Tips for Growing Your Food-Processing Business

Tips for Growing Your Food-Processing Business
  • Opening Intro -

    In every industry, businesses' goals tend to revolve around expansion.

    However, attempts at growth can become self-defeating if a company doesn't make them conscientiously.

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The same is true for businesses in the food-processing industry. These tips for growing your food-processing business will help you take your business to the next level without biting off more than you can chew.

Put Food First

Before even thinking about expansion, your product should have a well-established identity. Is the recipe you are using selling? Are there any unpopular flavors?

Along with the food itself, you should be confident in the tools you are using to make it. Are your mixing tanks the best choice for the dough? And can you maintain them well? You can have all the business sense in the world, but it won’t save you if you have a feckless product.

Count the Cost

Many businesses meet an untimely demise because they attempt to expand too far too quickly. To avoid this fate, first examine your business’s finances to determine whether this is a viable option.

For instance, outstanding debts can significantly hinder your business’s future expansion, especially if you are considering taking out a loan on a larger facility.

Businesses should also consider income. When examining your business’s cash flow, consider more than just whether your business is profitable. Consider whether it is profitable consistently.

It is easy to rush into an expansion plan because of a sudden uptick in sales. But if the trend doesn’t last, you can end up on the other side of a food fad with too many costs and not enough money to meet it.

Research

Another common mistake that business owners make when expanding a business is only focusing on growing bigger or producing more. Good expansion does focus on taking steps forward—but only if it’s in the right direction.

After all, every expansive step will cost your business money. Market research will help you ensure that those steps will be profitable ones.

Good market research focuses on identifying and understanding your target demographic. This knowledge will help you make smart branding choices and inform potential new directions you may want to take your product in the future.

It also enables you to identify your own strengths and weaknesses as a business to help mitigate the latter and capitalize on the former.

Manage “Growing Pains”

When you begin expanding your food-processing business, you will have to think about doing things on a larger scale. You may want to take steps to get the most work out of a space or find out how best to ship products to more distant customers.

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Again, expansion needs to be strategic, minimizing the cost. For instance, a company needing additional food storage may consider purchasing food-grade IBC totes instead of tanks. That way, they can double as mixing tanks and stack to hold more material in a smaller space.

Businesses are always on the lookout for ways to move forward. By taking strategic steps, you can be sure that your business won’t just grow—it’ll thrive.

Image Credit: tips for growing your food-processing business by twenty20.com

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