Starting a Food Business: What You Need to Know

Starting a food business looks glamorous from the outside. Shiny farmers’ markets, perfectly styled Instagram shots, and the thrill of seeing customers enjoy what you’ve created. But behind every plated masterpiece, there’s a side of the industry that’s rarely talked about.

Here are three things most new food entrepreneurs underestimate and what you can do about them.

1. A Co-Packer Is Not Your First Step

One of the most common mistakes new founders make is thinking they need a co-packer right away. The reality is, most co-packers require high minimums that early-stage businesses simply can’t meet. Even if you could, you’d lose the flexibility to pivot as you learn what customers really want.

The fix: Start small in a shared kitchen space. It gives you the ability to iterate, test recipes, and refine your product without being locked into large production runs. Once you’ve built steady demand and a repeatable process, then a co-packer makes sense.

2. Getting Shelf Space Is a Job in Itself

Whether you’re aiming for local grocery stores or big-box retailers, landing shelf space is harder than most people think. It’s not just about having a great product; it’s about building trust with buyers, proving demand, and fitting into their existing lineup.

• Expect to hear “no” more than “yes” at the start.

• You’ll need samples, a wholesale price list, and a clear pitch.

• And once you’re in, the work doesn’t stop. You have to keep that shelf space by selling through.

  
  

The fix: Start small. Build a track record with local shops, pop-ups, and markets before going after bigger accounts. Use that proof of demand as leverage when approaching larger retailers.

3. Admin Will Creep Into Every Corner of Your Day

You thought you’d spend your days in the kitchen mastering your product and doing R&D on new products. The truth? A surprising chunk of your week will vanish into emails, invoices, scheduling, compliance paperwork, and endless problem-solving.

• Booking kitchen time.

• Managing permits and inspections.

• Tracking inventory, deliveries, and staff schedules.

• Chasing payments.

  
  

It’s not glamorous, but it’s what keeps the doors open.

The fix: Build admin time into your schedule from day one. Use digital tools for invoicing, scheduling, and inventory. Or, better yet, find a shared kitchen or community of entrepreneurs where resources and systems are already in place so you can spend more time creating and less time buried in spreadsheets.

The Importance of Networking

Networking is crucial in the food industry. It’s not just about who you know; it’s about building relationships that can help your business grow. Attend local food events, join industry groups, and connect with fellow entrepreneurs. You never know when a casual conversation might lead to a valuable partnership or opportunity.

Marketing Strategies for Success

Once you have your product ready, it’s time to think about marketing. Social media is a powerful tool for food businesses. Share your journey, post mouth-watering photos, and engage with your audience. Consider running promotions or collaborating with local influencers to expand your reach.

Understanding Your Financials

Let’s talk money. Understanding your financials is key to running a successful food business. Keep track of your expenses, revenue, and profit margins. This will help you make informed decisions and avoid financial pitfalls. If numbers aren’t your thing, consider hiring an accountant or using financial software to simplify the process.

The Role of Customer Feedback

Customer feedback is invaluable. It can help you refine your product and understand what your audience truly wants. Don’t be afraid to ask for feedback, whether it’s through surveys, social media, or direct conversations. Use this information to improve and adapt your offerings.

Final Thoughts

Starting a food business is one of the most rewarding things you can do, but it’s also full of hidden challenges. If you know them in advance, you can plan for them, budget for them, and avoid the frustration that makes many entrepreneurs burn out early.

It’s not about avoiding these challenges; it’s about walking in prepared. And when you’re prepared, you give your creativity room to thrive.