8 Things To Know If You’re Starting A Food Business In 2020

Are you planning to turn your culinary hobby into a money-making business or start an online food business commercially? I’ve put together some tips to set you up for an incredible start.

Hopefully, at the end of the article, you’ll have clear ideas about where to start and how to plan your next step.

🚀 Start Small

It may seem redundant at this point although, I can’t stress it enough. You need to be prepared to lose it all if it doesn’t work out. So, you may as well as make sure that financial loss is as small as possible. Start with two to four recipes, off the shelf packaging, and buy things at the small quantity to start.

✅ Learn The Best Practices

It’s critical to know how to store cooked food, meat properly, and standard kitchen hygiene practices. The health of your customers should be the utmost priority.

🍱 Menu Selection

Your selection of the menu can make or break your business. You should have a coherent approach to selecting your menu. Try picking items that appeal to a wide range of people instead of a niche. Here’s a few more question you should answer before selecting an item.

🥡 Packaging

Correct packaging and materials are vital to protect the food during transportation, handling, and distribution and to preserve the condition of food as it travels from your home to your consumers.

Buy Off The Shelf Standard Packaging To Cut Upfront Costs

💸 Know Your Unit Economics

It’s vital to understand your unit economics, to turn a profit. You want to know what exactly the cost of each item, total profit, what’s left after you share your revenue with the aggregators like food panda, Pathao Food, Cookups.

Calculating Cost Of Ingredients

👂🏻Feedback, Feedback, Feedback

You’ve got to collect feedback from your customers to understand how well they respond to your product. I can’t stress the importance of feedbacks enough!

  • You get to build a genuine relationship with your customers.
  • You will learn exactly how to satisfy them.
  • You will understand the market trends and have the opportunity to work on more competitive offerings.
  • It makes customers feel heard and portrays you as a responsible business owner.
  • You will know what’s doing well and what’s not and why. It’ll help you make better iterations.

📸 Use High-Resolution Pictures

The easiest way to take your marketing efforts to the next level is by using well thought out high-resolution photos for your items.

📊 Know Your Growth Metrics

Growth metrics are the indicator of how well your business is performing. It’ll help you make more data-driven decisions as your business grows, and you plan to invest more.

  • The number of orders.
  • The number of customers.
  • The number of unique customers. (new customers who joined over a certain period)
  • The number of delivery.
  • Monthly customer retention.
  • Weekly/monthly GMV. (total sales over a certain period)
  • Average basket/order value.
  • Acquisition cost per customer.
  • Order frequency. (how often each customer is ordering from you)
  • Percentage of returning customers out of total customers.

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