Turning your passion for cooking or baking into a successful business is not an easy decision to make. After all, not everyone who invests in a small food production company succeeds in growing the company and establishing a name in the industry.
Statistics show that 9 out of 10 new food business startups fail. However, with the proper preparations, a solid business plan, and other business essentials, you can make the most out of your investment and boost your business venture’s success.
Here are some of the essential tips to keep in mind when starting a food production company this 2021.
Carry Out Market Research
Data doesn’t lie, so make sure to trust your research and take down some notes. When you do market research, you can check what your target clients like and need, and if what you have to offer is suitable for your clients and the market. It is also vital that you check on your competitors and plan on how you can outstand them.
Consider Creative and Flexible Packaging
Creativity is the key to success for many businesses, especially if you can take a seemingly lackluster product and spice it up with unique, creative ideas. Since creative packaging could improve sales, the industry started seeing a tremendous amount of growth in terms of eye-catching product packaging/labeling.
Also, a smart move is to consider flexible packaging. One of the most important reasons why flexible packaging is growing in acceptance is that it preserves food well. Due to airtight packaging that protects food from environmental elements such as sunlight, temperature, and moisture, flexible packaging can increase the shelf life of perishable products.
Tweak Your Recipes As Needed
Before you sell your final product, make sure you tested it after tweaking the recipe, creating variations and keeping a record for every change you make. Don’t rush this process if you want to end up with the best version of your recipe.
Choose the Correct Branding
From your brand name to your logo and your tag line, think of something that will professionally represent your new business. Make sure that the logo, brand name, and tag line you choose won’t mislead or confuse your customers. Getting your branding right can jumpstart your success. Make sure you fit and stand out by giving your business a brilliant branding.
Choose Your Production/Business Space
Location is essential in businesses – especially if you plan on opening a local store. You not only need to have a designated space for food preparation and production, but for your storage, office, packaging, and store as well. Choose a safe and accessible location not only for your business’s sake but for your future clients as well.
Get The Necessary Permits
When it comes to food production, you’ll need to obtain not only a license to operate, but meet the FDA requirements as well as other local, state, or federal requirements. This will depend on what product you will make, what types of machinery you’ll be using, and what kind of facility you’ll be running.
Good Read: How to Start a Food Business
Invest On High-Quality Equipment
When setting up a food production business, you’ll want only the best types of equipment to ensure excellent product quality. The types of machinery you will need will depend on the types of food you plan to produce and sell. Some of the food production equipment you might need are as follows.
- Fine Screen
- Mixer or Grinder
- Automatic Cutting machine
- Roll Sheeter
- Cooling Conveyor
- Batch Fryer
- Sealing Machine
Hire The Right Army
Hiring the right people will give you an extra set of hands that can help you build your brand. We are not only talking about your food prep, storage, selling, and customer support team. Make sure to hire a reliable accountant to ensure your numbers are in check. You’ll also want to think about hiring someone who can take care of your marketing and advertising.