Interested in small drink company business ideas? If YES, here is how to open a a beverage, alcoholic or soft drink business with no money and no experience. How much does it cost to start up?
How to Start a Drink Business – Production, Supply, Distribution and Marketing
Drinks have always been in high demand, and they will continue to be so, if not for anything but for the fact that people drink a lot; and they drink always! People will always drink, whether it is energy drink, alcohol, name it! The reason why people drink is not that far-fetched; for one thing, it brings them a huge satisfaction and instant refreshment.
By now, you will agree with me that the drink business is a very profitable one; however, as with most business ventures, you will not want to dive into the river without first testing the waters. There are several steps will you have to undertake, and you must get acquainted with them before you can start considering venturing into this business.
In this article, I am going to share with you several steps you must consider before starting a drink company. Of course there are obvious ones such as getting a good location, and determining who your target market is. However, I will share with you some key ones that you must not neglect.
Choose your Niche
It is very important you choose the niche you would want to focus on in the drink industry. The industry is a very wide one; hence you will need to narrow down your product offering to a particular niche so you can easily seize the market.
Your business idea is one thing that will be able to guide you in deciding the niche you should focus on. The following are several categories of drinks:
- Health drink
- Energy drinks
- Alcoholic drinks
- Juices and sodas
Having been able to decide which drink category your business idea falls into, you should now be in a better position to start investing your time into learning everything you can about that drink niche. Learning the business entails you make detailed enquiries about the business from various brands in the industry.
It will be very helpful if you get some sort of experience in the industry. This will ensure that you start your drink company on the right foot. You may want to make detailed enquiries about the business from entrepreneurs in the industry who do not consider you a direct competitor.
Do a Market Analysis
As mentioned earlier, the drink business is a very wide one; hence it is highly important you do a critical market research on the industry and the niche. A market research in the industry will enable you to really know who your target market is, who your competitors are, and how the market is locally and internationally.
Develop your Drink
Starting your own drink company would entail developing your own drink (your own product). Your product should be distinguishable from the others. At this point you should have been able to put your product formulation together, and perfected your idea, especially the taste. You do not want to make your product taste like some other product out there. Your product has to be unique and original.
To be able to perfect your product formulation or recipe, you may have to host a testing party where you will be able to get positive feedbacks from people.
Find Material Suppliers
You will need to find suppliers who will supply you raw materials for your drink company. Since you will be manufacturing your own drinks, it is very important you locate reliable suppliers that will supply you with quality raw materials which you will use in making your formula. Depending on the type of drink you will be offering your customers, you may need raw materials such as sweeteners, flavours, colouring, etc.
Get the Needed Equipment
You will have to purchase the needed equipment for your drink company. For you to know the equipment you will need in the operation of your drink company, you will have to carry out a thorough feasibility study so as to know the equipment you will require for your drink company, as well as the respective price of each piece.
You may need to procure your own bottling plant to be able to bottle your drinks. If you cannot afford to purchase all the pieces of equipment you will need, you may have to lease some.
You will not be able to run your drink company all by yourself. You must need the help of employees. You must do well to hire competent and qualified hands to help you run your company. It is also very important you think about how many employees you would need, and how much you will pay them. You will need the services of machine operators, accountant, truck drivers, etc. The size of your work force will depend on the size of your drink company.
Get your Packaging Right
One of the best and most effective ways of getting customers’ attention is through packaging; you do not want to get this one wrong. You should make sure you create a unique and interesting design for your bottles, one that truly represents the image of your brand.
Before you can develop marketing strategies for your drink company, you will have to carry out a detailed market research. This will enable you to know exactly how you intend to enforce your marketing strategies to promote your brand.
Obtain the Necessary Licenses and Permits
The drink (beverage) industry is one that is highly regulated in every country; so it is very important you get all the required licenses and permits such as health permits, etc. You will have to go and get your drink company registered first before getting the permits you will need; so I would suggest you come up with several exciting names for your drink company before heading to get your company registered.
Write a Business Plan
Of course I cannot leave this one out of the list! You cannot fully set up your drink company without having to write a business plan. A drink business plan is very important, especially if you will want to source for loan from either bank or investors.
You do not have to necessarily write it all by yourself; you could get the services of a professional to help you write a good business plan for drink business.
Your business plan must contain some key aspects of your business such as your business name and location, your products and services, target market and competitive advantage, etc.