A MANUFACTURED FOOD ITEM


 

We assume that you have successfully made this product, that it is unique in some way, and that you have been encouraged by family and friends to take the next step and make it in quantity for sale. The following steps will provide a guide to get you going.

A Market Test is very important to determine whether there is actually any demand for your product. The last thing you want to do is introduce a product which has no appeal to consumers. The market testing process described below will help you determine exactly how big that demand is.

1. Carefully document (write down) the recipe or process involved in producing your product, take to a Notary Public and have them witness your signature and date on that document.

2. Select the type of container or package in which your product will be displayed in a store. Take your time and be sure you have exactly the container or package that best represents your product.

3. Your label is equally important because it is your “on shelf” sales tool.

  • First you will need a Uniform Product Code (UPC). The UPC is the code used for retail sales in the United States. It is basically a 12 digit code. The first digit indicates the type of product (0, 6 and 7 = retail, 3 = pharmaceutical, 5 = coupons, etc.), The next five digits are the manufacturers number (tells who manufactured the product), the next five digits identify the specific product from that manufacturer and the last digit is a check character. Sometimes the first and last digits are not printed below the code symbol. To receive a manufacturers code for your product, you must apply for a UPC barcode by contacting the Uniform Code Council. They will create a manufacturer's code for you to use on all products you produce. Expect to pay a one-time fee of $500 for this. If you are not familiar with this process, call a Packaging Company in your area and ask them if they can help you.
  • Contact a graphic artist and have them design a label for you. (Do not do this yourself unless you are really good and understand color separations and printing terms).
  • Your label will also have to list the ingredients and nutritional values of your product. This information is available in the FDA Food Labeling Guide, or call the Food and Drug Administration in your state and ask for directions in doing this.

4. After you have accomplished the above, you will need to find a source to process or make your product. If it is a cooked product you will need a commercially rated kitchen. If it is simply a mix of dry ingredients, such as a cake mix, or the repackaging of already prepared items, check again with your local FDA office for instructions. Likewise, before doing any food processing at home, check with your local zoning authority. In many localities, it is illegal to process food for sale in your home. If the processor is also going to package your item, you will need to inquire about who prints and attaches your labels to the packages.

5. Contact the Packaging Company again and have them recommend the proper packaging in which to ship your product. Try to get a package they already make otherwise it becomes very expensive.

6. Now you have the container or package for your product with appropriate labels, and the box in which they will be shipped. With this, make up several boxes that will be exactly as the stores will receive them. These are your sample boxes.

7. At this point, you are ready for the market test. Hopefully you have spent less than $2,500.00 up to now in getting ready. There are two ways to see if there is a market for your product:

  • Go to the Business Reference Desk of your local Library and get the names of first, a Product Research Company and second, Brokers who specialize in products like yours. Contact these people and arrange for them to market test your product, and for the broker to sell your product. Sometimes the broker can do both. Set a budget because market research can get expensive. You can do an Internet search for companies providing new product research by clicking here.
  • Take the product directly to the buyer of a chain store and present it to them. Unless you are really familiar with how this process works, we do not recommend that you try it. And, taking your product to your friendly local grocer and asking that it be put on the shelf for a test, will not tell you virtually nothing about your product or its sales potential.

8. After you have successfully tested the market for your product, you may decide to start your business in earnest! For start-up companies, we recommend you find a processing company to cook, mix, and package your product, and hiring a broker to sell your product. This gives you an opportunity to check out the long term market and to see if sales will be large enough to justify doing your own processing and packaging. In this way, you will not tie up large sums of money on processing and packaging equipment right from the start.


9. We strongly recommend at this point that you take the Personality Profiler and Carland Entrepreneurship Index. The Personality Profiler will tell you whether you have the right personality and attitude to sell your ideas effectively, or whether you should remain the "brains behind the scene" who hires the right people to do the interface work. How well you interface with
buyers, brokers, producers, customers, and suppliers will ultimately determine your success or failure in this business endeavor. If you have partners or associates, have them take the tests as well, so you can determine who has the best personality match for interfacing with people in this highly competitive industry.

The Carland Entrepreneurship Index will show you what level of entrepreneur you are...should you start a very small enterprise, or are your capabilities more geared to competing with Microsoft? The Carland will tell you.

We offer these two tests, and we provide you with all the interpretations and recommendations you need to make the crucial decision facing you at this point. Click here if you want to learn more about the importance of business personality.

10. If the market testing has been a success, and you are ready to start your business, be sure to check our comprehensive list of things you will need to consider! Just click here!

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