If you fancy yourself a home chef with divine recipes that will dazzle tastebuds far and wide, you may find your calling by starting an online business. Given that the Online Food Ordering and Delivery Platform industry in Australia has expanded at an average rate of 26.6% each year from 2018 to 2023, your timing couldn’t be better to turn your foodie passion into a profit.
Recommended reading: 8 Profitable Food Business Ideas to Start in 2024
Learn how to make your new business a raving success, and how you can reduce your exposure to risk*.
1. Create a business plan
A business plan will help you decide what your business will do and what results you hope to achieve. The key questions to ask yourself are:
- Who are my target customers?
- What types of food or products will my business offer?
- How much initial capital is required to start my business?
- How will I promote my online food business?
2. Find your niche
If you are new to the food industry, start with your passions to discover your product. Are you a home baker who enjoys making cakes for special occasions? Or are you a qualified chef seeking a new challenge?
You may wish to consider selling a meal kit delivery service, catering for businesses and events, or cooking meals for particular dietary restrictions. Ensure to differentiate your business from the competition.
3. Define your budget
Like any small business, it’s important to figure out your initial capital requirements, expenditure, and expected income. Your financial assessment should include how much you will charge for each item, the cost of each ingredient, and the cost of other overheads such as energy bills, equipment and business insurance.
You may benefit from researching other food businesses in your local area to help you determine your price points.
4. Register your business
By law you will have to register your business with your local council. After you have been approved, arrange a government-mandated food safety inspection. This will verify whether the culinary delights you intend to sell are safe and clean for customers. A food hygiene course can be beneficial for you and any staff you may have.
Recommended reading: What to Consider When Registering a New Business Name
5. Launch your online food business
With the pieces now in place, your online food business is ready to start trading. You can either sign up with an existing food delivery platform and use their infrastructure, or you can do it yourself by building your own website and offering delivery service.
Make sure to promote your new business through a variety of marketing strategies including social media, word of mouth and digital advertising.
Protect your home run food business with insurance
Starting an online food business from home comes with risk. This may include food contamination, issues related to allergies, and food poisoning. Business insurance can play a key role in reducing the impact of insured events on your business.
With BizCover you can compare business insurance quotes online from leading Australian insurers. Better yet, you will be able to get covered in 10 minutes with no paperwork required. Get in touch today and enjoy business insurance made easy!
*This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769.
