Starting a Roadside Stand to Make Money
Whether it’s a bake stand, farmstand, breadstand, or flower stand – it directly connects your product to your community! In a world of supermarkets and cheap conveniences, more and more people are choosing local and small. Self serve, honor system stands meet right in the middle with convenience and the feel good of shopping small. It is a powerful avenue for sales!
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Upfront Investment
The upfront cost of your stand depends entirely on what you want your initial investment to be, and what equipment and resources you have on hand to begin with. I was able to start my own stand with under $150! I had plenty of equipment on hand from past business ventures, so I really only needed a stand to get started.
Here’s a list of potential expenditures you’ll need:
- Stand
- Insurance
- Licensing & Certificates (Business, Sales Tax, Food Handlers, Resale, etc.)
- Printer & Packaging Supplies
- Displays for Items
- Cash Box
- Signage
- Products
All the prices on these items will depend on your budget and how “big” you want to go. I go into detail about these things in the next sections.
Building or Buying a Stand
There are so many options when deciding what you want your stand to be! You can build it, buy it, repurpose. Really, your imagination (and budget) are the limit!
Since opening I have switched stands. My first stand was built on an old garden trailer. I acquired the old trailer off Marketplace and used cheaper materials to build the top. You can learn more about my garden trailer farm stand in this post.
My second stand was purchased online. It is a lean to style greenhouse with some modifications. You can learn all about that stand in this post.
If done correctly, and you have enough product to stock it, a shed would make a wonderful stand. The downside to a shed is that they’re not as welcoming, so you will have to make an extra effort to make sure it’s accessible and inviting. They are also a larger upfront cost.
Others have repurposed old armoires and hutches to make really cute stands! This may be an inexpensive option, but may take some work up front to get it weather ready.
The stand that you choose really will depend on preference and location. It should be noted that you’re local weather and where it will be on your property should be taken into consideration when choosing.
Insurance and Licensing
This will vary based on your cottage laws and your local ordinances. Some cities, HOAs, communities, or counties WILL NOT ALLOW you to have a stand on your property. I cannot emphasize enough, that you should make sure that it is legal for you to do so before pouring your time and money into your business.
If you are making food to stock in your, you must check that those foods are approved on your state’s cottage food laws. Otherwise you’ll need an inspected commissary kitchen. Cottage food laws vary widely by state and some are much stricter than others. Cottage food laws also usually require you to have a food handler’s certificate. You can get certified online using this website for most states. You may or may not need to have your kitchen inspected by the health department.
You may need a business or sales tax license to operate. This may vary depending on your state, county, and city codes.
Forming an LLC is smart, since having a business on your property can put your property at risk, especially if you own your home. Liability will fall on your business and not your personal property or assets in case of an incident.
Insurance is probably not required but is definitely recommended! For the same reason an LLC is smart, it is also smart to get small business insurance so that you won’t be held personally liable in case the worst happens. You can also find policies to cover any equipment that you’ve invested in for your business.
Production
You will need to consider how you will increase production and scale when demand rises. It’s really hard to realize how much time it will take you to stock your stand until you are actively doing it. This will also depend on your product range. It is important to have a plan in place to figure out how you will grow and scale in the near or far future.
Download a Bulk Recipe Spreadsheet and Calculator Here!
Your growth may be slow, or it may take off quickly immediately. In order to keep up, you will need to identify “bottlenecks” in your production and make these upgrades and investments first. It is smart to reinvest most of what you make in order to grow. Know that you may not actually see an income for some time, that is business!
Branding
Branding is the whole personality of your business. If you want it to be a full blown business you need to treat it as a business from day one! One major mistake I see people make is they don’t establish the identity of their business. It’s easy to tell when someone has thrown something together without offering it much thought, and your potential customers will notice too. If you don’t take the time to take your business seriously, why would someone else take it seriously?
Labels
Labeling your products will be a huge part of your branding. They are the face of your products. The design, colors, and fonts should all be considered and it should include your logo. They should all have a cohesive feel, and someone looking at it should know it’s your product without reading it.
It’s also important to make it easy for a customer to find you again after they’ve taken your product home and found out they love it! Even if they’ve purchased from your stand, some might not remember where they were if they happened upon it. You also want them to be able to find your socials or join your mailing list so they can follow your updates!
You can include your info like phone number and email, but my favorite way is to include a QR Code. Most people know what QR codes are and how to use them, and they can be used to link to anything! You can link to your website, ordering platform, or social media.
Here is a link to everything I use to package and label my goods!
Marketing
Marketing is probably the hardest part of growing a business from scratch, and a farmstand is no different. Especially if you’re located off the beaten path and you don’t get a lot of traffic. Thankfully these days we have the internet and so many free (and paid) resources to get your product out there.
Word of mouth is still very relevant. And many people choose to start practicing increased production by making samples for neighbors, businesses, coworkers, etc. to get their name out there. Deliver with business cards or flyers (that are on brand!), and don’t be afraid to self promote. Also be clear that you have a stand and how people can get more product from you! Do they need to pre-order? What are your hours & location?
Some people also like to grow their customer base by attending farmer’s markets and pop-up events. I personally have not found this to be beneficial for my stand business, and maybe there will be a future post going in depth on this. But some people swear that’s how they got their start!
Social Media and Online Presence
This is also part of marketing, but deserves its own section. Social media should make up most, if not all of your marketing. You don’t necessarily need to be on all social media platforms, but I would recommend at least two. It’s common to have a large following on one platform and not necessarily the other. If you crosspost to more than one account, your odds of reaching someone increase.
It is widely known that social media works for those that post consistently. “Consistently” seems like a scary word but it’s how often you know you can post every week and stick to it. Even once or twice a week is enough to gain a small following. As long as people see you’re active, they will be more likely to follow and visit your stand. If your last post was April of last year, many will likely assume you don’t exist anymore.
Make an effort to take bright, quality looking photos and videos to give your business a more professional look. Use natural light when possible, or invest in lighting. Be mindful of how your content portraits your business.
Allow the customer to “virtually” visit your stand! Post content that tours, guides, or directs on how to visit your stand and what to expect. I will compare this to looking at resort listings before you book your trip. Imagine “Resort A” only has a picture in their listing of a plate of food they offer. It looks delicious but you probably won’t book with them, because you have no idea what the experience will be. “Resort B” has a picture of the entrance, the pool with all the cabanas and the white sandy beaches 20 yards away. They show you the spacious rooms with the comfortable looking bed and the view from your balcony. You start to plan out your itinerary in your head immediately without realizing it, because you can picture yourself there. Immediate FOMO. That’s what we’re going for with your social media!
Speaking of Socials, you can find my micro-bakery/stand page @goneastraygoods. Let me know you found my blog, I want to follow your stand page too!
