If you are considering starting your own beverage company then there are a number of things you need to know! You will, of course, have to develop a product, carry out market research, study the latest regulations and create a viable business plan. It is certainly not as easy as you might think, but with the help of these three top tips gathered from some of the world’s leading beverage producers, you can cut to the chase and get your business up and running with a minimum amount of trial and error. These three tips make up the formula for success that so many successful beverage businesses are based on.
Start At The End
This might seem very strange, but when you are getting your own beverage business off the ground, you do not want to start at the beginning – you want to start at the end! The end is of course the end consumer, the person who will be buying your product. The very first step is to ask yourself: ‘Who is my ideal customer?’ This will lead you to various other questions such as how much will they spend and how often will they buy my product? Once you have these answers you are able to work out how much profit the retailers will make and how much you can afford to spend on production. This is a key step in budgeting. Once you know who the customer is you will be better placed to design a product that suits them. For example, there is little point using cute cartoon branding if your end consumer is a business man!
Save Your Money
It is important not to spend too much money on production and promotion. Remember that budget from step one and try to come in under it. There is no point in throwing money at artwork, advertising and promotion. The real sales come from getting great retailers and distributors. Advertising comes later when you have established this. There is no point in a nationwide television campaign if no one actually stocks your products.
It is also important not to spend too much on production. So many people are tempted to produce more than they need in order to save money on bulk discounts, but what happens if you cannot sell that extra inventory? You make a loss. Beverages have an expiry date. Do not get caught out.
Do Not Rely On Distributors
Do not be fooled into thinking that once you have a distributor in a particular area you can forget about it. The fat is, your distributor is not going to go out in search of new retailers for you. It is up to you to secure these retail opportunities and pass them back to the distributor. This is your product, your baby, so you need to be the one to champion it to retailers. Never leave it in someone else’s hands.