According to Forbes, 90% of startups fail, which is a dismal statistic. At Delta Solutions, we strive for all of the startups we work for to be the 10% that make it. After all, starting your own business is a huge risk. You put your heart and soul and often your life’s savings into a product that you truly believe in. You want to make your mark in the world and not fall on your face, losing everything. We specifically work with the food industry, an industry in which a lot of risk is involved. Today, we would like to examine some of the common mistakes food entrepreneurs make starting out so that you can succeed in your business.
One of the most common mistakes for food entrepreneurs is creating a product before they determine a decent price for their products. Take a look at the suggested retail price (SRP) and determine if costs are high or low. Oftentimes, entrepreneurs price the product too high in order to make some kind of product. However, consumers may not even give the product a chance because they think that the price is too high. Also, if the price is considered too high, supermarkets may not even buy your products because they will not consider them to be sellable.
Failing To Secure Repeat Customers In A Timely Manner
If you are selling a food product that can sit in consumer shelves for long periods of time without going bad, then the demand will probably be low. Repeated customers will constantly be buying rapid-turnover products that people need to buy regularly. For example, people constantly buy bread, but how often do people buy a food staple like vinegar?
Not Spending Enough On Packaging
Recruiting a professional packaging expert costs your company more money initially, but the payoffs are well worth it. Almost all customers buy products because of their visual first impressions. Think about it; have you ever shopped for a bottle of wine with no wine knowledge? Will you go for the bottle of wine with the eye-catching label, or the plain bottle of wine with the same price? Although many startups invest in product development, they need to invest in packaging as well.
All food startups need to have a sustainable business model before they even begin production. However, they need more than that; they need enough capital to implement their business plan. Unfortunately, many startups have one or two owners doing all the work with no cash flow to sustain their business. Often, the owners burn out, and their company dreams burn out as well.
Our food consultants understand the risks associated with starting a food business. We have a network of professionals who understand the actions required for business sustainability so that the startups they work with are successful. Our consulting services cover a wide range of strategies to help get your business up and running. Contact Delta Solutions today so that your startup not only succeeds but thrives.