The one industry that seems like there is always a new player popping up on the block is no doubt food and beverage. The barrier to entry in this industry is low: all you need to start selling food and beverages are the supplies required to make it!
But if you want to be successful in the long-term, there are a lot of intricacies to keep in mind as you grow. It’s a cutthroat industry, and to start a successful food and beverage company you need to be well-informed as to what hurdles you can anticipate, and what the best ways are to overcome these business challenges.
Start Small, But Be Scalable
In the food and beverage industry, it’s crucial that you prove product/market fit before ramping up manufacturing. That necessitates that you start small with your production.
Whatever food and beverages you produce should initially be done so on a small scale. This will allow you to be flexible and test your production with the local markets you want to penetrate.
However, even while you are starting small, you should keep scalability in mind. The goal of any business is growth, and you don’t want to pigeonhole your product into one that is limited in its manufacturability.
Invest in a High-Quality Field Sales Team
As we’ve discussed above, starting a food business is easy. But breaking through the noise and coming out on top of the competition is quite another thing altogether for a food and beverage business.
Consequently, you need to ensure that your sales and marketing efforts are on point. You should thus invest upfront in a high-quality field sales team that will get your product in front of as many customers as possible.
The right team will be highly experienced in food and beverage sales and should have an existing book of business and a network of connections that can help you get to where you need to be from a revenue standpoint.
Focus on Great Packaging
Unique packaging is what makes your product stand out once it’s on the shelves at major retailers. These days, the predominant design themes are minimalist and organic-focused. If you can create great packaging that looks aesthetically pleasing, is simple to open and reseal, while also being environmentally conscious, then your product will sell itself.
Build Great Supplier Relationships
Last but not least, it’s crucial that you have excellent relationships with your suppliers. High-quality suppliers that maintain product quality and hit tight deadlines are very hard to come by.
Be sure to use a tool like tracegains.com to manage your suppliers. This will free up your team from a lot of the administrative overhead that goes into managing a supply chain.
How to Start a Food and Beverage Company, Made Simple
There you have it! Equipped with this guide on how to start a food and beverage company, you should now be far better informed as to how you can make your organization a success story in this crowded, oversaturated industry.
For more business advice, check out the rest of the articles on the website before you leave!
