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  • #990203
    AO234
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    • Total posts: 14
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    Hi everyone,

    I have recently started a small venture on Facebook as a trial and am wanting to research the possibility of turning this into a slightly bigger venture.
    I make gift boxes with confectionary, it is something different and I have had lost of positive feedback (better not go into too much detail in case there are idea thieves), and if I go ahead with turning it into a slightly bigger venture, I will also sell other items.

    Currently I do not have an ABN or a business name, but will be getting this sorted in the new year once I have finished researching this.

    With my free time I will be doing significant research between now and Christmas in the hope to start things moving in the new year, have I missed anything? I need to work out what sort of money I will need to put in to get this off the ground also, I have spent $250 so far on my trial run to get kits made for photos and examples, and have sold a few already.

    • ABN Number
    • Business Name
    • Website and shopping cart
    • Suppliers
    • Freight Company and if flat rate shipping will be a possibility
    • Insurance
    • Setting up a proper workspace within my home
    • New computer (current one is just a bit old)
    • Packaging
    • Advertising
    • Accountant if required (currently studying accounting and bookkeeping so I plan on being able to handle this myself down the track)
    • Work out costs and sell prices for different sized kits to enable me to keep standard prices
    • Call ATO

    Thank you for anyone who is able to help me get on the right path prior to moving forward. Any suggestions on what to look at first?

    #1175876
    TPC
    Member
    • Total posts: 6
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    You mention your selling confectionary… I would assume this would require a permit to.

    #1175877
    AO234
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    • Total posts: 14
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    I will be doing research into this as well, I knew there was something I missed from my list, however from the research I have already done, I haven’t been able to find that a permit is required for confectionary, however I will be ensuring to find this out as I do not wish to go about this the wrong way.

    #1175878
    davemat
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    • Total posts: 12
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    AO234, post: 204729 wrote:
    I will be doing research into this as well, I knew there was something I missed from my list, however from the research I have already done, I haven’t been able to find that a permit is required for confectionary, however I will be ensuring to find this out as I do not wish to go about this the wrong way.

    Pretty sure you will need to get a certificate from your local council to sell food (call them to check). I currently work in a Bottleshop and we require a certificate to sell packaged food: chips, nuts, jerky, pork crackle, chocolate, and bags of lollies, chewy, etc.

    Sent from my Nexus 5 using Tapatalk

    #1175879
    AO234
    Member
    • Total posts: 14
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    Thank you davemat, I will add the council to my list of people to contact.

    #1175880
    RachelWrites
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    • Total posts: 81
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    Are you making the confectionary yourself?

    Or re-distributing someone else’s confectionary?

    #1175881
    AO234
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    Redistributing. Things like hundreds and thousands, chocolate chips, m&m/smarties etc.

    I have emailed the council and awaiting a reply.

    #1175882
    RachelWrites
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    • Total posts: 81
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    AO234, post: 204818 wrote:
    Redistributing. Things like hundreds and thousands, chocolate chips, m&m/smarties etc.

    I have emailed the council and awaiting a reply.

    Ah ok. Keep us posted on their response…I’m always keen to find out outcomes :)

    Your list is pretty comprehensive so you sound like you have a good idea of what you want to do :)

    I recommend keeping a strong focus on three things:

    (1) Your numbers. Know them backwards (buy price low quantity, buy price high quantity, sell price retailer, sell price consumer, margins, wholesale or catering discounts – if you intend to branch out into that). Everything must make sense and make a profit for you, no matter which way you turn it.

    (2) Keep overheads as low as possible (i.e.: use excel for accounting in the first 6 months). When you make sales and can see growth, then start adding additional expenses.

    (3) MARKETING. Number one thing. Without it, no sales. Focus your money and your time on knowing in advance how you will get your name and product out there. If you have a solid plan, it will help keep you focused when you’ve got the product sitting there, the website done, the general business startup activities complete, and you’re wondering how to get it all into people’s mouths!

    Wish you every success :)

    #1175883
    AO234
    Member
    • Total posts: 14
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    Thankfully I am studying accounting so will be able to maintain Excel for some time I imagine, the added cost of a system will likely not benefit me for a few years. I love excel though :)

    Thank you for your feedback, I am as a starting point wanting to find out the higher costs of things like permits and insurance etc, to enable me to work backwards from there with pricing to give me an indication of what my buy prices need to be to make a profit. If these costs work out too high and my buy prices too high, I will have a lot more thinking to do.

    #1175884
    RachelWrites
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    • Total posts: 81
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    No worries!

    Insurance and permits are always a pain. Hopefully they won’t be too expensive and you’ll be able to move forward with it.

    I’m sure you’ll do well – you definitely have your head in the right place.

    Best of luck!

    #1175885
    MikeDav
    Member
    • Total posts: 163
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    For a lot of the items that you are looking at there is a very broad range in terms of potential cost. For example, website can be anything from $500 to $8000 and an advertising budget will depend on the media that you are going to go with. It is probably best to start getting quotes and build yourself a business plan.

    Setting yourself up with an ABN and a business name will be very cheap if you do it yourself. Insurance will vary depending upon what areas you want to cover yourself for.

    #1175886
    AO234
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    • Total posts: 14
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    I will be designing my website on my own, I have a love for things like that, and will seek feedback from those around me. If I struggle with any aspect of the technical side, I have a few friends who are in this field who can assist next year when I need it.

    I was looking at OpenCart for an online shop earlier today, is this something that is used as a sole website, or does it link in with a website I create somehow? I am just looking for a simple easy to use option as a starter, ideally one that won’t cost me, that way I can trial it to see how I find it and change if I find it doesn’t suit.

    If anyone has used opencart and has experiences to share, please PM me, or if you know enough about it that I can ask a few questions to see if it can do what I have in mind or if I’m going to need to dumb it back a little :) or any other suggestions are welcome

    What sort of insurance would I require? I imagine to cover losses, ie if all of my stock was damaged, I don’t imagine shipping losses will be an issue for me initially as I would like to try and support local businesses for supplies where I can. Shipping to consumers is not something that i think would be covered by insurance, I may be wrong, but the end goods I will be shipping will be approx $25 value per unit.
    Then there is the other side of insurance, ie if anyone gets ill from what I have sold, I am not sure whether this is required or to what extent, as I am not making them myself, I am repackaging.

    One last question for now, initially my annual turnover may only be 3-5000 annually, very small in my eyes, hence why I am needing to do all this research to ensure I can do this and sustain it. How long would you spend putting together a thorough business plan? I don’t want to jump into things, but I don’t want to drag it out where it isn’t necessary. My goal is by mid next year to have it up and running, but part of me says I won’t need anywhere near that it get sorted.

    Thanks for your help everyone, it is really appreciated

    #1175887
    Past-Member
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    Have sent private message.

    #1175888
    Past-Member
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    re insurance – you need public liability and product liability at least.

    You can get insurance in transit if required from your courier or Australia Post.

    #1175889
    Anonymous
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    • Total posts: 11,464
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    Hi there AO234,

    For the questions about OpenCart etc, you may be best to start a new thread over in the Selling online section of the forum.

    Hope that helps,
    Jayne

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