Forums: Discussions for entrepreneurs and small business.

I decided to start working on a business plan for a startup that I`d like to get off the ground within the next year.  Basically, cooking is my passion and healthy food is my love.  I make most of my own stuff rather than buying it and, based on reactions from people, there may be a market.  I plan to start with jerky and move into salad dressings, spaghetti sauces, other sauces, and salsa.  I have considered using eBay as an initial distribution avenue while I pursue deals with specialty and traditional groceries, such as Whole Foods, Wild Oats, Kroger, etc. 

1) Is eBay a good option for getting some product out there and making a name?
2) How would I go about getting my product into a grocery chain?  Is that generally decided at an individual store level or at a corporate level?
3) Packaging.  I need to find someone that can discuss packaging with me as even eBay requires FDA standards on food products, such as sealed packaging and nutrition information.

I am just getting started on the documentation and I`m standardizing my recipes and working to make all of them more "marketable".  Thanks for your help. 

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Scott
http://modernforager.blogspot.com

Try sending DippyChick a personal message and visit her website (dippychick.com).  She makes seasoning packets you add to sour cream or mayonnaise for a homemade dip.  I think she`s doing very well and might have answers to alot of your questions.

Check out the thread called "celebrities are wearing her product" - I believe there`s some discussion about packaging and marketing there.

I`d be very hesitant to buy food products off ebay.  Are there other food products on ebay already?  (I`m not an ebay person.)  What about local/regional home and craft shows?  I`ve noticed the food booths are always very popular there.

Hope some of this helped.  Diana

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"Whether you think you can or you think you can`t, you`re right."
paraphrased Henry Ford

I`ve never had a food product packaged but I am in the food business and have looked into selling my products packaged.  I don`t think Ebay is the way to go.  The standards for shipping foods are quite regulated and can be complex & expensive to execute.

As far as getting your product into grocers; try small, local, single-unit, specialty foods stores that cater to niche markets.  These stores are more likely to have the person with decision making power actually in the store and they can ok you on the spot. 

You can check your Business2Business YellowPages for a food packaging company near your production facility.  Here`s a link for a food packaging company with facilities in Los Angeles, Chicago and Memphis.  They can get you started on the right track.

www.packaging.com

 

It is very difficult to get into the corporate grocery stores.  The big brands compete for shelf space by providing cost reductions & incentives to the chains and by using other techniques to get the best shelf space.  The little guy can`t usually afford to employ these techniques and subsequently has a very slim chance at being able to compete in that arena.

Do you have any farmers markets in your area, you could see about
renting a
stand or possibly sharing one with a current vendor. This way you can get
direct feedback from your potential customers and maybe fine tune the
product. Once this is done you can approach larger stores with "real"
feedback and a sales history.

It sounds great and good luck

AH Vino,

You beat me to the punch. Most of your local farmers markets are primarily individual sales and it should be a little easier to get in there than in a chain store. Plus anyone who buys from you, you can give them info on how to get the stuff directly from you since most farmers markets are usually only open on weekends during the spring and summer. Also, have you thought anything about the Board of Health. Once you start marketing your food items on a larger scale, they can be real butts with the ordinances and such.

Wow...thanks for all the info. 

Diana, there are food products on eBay, but I wasn`t sure if that was a good avenue to pursue.  They have the same FDA standards as a grocery store, but your concerns about buying food off eBay are the same as my wife expressed (guess I should listen to my wife huh? ) . 

Vino/Engraver, there is a Farmer`s Market a couple miles from my new house, so I will look into that.  I hadn`t considered that option, but it is a great one.  If I can build some clientele that way, get a website up and running for direct orders, and get into some of the smaller stores in my area, I could use that as leverage into larger chains.

Thanks for the packaging link Mite. 

Great ideas everyone!  Much appreciated.


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Scott
http://modernforager.blogspot.com

You`ll want to find the local grocery association in your area and attend some of their events. Generally you would want to sell your product to a distrbutor who works with grocery stores. For example McLane Northeast.