Why Do Food Entrepreneurs Fail? Far too many clients come to me with a product already formulated and preconceived notions on how they will achieve success. They want to do what they want to do and nothing will change their minds... and most fail! Not this woman entrepreneur... she has the recipe for success.
Why Do Food Entrepreneurs Fail Frequently?
- A product developed that does not fully address a customer need.
- A product the entrepreneur thinks is unique, yet when I do a quick Google search, there are many similar products already in existence.
- The product is priced incorrectly, typically far and above the price points of the category. And the sad part is that entrepreneur has no idea what price points are!
- Packaging that does not communicate the brand positioning and as such, the consumer does not STOP, look at the product and try it. Yes you have to stop the consumer buy... don't believe this? Suggest you review research from Symphony IRI on Shopper Marketing.
- A product that has NO in-store support. "I can't afford promotions and don't want to change my pricing... my product tastes so good it will sell on it;s own". OK go ahead and invest your hard earned money on hopes and dreams... you will find it does not work.
- The clients most successful are those that come to me and understand the "I don't know what I don't know" , they come in with an open mind, a blank note pad and are interested in becoming successful as opposed to feeding their egos.
A Food Client Story
Everyone who calls me wants to know what they get after 2 hours. Frankly if you can't invest for 2 hours of professional advice, you should not be starting a business.
You know everyone is different and it all depends on where the entrepreneur is in their journey. Everyone wants the magic bullet for starting a business and expects to learn about food marketing in 2 hours. Starting a business is hard work and takes a great deal of learning. If you can't accept that, go work for someone else! Tough love? Yes, but it is sad to see people who spend upwards of $20,000 on developing products with the wrong packaging, positioning, pricing and... yes those products sit in the warehouse and are eventually disposed of.
In this article A Woman Entrepreneur Wants to Start a Food Business I take you through my typical 2 hour consultation. This is a really smart woman and she will succeed with her unique bakery item. Read the article and see if you can follow in her footpath. The article covers:
Working with Your Bakery
Competition and Price Points
Convert your Recipe to a Bill of Materials
How to Design Great Packaging
Early Applications of Social Media
Want Some Advice on Starting a Food Business?
Drop me a note and remember to have an open mind and practical passion about your new food business. If you are not practical, you won't have a business to be passionate about.