3 Reasons Food Businesses Fail (And What You Should Do Instead)

The problem: Not filling a gap in the market

One of the biggest reasons food businesses fail is because they are entering an already saturated market with high levels of competition. Just because a product may be great doesn’t guarantee that it will stand out on the shelf, especially against long-established brands.

The solution

Finding out what makes your product unique will help you to understand how it can fit into an already crowded store, even if there are already similar products out there. To begin, start by talking to consumers that fit your target demographic. Find out about their preferences, and if there’s anything they would love to have but haven’t found in stores.

The problem: Failing to secure repeat business

Repeat stores

Did you know that it can be anywhere from 5 to 25 times cheaper to retain existing customers than it is to find new ones? And with all the work that goes into getting your products into stores, it’s easy to see why.

The solution

To maintain your presence in existing markets, you need to have a good relationship with the store itself. Brands that frequently have stocking issues or are unwilling to offer support when necessary are more likely to be discontinued.

Repeat consumers

Maintaining repeat business doesn’t just apply to stores, it can also mean keeping steady consumers as well.

The solution

So how can you increase the number of repeat customers even if you’re selling products that don’t have a quick turnover?

The problem: Not starting with a business plan

If you’re ready to move your business out of your kitchen and into retail stores, you’re going to need a well thought out business plan. Too often entrepreneurs let their passion for their work overtake their business sense and end up burning out quickly.

The solution

Get help. Especially if you’re a first-time business owner, talking to other entrepreneurs or using detailed templates can help you create a business plan that takes into account things you may not have thought of.

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