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Focus And Discipline Are Key To Food Business Success

Focus is hard to come by nowadays. The Internet age of video ads, click bait and email inboxes that never seems to be manageable offers an endless stream of distractions. Even in physical grocery stores, food consumers have so many choices in nearly every category, and now they have options about what foods they want to order online and delivered vs. picked up at the store vs. have someone enter their house to place the groceries in their fridge.

Food and beverage entrepreneurs trying to reach consumers have to consider that the general food consumer is overwhelmed by their choices and ultimately has very little time to interact with unfamiliar food and beverage brands. And, what is more, not every consumer is the food business’ target consumer, so the pool of potential customers for up and coming brands is usually quite a small subset of the larger population.

The tagline from the famous business book Discipline of Market Leaders is “Narrow Your Focus, Choose Your Customers, Dominate Your Market.” Focus is what gives food business owners clarity about their strategy and about the tactics needed to carry it out. When we work with food and beverage clients, we use tools like the business model canvas to provide focus and clarity to their business model and the strategic implications of choosing a particular business model path or going after a particular target customer.

If the strategy is to dominate a niche nationally (like our featured podcast interviewees from Quince and Apple), it doesn’t make sense to chase every single opportunity for sales, even if the promise of immediate cash flow seems tempting. Saying no to “shiny objects” is easier if you know what you are saying yes to. Quince and Apple said no to discount retailers because they knew that they should not compete on price or volume but rather on the quality of their premium offering to a premium-focused food consumer.

It takes discipline to get simple, concise and clear about the business model path for a food business. Like any discipline, work must be put in on a regular basis to stay focused and on track. Only then can food businesses dominate their market and reach their target customer.


And now, our roundup of the best food and beverage finance news, events and resources from around the web…

Food and Beverage Business Models

Business Model Insights

Raising Capital

Raising Capital

Grocery Store Shopping

CPG/National Brands

Grocery Store Produce Section

Market Trends

 Regenerative Agriculture

Farming and AgTech

Mergers and Acquisitions

Deals/M&A

Events

Industry Events

Categories: Insights Newsletter