How to Open a Candy Store — Ultimate guide

WHERE TO START A CANDY SHOP

In reality, you can start with any of the sweet products available in the market, but it is always a good move to sell something new and rare. For example, if the area where you want to open your candy shop is full of hard candy and caramel, you might go for chocolate candies and break the rule.

So, the first step before considering opening your candy shop is to research the area and determine the niche you are going to direct your candy shop to in order to make the biggest profit possible by selling different products. That is the most important requirement before you start thinking how much a candy shop can make a day or a month.

WHAT IS THE COST OF OPENING A CANDY SHOP

As for the initial investment, the cost of opening a candy shop can vary depending on the type of shop you are planning to start and its size. For that you need to decide on several factors, such as whether you are going to produce your own candy or buy it from a supplier.

Then what type of candy display cases you are going to purchase, which will define your marketing and selling strategy and affect how much a candy shop can make a month. If you produce your own candy you need to check out packaging to represent your own brand and check out the average cost for the equipment for a shop in general.

Make sure you pay special attention to the shop decoration because this type of shops is supposed to be profusely decorated in many colors and offer special gifts too. If you want to know how much does it cost to open a well decorated candy shop, you can talk t a local decor shop and try to get the best price possible if you buy in bulk.

PERMITS AND LICENSING FOR A CANDY SHOP

Every business also has to file for an Identification and Tax number, as well as the Certificate of Occupancy before opening its doors to the public. Those are relatively easy to obtain at the local government office. In case you are worried you might not get it right you can always contact a consultancy agency and ask them to do the paperwork for you.

But before you constitute a legal business or even thinking how much does a candy shop make a year you need to think about the legal structure that will suit your business better. In the case of regular candy shops the best option is to set up a limited liability company, which will protect you as an individual from any wrongful claims from your clients or staff.

The other option is to constitute your business as a Sole proprietorship, but it gives you very little legal protection, thus it is not recommendable when working with the public, specially in food industry. In any case, once you set up your legal entity, make sure you have paid all the taxes in order to be able to open your candy shop to the public.

Also keep in mind that as food related business you will be subjected to numerous health department inspection and might be liable to pay different fees and taxes on behalf of this department. As well as, you can ask for a resale certificate in order to sell candies produced by your suppliers without paying taxes.

MAKING YOUR CANDY SHOP PROFITABLE

So how to keep a candy shop a profitable business?

There are several ways to do it, but all of them consists in diversifying and making different market approaches. For example, you can set up a gift candy basket for birthdays and other types of celebrations, as well as for corporate events and catering.

If you are still not happy about how much a candy shop can make a day, you can try to diversify your products by offering seasonal treats, such as hallowing, Valentine’s Day special baskets and packages. Another way to make the average daily income of a candy shop grow is to sell frozen yogurt or ice cream. The only problem with that might be the special permits for selling fresh food on the premises.

A good idea is to organize candy workshops for children and parents, it can help you to attract more clients and get their loyalty. Also contact local schools and invite them to see the manufacturing process, children like it, and they will surely tell their parents to come back and spend some money on candies.

Some candy stores offer special products to the local groceries, restaurants and other food related business that cannot produce candy themselves. So it could be another good way for your business to thrive, especially if you are capable of producing quality products that will ensure a long-lasting relationship with your client, so you do not have to worry how much does it cost to run a candy shop any more.

SCALE YOUR CANDY SHOP BUSINESS

Surprisingly, many candy shop owners miss out the opportunity to get a stronger business and higher income just not paying attention to their numbers. Because the majority of retail shops confide their financial management to an external office such as a consultancy or a freelance accountant who does all the paperwork for them, makes balance spreadsheet every month and even pays taxes.

It is all good if you stay out of trouble with your accountant, but the problem is that by not looking into your financial situation you are missing the chance to know where are you the biggest income opportunities and where you lose cash on a daily basis without even noticing it. More importantly, you are not controlling the situation, because you simply do not know how much does it cost to run a candy shop or your estimates are so rough, they are not even close to the real figures.

To avoid it you can just start using a software that can help you understand how to run a candy shop and forecast possible investment or expansion opportunities, which were totally uncovered while you were unaware of what are the requirements to make a candy shop successful business.

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