Organic food has gained popularity as people become more concerned about lifestyle diseases. Health experts say that eating organic food can help you remain cancer-free, minimize the risk of allergic diseases, and maintain healthy weight.
Statistics reveal that organic food retail sales rose from $3.6 billion to $18.9 billion between 1997 and 2007. The numbers have maintained an upward trend over the years. Unfortunately, many foodpreneurs still experience challenges in growing their organic food businesses due to various reasons. If you’re one of them, read on to find out how you can grow a thriving organic food business.
1. Create a Good Business Plan
Like any other business, growing an organic food business starts with a plan. But first, you need to acquire a permit from the Health Department and ensure you are certified by the Organic Trade Association as an organic food handler.
Write down how you intend to implement growth strategies such as marketing your products. Will you need partners or will you operate as a sole proprietorship? Growing a business requires strategic alliances with people who can help you reach large audiences without spending a lot of money or time. Think along those lines before entering into any partnership.
2. Get Funding
Organic food products are more expensive than non-organic products. This means you may need a higher initial investment than you would if you were starting an ordinary food business. If you don’t have the startup capital, you can apply for a small business loan, a business grant, or borrow money from your family.
You can also try alternative financing like crowdfunding or title loans. If you have equity in your car, you can apply for car title loans online. Short-term loans provide quick cash when you need it, have shorter repayment periods, and are ideal for small businesses that can’t apply for a line of credit from a bank.
3. Focus on the Products
There are many players in the organic food business, so you must have a unique selling point. The quality of products you have can set you apart in a crowded marketplace. Low-quality food products will not sell.
If you don’t grow the food yourself, identify a few genuine suppliers and stick with them. Ask for customer feedback to gauge whether you’re offering the right products or not. Study and understand customer behavior then use that data to enhance your products. The quality of your products will define your brand.
4. Market Your Products
Extensive marketing is mandatory for any business that seeks to grow. You’ll need to be a little aggressive to get your name in front of customers. Here are some ways you can promote your organic food business.
- Encourage your customers to recommend your products through word-of-mouth marketing.
- Attend organic food trade shows and give out flyers for your organic food store.
- Use print media to publicize your business. Distribute posters throughout the city or place a classified ad in the newspapers.
- Give coupons and discounts and talk to people about the benefits of consuming organic food.
- Create social media pages for your business and join forums or groups that discuss organic foods.
- Choose a strategic business location with a lot of human traffic. Use colorful banners and display your organic food products at the storefront.