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    10 Replies Latest reply on Apr 27, 2010 1:35 PM by Littletommy31

    Starting a frozen food company.

    Littletommy31 Wayfarer
      We are starting a frozen food company with award winning recipes. We have the packaging and recipes ready to go to co-packers. The challange now, is starting a viable business which we can attract investors. In starting this we were instructed to make a business plan. This has been fun writting down which direction we want the business to go and the more we do the more exciting it has become. this being said we don't no if the questions we are answering are even the correct answer. How do we find the answers to these questions? When we go to sell we need to have done the work. we are willing to we just need a little guidence.

      Describe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?

       

      Describe your most important company strengths and core competencies. What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?
        • Re: Starting a frozen food company.
          Littletommy31 Wayfarer
          Maybe i didn't ask the question right. Is there any suggestions on how do we can do research on markets, products and company's we are in competition with. Is there anyone our company can have gather this information? I'm new to business and i'm trying to put together a business plan.
          • Re: Starting a frozen food company.
            phanio Pioneer
            First things first. You don't know the answer and neither does anyone else. The idea behind planning is not to find the right answer but to research enough to ensure that you are not asking or following the wrong ones.

            There are two great resources for people in your situation - both are free and both are funded by the government. 1) SCORE - (score.org) - you can either find a local office or find a counselor online with experience in your industry. 2) Small Business Development Center (SBDC) - both can help you research and devleop your business plan as well as point you in the right direction for funding.

            Business Money Today
            http;//www.businessmoneytoday.com
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              • Re: Starting a frozen food company.
                Littletommy31 Wayfarer
                we are working with both of them. doing a business plan is the first step so i wanted to do research on the products we have. i have know idea on where to even start looking of information on the sales breakdown and financial numbers needed to prepare a solid business plan.
                Thank you for taking time to help out.
                  • Re: Starting a frozen food company.
                    phanio Pioneer
                    Here how to work with your financials:

                    First, know that whatever you come up with will never be realized - you will either over shoot or undershoot - the goal is to get a set of financials that you can manage your business for. i.e. you think you can grow sales quarter after quarter at 10% growth - if this is reasonable - meaning that others in your industry can and have done this - then, you can manage your business to achieve that - regardless if you hit that number or not - at least that is the number you are trying to target and it is acheivable.

                    To get your financials started, try these:

                    1) search for sample business plans on the web. Try to find one for your industry - if you find one, don't just copy it - but use their informaiton to get you started. It shoudl give you an idea of what types revenue and expenses to expect.

                    2) Search on yahoo finance or edgars.com - try to find public companies in your industry - that closingly match what you want to do or will offer. Then, try to predict (on your own) based on your market research - the size of your market and how far you think you can penetrate it, your top line sales. Then, after finding similar public companies - take their financial statements - common size them (this means taking each account as a percentage of their sales - i.e. they have quarterly sales of $200,000 and cost of goods sold of $100,000 - then their cost of goods sold percentage of revenue is 50%). You can do this for each line item. Then, use those percentages based on your own sales forcast. example, you predict monthly sales of $30,000 next month - your cost of slaes will be 50% or $15,000. You can do this for your marketing, selling, R&D, salary, payroll, general expenses and so on.

                    Once this is done, then go back and see if each account is manageable given the rest of your business plan - you can always make small adjustment to these numbers.

                    Business Money Today
                    www.BusinessMoneyToday.com
                • Re: Starting a frozen food company.
                  Tracker

                  Tom:

                   


                  Congratulations on your new business. It's great to hear you're having a good time with it. Many people get frustrated in the research and planning phases and either choose to shortcut them or give up all together.

                   


                  You are asking great questions. Can I suggest that you check out information on my site? I have separate pages for Research and for Planning. Plus, I recently began a new blog series on the steps necessary to starting a small business. I recommend you begin with the post, "Perform Market Research". Here's the link:

                   


                  http://thesologuide.com/1854/perform-market-research/

                   


                  You can either do the research on your own or hire a consulting company to help. Please let me know if you need help.

                   


                  All the Best,

                   


                  Doug Dolan

                   

                  The Solopreneur's Guide

                   

                  http://thesologuide.com/
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