Food Business Entrepreneurial Training Academy

#1: Defining Your Concept

Dublin Library

April 3, 2017

Alameda County SBDC

Thank you to Our Sponsor

Local SBA Ecosystem

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.

Free & Low Cost

Seminars

Our Services

Free One-on-One

Consulting

Seminar ExamplesAccess to Capital Successful Business Plans

Starting a Business Meet the Lenders

Social Media Government Contracts

Marketing Law for Entrepreneurs

Worker Owned Businesses Buying a Business

Starting a Restaurant Crowdfunding and Alternatives

Starting a Food Business How to Pitch Your Company

Finding Your Core Customer Exporting

Website Development Home Based Businesses

ACSBDC Consultants

Ron Barrett

LoansFJ Cava

Generalist

David Bokash

Business Technology

Lee Lambert

Director

Deagon Williams

Food & Restaurants

Paula

Mattisonsierra

Retail

Mari Lovalvo

Human Resources

David Mitroff

Social Media

ACSBDC Consultants

Dorian Webb

Operations

Bob Komoto

Export/Import

Maria Mejia

Finance

Tom Camerato

Financial Modeling

Mary Passarella

Accounting

Tom Yeh

Strategy

Ed Duarte

Construction

Paul Bozzo

Equity Funding

How to register for services

www.acsbdc.org

Our Client Results

Presentation Download

www.acsbdc.org/handouts

4/2/2017© 2017 CULINARY BUSINESS STRATEGY

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

Deagon B Wi l l iams

Introduction

Welcome!

Class Format

Course Syllabus

Overview

Goals and Homework

Outcomes and Next Steps

Success

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?

Your Concept

Product

Target Market

Unique Selling Proposition

Triple Bottom Line

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.

Concept Statement Components

Market Need

Solution

Business Model

Value Proposition

Competition

Marketing

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

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.

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

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

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 givesits 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: www.businessdictionary.com

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.

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’?

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.

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).”

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

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

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

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

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

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)

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

Planet

Responsible waste management practices

– Composting

– Recycling

Select sustainable ingredients

– Shop locally

– Shop in season

– Organic products

Use green cleaning products, packaging

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

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?

Q&A/Wrap Up

Whacha got?

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)

Appendix

What Is a Bakery Concept Statement?

by Anne Hirsh, studio D

http://smallbusiness.chron.com/bakery-concept-statement-25085.html

Unique Sales Proposition

https://www.entrepreneur.com/encyclopedia/unique-selling-proposition-usp

Product Attributes vs. Product Benefits

http://superaff.com/archives/2006/10/31/product-attributes-vs-product-benefits-work-sheet/

How to Define Your Target Market

http://www.inc.com/guides/2010/06/defining-your-target-market.html

In Praise of Niche Marketing

http://www.inc.com/resources/marketing/articles/20040501/nichemktg.html

Products vs Attributes Worksheet

http://superaff.com/archives/2006/10/31/product-attributes-vs-product-benefits-work-sheet/

Appendix

How to Conduct Market Research

http://www.inc.com/magazine/20090901/guidebook-how-to-conduct-market-research.html

Why Demographics are Crucial to Your Business

http://www.inc.com/news/articles/2009/12/customer-demographics.html

Understanding How Customers Think

http://www.inc.com/articles/2004/06/zogby.html

How to Find New Customers and Increase Sales

http://www.inc.com/articles/2004/06/zogby.html

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.

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?