• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 50,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

NOTABLE! Food business/entrepreneurship startup guide

Discussion in 'Product Creation, Inventing, Importing, Sourcing' started by Scot, Aug 2, 2017.

  1. Redeye
    Offline

    Redeye New Contributor

    Messages:
    15
    Likes Received:
    11
    Joined:
    Aug 19, 2018
    Gender:
    Male
    Rep Bank:
    $65
    Welp, I found some info on where to start on Reddit. Seems shady, and fun! I just need to learn some pricing and I might try it out.

    It doesn't seem like a long-term business, but it does look like a nice hustle.
     
  2. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702

    View: https://youtu.be/-sJ6IJZJhUU
     
    Redeye likes this.
  3. Redeye
    Offline

    Redeye New Contributor

    Messages:
    15
    Likes Received:
    11
    Joined:
    Aug 19, 2018
    Gender:
    Male
    Rep Bank:
    $65
    That is a great video. I remember watching it a while back and thinking how close his hustle is to a drug dealer .

    I have reached out to a wholesaler to find out more info. It seems like a decent option to grind some capital for a long-term business. I could be wrong, but I'm going to do more research to assess the viability of selling a high price product that goes bad quickly.
     
  4. RayAndré
    Offline

    RayAndré Dare to differ. Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass Summit Attendee

    Messages:
    213
    Likes Received:
    424
    Joined:
    Oct 7, 2017
    Gender:
    Male
    Location:
    Digital Nomad
    Rep Bank:
    $2,508
    So. Much. INFO!
    And your thread on the inside.
    Thanks @Scot , I'm going to start playing with recipes at home :)
     
    UnrealCreative and Scot like this.
  5. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702
    I replied to your PM, but I think its important to post publicly what I said to you (just this, nothing else private)

    Make sure you have your target market identified. Your market is just as important as your recipe.

    If you bake the best tasting protein bar you've ever tasted... who cares? There are 100's of other protein bars, that are better funded and better marketed than you.

    Find the white space. Find a good recipe that caters to a group of people who are under-served by the current options. This will give you the best chance to succeed in the cutthroat food industry.
     
    Sheens, Process and RayAndré like this.
  6. Ernman
    Online

    Ernman Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    124
    Likes Received:
    188
    Joined:
    Feb 8, 2019
    Gender:
    Male
    Location:
    Florida, USA
    Rep Bank:
    $994
    Thanks for posting the food industry info. My wife went to culinary school after retiring from the Navy. We've been looking for ways to scale her knowledge. Could be interesting.
     
    Sheens and Scot like this.
  7. Johnny boy
    Offline

    Johnny boy Silver Contributor Speedway Pass

    Messages:
    106
    Likes Received:
    510
    Joined:
    May 9, 2017
    Gender:
    Male
    Location:
    Washington State
    Rep Bank:
    $4,203
    How I would sell a food or beverage product:

    1. Call up my local venue for hosting events. A place to host parties of a couple hundred people or so. Ask them how much to rent out the place for a night and include the costs of chairs, tables, etc.

    2. Call up every local business and ask for them to sponsor your party with hundreds of people. The local plumber would love to network and get business. The local pizza shop might want a slice of the action. The local car dealership might pay $200 to park their new car out in front of the venue and send salespeople to come network with everyone. Ask the local restaurants to come and bring a small bit of food in exchange for advertising at the event. Invite enough until there's food for everyone.

    3. Once you've secured enough sponsorship cash to fund the event + pay for the cost of your own food/beverage for everyone there (cost = what you would sell it for retail), go to the local church, DM the local instagram influencer and invite everyone you can to a free party. You'll get people to show up.

    4. You RSVP these people and get their info. You have them sign in when they get to your event.

    5. You have a great time, party, meet people, shake hands and you just sold hundreds of units of your food/beverage. You may have even made some extra money if you did a great job getting a low-cost venue and got businesses to pay lots of money to sponsor your event.

    6. You add everyone that came to your social media, call them and thank them for coming, keep notes about them when you met them at your party, and market your other products to them to purchase again.

    7. Repeat.

    Just an idea I had recently. I'm sure it's been done before. It can work for anything that is sold locally. Think about what facebook is. You show up for free and the businesses pay to advertise. A party sounds nice and it is, but there's just enough networking going on for it to pay for everything. If companies can get people to show up for timeshare seminars, you can get people to show up for a fun party.
     
    MustImprove and Matte like this.
  8. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702
    I can only see this working in a very small subset of products, mostly in alcoholic beverages.

    Or maybe if you’re making the next Chex Mix...

    Throwing a party with influencers is something you do for a new fashion brand, not launching a plant based cream cheese.
     
  9. Kevin W
    Offline

    Kevin W New Contributor

    Messages:
    2
    Likes Received:
    1
    Joined:
    Feb 11, 2019
    Gender:
    Male
    Rep Bank:
    $7
    Hello !
    I am just starting out and plan to launch and grow a semi-new category in the Beverages Market.

    I just read an interesting Book: Build your Beverage Empire.
    It covers drink manufacturing and working with distributors, retailers, ect...
    Hopes this helps someone

    I am still in the initial stages though, and going to spend some money on personally formulating and testing the drinks in farmers markets....
    On another note, I am in Canada, but plan to drive+live in the US to make and launch the product. Much less regulation, and 10x the market size. It seems like California is a good place to start.

    Regards !
     
    Scot likes this.
  10. Eskil
    Offline

    Eskil Legendary Contributor Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    1,800
    Likes Received:
    7,323
    Joined:
    Jul 18, 2012
    Gender:
    Male
    Location:
    Scottsdale, AZ
    Rep Bank:
    $49,616
    Late to this thread, but thanks for sharing a TON of great info about the food market - a space that most people here never even consider since the vast majority are into physical goods or ecommerce.

    But consumables and food is still a huge world that interests me from a business perspective. I constantly get new product ideas pop into my head and write them down for "maybe some day" since I need to stay focused on my main business and avoid shiny object syndrome. However...I recently got this one product idea for a consumable that seems almost too good to be true. One of those category/trend-defining ideas that is just too good to leave alone, and now I'm like "damn....I HAVE to test this out" LOL...

    We all know that acquisitions, multiples, and valuations can differ from industry to industry. For e-commerce, FBA, or even B&M, the sales price of a business is most often decided by an annual profits times X multiple.

    For apps or SaaS on the other hand, companies can sell for huge amounts without even having profits or even much revenue - but the value is in the user base.

    But from what I have seen in the food / consumables industries, it seems that neither strict annual profits or a 'user base' is necessarily the determining factors in acquisition price evaluation - but that brand strength or even the new product trend or category factor can play a BIG big role.

    @G-Man / @Scot - Could you share a little more about what you know about acquisitions in the food / consumables industries?

    Thanks!
     
    Sheens and Hijena1 like this.
  11. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702
    And that's a key word, Consumables. With most products, you really only expect a customer to buy one, maybe two of them. But with foods, you're constantly repurchasing. I have customers who have bought 15+ units from me to date. Recurring revenue at its finest.


    From doing research on M&A's for my investor pitches, the big ones we see are anywhere from 2x-5x gross yearly revenue. A lot of it depends on the total addressable market. Keep in mind, these acquisitions are being done by the big conglomerates, Kraft, Unilever, J&J, Pepsi, Coke... So they have big pockets. But, for them its about the product/market fit.
     
    Hyrum, Sheens and Eskil like this.
  12. Azure
    Offline

    Azure Perpetual Motion Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    369
    Likes Received:
    676
    Joined:
    Mar 12, 2016
    Gender:
    Male
    Rep Bank:
    $3,797
    This may not necessarily hold true. I wouldn't use Instagram influencers, but successful food bloggers hold a ton of industry weight.
     
    Scot likes this.
  13. Erika
    Offline

    Erika New Contributor Read Millionaire Fastlane

    Messages:
    10
    Likes Received:
    9
    Joined:
    Feb 25, 2019
    Gender:
    Female
    Location:
    South Africa
    Rep Bank:
    $52
    Awesome thread. Thanks for the information!
    I'm thinking about going into the food industry. The product I have in mind is definitely not the first of its kind but from what I can gather so far my product is definitely different to other products like it. At least in South Africa. I've even started trying out recipes to get the taste right.
    I'm going to follow here and come back to this thread for more information as I hopefully make progress with my own product.
    Thanks for writing!
     
    Scot, Sheens and Eskil like this.
  14. ambrosinibello
    Offline

    ambrosinibello Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    66
    Likes Received:
    75
    Joined:
    Jul 2, 2017
    Gender:
    Male
    Location:
    Orlando, FL
    Rep Bank:
    $436
    Awesome, this literally came at the right time.

    I'm in the process of working with my relative on an organic food company. He has already the producers, the licenses and we'll be exporting the snacks and distributing them.

    Really most of the work in terms of production is done, but how do I (I joined late) start to determine the demand and do a solid market research campaign? I'm really digging in now into the nitty gritty of the industry and competition but it is overwhelming.

    What's a good starting point to learn about distribution and e-commerce for organic food companies?
     
  15. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702
    The most important thing you need to do is figure out your customer avatar. Is your product really niche? Or is it a broad type category, like a snack?

    Find out where those people hang out, and sample and talk to them.

    Rxbar was created for people doing CrossFit. So the founder spent a lot of time bringing you different samples to his local gym and having his fellow CrossFiters try them and give feedback.

    The original grass roots the way of determining demand and doing market research, is to hang out at the local farmers market. Farmers market now really exist to serve the Whole Foods type customer. Find every farmers market within a 50 mile radius, get a table, and spend a few weeks sampling and getting feedback, and trying to sell It.

    Honestly, I got a lot of my knowledge from listening to different podcasts while driving around. The Food Startup Podcast, Food Marketing Nerds, and Brand Builder have all taught me a lot.

    Start small. Start selling direct to consumers through your website. Also sell at farmers market. See if you can get into local coffee shops or other vegan type café’s. And then after that, talk to your local Whole Foods.

    You really need to learn to crawl before you can walk in that run. Trying to expand to quickly in the food industry Is a quick way to die.
     
  16. BusinessBen
    Offline

    BusinessBen Bronze Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    343
    Likes Received:
    477
    Joined:
    May 29, 2014
    Gender:
    Male
    Location:
    Canada
    Rep Bank:
    $2,869
    Do you know about the laws regarding importing a food product to export? I am in Canada and want to import a food product from overseas to export to the USA.

    I may need a food import license and export license but just wanted to hear your input regarding this

    Would it be possible to bypass getting an import license if i use a freight forwarder?

    Thanks for your time.
     
  17. LA_Jau
    Online

    LA_Jau Vegan Food Entrepreneur Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER

    Messages:
    10
    Likes Received:
    23
    Joined:
    Oct 2, 2018
    Gender:
    Male
    Rep Bank:
    $129
    Hello Scot, thank you so much for providing this level of accessible value for aspiring food fastlaners.

    I am currently testing and getting feedback on two vegan products at the moment, however am finding it really hard to choose which to focus on.

    One has a bigger market-share but more direct competitors (5-10), however the other hasn't really been innovated yet for the vegan market (in Australia, but is present in USA) and has a smaller market-share.

    Any advice?

    Or should I just man up, keep putting time, money and effort into both, get feedback until one beats the other in sales and focus on that one?
     
  18. ambrosinibello
    Offline

    ambrosinibello Contributor Read Millionaire Fastlane I've Read UNSCRIPTED Speedway Pass

    Messages:
    66
    Likes Received:
    75
    Joined:
    Jul 2, 2017
    Gender:
    Male
    Location:
    Orlando, FL
    Rep Bank:
    $436
    Really appreciate that.
     
    Scot likes this.
  19. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702
    Sorry, I do not. I looked into exporting to Canada for FBA, but got lost in all the regulations and import laws, that it wasn't worth it at the time.

    It's something I need to revisit, but sadly, don't have any experience with it yet.
     
  20. Scot
    Offline

    Scot Ductus Exemplo Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass LEGENDARY CONTRIBUTOR Summit Attendee

    Messages:
    2,679
    Likes Received:
    12,150
    Joined:
    Jul 10, 2016
    Gender:
    Male
    Location:
    Florida
    Rep Bank:
    $55,702

    Are these complimentary at all? Would they make a cohesive brand?

    Also, are these things that have a very technical process to make or can you cook them in your home kitchen?

    If they're things you can make at home or in a commercial kitchen, go for both, and see which one has the better response in the market.

    If they can be complimentary to each other, then go for both.

    Lastly, if you feel as though you can only pursue one effectively, which product represents easier and quicker sales? Go for that one first to fund production of the second.
     
    LA_Jau and Sheens like this.
  21. Sego
    Offline

    Sego New Contributor Read Millionaire Fastlane

    Messages:
    5
    Likes Received:
    6
    Joined:
    Feb 19, 2019
    Rep Bank:
    $56
    Thank you @Scot for this valuable insight about how to get started in the food business.

    I'm starting something in the candy business and do not want to manufacture the product myself so I think it's quite different from all the cases I've seen in the thread. My biggest challenge now is to find a copacker that would be willing to make and package my product. I guess I am so particular (which is what makes my product unique) that I am struggling to find one. I feel like I am almost begging copackers to work with me. I still want to make sure I find a reliable one and not the only one willing to work with me.

    Has anyone encountered a similar situation?
     
  22. Sprocket
    Offline

    Sprocket Bronze Contributor FASTLANE INSIDER

    Messages:
    59
    Likes Received:
    110
    Joined:
    Mar 7, 2018
    Gender:
    Female
    Location:
    UK
    Rep Bank:
    $509
    It can be find getting the right co-packer (especially at the right cost!) You want one that has the capability to pack your product to the spec you want and is the right “fit for your business. This might mean they need specific packing machinery / processes. If they are fully automated then they’re built for scale and may want bigger jobs that they can bash through quickly and so prefer bigger customers... It’s just a case of talking to as many as you can until you find the right fit. A bit like dating ;)

    Different industry but have a read of the Innocent smoothies book - tells the story of finding co-packers, their struggles and how they overcame them. It’s an interesting read.

    Make sure you have your requirements set out clearly and perhaps be open and flexible on the packaging specification if you can..?

    When you say make the product, are you looking for a candy manufacturer & packer?
     
    Kid likes this.

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page