Our love for food and passion for feasting is one of the key factors driving the growth of the Indian food industry. Most of India’s income comes from food and agriculture production. India boasts of a predominantly agrarian economy and is regarded as the sixth-largest country in grocery and food markets. It is well recognised for producing a wide range of food products. That’s why the food industry, today, is witnessing a major surge in India.
Being a business owner is an exciting experience. You can start your own business and join a sizeable network of enthusiastic people about the goods they sell. When it comes to the food business, the ever-growing love for new cuisines and surge in the need for culinary arts has led to an accelerated growth in the industry. That perhaps explains the rise of new market players in the modern world.
However, starting a food company has its own advantages and disadvantages. The Indian government has developed several new regulations and programs to assist business owners in establishing their food company. While attaining license is one of the prerequisites, there are numerous other factors that one must consider to set up a food business.
Here’s a look at some key things to consider before starting a small-scale food company:
Start small
While starting a small business, it is essential to avoid as many expenses as one can. Instead of starting a ‘brick & mortar’ store, opening a cloud kitchen is a better idea. Once you feel your presence in the area, go for a store. Customers will come to you right away. Even then, start small and gradually expand from there.
Identify your customers
You choose the type of audience you wish to appeal to based on the market. Your average buyer criteria, for instance, will differ from those of a buyer who lives near an affluent society because of the difference in their discretionary income. You would have to create and promote the right products.
Use funds wisely
The first thing to do is to make a budget. Conduct extensive market research, speak with numerous suppliers, and leave room for unforeseen costs in your budget. These steps will help you create a reasonable budget. The general idea is to be “conservative” with your predicted revenues and a little “generous” with your projected expenses because that’s how things turn out in practice. Use only 75% of the money you have or can arrange it at first. And the remaining 25% will come in handy!
Marketing
Use low-cost ways to market yourself. The best is Word of mouth – get many tastings done in small portions. Social media platforms are the best friend for food in the current scenario. Post a lot of photos and videos and be regular with them. Run contests, share some amazing facts, etc. You can invite bloggers on a barter basis. They will happily post about your venture for a complimentary meal or a cake.
Requirements for a license, suppliers, and labour
A cloud kitchen or restaurant requires you to get various food licenses before you begin selling. It could range from a health license for personnel working or food safety licenses. You must first secure several food permits from your cloud kitchen or restaurants before you start selling food items under your brand. Anything from a worker’s health license to a license for food safety can qualify. Along with this, the market is home to many raw materials suppliers. You must pick companies that offer the best value at the best quality. The consistency of the products must be maintained by having consistent suppliers.
Design great packaging
Your product’s appearance is crucial to defining its identity. There are many ready-to-use packaging solutions available in the market. You can get stickers made of your brand and use them. Especially for businesses who are new to the market, it is advised not to invest in customized packaging, considering it is very costly as one needs to order in bulk, and it’s not sustainable.
Final takeaway!
Foodies are ecstatic, and there are many business ideas for one to explore in the food industry. Therefore, if you have been considering starting a food business in India, the time is now to get started and be successful. But, rather than splurging big bucks on opening big restaurants and other outlets, starting a small-scale food company is not only viable but also comparatively easier.
Apart from savings on capital and labour, a small-scale food company will allow you to have close supervision and better control on the operations, which can be altered easily as per the market situations. Also, operating a small-scale food company will enable you to have direct relation with management, staff and ultimately the customers—something that can have a critical impact on the growth and subsequent success of your firm.
The author is founder and director, APCA (Academy of Pastry and Culinary Arts), India.