The document provides details about a workshop held on March 24, 2011, focusing on starting food-related businesses, with presentations from various experts. Key topics discussed include the importance of establishing a niche, understanding pricing strategies, and the significance of branding and marketing in a competitive $1 trillion U.S. food industry. Additional resources and upcoming events related to business development in the food sector are also highlighted.

1. Get Your Business Cookin’WorkshopMarch 24th, 2011

2. Tonight’s AgendaIntroductions

3. Ennovation Center Update

4. 3 Guest Speakers Tonight

5. Valerie Jennings – Hippie Chow

6. Susan Henson – Missouri Small Business & Development Center

7. Sara Freetly Grubb – Candid MarketingThis is a very open, informal discussion so feel free to ask questions during the presentations.

8. Update on the Ennovation CenterConstruction mostly completed.

9. Currently 11 kitchen incubator clients fully approved and operating.

10. Over 50 clients who have made application and are in various stages of licensing and permitting.

11. Independence School District has completed their move into the building.

12. “Novella’s Bistro” will be open in June.Where to Start?“Everyone tells me my food is so good that it should be sold”5 Must Do’s To Get Your Business GoingEstablish a niche

13. Find taste testers

14. Figure out your price

15. Learn to advertise on the cheap

16. Write a business planGet Your Business Cookin’March 24, 2011

17. My BackgroundIndustry ProfilePricingTop Ten MistakesAgenda

18. Industry Profile

19. KNOW YOUR COGS!!!Include raw materials, packaging, production costs and labor.Gross Profit = Selling Price – COGSGross Margin = Gross Profit / Selling PriceWholesale gross margin should be 40-60%Pricing - Wholesale

20. If COGS = $2.00 and gross margin is 50%, then selling price should be $4.00$4.00 selling price - $2.00 COGS = $2.00 gross profit$2.00 gross profit / $4.00 selling price = 50% gross marginRule of thumb: double COGS to determine wholesale price Pricing – Wholesale (cont.)

21. Retailer margins will varyMay range 25-60%; 30-40% on averageIf wholesale price is $4.00 and retailer margin is 35%, retail price will be $6.15$6.15 selling price - $4.00 COGS = $2.15 gross profit$2.15 gross profit / $6.15 selling price = 35% gross marginPricing - Retail

22. Not knowing what it will all cost.Not understanding the competition.Making packaging mistakes.Not understanding pricing.Not managing cash flow.Top Ten Mistakes

23. Credit pitfalls.Going for fast vs. deep sales growth.Not understanding sales channels.Fear of mistakes.Not asking for help.Top Ten Mistakes (cont.)

24. NASFT website at www.specialtyfood.com.“The Basics: The Business of Specialty Food”Additional Resources

25. Valerie JenningsHippie Chow Natural FoodsPhone: 913.254.3580 valerie@hippiechowgranola.com www.hippiechowgranola.com

26. Branding & Marketing:Ingredients for SuccessSara Freetly-GrubbMarch 24, 2011

27. Eat Your Heart Out!U.S. food industry is $1 trillion market per year!Nearly 10% of Gross Domestic ProductThat is a good and bad thing for youGood:ConsumableEssential — not luxury itemsBad:Highly competitiveDifficult to break-through Convince consumers they need YOUR product over another

28. So What’s the Right Recipe?!To successfully bring your product to market, you’ll need:A dash of researchA cup of brandingA pinch of packagingA dollop of marketing

29. A Dash of ResearchIdentify your audienceWho will buy your product?Why?When?Where?How?Shape your brand and marketing around this audienceReach out specifically to your ideal customer

30. A Dash of ResearchKnow your competitorsWhat is everyone else doing?Is it working?How are they talking about their product?How is it packaged?What is the price?How is yours different?Why buy yours instead of theirs?

31. A Cup of Branding (the special sauce)What is a brand and how do I get one?!Branding is “sexy” – buzzword in the industryA brand is more than just a logo…it starts with a position or promise…and although it is the visual, outward expression of a brand — a logo is not a brandA brand captures your product’s personalityIs something that must constantly evolveRequires commitment to consistency

32. A Cup of Branding (the special sauce)A successful brand must:Define your productBe meaningfulResonate with the target audienceConvince consumers to buyDifferentiate you from competitionEasily translate into:PackagingPoint-of-Sale DisplaysWeb siteMarketingAdvertisingEtc.

33. A Cup of Branding (the special sauce)Identify your productValues/Benefits/QualitiesGo beyond the obviousUnique selling propositionDevelop a brand strategy Incorporate all 5 sensesLookFeel Taste smellCreate a promise to customers – Brand And deliver on that promise EVERY time!

34. A Cup of Branding (the special sauce)Be patient. Brands don’t gain credibility and recognition over nightBrands are living, breathing things – let it evolveProtect it, no one else willCommunicate it to anyone who will listenShout it from the rooftops!Be your own brand championOwn itGet buy-in from staff and customers Think about it everyday

35. A Pinch of PackagingThere are a lot of products on those shelves!Make the decision easyPackaging should be:Visually appealingColorfulAn extension of your brandConvenient Cost-effective

36. A Dollop of MarketingYour secret ingredient!Know your budgetDevelop a realistic marketing strategyDefine your objectivesShort- and long-termCreate a plan and work the planKeep it fluid!Tweak the recipe if you need toSpend the money!It’s worth the investment

37. A Dollop of MarketingIncorporate multiple mediumsAdvertisingExpensive but effectiveBrand awareness and visibilityPrint (Newspaper/Magazine)Broadcast (TV/Radio)Public relations“Free publicity”News releasesKnow the right contactsGet your story straightKeep it short and sweetFind your angle – and work it!

38. A Dollop of MarketingUse technologyCost effectiveBuild a great web site Spend the money on CMS – it will be worth itExtension of your brand – bring it to life online!Simple, easy to navigateMake it interactive Use social mediaBut use it wisely!Communicate with your customersEmail blastsNewsletters

39. A Dollop of Marketing & PromotionHow do you do it?Go it aloneYou know food, but do you know marketing?You have a CPA and an Attorney don’t youTime consumingBudget constraintsCompeting prioritiesORHire the RIGHT professionalsCost vs. valueAn outside perspective Leverage relationships and contacts

40. Thank You!Questions?

41. Sara Freetly-Grubb229 SE Douglas| Suite 120| Lee’s Summit, MOPhone: 816.554.3608 | Fax:816.554.3629 sara@justbecandid.com | www.justbecandid.com

42. Best Practices:Marketing for small businessSusan HensonBusiness Development SpecialistMissouri SBTDCKansas City, MOhensons@missouri.edu

43. Small Business & Technology Development CentersSBTDC programs help businesses start, grow and succeed by providing unbiased, research-based expertise through one-on-one consulting and targeted training.32

44. Overview: Marketing for Small BusinessExplore and DiscoverMarketing formulaCreate the programPut it into actionMarketing tactics33

45. Explore and Discover34