How To Start A Small Business?
How To Start A Small Business
This article deals with starting a Soft Drink Business. But the basics of starting any small business is the same so even if you're not starting a soft drink company it will be helpful.
First Just like any business there are niches to be filled some might be almost impossible and others might not have that much competition. But let me assure you that the soft drink industry does not lack competition. Some basic niches are sodas, or healthy drinks. juices, water and any combination thereof.
Study Your Comptition If you plan to start in a particular region then who are the main players? what are they doing right and what are the potential gaps that you can use to your benefit. Is there something they're not doing that if you do will get you access to stores?
As someone who is starting a small business you will have to know how much everything costs what will your production run cost? including transportation and other business expenses. You will find out that the larger your order is the cheaper the per unit cost is. So So what do you do buy truck loads of drinks with no place to sell? You might also incur storage charges. So the best is to order small quantities, and price with the larger quantity pricing in mind so you don't price yourself out of the market. Maybe a break even price or add a small profit percentage. Once you establish your self with stores then you can order larger quantities and hence make more profit.
Packaging And Marketing Strategy
Is of utmost importance. The companies you studied have invested a lot in packaging, marketing and consultants, market research etc. So you should look at their products and decide on how you will differ yourself from them yet how will you use some ideas they've got in a fresher and more attention grabbing way?
Speak with a patent lawyer and get your beverage patented and artwork copyrighted. You will spend a lot of time, energy and money behind this business and when you succeed you will have to contend with copycat companies that will try to follow in your footsteps and they have no problems to copy everything you have done to the point of confusing the customer.
Get Samples and test your product. If it is a soft drink get the opinions of friends but do your best to get the opinion of strangers and act like it is not your product you are just making a taste test and have several variations of the same drink and see which one they point to do not accept all of it is good. Get specific answers. While you're at it do the same with friends. Don't tell them which one is the one you intend to distribute.
Distributing your Soft Drink will involve a lot of communication and pitching your drink and having samples. But if you are rejected do not take it to heart. If you want to quit at this point go ahead. But if you do not want to quit then the next step involves preparing invoices, company cards and some money for gas as you will be visiting as many stores you think your product would do well in. The owner or manager might not be there, ask when do they usually come. Have a schedule and be persistent until you get a no.
When I get a no, and it is a store I really would like my product in, I will offer a free case for sale at the price I want it and all the money goes to the store. If the owner says no then I'll say I'll get you give you a case and if it sells I will replenish it ten times. That is up to ten cases and all the money goes to you. That is how sure I am about my products. You will still get some nos after this sales pitch but you will convert a lot of nos to yes. Again the ten case part should be used with high traffic stores that you really want to be in. The one case giveaway should be used generously at the beginning. This is my style and I was very succesful in opening new accounts. Got my ratio to about nine out of ten stores. You should be happy with three out of ten at the beginning.
In conclusion you have to be driven. There has to be that energy of excitment. If someone is excited about a project and does their research, double checks, takes advice, seeks advice and makes a calculated decision will always have a chance. Good luck with your new business venture.