stresses we’ve mentioned but it gives you time to find methods that work for you.
8. Consider delivery platforms like UberEATS and Deliveroo
Modern consumers have come to expect a certain level of convenience and chief among those is delivery. Both physical shops and online enterprises offer a variety of delivery services – and there are more ways than ever to offer it. You can use your own system and provide delivery yourself, but there is a host of delivery experts that you can partner with to make things a lot easier. There are giants such as DPD, whilst contemporary app-based outlets such as Deliveroo and UberEATS specialise in direct-to-consumer deliveries – they now also work with retailers, not just eateries.
The benefit of working with the two latter choices is not only their delivery experience but the opportunity to reach and market to a wide range of consumers within their platforms. The process of setting up partnerships with both of these companies is very similar, requiring basic business information and details regarding food hygiene certificates. Whilst this is a reasonably new addition, partnering with either of these businesses is an effective way to engage with an active consumer base, build brand awareness and also provide trusted local delivery with great ease.
9. Regularly analyse the market and your pricing strategy
An awareness of your competitors is a key aspect of any successful business venture. Campaigns, marketing stances and promotions are all key communicators between businesses and customers – and knowing the actions of rivals can help you maintain your chosen position. In an ever-changing and competitive market, with cost prices often fluctuating regarding industry resources and availability, it is important to know the state of the market.
It is much easier to be adaptable and on the front foot when you regularly analyse the market. When balancing production costs, market demand and perceived value, you must be adaptable for your business to remain viable. Your pricing strategy isn’t the only factor in this, there will be ways that you can claw margin back elsewhere, but pricing is ultimately the most obvious customer-facing aspect.
10. Plan for seasonal pushes
Seasonality is an important aspect across countless sectors – but it is huge in the world of confectionery. Shoppers are much more likely to stock up on sweets or chocolate for gifting, throwing a party or simply treating themselves when there’s a seasonal promotion. This is music to the ears of confectionery retailers because the calendar is punctuated nicely by a string of seasonal highlights. There are the obvious culprits in Easter, Halloween and Christmas, with Veganuary, Valentine’s Day, plus Mother’s and Father’s Day sprinkled in between.
As with any promotion you run, it pays to have your stock prepared in advance. With seasonal stock often produced in limited numbers and for a set time, moving early is important to secure the products you need to achieve your goals. Not only that but having your POS and shelving plan ready in retail or artwork for online stores ready ahead of time will allow you to enter the busier periods stress-free. As well as stock, it is important to consider the strain the increased demand may place on your workforce – you may need to bring in reinforcements to see the period out smoothly.
11. Buy in bulk to save costs
Retailers will know this, and it may seem like an obvious tip, but it is worth mentioning nonetheless. When stocking up on the amount of confectionery your business will need to keep up with demand, you can enjoy the value of wholesale sweets and chocolate. Buying in bulk combines the quantities needed with room for profit which makes perfect sense to any business! Given that you are going to be replenishing your stock levels regularly, it pays dividends to have a wholesaler that you can trust – like Hancocks. As the UK’s largest confectionery wholesalers, we have been trusted by independents for more than 60 years. Ever since 1962, we have been driven to provide the very best confectionery for our customers. That’s why we’ve got the UK’s biggest range of bulk pick n mix sweets, the biggest chocolate brands from around the world, and countless sweets including bagged favourites and sweetshop classics. Not only that, but you’ll find trending drinks and specialist collections like our American range. All of that and it is still just scratching the surface of our range. So rest assured, we have your needs catered for!
When stepping into the sweets business, having a vision for your business model, knowing your ambitions and having a plan to get there are all necessary for success. Not only those, but you also need to be aware of the various regulations and standards you will have to meet to do so legally, as well as identifying your customer base and making sure you stand out from the competition.
There will be so many more things that you have to consider and an ongoing chain of decisions that need to be made when setting up a sweets business. We also understand that each business is unique and is likely to face its own challenges, but these steps are foundational – whether you are starting a new business or taking one over.