Want to Start Selling Food in Your Township — But You Have Very Little Money?

1. You Have an Idea, but Money Is a Problem

Perhaps someone has told you: “Your food tastes so good. You should start selling it!”

You like the idea. You could earn money for your household and perhaps build something of your own.

Then you start counting the money you will need.

Cooking oil. Flour. Meat. Vegetables. Gas. Packaging. Transport. Equipment.

Suddenly, starting a food business does not look so easy.

Maybe you have R1,000 saved. Maybe you have R2,000. Or perhaps you have very little money left after paying household bills.

You may be thinking: “What if I spend this money and nobody buys my food?”

Starting small can help. But starting small does not mean ignoring food safety rules or selling food without the required permission.

It means making careful decisions and avoiding unnecessary spending.

2. First, Find Out What People Want to Eat

Do not start by buying ingredients.

Start by looking at the people who might buy your food.

Think about your neighbourhood.

Speak to Five People

You do not need to pay anyone to find out what customers want.

Speak to five people who might actually buy your food.

Ask them:

• What food do you normally buy?
• Where do you buy it?
• How much do you usually pay?
• What time do you normally buy it?
• Is there something you wish food sellers did better?

Write down their answers.

Also look at two nearby food sellers. What do they sell? What prices do they charge? When are they busy?

Do not assume that a stall with a long queue is making a lot of money.

The owner may be selling at prices that leave very little money after costs.

3. Choose Something Simple to Sell

When you have little money, a big menu can cause big problems.

Imagine selling six types of kota. You may need different meats, fillings, sauces and other ingredients.

That means spending more money before you know what will sell.

Start by looking at one or two simple food products.

Here Are Some Ideas to Compare

Do not choose a food business simply because someone else appears to be making money.

Choose something that people want, that you can prepare safely and that you can afford to make.

4. Let’s Look at an Example Using R1,000

Suppose you have R1,000 available for your food business.

How could you plan to use that money?

The amounts below are examples to show you how to plan. They are not today’s shop prices.

We are also assuming that you already have the cooking equipment, a suitable place to prepare food and the required approvals.

If you do not have these things, you may need much more than R1,000 before you can start selling.

Why Keep R300 Aside?

Because you will need money after your first day of selling.

You might need more ingredients. Transport might cost more. Something might break.

If you spend all your money today, you may have nothing left to prepare food tomorrow.

If you still need a safe food preparation area or the required permissions, work out those costs first.

Buying ingredients should not come before making sure you are ready and allowed to sell food.

5. Will You Actually Make Money?

Selling food is not the same as making a profit.

Let’s look at a simple example.

Nomsa wants to prepare 10 chicken lunch plates.

She works out how much she will spend.

What If Nomsa Sells Only Six Plates?

This is where things can go wrong.

Nomsa prepared 10 plates, but only six people bought food.

Six plates at R35 bring in R210.

She already spent R230 preparing all 10 plates.

If the remaining four plates cannot safely be sold, the result is:

Nomsa has lost R20 before paying any other business expenses.

She worked hard. Her food may have been delicious.

But she cooked more food than her customers bought.

6. What About Food Safety and Permission to Sell?

Before you start selling food, you need to understand the rules.

This is important because you are preparing food that other people will eat.

Your food must be prepared, stored and served safely.

In South Africa, food premises generally need a document called a Certificate of Acceptability.

This is a document showing that the food preparation place has been assessed against the applicable hygiene requirements.

Depending on where and how you sell, you may also need permission from your municipality to trade.

A Certificate of Acceptability does not automatically give you permission to sell food anywhere you choose.

Where Do You Ask?

Contact your local municipality. Ask to speak to the people responsible for checking food preparation places and issuing trading permissions.

You can ask:

• Am I allowed to prepare food for sale at home?
• What must my kitchen or preparation area have?
• How do I apply for a Certificate of Acceptability?
• Do I need another licence or permit to sell food?
• Am I allowed to sell food at the place I have chosen?
• What rules must I follow when using gas or other cooking equipment?

You can also read the official South African food hygiene rules .

The National Department of Health provides more information.

Municipalities may have additional requirements for different areas and types of food businesses.

7. Start With a Small Test

Once you have checked the rules and have a safe, approved way to prepare and sell food, you can plan a small test.

The aim is to find out whether people will really buy your food.

You are not trying to become a big business on your first day.

1. Choose one food product.

   For example, one type of cooked lunch plate or one simple kota.

2. Find out what it costs.

   Count every ingredient, the packaging and the cost of cooking.

3. Decide what to charge.

   Your price must cover the costs and leave money towards other business expenses and profit.

4. Ask people about orders.

   Find out how many people are willing to pay your price. Confirm what they want and when they want it.

5. Prepare only a manageable amount.

   After all required approvals are in place, prepare food according to realistic orders and safe handling requirements.

6. Count your money afterwards.

   Write down what you sold, what you spent, what food was left and what money remains after costs.

Perhaps people like your food but want smaller portions.

Perhaps they prefer to buy in the mornings.

Perhaps one meal costs too much to make.

Finding this out early can save you money.

8. Five Mistakes That Can Cost You Money

Mistake 1: Buying Too Much Equipment

Do not spend money on expensive equipment simply because you hope customers will come.

First find out what is needed for safe food preparation and what customers want to buy.

Mistake 2: Cooking Too Much Food

If you prepare 30 meals and sell only 12, you may lose money on the food left over.

Plan how much to cook. Never sell food that is no longer safe to eat.

Mistake 3: Charging What Everyone Else Charges

Another seller may pay less for ingredients or transport than you do.

Work out your own costs before deciding on a price.

Mistake 4: Using Tomorrow’s Stock Money at Home

You may need money for food, electricity and other household needs.

But if you spend all the money from today’s sales, what will you use to buy ingredients tomorrow?

Keep a record of money used for your household and money needed for the business.

Mistake 5: Borrowing Before You Know What You Can Earn

A loan must be repaid, even on days when sales are poor.

Before borrowing, make sure you understand what customers are likely to buy, what your business costs and whether you can afford the repayments.

9. Seven Things You Can Do Before Spending Your Savings

You can begin working on your business idea without buying ingredients today.

After doing these seven things, you should know more about whether your idea is worth taking further.

You might decide to continue, change the food you want to sell, or wait until you have enough money to start properly.

All three can be sensible decisions.

The important thing is to make your decision using what you have learned, not just what you hope will happen.

Questions You May Be Asking