Understanding the cost of launching a new food product can make or break you. Many new food companies fail because they lack adequate principal to launch and support the product. That’s why it’s important to hire a food business consultant with a good understanding of how much funding you need to succeed. This week, the experts at HSR Associates talk dollars and cents!
What Does it Cost to Launch a New Food Product?
You can probably guess the answer to this broad question: “It depends.” Another good answer is “more than you think.” Generally speaking, over 1-5 years, it might cost between $100,000 and $150,000 to produce and sell your product. There’s no way to provide specifics without knowing the specifics. That’s why you need a food business consultant to get to know your product and determine the amount of funding you will need to get started (and to keep going). Your consultant knows that there are many factors at play that the average new business owner would not consider on their own.
What is the Money For?
Here are just a few things you’ll need to pay for as you launch and sell your product:
- Market research: Understanding the market, your consumers, and your competitors is crucial. You will need extensive research to develop the most effective marketing plan.
- Positioning: Your food marketing consultants will help you develop your positioning and marketing strategy. How will you differentiate your product from others on the market?
- Branding: Corporate branding and product branding determine how consumers perceive you. This process can include visual branding, shaping the customer experience, and food package design.
- Marketing: You can spend a little or a lot on marketing (including your website, online advertising, social media, and more). What matters is knowing how to market a food product to your specific audience. You’ll need help to make all the pieces of your market research fit together into an effective plan.
- Public relations: As consumers demand more brand transparency, public relations is becoming even more important.
- Ongoing sales and marketing: Marketing is not set-and-forget. Your strategy should evolve over time and respond to the desires and needs of your consumers. You’ll need to constantly monitor your results and update your materials.
- Production: Until you go through product development and hire a copacker, this is unknown. We can guide you to processes and procedures to save money on product, packaging, warehousing and logistics.
- Persistence and Patience are personal characteristics essential for success. Learn while you earn. Slow, steady growth should be your goal.
Connect with a Food Business Consultant at HSR Associates
Launching a new food product is expensive. If you’re serious about wanting to succeed, you need an expert food business consultant by your side. Your consultant will help you understand the amount of capital you will need. The food marketing consultants at HSR ASSOCIATES specialize in developing new food products and bringing them to market. We provide all the services necessary, from Kitchen To Marketplace. Contact us today at steve@hsrassociates.net.
More great ideas to come from our food product development experts! Stay tuned…………..