Considering the prices of food today, there has never been a better time to break into the produce market as people are more than happy to believe that veg is the best buy for them.
One of the great things about starting a produce business is that it can be a small scale business with low overheads, so it can be a really wise financial investment. If you are looking to start a small produce business, there are a few rules that you should follow.
Luckily for you, we’ve put together a list of the top tips for starting a produce business.
1. Research the Market
One of the first things you need to do if you want to start a small produce business is research the current market to see if you can identify a specific space to fill and occupy.
You need to have a look at how many other small businesses there are on the market and find out what it is that they are offering to customers. The more research you do, the better.
What are they selling to their customers and for how much? See their website for all of their information and see if there is anything you can provide that they aren’t already providing.
Another tip is to reach out to other businesses or restaurants in your local area to see if they would be interested in purchasing your produce. You will need to have a good general interest of how much interest you will have in order to create your business plan.
2. Create a Business Plan
After you have taken the first step, which is deciding to start a small produce business, you will need to create a business plan. You will also need to think about the following factors:
- Who is the target market for your business?
- What will you name your business?
- Will you hire other people to work for your business? If so, how many?
- How much money will you be investing in your business?
- What equipment do you need and how much will it cost?
- Will you need to spend money on marketing and at what cost?
- How long do you think it will take before you will make back your investment?
- Do you want to operate locally or expand into other towns?
- Where will you store your produce?
These are just a few examples, but they are all things that need to be considered.
3. Invest in the Right Equipment
When you’re starting a new small business, one of the biggest mistakes you can make is to cut corners and try to make it work with equipment that is cheap or not up to the job.
For example, when you’re weighing out your produce so you know what to price it as before selling it, you don’t want to lose money because your scales aren’t one hundred percent accurate. Check out 1800scales.com for some of the best scales currently on the market.
Even if you are working with a smaller budget, it’s worth investing in high-quality, professional equipment for the success of your business.
4. Build Relationships
Even before you start selling your produce, but especially after, it is incredibly important to build good relationships with the people you cross paths with. Start by making conversations with your customers and try to build a connection with them through shared experiences.
Not only will this male them trust you more as a person, but also as a seller, which will be good for your business. Building relationships is a great way to encourage loyalty amongst your customers and they will be more likely to recommend you and your produce to friends!
5. Get All the Legal Stuff Right
When you’re starting a small produce business, it is important to make sure that you have followed any necessary legal requirements that are involved in setting up your business.
This includes obtaining any required licenses and permits and taking out the appropriate level of business insurance to protect yourself and your assets.
You will also need to make sure that you adhere to all food regulations that are required when you are working with food. This means you will need to obtain a license from your local health department and pass a health inspection. This goes for all businesses selling food.
So, there you have it. Some of our top tips and tricks for starting your own small produce business. We hope we’ve helped!