1. Find a location for your sub shop. An ideal location for your sub shop should be somewhere that is highly visible to people driving and walking and in a highly populated area like in a downtown area or city. Once you find a location, contact an inspector and a fire chief to evaluate the premises for damages and any repairs that may be needed.
2. Go to your local city or county’s clerk’s office to apply for your sub shop’s business license and building permits. To receive your sub shop’s business license, you must have your driver’s license with your current address present. To apply for your sub shop’s permits, you’ll need to go to the Department of Agriculture in your local city or county. The cost for your permit from the Department of Agriculture varies in each state. Check with your local health department for guidelines for your sub shop as well.
3. Visit the IRS website and apply for your sub shop’s Employer Identification Number. To apply, you must fill out the IRS-Form SS-4. You’ll need your social security number and the sub shop’s fictitious business name. If you didn’t file your sub shop’s business name at the clerk’s office, you must do so. You will simply need an identification like a driver’s license and your social security card and a copy of your business license. Once you electronically submit the information for your EIN, you’ll immediately receive a down loadable letter from the IRS enclosing your custom EIN for your sub shop.
4. Create your menu for your sub shop. Be sure you know what you need to make your subs for your sub shop like lettuce, cheese, bread and sauces like mayonnaise and mustard. Decide what types of drinks you’ll be distributing in your sub shop like iced tea, hot tea, or soft drinks. Considering you’re beginning your sub shop, keep your inventory simple. Make sure your inventory is something you can use on each sub like American cheese. Ask your friends and family to help you design unique subs for your sub shop. Don’t be afraid to mix combinations like cold cuts like turkey and salami and sauces like ranch and hot sauce. Decide if your sub shop will be offering six inch or foot long subs.
5. Set prices for your subs in your sub shops. To have competitive prices with other sub shops that are in the area, try to keep your prices at least ten percent lower. Calculate the consumers’ cost by tallying up how much it cost to make the sub like the cost of the bread, cheese, meat, add-ons like lettuce, tomatoes and onions. Add the cost of labor after getting the sum of what the sub cost. For example, if it only cost $3.50 to make a meatball sub, I will add $3.00 for labor and $1.50 additionally to make my profit of $2.00. Therefore, if my sub shop was offering six inch subs, I would offer them a combo consisting of a medium soft drink, a bag of chips and a six inch meatball sub for $8.00. (Be sure to give them extra meatballs and cheese!!)
6. Purchase equipment for your sub shop. You’ll need thins like a three sink dishwasher, prep tables, shelving or storage space for your dry goods and inventory, if it’s not already available and in good condition. Be sure to order important inventory like cups, straws, cutlery, trays, and ingredients to make your beverages.