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Food Business Entrepreneurial Training
Academy
Dublin, CA.
4/16/2018
Alameda County SBDC
Thank you to Our Sponsor
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We are the premier provider of Business Advisory Services to
the small business community.
Our mission is to create economic opportunity by empowering
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4/16/2018 © 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 first hand 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 Wi l l iams
Introduction
Welcome!
Class Format
Course Syllabus
Overview
Goals and Homework
Outcomes and Next Steps
Success
Group collaboration
Timing
Syllabus
4/16/18 Class 1: Concept (mission/vision/values)
4/18/18 Class 2: Operating Models
4/23/18 Class 3: Consumer Packaged Goods & Food Service
Models
4/25/18 Class 4: Understanding Costs (cash/profit)
4/30/18 Class 5: Operations
5/02/18 Class 6: Marketing
5/07/18 Class 7: Financial Projections
5/09/18 Class 8: Legalities & Resources
5/14/18 Class 9: Funding
5/16/18 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.
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?
Your Concept
Product
Target Market
Unique Selling Proposition
Triple Bottom Line
Concept Statement
Short and concise when finished
What is your food 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
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
Whacha got?
Course Syllabus
1/10/18 Class 1: Concept (mission/vision/values)
1/11/18 Class 2: Operating Models
1/17/18 Class 3: Consumer Packaged Goods & Food Service
Models
1/18/18 Class 4: Understanding Costs (cash/profit)
1/24/18 Class 5: Operations
1/25/18 Class 6: Marketing
Communications
1/31/18 Class 7: Financial Projections
2/01/18 Class 8: Legalities & Resources
2/07/18 Class 9: Funding
2/08/18 Class 10: Your Business Plan
Appendix
What 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/
Appendix
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.
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