You might not know what the first step is towards leading a successful business: Is it market research? What documentation do you need in order to become a legitimate business?
It can be a difficult time for a new business owner, especially if you are inexperienced in the start-up world. Breaking into a new market can take time, but if you persevere, you’ll find that the hard work and effort are worth it.
Related: How To Fund Your Small Business
If you would like to start a beverage company there are some simple tips and tricks that you can follow to become a success:
Draw up a business plan
The very first step in starting a business is to draw up a business plan that outlines every part of your business. This includes research into the demand for your product as well as how you plan on repaying any loans you might need to take out to fund your business.
The most important part of your business plan is to carefully and clearly describe what your business does and who your target market is. This will clarify what you need to do, when you need to do it and how you need to do it.
What niche are you interested in?
Now, you might be thinking that a beverage company can be broad, but in today’s world consumers want brands with a clear and concise message. You should choose the niche in which you would like to base your business, whether it be cold drinks, fruit juice or even coffee. Coffee is a booming industry which continues to be popular, so it’s a niche to consider as you plan your business.
In order to choose a niche, you will need to do research into which drinks are trending the most and what people are interested in buying. Doing market research is the best way to do this, as this will tell you what the trends are in the beverage industry.
For example, you might find that more people are purchasing cold brew coffee, and you can use this to build your business and provide local consumers with a unique coffee drink to meet the market needs.
Create a budget
One of the most important steps in starting a beverage business is to create a strict budget to work with. This will allow you to choose the right premises, the right products and equipment and the most affordable marketing strategy for your needs.
You will need to understand your budget completely before you apply for any business loans, as this will help you to apply for the loan. Your budget should include every possible business expense, including:
• The cost of rent for your premises
• The cost of all equipment
• The maintenance of this equipment
• The marketing that you will be putting into place for your product.
It might sound like a very detailed list, but this is to show your lender exactly how the loan will be spent on your business.
Get your documents in order
Make sure your business is legally compliant. It’s one of the most important aspects of owning and running your own company, so you’ll need to be sure that you arrange the right documents before you apply for any financial or property leases.
The documents that you will need to start a beverage company in South Africa include:
• A copy of your identification document, and those of any shareholders
• Proof of your personal and business address
• Completed registration form from the CIPC
• Bank statements that are not older than three months.
These documents are needed to ensure that the lender has all the latest information before approving your business loan. It’s imperative to be truthful and accurate on these documents as any discrepancies could be detrimental to your business immediately or in the long term.
Get to know your audience
One of the most important steps in opening your own business, whatever the industry, is to identify and understand your audience. Once you have identified who your target market is, you can interact with them on social media by sending out surveys to gather more information about their spending trends.
Once you know and understand your audience, you will better be able to market your products and services and you can reach them at the right touchpoints in their customer journey.
Rather than simply selling your product, angle your efforts towards the information you gather about your audience to foster connection with your brand. Modern consumers want to interact with your brand rather than simply be sold to.