A MANUFACTURED FOOD ITEM
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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.
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:
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. |
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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! |