If you want to put up a food business, you should know a few things first. The food industry is a very challenging and high-risk space since it’s a saturated market with many players. However, there’s no shortage of appetite amongst entrepreneurs wanting to enter the market. Canada’s food retail and service sectors are currently a billion-dollar industry and show no signs of slowing down.
If you want to succeed before getting food business software, here’s what you must do.
Figure Out What Makes You Different
The food industry is very competitive. This means that it can be very risky to start a food-related business. Before starting your business, it is important to figure out what makes your product or service unique. This will help you stay unique from your competition. Once you have determined what your unique selling proposition is, make sure to communicate it through your marketing strategy. This will help you attract your target market.
Test, Test, Test
A test run is a way to test your product before releasing it to the public. This is crucial because you can examine how your product will be received and ensure there are no problems with it coming to the actual launch. Test runs also provide data you can use to improve your product.
Start by testing your product on a small scale, like at a local community market. This will help you gauge whether people are interested in buying what you’re selling. If you get a good response, you can start thinking about investing more money into your business, like signing a lease or buying equipment. Your first customers will be your test market, which will help you determine if your business is viable.
Know the Industry Regulations
You must comply with certain food safety requirements when selling food and drinks. These requirements are in place to protect public health. Thus, your food business must be registered with the local health authority, and you may need to obtain a food premises permit. You must also follow food safety practices when handling, storing and preparing food.
These can include the following*:
- Food Premises Guidelines.
- FOODSAFE Certification.
- Liquor License.
- Food Service Industry.
- Small-Scale Food Processing.
*Please consult your local regulatory agencies for region-specific information.
Create Realistic Cash Flow Forecasts
Food businesses need to have enough cash on hand to cover expenses. Without enough cash, businesses may not be able to pay suppliers. To avoid this, suppliers should identify potential shortfalls and plan for them accordingly with food business software. This may involve accessing financing.
Building a network of mentors and advisors can be beneficial even if you don’t formalize the relationship. This can include people with experience in the same industry or professionals such as accountants or lawyers. Attending networking events can also help you meet relevant contacts in your community.
A mentor can guide, advise, and support you as you navigate the food industry. They can prevent you from repeating costly mistakes and provide insights into starting and running a food business. You can find mentorship programs that are available in BC through MentorshipBC.
Lastly, Work with the Right Software
The above plans are helpful, mind you, but if you can’t streamline them into a workflow that’s digital and convenient for your entire time, you’ll be running your business back to the Stone Age. That’s why KitchenFuel developed a custom food business software to help suppliers like you manage meal preps, engage eaters, and scale your operations from one application! Subscribe and book a demo through our website right now!