What you should do before starting a beverage company?
A lot of beverage entrepreneur are doing similar mistakes. For example, they do not analyze their market well enough, they do not have any positioning strategy, and they do not have enough financing. It’s important to understand that before starting a beverage company a lot of research and analysis should be done. So what you should do before starting a beverage company?
First step is the most important. Market analysis. You have to know your market size, market differences. It’s very important to know whether market size is increasing or not? Is it a fragmented market or not? Why not? In case you have enough capital I suggest to buy market reports to get in-depth analysis of your market. Other way is a bit cheaper but not so precise. You can use Google Keyword Planner, Google Trends, Google Surveys. In fact there are more tools for your online market research. I advise to use them, however, to careful with your conclusions.
Only when you will know and understand your market you can move to the second step. You have to answer these questions:
What’s your product?
How does it differentiate from competitors?
What’s the competitive advantage? Do you have it?
What value does it give?
Is there a need for your product? Who? When and why?
Do you have a merchandising strategy?
Do you have a market entrance strategy?
What are your main sales channels? What’s your sales strategy? Are you planning to use distributors services?
Do you have a hypothetic target consumer? How does he look? How are you planning to reach him?
Do you have a recipe? Are you planning to use services of beverage development companies?
Do you know what kind of ingredients are you planning to use? How well they are known to general public?
Are you planning to bottle the product by yourself or are you planning to use co-packer for that?
What kind of packaging do you want to use?
What’s the quantity of your product you are willing to start with?
Do you have enough capital to start launch your product?
Are you planning to raise cash from investor? How are you planning to do that?
Do you know when your break-even point is?
Believe me… there are many more questions to answer, however, it’s a good starting point.