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Introduction
This business planning guide has been developed to
help you get started in the processed food industry or
for the established processor to use as a checklist.
It’s meant to serve as a general reference for food
processors, to answer some frequently asked
questions, and to recommend additional sources of
help.
Presented here are ideas and information useful for
those who are thinking of starting a food business,
as well as for those who want to grow their existing
business.
Whether you are a new or experienced business
owner, you have to be aware of the bottom line. This
guide points out ways you can achieve your goals
while minimizing your risk.
Food Industry Trends
What are the future prospects for processed food
products? From all reports the opportunities are
growing due to a number of factors.
We have a very busy, aging population which has a
desire to improve individual health. Food products
that address these issues and meet consumer needs
will have a greater chance of success.
Consumers are interested in where and how food is
grown and processed. They want to know their food
is safe.
Overview of Guide
The topics in this guide are presented in the order in
which you are likely to encounter them when
starting a new business.
There is information in each chapter relevant to
businesses in the early stages of development. There
is a section on business planning and business plans,
but you will be planning on an ongoing basis. As
part of your planning you should set up some
working files. Topics could include: market
opportunities, product trends, packaging and labeling
ideas, operations, finances, regulations and business
information. Include newspaper articles, research,
demographics, informal projections and notes in
these files. Set one file aside for your business goals
and objectives, both short and long-term. These files
become your informal business plan.
Both public and private sector resources are listed
and key web base sites have been noted. A listing in
this manual is not an endorsement; nor are the
listings comprehensive. Word of mouth and the
Yellow Pages offer many additional contacts. The
partial listing in this publication is furnished for your
information with the understanding that no
discrimination is intended and no guarantee of
reliability implied.
Starting and operating a profitable food business is
complex. Be prepared to develop an extensive
network of advisors and information sources.
The Inside Story
An agri-food processing business consists of four
key components:
Marketing
Finance
Production
Human resources
Each component has a life of its own and grows at
different stages. However, the success of the
business is a function of all four elements.
Investors look for secure markets and strong
management. Production and financing support both
of these and form the cornerstones that build the
business.
Continue to use this model as you develop your
product and business.