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What do I need to know to start up a beverage company?
My friend want to start a beverage company. I know it's a hard market to tap into but lets face it everything is hard to tap into. We have some experience in starting up a small business, but we are not familiar with the food/beverage world. Have 50k to start.
We know our capitol to start is little. We do have a company which are paid to help with distribution, formula.
We are starting out with 2 kind of drink both different from each other.
From what I research we need a limit of 10,000 bottle in each order.
A truck to deliver, (max gross weight 26,000 i think) or less to compile with some sort of license and city street regulation.
That's about all I know. Any advise/information is welcome. Don't really know where to start? What would my first step be towards making a beverage company? Requirement? Any info is helpful.
Thanks! =)
3 Answers
- 1 decade agoFavorite Answer
Don't purchase anything at this point. Spend your time and money researching the market to evaluate what the landscape looks like and how you will position your product versus competition. Product details, pricing, promotion strategy... Making and shipping your product won't be your biggest challenge, selling it will.
Second, once you evaluate the market and figure out a niche where you can position your product, identify the price you can sell for, understand the sales fees and discounts (your price to customer might be $2.50, but your sale price to the distributor is only $1.50) to get to your net revenue. This will give you a number to compare to production costs to start measuring the potential profitability before all of your operational costs are factored in.
Finally, when you are looking at the production piece of the puzzle, outsource, outsource, outsource! You don't need to buy a building, trucks, bottling equipment, etc. All of this should be outsourced to companies that already own the equipment and will produce your product for a fee. This substantially reduces your up-front capital needed to enter the business, and it therefore drops the risk level of the entire venture. If you can't sell any of your product, at least your investment was limited to the 1,000 cans (or whatever the minimum order quantity was) of initial product, opposed to 10's of thousands of dollars in buildings, equipment, trucks, etc.
- 1 decade ago
Well first off you need to get a building and get either an assembly line of people or machines to mix your beverages. Also you should make sure to use your money wisely and order only the correct amount of ingredients so you don't over pay and not get enough money (just a warning). And also as a human there is this problem in the mind of sticking to something. A lot of times with businesses people will stay with it even if they realize something bad might happen, ALWAYS THINK LOGICALLY!
I look forward to purchasing a new beverage!
- Anonymous5 years ago
You should have experience running a successful business, as well as a lot of experience in chemistry, as you will need to make these drinks. Now, you will need an active imagination, because if you think that you are going into the "energy drink business" on a whim, just because they are popular, you will need to use this imagination to think of different things when people realize that energy drinks are just sugar, and they are nasty and bad for you. Now, you will need to know how to do your payroll, hire/fire people and you will need to get to a bank and borrow about one million dollars, because it will be very expensive to test your products. Then you have to market them and find a way to ship them out to stores. Are you insane?
