Popcorn was part of what makes the childhood memory of many of us. It automatically pops up in our heads any time we hear the word cinema. Although popcorn is still been eaten during movies today, it has quickly moved to be one of the most favorite snacks around the world.
If you are thinking of starting a popcorn business, you likely not going to run out of customers. Popcorn is now been eaten everywhere – from home to offices, carnivals, during festive occasions, and outside the schools. To start a profitable popcorn business, however, you need to get your dots correctly. In this post, we will be showing you all you need to start a popcorn business – even if you are willing to start from home.
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Tips for Starting a Popcorn Business
Let’s learn about “How to Start A Popcorn Business” in detail:
#1: Plan Your Business
Before you start thinking of where to buy your equipment and supplies, you need to first get the basics of the business right. It all starts with having a plan for the business. To do that, there are some factors you need to consider:
Conduct comprehensive market research
This is the first thing you need to do. Check what the market looks like and see if it will be possible for you to make a mark there. How much competition is there and who are your competitors? Who are your target customers and what flavor do you think they like in the area? Will they prefer to buy in shops or have it delivered to them in their locations? All these will help you come up with the best plan to build a successful popcorn business for yourself.
How much money do you need to start a popcorn business?
This actually depends on some factors such as the flavor and the scale at which you want to start the business. However, typically, a popcorn business will not require more than $1000 to start. The major area that will be eating the chunk of the money is equipment procurement and packaging. Every other expense is minimal.
How much can you make from a popcorn business?
This also depends on the quality of your popcorn and how well you treat your customers. But a gourmet popcorn business would make between $50k and $70k in a year.
What are the financing options for a popcorn business?
There are a couple of ways you can get the money to finance your popcorn business. This includes savings, credit cards, sweat equity, family loan, small business loan, retirement funds, and fundraising.
Who is the target market for a popcorn business?
Identifying and understanding who your target customers are is a critical step in ensuring a successful popcorn business. You need to be able to tell who you will be selling to. The target customers of the business include:
- School kids
- Shopping malls and movie halls
- Restaurant and hotels
- Local stores
- Offices
- People at fare or carnivals
- Selling to people over the internet
#2: Pick a Niche
Picking a niche will help you focus on a particular group of buyers and produce good popcorns that satisfy their unique taste or personality. You can decide to only make popcorns that are laced with honey or Snickers. If you like, you can make it free of sweeteners and just make it bear to sell to only people that enjoy their popcorns without sugar. Just choose a niche and stick with it as you progress in the business.
#3: Select a Suitable Location
One of the major factors that will determine the success of the business is the location you choose. Look out for high-traffic locations such as sport event centers, markets, fairs, or busy community gathering places. However, if you will like to operate the business as a wholesaler or retailer, you will have to focus on servicing eateries, supermarkets, and hawkers, not individuals.
#4: Be legally compliant
Just as it is for other food-based businesses, you will need to obtain certain licenses and permits to run a popcorn business. You will probably need to pass health inspections even if you are selling your popcorn online. So consult your attorney and your state secretariat office for necessary requirements. Some of this will include a business license, an EIN if you will be employing staff, and forming a business entity.
#5: Write a business plan
Whether you will be running the business from home or online, you will still need to write a comprehensive business plan for it. Your business plan doesn’t have to be complex and laborious. Keep things simple but detailed enough to serve as a road map for you in the business. Things to include in the plan are your startup costs, source of funding, objectives, marketing strategy, etc.
#6: Get Your Equipment
There is no way you can run this type of business without equipment and supplies. So search on the internet to get a list of suppliers in your area. Check the quality of their products and analyze their cost. Then go for the one you think is best for you.
What equipment and supplies do you need for a popcorn business?
Below are the major equipment and supplies you will need:
- Popcorn machine
- Candy coasters
- Popping tables
- Bags of corn
- Salt, sugar, and butter
- Flavors, colors, and spices
#7: Launch Your Business with Some Fanfare
This is a smart way to gain the exposure and recognition your business needs to start out on a good foot. Hold a grand opening to bring to people’s attention. To get more people to want to try your popcorn, offer free samples or steep discounts to attract them. After the launch, keep things going by giving out business cards and flyers to people. There are also some other great ways to make market your popcorn business for optimum gain.
Ways to make a profit with popcorn business
There are a couple of ways you can market your popcorn and make more profit. Some of them include:
- Incorporation it into appetizer menu: walk up to restaurants and bars and offer to let them include your popcorn in their appetizer menu. Dress the popcorn well so it fits well into the system.
- Offer popcorn as a promotional incentive: at special events, you can use your popcorn as an incentive to gain the attention of more people. And if you think you can’t do that because of financial costs, you can offer a mouth-watering discount on the popcorn.
- Serve creative dishes made with popcorn: popcorns can make a great addition to baked goods. So get creative with that.
- Sell your popcorn online: open a website to allow people to order their popcorn online. Promote the business using social media for more gains.