๐ฆ๐บ๐ฎ๐ฟ๐ ๐ณ๐ผ๐ผ๐ฑ ๐๐๐ฎ๐ฟ๐-๐๐ฝ๐ ๐ฏ๐๐ถ๐น๐ฑ ๐๐ต๐ฒ๐๐ฒ ๐๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฒ๐ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐๐ต๐ฒ๐ ๐๐ฐ๐ฎ๐น๐ฒ ๐๐ฝ
Some food start-ups are founded by passionate people who love their products, may have developed them on their own, and / or are motivated by the purpose to bring them to the world, because theyโre healthier or more sustainable as the market offerings so far. Many of these more passionate founders are new to e-commerce, retail sales and / or the scaling up of organizations and internal operations, though.
๐ง๐ต๐ฒ ๐ฝ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฎ๐๐ถ๐ผ๐ป ๐ฏ๐ฒ๐น๐ผ๐ ๐ด๐ถ๐๐ฒ๐ ๐ฎ๐ป ๐ผ๐๐ฒ๐ฟ๐๐ถ๐ฒ๐ ๐ผ๐ณ ๐ฐ ๐๐ฒ๐ฟ๐ ๐ต๐ฒ๐น๐ฝ๐ณ๐๐น ๐๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฒ๐ ๐๐ต๐ฎ๐ ๐ฒ๐ป๐ฎ๐ฏ๐น๐ฒ ๐ฎ ๐๐บ๐ผ๐ผ๐๐ต๐ฒ๐ฟ ๐๐ฐ๐ฎ๐น๐ฒ-๐๐ฝ ๐ผ๐ณ ๐ณ๐ผ๐ผ๐ฑ ๐๐๐ฎ๐ฟ๐-๐๐ฝ๐:
1) A clear pricing system
2) A running ERP system
3) Sufficient stocks, automatizations and processes
4) A clear strategy and objectives
These structures are not required from the start of most start-ups; especially not while the product is still being developed and tested.
๐๐ ๐ถ๐ ๐ฎ๐น๐๐ผ ๐๐ถ๐บ๐ฒ ๐๐ผ ๐ถ๐ป๐๐ฒ๐๐ ๐ถ๐ป๐๐ผ ๐ฎ ๐ฝ๐ฟ๐ผ๐ณ๐ฒ๐๐๐ถ๐ผ๐ป๐ฎ๐น ๐ผ๐ฝ๐ฒ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐ ๐๐ฒ๐๐๐ฝ ๐ผ๐ป๐ฐ๐ฒ the product has reached product-market-fit (PMF), and youโre ready to invest in the first larger production batch for a larger retail launch. There are some more indications, too, as shown on the last slide.
(PMF has been achieved for example when the majority of target customers buys a product again or recommends it without additional marketing after the first purchase.)
โ๐ช๐ต๐ถ๐ฐ๐ต ๐ผ๐๐ต๐ฒ๐ฟ ๐๐๐ฟ๐๐ฐ๐๐๐ฟ๐ฒ๐ ๐๐ผ๐๐น๐ฑ ๐๐ผ๐ ๐ฏ๐๐ถ๐น๐ฑ ๐๐ฝ ๐ฏ๐ฒ๐ณ๐ผ๐ฟ๐ฒ ๐๐ผ๐ ๐ฎ๐ ๐ฎ ๐ณ๐ผ๐๐ป๐ฑ๐ฒ๐ฟ ๐๐๐ฎ๐ฟ๐ ๐ณ๐ผ๐ฐ๐๐๐ถ๐ป๐ด ๐ฝ๐ฟ๐ถ๐บ๐ฎ๐ฟ๐ถ๐น๐ ๐ผ๐ป ๐ด๐ฟ๐ผ๐๐ถ๐ป๐ด ๐๐ฎ๐น๐ฒ๐ ๐ฎ๐ป๐ฑ ๐๐ฐ๐ฎ๐น๐ถ๐ป๐ด-๐๐ฝ?
For those who would like to learn more about how I would build up a food start-ups based on my experiences, you can check out my operations playbook for food start-up on my โbuildโ website.