We’ve all heard the stats — nearly 50% of new businesses fail within the first five years.
But when you have a clear vision and effective strategies to build customer relationships, you can set your food manufacturing or distribution business up for long-term success.
Here are six traits of businesses that are built to stand the test of time:
1. Having a pulse on your industry. How well do you really know the environment in which you compete? Are you tracking shifts in consumer preferences, changes in food safety regulations or emerging distribution channels? Are you monitoring ingredient cost trends and supply chain disruptions before they impact your bottom line?
Information is at the core of every successful food business.
2. Embracing your leadership role. Strong leaders in food manufacturing know their people and understand the pressures of the industry. They can handle constructive criticism and take action to build stronger operations.
And they’re wise enough to recognize when they need to bring in specialists, like a food safety consultant, supply chain expert or financial advisor.
3. Hiring wisely. Your operation is only as strong as the people running it. From production line workers who maintain quality standards to sales teams who understand distributor relationships, each role requires specific skills and food industry knowledge. And that starts with the right recruiting process.
Your process should prioritize technical skills, cultural fit and commitment to food safety while developing and retaining talented people.
4. Prioritizing process improvements. Standard operating procedures for food safety, inventory management and quality control are foundational.
Modern food businesses rely on automated inventory tracking, integrated systems and real-time production monitoring to scale operations while maintaining consistent quality and meeting compliance requirements.
5. Making strategic marketing investments. Your products won’t sell themselves. Successful food businesses attend industry trade shows to build distributor relationships, invest in packaging that communicates their brand story and create content that demonstrates their expertise.
6. Overcoming fear of failure. The food industry comes with its share of risks, from regulatory hurdles to unpredictable commodity costs. Instead of stressing over the challenges, use them to work smarter. Anticipate supply chain disruptions and build contingency plans. Expect regulatory changes and budget for compliance. And when mistakes happen, learn from them and move forward.
Ready to build lasting success?
Magone & Company has been helping our clients achieve the most favorable tax situations for over 30 years. Contact us to learn how our food industry experts can help you navigate financial complexity, plan for growth and build resilient operations for the long haul.
This document is for informational purposes only and should not be considered tax or financial advice. Be sure to consult with a knowledgeable financial or legal advisor for guidance specific to your unique circumstances.