Launching a new food or drinks brand or adding a new product to an existing range is exciting but challenging.
Whether you are setting up a start-up business, hustling a side project, or introducing a new brand or product range to an existing business, it’s essential to have a clear value proposition and USP (unique selling proposition), a defined target audience, a robust business plan and identified your routes to market.
Here are my 10 Top Tips - well 11 tips in fact, for launching a food & drink business - or a business in any sector.
Work out your value proposition
How does your product make customers happy? What is the value you offer? You are unlikely to be launching something completely new and unheard of, but what is unique about what you do?
Robert Breakwell of of Suffolk-based Niche Cocktails says:
“Know your market and competitors; what makes you different / better / relevant / what is your USP? What are you offering the consumer that no-one else is doing?”
2. Start with Why
Ok, so we’ve nicked this title from best-selling business guru Simon Sinek’s popular book. When you start to talk about your brand and product don’t just focus on WHAT you do, the product details like the taste, or HOW you do it - like your environmental measures, but WHY you do it. If you can clearly communicate why you exist, what’s your purpose or belief and why should anyone care, you will stand out from the crowd and build loyalty.
"If you believe in what you are doing so will everyone else.” says Breakwell.
3. Identify your target audience
As the old adage goes, if you are marketing to everyone, you are going to reach no-one! So be as specific as you can about what type of consumer you are trying to reach - whether it’s based on demographics (geography, gender, age) or their tastes, values and lifestyle. You can even create profiles of your typical customer to help build up their personality.
Robert Breakwell says: “Understand your consumer and focus everything on making your promise to them sincere.”
4. Create a business plan
You need to have a destination in mind and a plan of how to get there, how will you know where to start and how will you know if you’ve succeeded?
Think about the time and resources you need to launch your brand or product, what are all the steps, process and measures of success? It might be to sell a certain number of units or to launch in any number of stockists.
Alan Ridealgh, founder of Humber Doucy Brewery says “Have the best business plan you can create: think about the time and resources you need to build your business: do you need a space to create your product, equipment to make it, a website, packaging and marketing. Try and think of every element of your business from start to end.”
5. Ask for help in the right places
There is a huge amount of support out there for businesses of all sizes whether you are starting from scratch or a long-established. Look for what’s available regionally, your local Growth Hub is a good place to start and perhaps your region has a Food Innovation Centre.
6. Formulate a budget
How much is it going to cost you? What are the fixed costs or those that vary on how many units you are producing? Can you calculate a breakeven point - so you know how many units you have to sell to cover your costs? The reality is that the most common reason businesses fail is because they run out cash - so don’t forget your cashflow forecast.
"Have defined finance in place before starting and formulate a budget. Work how much it will be to set up, make your product and break even? How much can you charge and ensure you have the funding to ensure it survives.” Continues Alan Ridealgh, Humber Doucy Brewery.
7. Build a memorable brand
Your brand is far more than your name, your logo, your packaging, it’s about every connection that your customer has with you. Brand is what makes people remember you and why they will recommend you to their friends, so make it unique, genuine and consistent.
9. Identify your routes to market
Are you going to sell direct to your customers through a website or at events, or are you going to seek listings with independent retailers or aim high at supermarkets?
10. Tell the world
Social media is an amazing free resource to grow a community of fans. Focus on the right platform for your audience rather than spreading yourself to thin by being on all of them.
11. Work fast
Finally "Work fast – Being small gives you the opportunity to make decisions quickly and get there fast.” says Robert Breakwell.
