Startups

There are many trends affecting consumers' interaction with and purchasing behavior with food, including the interest in local, organic, free-from and other claims.The consumer is overwhelmed with choice and retailers are trying to satisfy these trends to give them more choices given all of these niche diets and preferences.

Consumer tastes, preferences and expectations around food consumption and distribution are changing. People are demanding more healthy food while also sometimes making the foray into purchasing food items online, mostly non-perishable, potentially hollowing out the center of grocery stores.

With consumers, entrepreneurs should develop in-depth personas about their target customer and use the language that speaks directly to their unmet need. When speaking to funders, entrepreneurs need to tell the story of their business model, their revenue model and their brand positioning i.e. the story they reinforce with consumers.

To come up with a realistic strategy for action and growth, food entrepreneurs should make efforts to understand this entrepreneurial ecosystem and whether grants, loans, investments or a combination of capital sources makes sense to fund their growth. Only then can food entrepreneurs plant the seeds for a profitable and sustainable food business.

Most entrepreneurs start out with friends and family funding (essentially people they know who will take a risk with them) or else they "bootstrap" their company, self-financing from the owner(s) and free cash flow. However, in food, this doesn't get you very far - food businesses need outside capital, usually from a variety of sources, to compete.

The business model is the sum of all the things that ensures the organization sustainably makes money and delivers on its core products, services and mission. What many food entrepreneurs don't often realize is that innovation comes not just in the form of new products or services, but also in their business model.

The answer to "where is your growth path" lies in the company's business model and their willingness to find creative solutions to how they can grow their unique brand and strengths. No path is easy, but we encourage entrepreneurs to consider creative ways they could grow, including horizontally, to reach profitability and sustainability.

If e-commerce wasn’t a priority for food brands before, COVID-19 has certainly made it one. Online food sales are soaring right now, and many shoppers want to buy direct from producers. A big part of your online strategy is deciding which online platforms to pursue. Our latest podcast explores how to figure this out. Also check out our free business tools to guide businesses during this tricky time, and remember to join our Monday virtual huddles for entrepreneurs and consultants.

Food and farm entrepreneurs are taking action against food waste and its impact on climate change by championing upcycled food. Repurposing otherwise-discarded food into value-add ingredients and products is both sustainable and a smart business strategy. Learn about brands making real change and how you can join the upcycled food movement.

This webinar reviews resources available from the USDA, digs into the details of LFPP and FMPP grants, and integrates a live audience Q&A to learn more about what is eligible for award. Listen to learn more about how to submit for these grants funds that support local foods!