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NOTABLE! Food business/entrepreneurship startup guide

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

  1. Redeye
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    Redeye New Contributor

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

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    View: https://youtu.be/-sJ6IJZJhUU
     
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  3. Redeye
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    Redeye New Contributor

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

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

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    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.
     
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  6. Ernman
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    Ernman Contributor Read Millionaire Fastlane I've Read UNSCRIPTED

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    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.
     
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  7. Johnny boy
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    Johnny boy Bronze Contributor Speedway Pass

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

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

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

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

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    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.

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