Flow Chart for Entrepreneurs Developing Acidified Food Products

FLOW CHART FOR ENTREPRENEURS DEVELOPING NEW FOOD PRODUCTS

Steven C Seideman
Extension Food Processing Specialist
Cooperative Extension Service
University of Arkansas

References;

1) From Kitchen to Market; Selling your Gourmet Food Specialty. By Stephen F Hall. Available from Amazon.com for about $20.00.

2) Exploring the Potential of New Food Products. By the Mississippi State University Extension Service.
http://msucares.com/pubs/publication/p2170.html

3) Website for Institute Services and information; http:// www.uark.edu/ua/foodpro. Go to Directory of Services for services we provide. Go to Food Information Reference Links for informational websites on Federal Food Regulations, Food and Nutritional Labeling and Business Development.

4) Website for Instructional Presentations; http://www.uark.edu/ua/foodedu. Go to one of over 40 modules some of which are developed for entrepreneurs such as Starting a Food Processing Business, Labeling, Value-Added Foods etc.

Step-By Step Flow;
1) Have an Idea- To start with you, need an idea. Most successful ideas these days are in the form of convenience or value- added or niche markets. Having a great tasting product is not enough. How would anyone ever know it tastes good? Flavor is easy to change.

2) Work on a business plan – find 2 basic business plans on the #3 website listed above under Business Development. The idea of the business plan is for you to think about how you will go to the marketplace. Spend time at night refining it many times over before you spend a nickel on a business venture. Focus on the marketing/ sales aspect. That is where the success begins. Most of the business plan formats are straight forward and you probably don’t actually need to use a specific format but you need to write out exactly what you want to do and how you are going to do it focusing primarily on sales and marketing. Why should someone pick up you product? What benefit is it for the customer? It has to fill a need. If you can’t get sales on your product, you will fail. Also decide what channel – retail, foodservice (restaurants), mail order, distributor etc. I suggest that you think these through and then visit a branch of the Arkansas Small Business Development Centers – see their website at http://asbdc.ualr.edu. They can provide free consulting and other services.

3) Labeling – Both the regular label and the nutritional label. Have a professional design. Federal labeling regulations on labeling can be found on the #3 website listed under Labeling and Nutritional labeling. Also look up the government standard if identity for your product.

4) Taste Panel- Do you need a panel to work on any flavor or texture issues?.

5) Shelf-life- How long will your product last before it goes bad. Most retail stores require at least 50 days or more.

6) Manufacturing- Decide if you will self-manufacture or have your product co-packed. If you don’t have a lot of money to waste, I suggest you do the co-packer route. If you decide to self-manufacture, go to the food regulations section on website #3 listed above under business development.

7) Cost to Sales- Do a complete cost workup on your product. Cost of raw materials, manufacturing cost, packaging, distribution, retailer markup etc. Essentially, you want to know what it costs to make and distribute and what the ultimate customer will have to pay.