Babies require special foods when they start eating, where the food has to be soft and very nutritious. Different brands of baby food make all kinds of food, package it and sell it directly or through baby stores. It is a business that leaves excellent profits because the parents pay anything to provide the best food for their babies. In this article, we will present how to start a baby food business.
It has caused the baby food industry to have grown more than 100% in recent years. It is estimated that by 2020, this market will generate more than the US 70,000 million dollars. If you are interested in setting up this type of business, then we will see all the necessary information.
How to Start a Baby Food Business?
This business is ideal for anyone who likes small children and who do not have any fear of cooking all kinds of baby foods. As you know, creating unique kitchen recipes requires creativity. Therefore, being fond of babies can be a great help for the business to connect with parents.
A baby food business can be set up as a part-time project. The food can be made through the evenings on work days and then sell their products on weekends.
The owner of this type of business spends the most time making food, packing and selling. When the owners are not working with baby food, they are taking care of other things, such as cleaning, paying bills, ordering supplies or marketing their products.
Choose the targeted market
The ideal customers for a baby food business are first-time parents, who want to provide the best for their child. It is very likely that these parents want to buy the best food, paying good money for premium food for babies. If parents are happy with their product, they are more than likely recommend their products to other parents.
A baby food business generates income selling all kinds of food. Companies can sell their products to customers in person or online. Or they can also take a tour and sell to other retail businesses.
Growth and potential
A business of this type can be dedicated only to local sales, or it can be big business at the country level, providing all kinds of food to the whole country. Everything will depend on the goals of the entrepreneur. Many supermarket companies such as Wal-Mart, Carrefour buy baby products for small entrepreneurs.
This business is of low investment so that it can be assembled with very little money. But for you to have an idea, the owners of this business need a commercial kitchen to prepare food and a space dedicated only to the sale of food. The costs of an industrial kitchen can be kept low, if one is rented or if it is purchased used.
Other of the expenses that are had in the business is the purchase of the ingredients and the supplies of packaging. Although, these can be purchased in small quantities so that the investment remains low. When the business grows, you can buy more amount of supply with the profits.
Packing baby food correctly is paramount to success. Therefore, the package where the food goes must be convenient so that parents can use it without problems. You also have to be economical, so your investment does not increase too much. And as a last, the packaging has to protect the different nutrients of the food.
If you choose an incorrect package, you can take your business to bankruptcy.
Make customers come back
A baby food business can stand out to other competitors in the market if it specializes in any particular type of food. For example, you can offer organic foods or that focus on the food of local origin.
All baby food businesses start without employees. The owners are just beginning to hire staff when their business grows.
The vast majority of baby foods are delivered in small packages; these packages are usually sold at 1 dollar. Foods that are organic and premium already have a higher price compared to non-organic foods.
To have a better idea, a family usually spends about 60 dollars a month on baby food.
Expenses and profits
The monthly expenses in a business of this type include the costs of renting the place, the industrial kitchen and the costs of the supplies.
Companies that sell baby food tend to be very profitable, usually generate $ 30,000 per month and companies that have a retail business can generate millions per year.