become a fabjob guide to chocolate shop ownerchocolates as part of their ordinary routines, and...
TRANSCRIPT
Open your own chocolate shop!
Barbara Lightner
FabJob Guide to
Become a Chocolate
Shop Owner
Visit www.FabJob.com
Contents
About the Author ..........................................................................................9
1. Introduction ..........................................................................................12
1.1 A Growth Industry .......................................................................13
1.2 Owning a Chocolate Shop ...........................................................15
1.3 BenefitsofBeingaChocolateShopOwner ..............................17
1.4 Inside This Guide .........................................................................19
2. GettingReady .......................................................................................20
2.1 Skills and Knowledge You Will Need .......................................20
2.1.1 Being a Chocolate Connoisseur ........................................20
2.1.2 Being a Chocolatier .............................................................21
2.1.3 Self-EvaluationQuiz ..........................................................22
2.1.4 Interpersonal Skills .............................................................24
2.1.5 Business Skills .....................................................................25
2.2 Learning by Doing .......................................................................29
2.2.1 Work in a Chocolate Shop .................................................29
2.2.2 Work in a Chocolate Factory ............................................30
2.2.3 GetVolunteerExperience ..................................................31
2.3 Be Your Own “Mystery Shopper” .............................................32
2.4 Learn From Other Business Owners..........................................33
2.4.1 Talk to Chocolate Store Owners .......................................33
2.4.2 Join an Association .............................................................35
2.4.3 Participate in Online Communities ..................................38
2.4.4 JoinBusinessOrganizations ..............................................39
2.5 EducationalPrograms .................................................................39
2.5.1 GetaCertificate ...................................................................39
2.5.2 Business Courses ................................................................40
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2.5.3 Chocolate-MakingCourses ...............................................41
2.5.4 Chocolate Classes ...............................................................44
2.6 ResourcesforSelf-Study ..............................................................45
2.6.1 Chocolate Tastings and Tours ...........................................46
2.6.2 ChocolateFestivals .............................................................47
2.6.3 IndustryEvents:TradeShows ..........................................48
2.6.4 Websites ...............................................................................48
2.6.5 Chocolate Blogs ...................................................................51
2.6.6 NewslettersandMagazines ..............................................51
2.6.7 Books ....................................................................................52
3. StartingYourChocolateShop ...........................................................54
3.1 Choosing Your Specialty .............................................................54
3.1.1 TypesofChocolate .............................................................58
3.1.2 StylesofChocolate .............................................................59
3.1.3 Product Forms .....................................................................60
3.1.4 Specialty Chocolates ...........................................................61
3.2 OptionsforStartingaChocolateShop ......................................63
3.2.1 BuyinganEstablishedStore..............................................63
3.2.2 Franchising ..........................................................................70
3.2.3 Opening a New Chocolate Shop ......................................76
3.3 Choosing a Store Name ...............................................................77
3.4 Your Business Plan .......................................................................79
3.4.1 What to Include in a Business Plan ..................................80
3.4.2 Start-UpFinancialPlanning ..............................................86
3.4.3 A Sample Business Plan .....................................................96
3.4.4 Business Plan Resources ..................................................115
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3.5 Start-UpFinancing .....................................................................116
3.5.1 GettingPrepared ...............................................................116
3.5.2 Equityvs.DebtFinancing ...............................................118
3.5.3 Borrowing Money .............................................................119
3.5.4 FindingInvestors ..............................................................122
3.5.5 GovernmentPrograms ....................................................124
3.6 LegalMatters ...............................................................................126
3.6.1 Your Business Legal Structure ........................................126
3.6.2 Business Licenses ..............................................................132
3.6.3 Taxes ...................................................................................133
3.6.4 Insurance ............................................................................136
4. SettingupYourRetailStore ............................................................140
4.1 Finding a Location ......................................................................140
4.1.1 Possible Locations .............................................................141
4.1.2 Points to Consider ............................................................145
4.1.3 Signing Your Lease ...........................................................151
4.2 Store Design ................................................................................160
4.2.1 Outside the Store ..............................................................161
4.2.2 Inside the Store..................................................................163
4.2.3 Store Security ....................................................................167
4.3 Displaying Merchandise ...........................................................169
4.3.1 MaximizingSales ..............................................................169
4.3.2 Creating Window Displays .............................................171
4.4 RetailEquipmentandSupplies ................................................174
4.4.1 Items You’ll Need .............................................................174
4.4.2 Suppliers ............................................................................178
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4.5 ObtainingYourInventory .........................................................180
4.5.1 Manufacturers ...................................................................182
4.5.2 Wholesalers and Distributors .........................................183
4.5.3 Prices and Terms ...............................................................183
5. RunningYourBusiness ....................................................................185
5.1 Store Operations .........................................................................185
5.1.1 DevelopingaProceduresManual ..................................185
5.1.2 AreasofOperationsChecklists ......................................187
5.2 InventoryManagement .............................................................189
5.2.1 InventorySoftware ...........................................................189
5.2.2 InventoryTagsandLabels ..............................................192
5.3 Pricing Merchandise ..................................................................193
5.3.1 Guidelines ..........................................................................193
5.3.2 Retail Pricing Formulas ...................................................194
5.3.3 ProfitMarginvs.PercentageMarkup............................195
5.3.4 Standard Markups ............................................................197
5.4 GettingPaid .................................................................................198
5.4.1 Accepting Debit Cards .....................................................199
5.4.2 Accepting Credit Cards ...................................................199
5.4.3 Accepting Payment Online .............................................200
5.4.4 Accepting Checks .............................................................201
5.5 Financial Management ..............................................................201
5.5.1 Bookkeeping ......................................................................201
5.5.2 Financial Statements and Reports ..................................203
5.5.3 Building Wealth ................................................................212
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5.6 Employees ...................................................................................215
5.6.1 When to Hire Help ...........................................................215
5.6.2 RecruitingStaff .................................................................217
5.6.3 The Hiring Process ...........................................................220
5.6.4 NewEmployees ................................................................224
6. GettingandKeepingCustomers ....................................................229
6.1 Marketing Your Business ..........................................................229
6.1.1 Advertising ........................................................................230
6.1.2 Free Publicity .....................................................................234
6.1.3 Promotional Tools .............................................................238
6.1.4 Your Website ......................................................................243
6.1.5 Social Media ......................................................................248
6.1.6 NetworkingandReferrals ...............................................251
6.1.7 Your Grand Opening ........................................................253
6.1.8 Other Special Promotions ................................................257
6.2 CustomerService ........................................................................261
6.2.1 Greeting Customers .........................................................261
6.2.2 Making the Sale .................................................................263
6.2.3 Return/ExchangePolicy ...................................................265
6.2.4 GettingRepeatBusiness ..................................................266
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1. IntroductionCongratulationsontakingthefirststepinstartingupyourownchoco-lateshop.Aheadofyouaredayssurroundedbyscrumptiousprod-ucts,novicechocolateloverslookingfornewindulgences,anddie-hardchocophilesseekingthelatestinexoticflavorstowhettheirpalatesandsatisfytheircravings.
Peoplewhoareinterestedintheideaofowningachocolateshopareasdiverseasthechocolateproductssoldinshopsaroundtheworld.And yet, most people considering a career as a chocolate shop owner havecertainthingsincommon.It’sprobablyasafebettoassumethatyoulovethetasteofagoodchocolate.Butwhatdoesa“good”choco-latemeantoyou?Whatisyourfavoritetypeofchocolate?Doyoulovemilkchocolate,darkchocolate,orwhitechocolate?Areyourfavoritechocolatestheonesyou’velovedforyearsordoyouseekoutnewfla-vorsandvarieties?Doyoufeelasenseofwonderwhenyouenterachocolateshopforthefirsttime?Ifso,youprobablyalreadyspendalotoftimeinchocolateshops,andknowwhatyoulikeanddon’tlikeabout them.
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Perhapsyoufindyourselfunconsciouslywindow-shoppingforfriendsandrelatives.Doyouseeabonbonandthink,“Rebeccawouldlovethat” or are you constantly checking out chocolate displays and making mentallistsoffuturegifts?Ifso,you’llprobablybeanaturalsuccessatsellinginaretailenvironment,whereyou’llhelppeoplefinditemsthatmatch their desires and tastes.
Chancesareyou’vespentabitoftimeshoppinginchocolateshopsandyoumightpossiblyhaveworkedinoneortwo.Whileitcanbefunandrewardingtoworkinsomeoneelse’sshop,nothingquitecomparestothesatisfactionofrunningyourownbusinessandtakingcreditforyourownconfectionarycreationsorwelcomingbacktoyourstoreoneofyourfavoritecustomers.
Chocolatestoresareasdiverseastheirowners.Therearenumerousop-tionsfortypesofshops,andamultitudeofproductsandniches.Thischapterlaysthefoundationfortherestoftheguide.Itexplainssomeofthetrendspropellinggrowthinthechocolateretailindustryandgivesanoverviewofemergingorgrowingproductcategories.Italsocoversthebenefitsofthisexcitingcareerchoiceandoutlinesthestepsneededto get started.
1.1 AGrowthIndustryThechocolatemarkethasbeenundergoingsomethingofarenais-sance—orrevolution,dependingupontheanalyst—inrecentyears.In-dustryinsiderssometimescompareittotheburgeoningcoffeemarketofthe1980s,ortothespecialtybreadmarketofthe1990s.Consumershaveincreasinglyexpressedagreaterinterestinspecialtychocolates,particularlydarkchocolate.Newproductshavefloodedthemarket,andsalesofgourmetchocolateshavebeensteadilyincreasingsince2001.
Thisrenewedinterestinchocolatehasbeenattributedtoreportsofthehealthbenefitsassociatedwithdarkchocolateaswellasatrendto-wardspecialtyproducts,suchasorganic,fairtrade,andhighercacaocontentchocolates.AsBobbieBurt,chocolatierandownerofChoco-lateHeaveninScottsdale,Arizona,remarks,“Ithasbeenagreattimeforthechocolateindustrybecauseeverywhereyouturnreportersarewritingarticlesordoingnewsshowsaboutthehealthbenefitsofdark
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chocolate.Peopledon’tfeelasguiltybuyingandeatingchocolatebe-causeofthis.”
Chocolatealsohasotherperceivedbenefitsforpeople.JeanThom-sonownerofSeattleChocolateCompanysays,“Researchshowsthatwomenreachforchocolateformanyreasons.Someconsiderchocolateadailyindulgence.Othersconsiderittheidealendtotheperfectmeal.”Chocolatehasalsobecomesomethingofapanaceafordealingwithlife’sstressfulmoments.Thomsontoldusthatmanypeoplechoosechocolate“torelievestressandcopewiththedemandsofeverydaylife.Whateverthedemandsofbusinessorlife,it’smuchmoreenjoyablewith chocolate.”
High-quality,premiumproductsarenolongerreservedforspecialoc-casions,butarebeingchosenforeverydayconsumption.Forsomecon-sumers,chocolatesarearelativelyinexpensivewaytoindulgeinoneofthefinerthingsoflife.Forothers,premiumchocolatesarearewardortreat.Theseconsumersseekoutgourmetchocolatesascomfortorindulgencetooffsetdemandsandpressuresofwork,timeconstraints,andhecticlifestyles.
Accordingtomarketresearchstudies,severaltrendsinconsumerspendingonchocolateareevident.Consumersnowpurchasegourmetchocolatesaspartoftheirordinaryroutines,andpurchasegourmetchocolatesmorefrequentlythaninthepast.Premiumproductsarenolongeraimedatjustthehigh-incomeconsumer.Justascustomersarewillingtospendfourorfivedollarsforaneverydaycupofgourmetcoffee,peoplearewillingtospendmoreongourmetchocolates.
In2007,chocolateretailsalesgenerated$16.3billionintheUnitedStatesaccordingtotheU.S.DepartmentofCommerce’sAnnualConfec-tionaryReport,anincreaseof90%inthefive-yearperiodsince2002.In2011, a Packaged Factsreportnotedretailchocolatesaleswereup6.6%overthepreviousyear,withorganicchocolateenjoyinga20%growthin2011over2010.Andin2013,U.S.confectionerysalescontinuedtogrowatasolidrateof2.5percent,whichtranslatestoabout$33.6bil-lionintotalsales.Withchocolaterepresentingcloseto60percentofallconfectionerysalesintheU.S.,chocolatesalesarea$20+billiondollarindustry.
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In 2014, Packaged Factsreportedsalesofpremiumchocolateincreased4.8%overthepreviousyear,while‘everyday’massmarketchocolateincreasedby3.8%.
IBISWorld’sJanuary2015reportstates:
Overthefiveyearsto2015,revenuefortheChocolateStoresin-dustryhasexpandedandwillcontinuetoincreaseduringthefiveyearsto2020.Thisgrowth,thoughfacilitatedbyhighcocoaprices,willbemostlydrivenbyrisingpercapitadisposablein-come.Manyconsumersconsiderchocolatesdailyluxuries,inwhichtheywillindulgeregardlessofeconomicconditions.Al-thoughthemajorityofchocolatewillberetailedatsupermarketsand other retailers outside the industry, industry operators will continuetobenefitfromrisingdisposableincomesandgrowingdemandforpremiumchocolates.
1.2 OwningaChocolateShop
Product Trends
Premium,gourmet,everydayindulgent,artisan,handcrafted,fine,prestige,luxurychocolate—thewordsbeingusedtodescribethefast-est-growingchocolateindustrysegmentvary,butonethingiscertain.Salesofthesechocolatesareescalatingandaregivingbirthtoawholenewwayofselling—andconsuming—chocolates.Manyoftheworld’sfinestchocolatestraditionallyhavecomefromBelgiumandFrance,butaninterestinartisanconfectionsintheUnitedStatesandCanadahasevolvedinrecentyears.
Consumer interest in chocolates is high, specialty products are entering themarket,andnichesandsubcategoriesareemergingandsolidify-ing.AccordingtoTonyMiller,chocolatierandownerofTreatSweetsinCalifornia,“theconsumerismoreknowledgeableanddemandingaboutchocolatethesedays.Asaresult,youareseeingamovetowardhigherendchocolatesbytheconsumer.”Theimageofchocolateshopsandwhattheysellisundergoingarevolution,leadingtoawholenewwayofsellingchocolate,andnumerousnewtypesofchocolatestosell.
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Salesofgiftboxesaredown;barsareup.Darkchocolateisexperienc-ingdouble-digitgrowth.SomecustomerscomeintoshopsaskingforadarkchocolatefromaspecificregioninVenezuelaoranorganicbean-to-barchocolate.CaroleBloom,confectionerandauthor,reportsthat“thetrendsarebetterqualitychocolate,includinghighcacaopercent-age chocolates, single origin chocolates, and organic chocolate. Another trendismixingunusualflavorswithchocolatesuchastropicalflavors,teas,andspices.”Otherswantaveganchocolate,orchocolatebarwithspecifichealthbenefits.Specialtychocolatesincludesingleorigin,FairTrade,organic,vegan,enrichedorhealth-benefits,exoticflavored,andkosher.
SpecialServices
Withthegrowinginterestinchocolate,storeshavebecomemorethanmerepurveyorsofatastyproduct.Manystoreshavetakenontheroleofeducatingcustomersaboutdifferenttypesofchocolates.Theymayhold chocolate tastings, sampling parties, or tours that allow custom-erstobecomefamiliarwithandlearnaboutnewproducts.Somestoreownersusewebsitestoprovideforums,blogs,andarticlesabouteventsand new products. Stores that make artisan chocolates may hold choco-late classes.
1.3 BenefitsofBeingaChocolateShopOwnerOwningachocolateshopcanbeafulfillingandrewardingcareer.Inadditiontothebenefitsofworkingforyourself,itoffersthepossibilitytoshapeyourbusinessaccordingtoyourownpreferencesandpersonalambitions.Youwillalsofindthereisplentyofopportunitytoexerciseyourcreativityandshareyourloveofchocolatewithothers.
FinancialRewards
Theincomepotentialinthisindustryisquitehigh.Forexample,aver-ageannualsalesforsmallshopswithtwoemployeesisabout$100,000.Largershopswithfourormoreemployeescanearninexcessof$300,000.Inaddition,storeswithhighvolumeandlowoverheadcostsusuallycanturnaprofitwithinthefirstyear.
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GrowthPotential
Achocolateshopoffersmanyopportunitiesforexpansion.Asyougrowyourbusinessyoucanopenadditionalstores,movetoalargerlocation,oraddnewproductlinesandmerchandise.Youcanfindnewmarketopportunitiesbysellingyourproductsthroughmail-ordercatalogsoranInternetsite.Additionally,youcanincreaseyourrevenuesbysellingtocustomersbeyondtheretaillocation;forexample,bysellinggiftbas-ketstocorporateclients,partyfavorsforweddings,anniversarypar-ties,andotherspecialoccasions.Youcanhostprivatechocolate-tastingparties in homes and other sites.
Family-RunBusiness
Severalchocolateshopownersthatweinterviewedstatedthathavingaplacewherefamilymemberscouldworkandspendtimetogetherwasoneoftheprimebenefitstoowningachocolateshop.Ownerswithyoungerchildrenlikedhavingaplacewherechildrencouldgoafterschoolandonweekends.Ownerswitholderchildrenoftenhadtheirchildrenhelpoutatthestore.Someownersenjoyedteachingthebusinesstotheirchildrenwiththehopesofturningthebusinessovertothemsomedayinthefuture.Otherslikedtheopportunitytoinstillworkethicsandhelptheirchildrendevelopbusinessskills.Andhus-bandandwifeteamsenjoyedbeingabletospendtimetogetheraswellastocombinetheireffortstomakeasuccessfulbusiness.Ifyouliketheideaofhavingyourfamilyaroundyouandhelpingtogrowyourbusi-ness, then a chocolate shop is the ideal business.
SharingLoveofChocolate
Manyshopownerscitedsharingtheirloveofchocolatewithothersasoneofthemostsatisfyingrewardsofowningachocolateshop.Chocolatierswhosoldtheirownhandmadechocolatesespeciallyenjoyedseeingthedelightofcustomerstastingtheirwares.Othersenjoyedteachingcustom-ersaboutdifferenttypesofchocolatesandhelpingthemdiscovernewfla-vorsandfavorites.Hereiswhattwoofthemsharedwithusaboutsharingtheirloveofchocolatewiththeircustomers:
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“I love watching someone taste a truffle or a chocolate-coated caramel and soaking in the look of ecstasy they so often get.”
– Brian Pelletier, Chocolatier, ownerofKakaoChocolate
“The most rewarding aspect of my career is seeing people’s faces light up when they talk about chocolate.”
– DeniseRyan,Motivationalspeaker,Motivationby Chocolate and Leadership by Chocolate
CreativeVision
Owningyourownchocolateshopallowsformanyopportunitiestouseyourcreativity.Youwillupdateyourdisplaysconstantlyandyou’llbedesigningnewpromotionalactivitiesandeventstodrawcustomersintothestore.Ifyoulikethethoughtofcreatinguniqueanddeliciousnewchocolateflavorsandformsfromyourownrecipesanddesigns,you’llhavelotsofopportunityforthat,too.Inshort,ifyouhaveacreativebent,achocolateshopwillallowyoutoexpressitincountlessways.
FringeBenefit
Andofcourse,there’stheaddedbonusofbeingsurroundedbychoco-latesandgettingtotasteawidespectrumofflavorsandvarieties.
1.4 InsideThisGuideThe FabJob Guide to Become a Chocolate Shop Ownerisorganizedtohelptakeyoustep-by-stepthroughthebasicsyouwillneedtoopenandop-erateyourownstore.Thechaptersareorganizedasfollows:
Chapter 2 (“Getting Ready”)explainshowtolearntheinformationandskillsyouwillneedasachocolateshopowner.Itcoverswaysoflearn-ingfromexpertsandthroughobservation,research,andhands-on activities.
Chapter 3 (“Starting Your Chocolate Shop”) will help you decide what kindofstoreyoushouldopen.Thischapterdiscussesdifferentprod-uctsyoucansellandwillhelpyoudecidewhethertobuyanexistingstore,operateafranchise,oropenanewstore.Italsoexplainswhatyou
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needtogetstarted,includingyourbusinessplan,start-upfinancing,storename,andotherimportantmatters.
Chapter 4 (“Setting Up Your Store”)offerstheinformationyouneedtoactuallysetupyourstore.Itgivesadviceonhowtochoosealocation,getmerchandisetosell,andarrangedisplays.Youwillalsodiscoverwhatequipmentandsuppliesyouwillneed.
Chapter 5 (“Store Operations”)takesyouintotheday-to-daychallengeofrunningyourstoreonceit’sopen.Itexplainshowtodevelopapro-ceduresmanual,andcoversinventorymanagement,financialmanage-mentandpricing,marketingyourbusiness,andworkingwithstaffandcustomers.
Chapter6(“GettingandKeepingCustomers”)tellsyouwaystobuildupyour customer base and how to keep your customers happy so they keep comingback.Itdescribeswaystopromoteyourshopthroughadvertis-ing, press releases, a website, and other promotional tools. It describes qualitycustomerservice—andhowtoensureyouareprovidingit.
Byfollowingthestepsinthisguide,youwillbewellonyourwaytolivingyourdream—openingyourownsuccessfulchocolateshop.
YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Chocolate Shop OwnerToorderanddownloadthecom-pleteguidegotohttps://fabjob.com/program/become-chocolate-shop-owner/.