The food industry is changing quickly, creating opportunities for new founders, private label startups, and specialized ingredient brands. However, starting a business in the food industry is not simple. Mistakes with products can literally cause people to get serious injuries or perhaps even die. Thus, if you want to launch a protein bar, a plant-based supplement, or a functional food product, you need more than a recipe or just an idea. You also need to think about rules, plans, and sourcing.
Below we'll help you with steps to follow to setup your business, we call it our "starting a food business checklist".
Start by deciding what kind of food business you want to build. Are you selling directly to consumers or supplying other businesses? Will you produce your product yourself, or work with a private label partner?
Common business models:
Clarify early whether your focus is B2C (e.g. online D2C store), B2B (e.g. foodservice), or both.
Before investing, validate that there’s actual demand for your product. Start with setting up a customer profile and make sure that you gather information about your target audience (e.g., vegans, athletes, allergy-conscious consumers).
Next, study your competitors, have a look at their packaging, price points, and certifications. Do they use certificates such as Halal or Kosher? Do they make certain claims like 'low sugar' or 'high in protein'?
These insights help you with positioning your brand and story to your customers. It also helps to narrow your search for the right supplier.
Once you've decided that your business has sufficient potential to survive, it is time to think about branding. Your brand should reflect the market you're targeting. Like we discussed before, if your customers value a Halal or Kosher certificate, make sure that your company follows these guidelines. Start exploring these options and their processes as soon as possible as it might take several weeks or even months to receive such certification.
Now it is time to develop:
Finding reliable producers is one of the most important steps.
As mentioned earlier, this step depends on how you want to set up your business. Will you be in charge of getting the raw materials and turning them into retail packages? If not, you might have to invest time in the packaging materials, raw materials and the processing part.
Use a platform like Nutrada to find verified suppliers, organic ingredient sources, or EU-compliant exporters. Always ask for documentation, including HACCP, BRC, IFS, and product specifications. We recommend that you check out the blog posts on our website. They provide helpful food industry insights for those who are new to the industry.
This step is essential, since non-compliance can shut down your launch. There are some must-haves, before you can start your business:
Depending on your budget an strategy you either start roducing small batches or partner with a certified co-manufacturer or private label partner for larger volumes.
If the latter is the case, confirm the minimum order quantity (MOQ) and delivery times quickly. If needed, you can also ask about the sample approval process and how batches are tracked and documented.
If you are able to find a co-packer who is willing to do a test-batch, you might want to do a test-launch first. This way you can test your product via samples or a limited pre-order campaign. In addition you can already start to dream big by pitching your product to stores or distributors.
Focus early sales efforts on building proof of concept, getting testimonials, and iterating quickly.
Once your product gains traction, think ahead. Sit down with your co-packer and perhaps logistics partners to optimize logistics and warehousing. Furthermore it might be worth to explore the details related to export certifications and product translations.
Platforms like Nutrada can help you source export-ready ingredients and connect with global buyers.
Find the right supplier for your food ingredients in under a minute with Nutrada.
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