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Creativity Is Essential To Food Entrepreneurship

Food entrepreneurs, like most entrepreneurs, are fundamentally creative people. And most people get that it takes a creative person to conceive of an idea for a food product and business, refine a business model that works out of a blank canvas, develop branding to communicate their business’ value and actually make a defensibly unique product that solves a real or perceived consumer problem.

There are many aspects of being an entrepreneur that may not seem to earn the moniker “creative” yet fundamentally demand creativity to properly address. For example, we often work with people on optimizing their capital structure to reach minimum efficient scale (the minimum amount of annual sales needed to reach breakeven status on a cash basis) as fast as possible. To the outside observer, this can seem like a “boring” numbers exercise; however, this process of matching sources and uses of capital is actually quite a creative dance, involving matching the expectations of (usually) several different sources of capital with the realistic growth path of the business.

As Henry Schwartz outlines on our podcast, he and his team at MobCraft Beer raised money from a variety of sources to finance their brewery and taproom. For example, part of MobCraft’s business model is using credit card pre-authorizations to help choose the beers they brew each moth, allowing people to pledge their money towards the best beer. They strategically sold their distribution rights to raise capital, in addition to pursuing crowdfunding and traditional bank financing.

Figuring out the best way to finance food businesses is an undervalued creative exercise, but the myriad of challenges that confront entrepreneurs, from finding the right suppliers, co-packers, distributors, brokers or even the right target customer also demand creativity. We encourage established and aspiring food entrepreneurs to never take their creative hats off when solving a problem, no matter what that problem is.


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