Food Business

Entrepreneurial Training

Academy

DUBLIN, CA

10/22/18

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Deagon Williams

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9/16/2019© 2017 CULINARY BUSINESS STRATEGY

▪ Founded in classical French culinary training with 20+ years of professional experience resulting in deep seeded industry knowledge and acumen

▪ Witnessed firsthand that success requires far more than great food

▪ We help food and beverage companies realize new success through seasoned knowledge and comprehensive strategic solutions

Deagon B. Will iams

Introduction

o Welcome!

o Class Format

o Course Syllabus

o Overview

o Goals and Offline work

o Outcomes and Next Steps

o Success

o Group collaboration

o Timing

Syllabus

❑ Class 1: Concept (mission/vision/values)

❑ Class 2: Operating Models

❑ Class 3: Consumer Packaged Goods & Food Service Models

❑ Class 4: Understanding Costs (cash/profit)

❑ Class 5: Operations

❑ Class 6: Marketing Communications

❑ Class 7: Financial Projections

❑ Class 8: Legalities & Resources & Funding

❑ Class 9: Off site Field Trip

❑ Class 10: Your Business Plan

How do I Start my Food Business?

SBA 10 Steps:

Market Research

Write a Business Plan

Fund Your Business

Pick Location

Choose Business Structure

Choose name

Register Business

Get Federal and State tax IDs

Licenses and Permits

Open Business Banking Account

In this course…

We are going to look at so much more than a punch list. We are

going to go into the heart and soul of food businesses as well.

In my experience, the difference between failure and success is in

asking and answering some challenging questions.

And, let’s be clear- that is not easy but I believe that it will give

you a far stronger chance at realizing your dreams and achieving

success.

Let’s look at some examples….

Seriously?!?

Umm, yeah, no!

What’s the difference? Why do some succeed and some fail?

#1: Defining Your Concept

We are going to start with the big picture on Day 1.

Pizza…. Let’s talk about pizza.

Because EVERYBODY LOVES PIZZA, right?

Defining Your Concept

There are three main parts to a business concept:

1 Product

2 Target Market

3 Unique Selling Proposition

These can be rephrased as:

What?

Who?

Why?

Or The 5 R’s!

Your Concept

▪ Product

▪ Target Market

▪ Unique Selling Proposition

▪ Bottom Line

Concept Statement

Short and concise when finished

▪ What is your food idea or product?

▪ What does it do, specifically?

▪ How does it fit with the surroundings?

▪ Who it is for?

▪ What purpose it serves?

Volvo is the car of choice for middle class families

who seek safety in stylish transportation.

Concept Statement Components

▪ Market Need

▪ Solution

▪ Business Model

▪ Value Proposition

▪ Competition

▪ Marketing

Product

A new product should answer an unmet market need

Market Need:

Something consumers want but can’t currently get on the

market

Examples of innovative products that answered a market need:

Netflix

Meal Delivery

Third Party Catering

Open Table

Diet Soda

Describing Your Product

What you should know about your product

▪ Attributes and Benefits

What will I sell?

Examples: cookies, ice cream, Italian food, tacos, etc.

Toothpaste or clean teeth….

How will I distribute it?

Examples: grocery store, shop, restaurant, food truck, etc.

What is a Target Market?

A target market is your ideal customer base

▪ The people you want to sell your product to.

No, you can’t just say everyone!

▪ You will design your product around your target market’s needs

▪ Later we will talk about marketing specifically to them

Knowing Your Target Market

Picture your typical customer and describe:

▪ Where do they live?

▪ Are they male/female, old/young, have kids?

▪ What other places do they shop?

▪ How much do they spend on items in your product’s

category?

The more you know about them, the better.

▪ Knowledge of your customer base is your business advantage

Unique Selling Proposition

Definition of Unique Selling Proposition (USP)

A real or perceived benefit of a good or service that

differentiates it from the competing brands and gives

its buyer a logical reason to prefer it over other brands.

USP is often a critical component of a promotional

theme around which an advertising campaign is built.

Source: www.businessdictionary.com

Types of USPs

▪ Quality: gourmet or fresh

▪ Sourcing: local or organic

▪ Packaging: green packaging

▪ Service: friendliest, convenient hours

▪ Location: near your target market

▪ Special Diet: kosher, halal, vegan

Very often a true USP is a combination of the above.

Branding

Brand is a promise that exists in the mind of the customer

▪ Invest heavily here. Hire a professional.

▪ Branding is more than a logo and a graphic design

▪ Brand positioning:

▪ What is your price point?

▪ What would you consider a ‘frequent user’?+

Positioning

A positioning statement has three components:

1 Defines the target audience

2 States the category in which brand competes

3 Points out the benefit over other brands

Example: For upscale American families, Volvo is the

family automobile that offers maximum safety.

Positioning Statement

If you are stuck building your statement, try this formula:

“For (target customer) who (statement of the need or opportunity),

the (product name) is a (product category) that (statement of key

benefit – that is, compelling reason to buy).”

Concept Development Worksheet

▪ What is your product or service?

▪ What does it do?

▪ How is it different from other products or services?

▪ Who will buy it?

▪ Why will they buy it?

▪ Price

▪ Quality

▪ Convenience

▪ Safety/Security

▪ Pleasure

▪ How will it be sold?

▪ How will it be promoted?

Defining Success

How do you know if a business is doing well?

▪ Traditionally the measure of a business’ health was the size of its bottom line

▪ Bottom line is another way to say “Profit”

▪ Profit = revenue – costs

▪ Other measures of success…

▪ Triple Bottom line

▪ Change in community

▪ Impact

Other Ways to Think of Success

A business with a healthy profit is succeeding for the people who

invested in the business.

▪ Who else might businesses be for?

▪ The customers

▪ The community

▪ The planet

Triple Bottom Line

▪ “People, Planet, Profit”

▪ Also called the 3 pillars of sustainability

▪ This is the new international standard of community/urban

accounting

▪ This measure of success takes into account :

▪ Labor policies & community engagement

▪ Environmental footprint

▪ Economic value created

People - Labor

This is far more than a feel good topic it has real implications.

How you treat your employees is a big part of who you are as a

business and what you stand for.

▪ Hours: shifts, breaks

▪ Benefits: health, vacation

▪ Incentives: education

▪ Livable wages

▪ Safe work environment

Labor - Best Practices

▪ Hire locally

▪ Train on the job

▪ Promote from within

▪ Employee Manual

▪ Share your mission - set a clear work culture

▪ Clear communication - have meetings- make them relevant

▪ Onboarding and legalities

Shareholders

Shareholders are people who have a stake in your business’

success

Shareholders can be formal - people who put money into the

business

Shareholders can be informal - people who put time or effort

into the business

Shareholders can even be people who haven’t invested but

who are impacted by your business practices (employees,

customers, vendors)

People - Community

Know your shareholders:

▪ Employees

▪ Customers

▪ Vendors

▪ Neighbors

▪ Be a Leader, Invest in your Community:

▪ Join business and neighborhood associations

▪ Connect, empower, engage and support others

Planet

▪ Responsible waste management practices

▪ Composting

▪ Recycling

▪ Select sustainable ingredients

▪ Shop locally

▪ Shop in season

▪ Organic products

▪ Use green cleaning products, packaging

Win-Win-Win

▪ Ask yourself, “Are my shareholders/the planet better off

because of my business?”

▪ What policies and practices do I have in place that impact my

shareholders/the planet?

▪ How can those policies and practices be designed to be

▪ win-win-win?

▪ This is a critically important mind set for several reasons

Q&A/Wrap Up

▪ What questions might you have?

▪ How can I best serve you?

▪ What are your concerns?

▪ What are you excited about?

Course Syllabus

❑ 1 Class 1: Concept (mission/vision/values)

❑ Class 2: Operating Models

❑ Class 3: Consumer Packaged Goods & Food Service Models

❑ Class 4: Understanding Costs (cash/profit)

❑ Class 5: Operations

❑ Class 6: Marketing Communications

❑ Class 7: Financial Projections

❑ Class 8: Legalities & Resources & Funding

❑ Class 9: Off-site Field Trip

❑ Class 10: Your Business Plan

AppendixWhat Is a Bakery Concept Statement?

by Anne Hirsh, studio D

http://smallbusiness.chron.com/bakery-concept-statement-25085.html

Unique Sales Proposition

https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp

Product Attributes vs. Product Benefits

http://superaff.com/archives/2006/10/31/product-attributes-vs-product-benefits-work-sheet/

How to Define Your Target Market

http://www.inc.com/guides/2010/06/defining-your-target-market.html

In Praise of Niche Marketing

http://www.inc.com/resources/marketing/articles/20040501/nichemktg.html

Products vs Attributes Worksheet

http://superaff.com/archives/2006/10/31/product-attributes-vs-product-benefits-work-sheet/

How to Conduct Market Research

http://www.inc.com/magazine/20090901/guidebook-how-to-conduct-market-research.html

Why Demographics are Crucial to Your Business

http://www.inc.com/news/articles/2009/12/customer-demographics.html

Understanding How Customers Think

http://www.inc.com/articles/2004/06/zogby.html

How to Find New Customers and Increase Sales

http://www.inc.com/articles/2004/06/zogby.html

Market Research Resources:

Pew Internet publishes reports regarding internet use among various demographics.

Scarborough issues press releases with useful data and sometimes publishes free studies.

Also look for free studies by Arbitron. You may be surprised what you can find just by doing a search in Google.

Appendix