The food industry includes the preparation, processing and manufacture of food. It’s a popular industry as not only do all people need food to survive but it is also something that small business, even a one-man business can get into.
Once you have established which food business you want to get into, you’ve researched it, know it’s something that you can do with your abilities and resources. Three things that often leads to failure in this business: the business model, the product and the sales channel.
If you are going to make a premium product, like artisanal food then you cannot sell it in a place where there are not people that are willing to pay that premium. Seems pretty obvious, right? Many people get this wrong, simply because they don’t understand their target market.
Usually, startups in the premium food industry, overestimate the disposable income of middle-class consumers in South Africa. What constitutes middle-income in SA and what type of disposable income do they have? Most “middle-class” people are struggling in SA and get by with the bare essentials, which is why the location of the sales channel is vitally important.
Depending on what you making, a food business is one that requires little skill and capital to start out. Getting started the equipment (pots, pans, ovens) and materials (flour etc.) you either already have at home or can be purchased at any grocery store. Yes growing this business into something more substantial requires skill, industrial equipment and even a commercial kitchen but that does not mean that you shouldn’t try.
Food reduces a lot of the requirements and risk associated with a new business (everyone eats it and needs it), but you need a good location and it has its downsides (most foods are perishable and has an expiry date). That is why common sense dictates when starting out keep your variety low, purchase ingredients that can be used in various different configurations. Example: potatoes can be used to make and sell hot chips, chip rolls, as a side for burgers, as wedges and even in a salad.
Here are the food business ideas we looked at in 2017:
Grow and Sell Mushrooms
Make and Sell Biltong
Make and Sell Ring Donuts
Start a Bread Making Business
Buy and Sell Bokkoms
Start a Raw Potato Chip Supply Company
Make and Sell Paaper Bites
Make and Sell Pork Scratchings
Open a Caravan Take-Aways
Run a Baking Business from Home
Start a Food Truck Business
Open Up a Dessert Trailer
Buy & Sell Popcorn Kernels
Frozen Food Manufacturing Business
Distressed / Salvage Food Product Business
Food Truck Business
Ghost Kitchen/Restaurant Business
Clearance Supermarket
Grow and Sell Mushrooms
Start a Raw Potato Chip Supply Company
Open a Caravan Take-Aways
Make and Sell Gourmet Popcorn
Food Importing Business
