Sharon Goodyer Founder, The Cake Bake Company
You first have to check you are making something the customer wants. There are a lot of products we want to make and sell but to identify what people will actually want to buy is very difficult. There is no point in making something for yourself. To grow your business you need a serious business plan and a lot more money than you initially think you will need. I have my bank manager's mobile phone number and have a really good financial arrangement. You also have to understand that mistakes cost money so work hard to avoid them. And you need to make sure you have a great team around you and treat them well. Pay them well and promote from within. Nobody in my company had worked in the food industry before so we have all learnt together and looked out for each other. That's how you make it work. Simon Dunn MD, Product Chain Before individuals go any further in scaling up a business, I ask them where they live and tell them to get in their car and sell their product to five local shops. The next day go back to them and find out how well their products have done and sell them some more. A new company should build up a rapport with at least 20 shops before even thinking about taking its business to the next level. This way you can go to the bank, say you're cash-positive and that you have been selling products already, and get a business loan. Even then I recommend companies don't approach the big retailers yet. Go to farm shops and delis where you can still be in control of your product. I recommend to companies that they try and grow with a stage-managed approach rather than selling the family silver and trying to get big in one go.
You first have to check you are making something the customer wants. There are a lot of products we want to make and sell but to identify what people will actually want to buy is very difficult. There is no point in making something for yourself. To grow your business you need a serious business plan and a lot more money than you initially think you will need. I have my bank manager's mobile phone number and have a really good financial arrangement. You also have to understand that mistakes cost money so work hard to avoid them. And you need to make sure you have a great team around you and treat them well. Pay them well and promote from within. Nobody in my company had worked in the food industry before so we have all learnt together and looked out for each other. That's how you make it work. Simon Dunn MD, Product Chain Before individuals go any further in scaling up a business, I ask them where they live and tell them to get in their car and sell their product to five local shops. The next day go back to them and find out how well their products have done and sell them some more. A new company should build up a rapport with at least 20 shops before even thinking about taking its business to the next level. This way you can go to the bank, say you're cash-positive and that you have been selling products already, and get a business loan. Even then I recommend companies don't approach the big retailers yet. Go to farm shops and delis where you can still be in control of your product. I recommend to companies that they try and grow with a stage-managed approach rather than selling the family silver and trying to get big in one go.
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