We are approached frequently by new start-up businesses looking to grow from a local customer base of friends and family with a small product range, kitchen produced, and who are now looking to extend to the wider foodservice sector.
Here’s a helpful guide to some of the serious issues you need to address.
– Have you had shelf life tests on your products done by an accredited organisation?
– Is there an accredited production facility with HACCP in use and preferably BRC current certification?
– Product specifications will be required to identify all ingredients and any potential allergy issues to consumers.
– Do you have a robust business plan and funding for marketing and stock holding in practical supply chain quantities? Don’t forget extended payment terms for customers – they usually expect deliveries within 5 days from order and may require a minimum stock availability of 2 weeks’ product.
– Have you a market sector audit of all the competitors’ products in your target sector, which includes pack and case sizes, selling prices and margin expectations at the various points of sale along the chain to the final consumer?
Of course there are other considerations but if you can answer yes to all of these here, you’re heading in the right direction and we may be able to help you achieve your goals.
There’s lots of solid, practical experience in all market sectors here at Sagegreen – all for you to tap into. Hope I’ve given you food for thought..!