Building A Business Like a Director
Many folks dream of owning a business and working for themselves. Over the years of dealing with folks interested in owning and running a business we have identified 4 Types of People:
The Dreamer: The Dreamers do all the research and take all the free products they can get. They build an entire network of procedures, products, brands and delivery systems. They often go no further than the dreaming stage.
- The Drone: The Drone really doesn’t want to put in charge of anything. They are happy with a just making a few bucks and not going any further. Some Drones are excellent workers while some do just enough to get by.
- The Driver: The Driver is the person who sees a goal and steers his or her life to reach that goal. Some Drivers are slower and faster. Some Drivers take the long way and some look for short cuts. In any event they both get to the Goal in their own way.
- The Director: The Director starts out small. They are organized and plan the completion of one project before moving on to another. Directors get the best out of their crews and make clear the goals and responsibilities of each crew.
The 7 Steps to Success:
Step 1: No Time Like The Present
Some folks want to have a business but like the Dreamer they never want to invest anything. There is a big difference between not spending money and no wanting to spent money. The old saying is true,”You can’t Sell Apples out of an Empty Cart.”. You will have to start sooner or later so don’t let and opportunity pass you by. A measured investment will have measured returns.
Step 2: Maximize Your Profits By Controlling Expenses
I remember a story about a guy who started his business by investing almost $100,000 in a Food Truck, a Commissary and Inventory. He would arrive at an event and fire up the griddle and deep fryer. It would take him about 2 Hour to be set up. This same guy had a second unit. The Second unit had an LP Gas Bottle Griddle, a Table, some coolers and a 10 by 10 Pop-up Canopy. Everything he had fit inside a Mini Van. The 2nd Unit would be set up in minutes and at a fraction of the cost. Both units would do the same volume of business but Unit 2 proved more profitable. If you control your Expenses in the begining then Maximizing your Profit will be the fruit of your early labor.
Step 3: Multiply Your Outcome Not Your Efforts
Portion Control is the Key to All Profitable Food Service Operations. Too many businesses measure their success the wrong way. Some are happy just to get whatever they can. The Most Successful operation “Expect and Outcome”. A friend of mine owned several Pizza Shops under the flag of a national franchise. He expected a certain “Outcome” from each location. If daily revenue from any give location is $2000 then it stands to reason if you add more locations you can increase your Outcome. Just by adding a few more locations you can really build and empire.
Step 4: Set Your Inventory & Accounting Procedures Before You Start To Grow
Being able to make employees accountable to you for Inventory and money early on, sets the tone for your business. Most small companies never take into account theft and product loss from employees. It’s just that nature of a Food Service business that their will be theft. A well paid employee is less likely to steal from you. If they do then it’s easier to let them go. Secondly, if you Take Food Home and Dip into the Till then your employees will see that and do the same. If you show Respect for your Inventory and Cash Drawer so will your employees.
Step 5: Make your Commissary A Profit Center
This is a Tale of Two Commissaries. One person has a Building that they purchased and remodeled. They upgraded the electric system, added offices, freezers, coolers and a full kitchen for prep. The other person purchased an Ice Cream Stand that had closed. He prepared all the food that was needed from that one location. The cost of a mortgage and utilities was close to $3000 a month. The Commissary became an Expense for the first person. For the Second person the Commissary became an Asset. If the second person could only make $100 a day the Commissary would cost him nothing. Any more than $100 a day would be profit. All successful food service operators turn their Commissary into a Profit Centers.
Step 6: Build A Money Making Machine For Your Retirement
Many food service owners are happy with just the one location. Some would never imagine having multiple locations. If you are looking to build a business you need to make a choice. Do you want to build a business to pay your bills today or do you want to build a business that you can retire on. When you start to build your Money Making Machine try to set it up so it makes you money on auto pilot… Here’s a hint: Remember The Drone from the beginning of the article. If you want to build a Money Making Machine you will need to find as many Drones as you can to provide the manpower for your operations.
Step 7: Look for Niche Opportunities
A business owner has his Pop Up at a Classic Car Show. He was the only Food Business that the Classic Car Club would call. He paid no rent and only paid a membership fee to the car club. The car club loved him being their and he got a lot of side catering jobs from members of the car club. He estimated that the 4 Big Classic Car Shows he did every year opened the door for him at Craft Shows, Street Festivals and Sporting Events. He estimated that he could multiple each car event by 6 and that would give him the number of Catering and Private Parties he would get from the Car Club Members.