“The food is good business”, or so conventional wisdom. Victims of a transport operator, many fledgling entrepreneurs rush to build businesses based on a seemingly good idea, only to find it impossible to make money with it …
It was like a bad dream. I had the opportunity to visit two exhibitions of business projects in two different cities of the country, more than 1000 km from each other. Despite the distance, there was a moment I thought he had never moved, because the projects were so similar to each other, I thought acting in a bad horror movie.
Okay, okay. I exaggerate in my comments, but give me that chance and see it as a small literary freedom. Oops. I went to exaggerate. More grain and say that the chickens.
Something caught my attention by the Expos: Almost half of entrepreneurial projects consisted of various sauces or canned fruits and vegetables in the region….. Tremble Herdez done your time! I do not think so.
Most of these projects are good ideas, put into service, turn out to be bad business. The reason? Very simple: they are companies based on volume and low price, which require significant investment before offering some interesting return for the employer.
A quick x-ray
Before lifting a wave of protests against me, giving me the opportunity to explain my position.
I have a friend who works as a promoter in a brokerage firm and one day I share one of his investment principles: Never buy stock in companies he does not understand how to make money. Simple, easy and effective.
Of course there are the empires of delicious sauces and other preparations. Many of them with decades or a century of tradition. Now, these empires are based on three pillars: a brand known and recognized the ability of mass production that facilitates lower costs and ability to retail distribution to be in almost all the shelves available in your area of?influence. It is a hidden fourth pillar, associated with the last two: capital for their clients.
Say quickly to produce the sauce is very cheap, how expensive is packaged and distributed in sufficient quantity to make a profitable business. Of course there are those who reach this goal, but very few.
Before that, it seems that it is an article against the sauces and dressings, let me be clear. This applies to my niece delicious biscuits sold at Christmas, but tasty cake that my neighbor sold the work, or save my friend who holds three leadership courses per semester, or a singer of religious music that has only two games per month.
They took a good idea with a company. It is likely that his thinking was something like this: Imagine if we sell 3,000 of these sauces months. We’ll be rich.
A different way of doing things
Before embarking on the adventure of making a good business idea, worth asking for the patience and focus your project as follows:
First define the amount of gross income each month you want to sell your product. Next, divide this amount between the sale price of your product or service. If you get an amount in excess of 500 units, assess their economic and production.
The following is a difficult question: Can you handle 3 to 6 months of production before reaching an appropriate collection rate? Remember that almost all its competitors to sell on credit or on consignment.
Consider all costs, direct, indirect, and necessary to maintain stocks in active production.
Now think about your ideal customer and the consumer in its ideal, it is likely to be two different people. What are their habits similar products? How much are you willing to pay? How will you convince you to try your product? What are the benefits of your alternative clients?
Warning discourage us, we are just an exercise in reality. If you get the figures difficult to reach or to realize, rethink your plan. Exercise several possibilities, but preferably start small. Business is a matter of patience and Joan Manuel Serrat says in one of their songs: The joke is “advancing slowly but surely” to achieve their business objectives. Good luck and success in the world.
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