A social entrepreneur can start a food bank with no money and still grow the organization to become successful. So also, you can choose to invest over $150,000 to set up a food bank. The bottom line is that you can work with whatever budget you have and still establish your food bank.
In as much as you can work with any amount you have and still start a food bank, it is important to note that certain important factors can determine the amount it will cost you to successfully start a food bank.
Factors That Determine the Cost of Opening a Food Bank
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The Type of Facility Where You Want to Start the Food Bank
Anyone who wants to start a food bank may either decide to start the food bank from home, or a restaurant or a shop facility means that the cost will be different.
The truth is that it is far cheaper to start a food bank from your home than it will cost you to start the food bank from either a restaurant or a shop facility.
The cost of renting and equipping either a restaurant, or a shop facility will be what will consume the bulk of your budget, and it does not come cheap.
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The Location Where You Want to Start the Food Bank
In the United States of America, some cities are pretty expensive to start a business. If perchance you settle for a city that is expensive to run your food bank, it will cost you more when compared to someone who chooses a way cheaper city. Factors such as the amount required to rent or lease a facility, the cost of labor, and other utility costs are different and significant.
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The Cost of Equipping Your Food Bank
If you run a food bank that also serves cooked food, then you will need to budget and purchase grills and griddles, deep fryers, food preparation stations, refrigeration and freezers, bun toasters, holding cabinets,
Food processors and blenders, utensils and cookware (spatulas, tongs, knives, cutting boards, pans, pots, baking sheets, and other items necessary for cooking, serving, and food preparation), and dishwashing stations, et al.
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The Number of Staff or Volunteers You Want to Recruit
The only reason why this might not be an issue is if you choose to start your food bank from your home or as a one-man business where you and your family members can handle all aspects of the food bank.
But, if you choose to start a standard food bank, then you must make plans to recruit and train key employees and volunteers who will occupy different roles in your organization.
You should make plans to recruit a director to oversee operations, logistics coordinators to manage food collection and distribution, outreach coordinators to liaise with donors and partners, warehouse staff for inventory management, and volunteers for sorting and packaging.
You may also want to consider hiring administrative staff and grant writers because they are essential for maintaining records and securing funding for your food bank.
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The Cost of Obtaining the Needed Licenses and Permits
This cost may vary across different states and cities in the United States. The fact that different states require different types of licenses and permits means that your budget for permits and licenses will be determined by the state you want to start your food bank.
As expected, you should budget for Nonprofit Status (a 501(c)(3) tax-exempt entity), food service permit, health and safety, permit, liquor license, zonal permits,
Signage permit, operational state facility inspections, a dumpster placement permit that specifies where you can put your trash dumpster outside food bank amongst others.
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Your Ongoing Expenses
Any social entrepreneur who wants to start a food bank should have a budget for regular maintenance and repair of storage equipment, such as blenders, refrigeration units, and food processors.
For packaging and supplies such as bowls, cups, lids, utensils, napkins, and cleaning supplies. For food supplies, and utilities such as electricity, water, gas, and internet services.
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Miscellaneous Expenses
Just like your ongoing expenditure, the amount you are expected to spend for your miscellaneous expenses is unique to you and the type of business model you want to operate.
Although there is no one mold fits all when it comes to miscellaneous expenses for a food bank, a social entrepreneur may decide to include the cost of hiring and paying a grant writer,
Fundraiser, and attorney, the cost of branding, promotion, and marketing of the food bank, the cost for logistics and outreach costs, the cost of the purchase and customizing of uniforms, and the cost for the grand opening of the food bank as part of your miscellaneous expenses.