The Unquenchable Hunger
Being part of creation and having an appetite to satisfy, man has always been drawn towards food for ages and there’s no stopping it in sight. Today, the varieties, sizes and tastes of food are so varied it’s a mammoth task to decide which food is the best, biggest and/or tastiest. One thing is sure though, food is here to stay and starting a small food business is certainly a very good idea. Why? Because man will always have that unquenchable hunger deep down in the pit of his stomach that must always be satiated.
An Endless Variety of Food Businesses
If you combine, the land, ocean and sky, what you have is the entire resource at man’s disposal for creating food. Right now, it’s not difficult to count over 100 types of food businesses that can be started anywhere in the world, with capital outlays of between $2,000 and $100,000. Within this capital range, you can conjure up a small business on a bakery, bottled water, brew pub, chocolate making, cookie sales, deli and dozens more. The range of food businesses is endless.
But How do you Actually Run it?
Having said that however, the more important question is that after conforming to the rules, how do you in fact run a small food business? Believe it or not, many food lovers have tried and have fallen flat on their aprons trying to turn their recipes into a business. But others have met with outstanding success albeit for very different reasons. Some say that a realistic business plan and marketing strategy will offer the best chance of your business being seen and heard. Still others hold that practical advice, tools and confidence are the success ingredients needed.
What even SWOT for Small Food Businesses?
Analysts claim that the success of small food businesses also hinge on the determination, skill, knowledge and attitude of food entrepreneurs themselves. Others go further and suggest that so-called “foodpreneurs” should also involve themselves in SWOT analysis to give justification to their action plan. So in actual fact, the reason behind the success or demise of a small food business enterprise rests solely upon the entrepreneurship of the owner/operator of the business.
In closing it would be proper to disclose the alarming rate of failures that have plagued small food business start-ups during their first year of operations. The main reasons behind the failures are the lack of demand for their products; the lack of alternative plans in case of failure; poor forecasting and budgeting and above all, incorrect pricing either up or down. Incorrect predictions of cash flow and way too much start-up costs also contribute to the failure rate. So seriously, it looks like the best thing to do is to adopt the pros and avoid the cons and hope for the best!