I write this post to help people who wants to start a food business or wants to be a lifestyle cooking entrepreneur. Thanks to the internet, people can now seek new forms of financing online to buy a food truck or rent a food outlet.
Kickstarter and Indiegogo are the top 2 most famous pioneers in crowdfunding projects while Angelist is the pioneer in crowdfunding startups especially tech startups. If you search food businesses, you will find lots of projects that seek to get funded. The interesting question is why is there a lack of funding in these projects when there are billions of dollar pumped into technology enabled franchises like Munchery or Sprig ?
Any investors are mainly looking for 2 key things: Is there a market for this food business ? Are the founders capable of executing this food business?
Issue 1: Chicken or egg to prove product market fit.
Product market fit for food business means that their food menu is accepted by the market on a regular basis. People will come to this place to consume as regulars or to try. Now investors will only know the food recipe is accepted by the market when the food business has been operating a period of time to obtain recurring revenue. As such, these chefs or food entrepreneurs have to get their food menu tested. Now this becomes a chicken and egg problem for them. The current conventional approach is to borrow or fundraise , set up the food business and then test it in the market. Hence investors want proof that your recipe works before they invest while you need money to set up the business to prove your recipe works. At the moment, there are more than 100 food projects to date on these crowdfunding platforms but very few are completely funded on a monthly basis.
Now, FoodMnM solves this problem for you. You can take that recipe , cook for your friends and get social proof. If your recipe works, FoodMnM will help you to obtain the necessary requirements to rent a food truck to further evaluate your food recipe. Now with market validation, you have solve a product market fit problem.
Issue 2: Where to find know how management capabilities?
Apart from having a great recipe, you need a solid business acumen and skills to operate your food business especially one you want to expand.
Running one food truck at most makes you a lifestyle food business owner but what if you really want to achieve the great American dream, building a prosperous business and sharing that food around the world?
FoodMnM is currently in the process of providing this solution to food entrepreneurs. My co founder, Gurinder with "been there, done that" food and logistics experience can advice you on how to manage your own food business and grow it successfully using foodmnm platform.
If you have solve the above 2 issues, please kindly share your experience or stories here.
At the end of the day, you have to be a rhino to keep testing your recipes and learning to manage your food business to solve these 2 issues.
Keep going!
Andrew
I write this post to help people who wants to start a food business or wants to be a lifestyle cooking entrepreneur. Thanks to the internet, people can now seek new forms of financing online to buy a food truck or rent a food outlet.
Kickstarter and Indiegogo are the top 2 most famous pioneers in crowdfunding projects while Angelist is the pioneer in crowdfunding startups especially tech startups. If you search food businesses, you will find lots of projects that seek to get funded. The interesting question is why is there a lack of funding in these projects when there are billions of dollar pumped into technology enabled franchises like Munchery or Sprig ?
Any investors are mainly looking for 2 key things: Is there a market for this food business ? Are the founders capable of executing this food business?
Issue 1: Chicken or egg to prove product market fit.