#1: Defining Your Concept

Transcription

1 Food Business Entrepreneurial Training Academy #1: Defining Your Concept Alameda County SBDC Dublin Library April 3, 2017

2 Thank you to Our Sponsor

3 Local SBA Ecosystem

4 Partnership and Hosting We are the premier provider of Business Advisory Services to the small business community. Our mission is to create economic opportunity by empowering entrepreneurs.

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6 Seminar Examples Access to Capital Starting a Business Social Media Marketing Worker Owned Businesses Starting a Restaurant Starting a Food Business Finding Your Core Customer Website Development Successful Business Plans Meet the Lenders Government Contracts Law for Entrepreneurs Buying a Business Crowdfunding and Alternatives How to Pitch Your Company Exporting Home Based Businesses

7 ACSBDC Consultants FJ Cava Generalist Deagon Williams Food & Restaurants David Bokash Business Technology Ron Barrett Loans Paula Mattisonsierra Retail Mari Lovalvo Human Resources David Mitroff Social Media Lee Lambert Director

8 ACSBDC Consultants Tom Yeh Strategy Paul Bozzo Equity Funding Dorian Webb Operations Mary Passarella Accounting Ed Duarte Construction Bob Komoto Export/Import Maria Mejia Finance Tom Camerato Financial Modeling

9 How to register for services

10 Our Client Results

11 Presentation Download

12 Deagon B Williams Founded in classical French culinary training with 20+ years of professional experience resulting in deep seeded industry knowledge/acumen Witnessed first hand that success requires far more than great food We help food and beverage companies realize new success through seasoned knowledge and comprehensive strategic solutions 2017 CULINARY BUSINESS STRATEGY 4/2/2017

13 Introduction Welcome! Class Format Course Syllabus Overview Goals and Homework Outcomes and Next Steps Success

14 Defining oar Concept There are three main parts to a business concept: 1 Product 2 Target Market 3 Unique Selling Proposition These can be rephrased as: What? Who? Why?

15 Your Concept Product Target Market Unique Selling Proposition Triple Bottom Line

16 Concept Statement Short and concise when finished What is your food food idea or product? What does it do, specifically? How does it fit with the surroundings? Who it is for? What purpose it serves? Volvo is the car of choice for middle class families who seek safety in stylish transportation.

17 Concept Statement Components Market Need Solution Business Model Value Proposition Competition Marketing

18 Product A new product should answer an unmet market need Market Need: Something consumers want but can t currently get on the market Examples of innovative products that answered a market need: Netflix Meal Delivery Third Party Catering Open Table

19 Describing Your Product What you should know about your product Attributes and Benefits What will I sell? Examples: cookies, ice cream, Italian food, tacos, etc. Toothpaste or clean teeth. How will I distribute it? Examples: grocery store, shop, restaurant, food truck, etc.

20 What is atarget Market? A target market is your ideal customer base The people you want to sell your product to. No, you can t just say everyone! You will design your product around your target market s needs Later we will talk about marketing specifically to them

21 Knowing Your Target Market? Picture your typical customer and describe: Where do they live? Are they male/female, old/young, have kids? What other places do they shop? How much do they spend on items in your product s category? The more you know about them, the better. Knowledge of your customer base is your business advantage

22 Unique Selling Proposition Definition of Unique Selling Proposition (USP) A real or perceived benefit of a good or service that differentiates it from the competing brands and gives its buyer a logical reason to prefer it over other brands. USP is often a critical component of a promotional theme around which an advertising campaign is built. Source:

23 Types of USPs Quality: gourmet or fresh Sourcing: local or organic Packaging: green packaging Service: friendliest, convenient hours Location: near your target market Special Diet: kosher, halal, vegan Very often a true USP is a combination of the above.

24 Branding Brand is a promise that exists in the mind of the customer Invest heavily here. Hire a professional. Branding is more than a logo and a graphic design Brand positioning: What is your price point? What would you consider a frequent user?

25 Positioning A positioning statement has three components: 1 Defines the target audience 2 States the category in which brand competes 3 Points out the benefit over other brands Example: For upscale American families, Volvo is the family automobile that offers maximum safety.

26 Positioning Statement If you are stuck building your statement, try this formula: For (target customer) who (statement of the need or opportunity), the (product name) is a (product category) that (statement of key benefit that is, compelling reason to buy).

27 Defining Success How do you know if a business is doing well? Traditionally the measure of a business health was the size of its bottom line Bottom line is another way to say Profit Profit = revenue costs Other measures of success Triple Bottom line Change in community Impact

28 Other Ways to Think of Success A business with a healthy profit is succeeding for the people who invested in the business. Who else might businesses be for? The customers The community The planet

29 Triple Bottom Line People, Planet, Profit Also called the 3 pillars of sustainability This is the new international standard of community/urban accounting This measure of success takes into account : Labor policies & community engagement Environmental footprint Economic value created

30 People - Labor This is far more than a feel good topic it has real implications. How you treat your employees is a big part of who you are as a business and what you stand for. Hours: shifts, breaks Benefits: health, vacation Incentives: education Livable wages Safe work environment

31 Labor - Best Practices Hire locally Train on the job Promote from within Employee Manual Share your mission - set a clear work culture Clear communication - have meetings- make them relevant Onboarding and legalities

32 Shareholders Shareholders are people who have a stake in your business success Shareholders can be formal - people who put money into the business Shareholders can be informal - people who put time or effort into the business Shareholders can even be people who haven t invested but who are impacted by your business practices (employees, customers, vendors)

33 People - Community Know your shareholders: Employees Customers Vendors Neighbors Be a Leader, Invest in your Community: Join business and neighborhood associations Connect, empower, engage and support others

34 Planet Responsible waste management practices Composting Recycling Select sustainable ingredients Shop locally Shop in season Organic products Use green cleaning products, packaging

35 Win-Win-Win Ask yourself, Are my shareholders/the planet better off because of my business? What policies and practices do I have in place that impact my shareholders/the planet? How can those policies and practices be designed to be win-win-win? This is a critically important mind set for several reasons

36 Concept Development Worksheet What is your product or service? What does it do? How is it different from other products or services? Who will buy it? Why will they buy it? Price Quality Convenience Safety/Security Pleasure How will it be sold? How will it be promoted?

37 Q&A/Wrap Up Whacha got?

38 Course Syllabus Course 1: Defining Your Concept (04/03) Course 2: Operating Models (04/05) Course 3: Food Business Models (04/10) Course 4: Understanding Costs (cash/profit) (04/12) Course 5: Marketing and Communications (04/17) Course 6: Operations (04/19) Course 7:Financial Projections (04/24) Course 8: Legalities and Resources (04/26) Course 9: Funding Your Company (05/017) Course 10: Business Plan (05/03)

39 Appendix What Is a Bakery Concept Statement? by Anne Hirsh, studio D Unique Sales Proposition Product Attributes vs. Product Benefits How to Define Your Target Market In Praise of Niche Marketing Products vs Attributes Worksheet

40 Appendix How to Conduct Market Research Why Demographics are Crucial to Your Business Understanding How Customers Think How to Find New Customers and Increase Sales Market Research Resources: Pew Internet publishes reports regarding internet use among various demographics. Scarborough issues press releases with useful data and sometimes publishes free studies. Also look for free studies by Arbitron. You may be surprised what you can find just by doing a search in Google.

41 WHAT is your product/service and what does it do? HOW is it different from other products/services available? WHO will buy it? WHY will they buy it? Price Convenience Provide sense of safety/security/well-being Better Pleasurable experience HOW will it be promoted and sold?