Problems of a Food Startup!
Foods seems an interesting game. Highly profitable with margins up to 70% but there are many facts a FBO (food business operator) is unaware of-
1. Running/operation cost -
During initial stage a FBO only consider the cost of machinery and raw material but forgets about the inventory cost, market credits and losses due to other elements such as rodents, pests etc.
2) Initial funding/Setup cost:
A food business requires a very high setup cost. So the returns comes after a long time as compare to tech business where business returns are very fast as compare to setup cost.
3) Food regulation:
The food regulation varies from country to country or region to region, so it becomes very difficult for an FBO to maintain standards of each and every location.
4) Shelf Life of the product:
The shelf life of a product plays a very big role in market, if the product has low demand and smaller shelf life chances of product deterioration is very high and result on the pocket of FBO.
5) Man power:
Man power plays a very big role in food industry, a single person can run a food business and one need skilled labour to do a task which is very difficult for a business to manage initially.
So if you are planning to enter into food business make sure you consider all these point.
Congratulations! This post has been upvoted from the communal account, @minnowsupport, by piyush11 from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
If you would like to delegate to the Minnow Support Project you can do so by clicking on the following links: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP.
Be sure to leave at least 50SP undelegated on your account.