My mother's whole life's dream was to open her own bakery. I have a degree in Business Administration / Entrepreneurship and I am a new mom, so I am looking for another option besides the 9-5 routine. I know that owning a business is usually more than 40 hours per week, but I would like to work partially from home instead of 40 hours away from home. She is a cancer survivor and we are both interested in healthy eating, but we love desserts very much. Mom works more than 40 hours / week plus 10 hours of travel and earns a very small salary. She has been looking to quit her job but needs to have a "purpose" and something to which she can contribute. Her husband is the main bread winner in her home, and she has insurance options through him. I have my insurance through the Armed Forces.
I am lucky to live in a city surrounded by VERY rich neighborhoods (houses of $ 1-4 million dollars); Health food stores, specialties and high-end foods thrive here. In addition, there is a local commercial kitchen that rents space for around $ 20 / hour. I did a detailed search and I can't find any local delivery options for healthy "homemade" desserts. I would have been interested in running the business from my home, but I would not be allowed to sell to the public. The kitchen of our house is not equipped to pass an inspection by the Department of Health. (We live in a suburb of Chicago (less than 5 miles from the city limits))
In addition to my degree, I also have experience in advertising and graphic design, so I could cover the foundation in terms of web design and business media.
*** Please fill in the blanks of the things that I may be missing. I need to try to realize all the risks and requirements to decide if this is a viable business idea or not ***
Required to use the commercial kitchen: commercial license, insurance, recipes, ingredients (what type of business should it be …?)
Required to start taking orders: menu / website, dessert photos, lists of printed ingredients, PayPal business account, quikbooks software?
It is required to start making deliveries: vehicle (have), packaging
If I can convince my husband that this is a worthwhile effort, I most likely have up to $ 1500 of initial cash to use. I plan to use a social media approach for advertising, as well as advertising in local businesses and print media. The company's short-term goal, since I hardly need to make large investments of $, would be $ 1000 of earnings per employee per month, and then expand from there. The business objective is to provide "homemade" gluten-free, low-sugar, fat-free and low-calorie options for local delivery. I initially plan to offer delivery once a week, which means we would probably need to rent a kitchen for about 8 hours overnight and then deliver it the next day.
The plan would be to offer a subscription service; I worked for an organic supermarket and they had a wonderful one. I would charge customers once a month, at a rate of $ 15 / week of delivery included for weekly deliveries of 12 portions of desserts (for example). I know there is a demand for this type of dessert; Someone told me that "people who eat dessert don't care how many calories it has." I don't agree, because they might not know that there are healthier options. For example, I make amazing black bean brownies that are less than half the calories of other brownies and are really sweet and delicious. In addition, many people are starting to avoid gluten and processed sugars, and if you can even find these baked goods in supermarkets, they are expensive and you do not have the luxury of delivery.
Finally, the popularity of mail delivery boxes has recently exploded (i.e., BarkBox, Graze, NatureBox). The benefit of my service would be delicious fresh bakery quality products. They could choose their favorites, get a varied package, etc. These fresh items you can't get in a box by mail without paying very high prices … as really high for refrigerated shipping and overnight. I hope to keep shipping costs down by staying within a 10 mile radius or something. Also, can I claim those miles on my taxes …?
Any information you can add / share, as well as possible difficulties, would be greatly appreciated!