Food businesses can be fraught with financial challenges that are unique to the industry and the landscape it operates in. Here, a laundry list of things that any aspiring food entrepreneur should watch out for when setting up and expanding a fledgling food business. 1. Start small “If you are just starting out, you can’t afford to be too ambitious,” reminds Arturo Benedicto Ilano, assistant professor at the Virata School of Business of the University of the Philippines Diliman.
Loans are also financial obligations you must pay back, and even provide interest for, even if your business fails. As such, loans can become an encumbrance, especially if cash flow remains uncertain. “If things go south, loans can lead to your financial ruin as you try to pay back something you no longer have the means of repaying,” reminds Ilano. If you have a startup or have no prior business experience, you cannot easily take out loans from financial institutions.