The donut industry is growing more and more rapidly every year. With big names such as Dunkin Donut, Krispy Kreme, Winchell’s, and Tim Horton being the ones dominating a marketplace worth $16 billion. Most notable is the sponsorship between Dunkin Donuts and one of football’s most iconic names, Liverpool FC. Because of reasons like this, we can see why the donut industry is on a path to more popularity, and we can see why someone would be interested in investing in a donut business.
But how do smaller donut businesses compete with industry giants who have endless resources and several thousand donut shops under their names? Stick around as we are going to give you a few tips on how to turn your crazy donut ideas, into a successful business.
1. Starting Location is Key
Opening your first donut shop is nothing like managing a whole franchise. But it’s too early to think about that. First, you need to come up with a good idea for your location. Do you plan on opening your first donut shop near the main street, where you can catch the eye of casual by-passers, or maybe a strip mall location would better suit you. A key strategy in selling donuts is to always have them on display on a large counter area where customers can see the goodness you’re selling.
Another popular option is food trucks or donut trucks. Selling your donuts from a food truck feels modern, but also classic, and that just might be the niche that works for you best.
source: sandiego.eater.com
2. Keep Working, When Not Working
Your donut shop will always have slow periods during the day. During these slow periods, you can brainstorm ideas on how to increase revenue. During the morning you can add a special price on coffee, or offer a free donut with every coffee purchased. You can also offer catering services for birthday parties, weddings, and corporate or non-corporate events where you can cater to them donuts or cakes, or donut cakes!
source: epicurious.com
3. Figure Out a Solid Business Plan
Having a solid business plan is key for the survival of your business. Choosing to ignore this step will cost your business greatly. By having a business plan in place, you can turn your donut shop into a successful business. With a plan in motion, you can sell others your vision, whether that’s a loan officer or an investor… or maybe a friend who likes to help you out.
Your business plan should start with your executive summary, which is a brief description of what you’re trying to do. Follow that up with a finer description of your business idea that will detail all the areas where your donut shop will be a hit. Marketing is very important, so make sure to include how you’re planning on marketing your business, and how much money you’re planning to allocate in that field. One more thing that will greatly increase your chances of survival is identifying how you can solve some problems that are related to other donut shops or the donut industry in general. You have to have something unique about your donut shop, so brainstorm ideas on what will make you better than the rest.
source: startupdonut.co.uk
