Starting a smoking business, need advice.

Like any business, do a business plan. You have to figure out if/how you're going to make money.

I know of more people who BBQ for a hobby, think they can turn it into a full time business and they don't.

Read through the pro section, you'll see some comments.

Are you thinking of retail sales, internet sales, catering, restaurant?

a good software program for business plans is Business Plan Pro.
it is used by the SBA
jack

I also use BPP, it walks you through the steps and gives some good examples, it does take some time to write the plan and do all the due dilligence for the financials and demographics.

My one tip, make sure you are prepared to have 1-2 years of operating capital, the biggest cause of failure in this business is not having enough money to ride out the slow times at the beginning of your venture.

Idaho...both of the above suggestions are excellent! I would addd: #1 stay away from Sysco because you will probably get product that big users have refused...unless you are a BIG user, which is unlikely if you are just starting. #2 is pay the sales tax on the products you buy at the point of purchase so you don't become an unpaid "tax collector" for the Gov't (resale permit) and have to file tax reports quarterly, which effects your cash flow, probably when you can least afford it. Keep every reciept relating to your business...IMPORTANT!
Good Luck!
CB

I will also add that if you can pay upon receipt for your purveyors, you can typically get them to give you a discount, if they have to bill you they are not as likely to give to many benefits to a smaller buyer.

An example is Filabertos Mexican here in Phoenix, they are little shops that do an amazing amount of business, they pay in cash upon receipt. I know a produce distributor that would give them 2-5% off because they never had to chase them for the money.

Try to get your pricing right the first time--not easy.Good rule of the business... Cost of food times 3 plus a little (.25-1.50--check competitions pricing).
You can always do like we have done---buy an existing business, keep it "as is" and slowly introduce YOUR foods. Has worked for us---so far!
Remember this---it ain't a "get rich quick" business, as a matter of fact, it ain't a get rich business. It is a labor of LOVE--trust me!
It will give you WHOLE new respect for the "Mom n' Pop's" joints.
Best wishes in your endeavour!
Zeb and the Crew at Zeb's

P.S.
Go to the SBA site! Small Business Association.
They offer a bunch of resources and as far as buying software goes....look at the samples at the SBA--you don't need software to come up with a Business Plan. Remember too, plans change sometimes--don't "limit" yourself to a Business plan. Use it as a "General" guide for direction--it is easy to get side-tracked.

Fantastic recommendations. I plan to start small, test the market a bit as well as enlist a local University's MBA program to assist with the prospectus and business planning. There's a ton of ideas and directions I can take it, I agree, but I want to ease into it while I test the waters.

Know your market. Start small. Keep it simple. Grow slow.

You had better love to do the work, and to serve people.

Read the book "Glorious Accidents" by Michael J. Glauser. It is a great book and not a bad read.
This will help you make a lot of decisions based on information for many successful business owners. In the book he identifies 10 factors that all the successful businesses he interviewed had at least some of them,
1. Know the Terrain
2. Sieze the Opportunity
3. Find a mentor
4. Radiate Zeal
5. Work with Tenacity
6. Give Mind Boggling Service
7. Build a Team
8. Get more from less
9. Notch it upward and onward
10. Give something back

Most of these are obvious, but sometimes in the hustle of starting a business, you forget.
If you would like details on any of these... get the book.

Understood, I just met with a potential partner regarding the start of our BP. I have experience in operational management and public relations as well as sales for the last 12 years, my potential partner has built several businesses himself, is excited about moving into the BP stage and we are both in that "honeymoon" stage of calculating the possibilities. I am all for hard work, I work six days a week, 12 hours a day as it is running a national sales organization for a major insurance company. Doing what I love will take time, patience, planning, commitment and zeal, and I am willing to do whatever it takes to successfully build the right plan, grow slow, manage our operation and build something I can be proud of.

If anyone here would be willing to share past business plans, general ideas, etc. via email or phone, I would be more than interested in speaking with you. This board has always been a great resource, now I plan to capitalize on a dream.

Of course, using commercial grade cookshack equipment.

Ok guys, I have to ask this of someone, so here goes... I am working through my business plan with a partner, he's the numbers guy, I am the siler tongued wonder. I have divided my vertical markets by product, and am working toward the analysis portion wherein I can get out and talk to some potential clients.

Would any of you who own your own smoking operation (non catering) have the time to share your thoughts with me on the type of obstacles you run into when dealing with grocers, restaurants, etc? I plan to have clients in Grocery stores, restaurants, taverns, internet sales and fundraising. I plan to smoke salmon, other fish, jerky, sausages, wild game (services based only), garlic, and other on demand products.

I need some real world advice on starting this, what to look out for, what to capitalize on and what products generate the fastest return.

Thanks again, I plan to remain here until I have tired all of you out.

Best,

Greg

Greg,
We're learning as we go, too. I would advise meeting with the money guy, using your silver tongue as well, tossing out ideas. Write those ideas down. After you both agree on what sounds like good ideas, type those up, sign it and go from there. It's always good to see what you both thought of later and it's good documentation that you take it seriously.
Peggy

Greg, I don't know if this is directly applicable or not, but I had a client a few years ago that sold deli meat to grocery stores. I was surprised to learn that many if not all vendors are expected to pay for shelf/display space, plus then pay for the display itself, i.e. cooler, rotating rack, etc. I would look into this very carefully before I planned on grocery business being part of my income stream. The client told me that his payment to Food Lion to carry his products started out at $274,000 the first year, and esclated every year until it was no longer profitable to supply them. Plus he had to supply the deli cases to display the products. It all depends on the amount of space you would require, but it should be investigated.

What if we either let the store sell it as their own, or brand it with the store's logo? I am interested in figuring this out prior to our approaching the grocers with questions...I guess I will have to visit with them and see if this is even a possibility for us to work together.