There will always be a demand for food. Not only is food manufacturing a secure industry to get into, but it can be a fun and highly profitable industry. Of course, there are many challenges to getting into this industry including the initial costs and legal requirements. Below are just a few tips on how to find success within this industry.
By Team Savant
Image: Ferenc Horvath
Decide Upon Your Product
Most food manufacturing companies focus on a specific type of food product. This could be anything from baby food to spicy sauces.
Because food manufacturing is so competitive, you will likely need to find a micro-niche or USP to help you carve out your own lane. For example, simply being a chocolate manufacturer is not enough. Being a vegan chocolate manufacturer or an organic chocolate manufacturer is more likely to set you apart.
Products could be made from your own recipes and even your own ingredients (such as manufacturing your own home-grown honey). Alternatively, you could work with customers to create recipes to their specs and use third-party ingredients. Work out exactly who your customer is so that you can choose the right business model.
Work Out Where To Sell Your Product
If you’re manufacturing a food product to your own recipe, you may decide to sell directly to the end consumer. This could include selling products via your website, setting up your own physical shop or attending food fairs.
Alternatively, you could sell your product to retailers and distributors who can then sell it on to consumers. Many small food manufacturer startups begin by selling to local independent shops, bars and cafes. You may also be able to find online distributors to sell to.
If you’re selling bespoke products, you’ll need to treat your business as a service. You’ll likely want to focus on attracting customers to your website where they can then start customizing their products. If it’s a white label product for retailers and other food manufacturers, you’ll want to invest in hosting some sales events or pitches aimed at these companies. If you’re making custom products for consumers, use platforms like social media and consumer blogs to market your product.
Choose A Suitable Location For Your Factory
Your factory needs to be large enough to contain all the machinery and processes you require. At the same time, it needs to be affordable. Take the time to compare buildings to rent to find one that meets your requirements. If you own a farm and have enough available land, you may even be able to build your own factory.
Make sure that there are not too many competitors in the area unless you are certain you can find a worthy USP. It’s also important that there are enough people living nearby if you need to hire staff — a very remote factory could be tricky to hire people for.
Invest In Good Quality Equipment
It’s important that any equipment you buy is good quality. This will ensure that your product is good quality and that you’re not having to spend lots of money in the future on repairs and replacements.
List every item of equipment you’ll need from food tumblers to stainless steel wire mesh. Designing your own custom machinery may be an option, but will be very expensive. Gently-used second-hand machinery is the best option for those on a tight budget. Take the time to compare loan options to find the best interest rates.
Educate Yourself On Food Manufacturing Law
There are many legal requirements that food manufacturing companies must follow. This includes taking various compulsory measures to prevent food contamination, as well as using ingredients that are safe for consumption. You’ll also need to educate yourself on food labelling laws so that you know exactly how to legally market and label your food.
There are food industry legal and safety advisors who can help you with all of this, including writing contracts and making sure that your factory meets health and safety standards.
Recruit Necessary Staff
Running a food factory on your own is possible, providing the production process isn’t too complex and you’re only making small batches. However, in most cases, you’ll need to hire some staff to help you monitor and maintain your factory — especially as there will be a lot of paperwork to manage.
Spend time finding staff that you can trust. As a small startup, you may initially only be able to hire a couple staff, however as your business grows you may be able to afford to hire more people.