Why Do Food Entrepreneurs Fail?
I hate to see food entrepreneurs fail. Most failures can be avoided if only the entrepreneur addressed what I call Critical Questions to Answer BEFORE Your Spend Money. Let's start with Desirability Feasability Viability
Are You Starting a Food Business?
Most people who start a food business jump in because they have a great recipe; their friends love it and suggest that they should sell it. Your passion for "the food" is a critical driver to your success. Why do most food entrepreneurs fail? I say that they are stuck in the kitchen… meaning they are all about the food and don't spend the time thinking about the "business of food". At The Foodpreneur we coach allclients on developing " Practical Passion".
Are You Looking to Grow Your Food Business?
Chances are, when you started your specialty or artisan food business, you were not exposed to Critical Questions To Answer Before You Spend Money. So the process works equally well for you since your growing business will need lots of cash… more than what you spent on starting the business.
As an existing business you have moved out of The Kitchen so your focus is growing. That means Calculating Food Costs Accurately and Pitching the Retail Buyer to get on the Shelf … actually getting on lots of shelves and you will be seeking more retailers to pitch your product and get new distribution.
New distribution is costly… as you expand you will need money for either your own sales people or retaining one or more brokers. More orders from supermarkets mean you need to buy more food, packaging, incur more labor and you need CASH to do all of this.