How to Start a Fresh Donut Business

Written by jessica jones
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How to Start a Fresh Donut Business
Apply for a business license to start a fresh doughnut business. (Michael Gray/iStockphoto/Getty Images)

Open a fresh doughnut business that serves a variety of doughnuts and other treats such as muffins, croissants and cookies. Open early to serve those on their morning commute and stay open until after dinnertime to cater to those looking for dessert. Create your own doughnut recipes to attract a loyal customer following. Offer decorative doughnuts for holidays and other seasonal celebrations such as birthdays and graduations. Provide quality customer service to attract new customers.

Skill level:
Moderate

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Instructions

  1. 1

    Apply for a business license by contacting the small business administration office or county clerk's office in your area to start a fresh doughnut business. Apply for an employer identification number (EIN) by contacting the Internal Revenue Service. Use your EIN on state and federal business tax forms and other business documents. Register your fresh doughnut business as a limited liability company (LLC), corporation or partnership by contacting your state's secretary of state's office. Apply for a sales tax identification number to collect sales tax from customers by contacting your state's department of revenue.

  2. 2

    Contact your local health department to determine the types of permits or licenses needed to prepare and sell doughnuts and other food items to the public. Licenses may include a food retailer's license, food manager's license or food handler's license. Complete training and exams as necessary to earn these licenses.

  3. 3

    Lease commercial kitchen space to make fresh doughnuts. This space should include ovens, refrigeration, fryer, plenty of counter space and storage space for materials and equipment. This space should also include a front room for displaying doughnuts and completing customer orders. Contact a commercial real estate agent to find a suitable retail space in a busy shopping area or downtown shopping district.

  4. 4

    Purchase doughnut-making equipment and supplies. Create unique doughnut recipes to help your business stand out from the competition.

  5. 5

    Market your fresh doughnut business in local newspapers, magazines and through radio and television advertisements. List your business in local business directories. Entice customers by offering free or discount doughnuts and drinks.

Tips and warnings

  • Increase sales by offering discounts for large doughnut orders or by providing catering services for office parties and other events.
  • Purchase business insurance such as general liability, product and property insurance to protect your doughnut business in the event of a lawsuit.

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