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… Read More
Financials
How Forward-thinking Food Businesses Plan their Cash Flow Strategy
Over the years, we’ve watched countless food industry clients struggle with the challenge of managing cash flow through seasonal fluctuations. Whether you’re ramping up production to meet spring demand or planning ahead for the summer season, understanding how to strategically manage your working capital can mean the difference between thriving and surviving. Know your numbers before the seasons shift Your working capital requirements surge during peak seasons as you build… Read More
When Overhead Costs Start Eating Your Margins
Refrigeration costs increase. Equipment breaks down more often. Spoilage ticks upward. Sound familiar? When overhead in your food manufacturing/distribution business starts creeping up, it doesn’t take long before you’re barely profitable. If you’re not regularly reviewing where your money goes, you might be spending more than you need to. The key is knowing where to look and what changes will actually make a difference. Where does your money go? Use… Read More
The Real Cost of Expansion: What to Know Before You Grow
The primary driver behind most expansion plans is the goal of increasing sales — with the hope that profits will follow. But before adding production lines, investing in cold storage or launching new products, you need to understand the profit implications. In some cases, an expansion plan boosts sales volume but not profits. You wind up investing more capital, managing more complexity across borders and working longer hours for minimal… Read More
Feeding Your Bottom Line with Smarter Cash Flow Strategies
Paying your company’s bills is just as critical as collecting your own receivables. Between fluctuating ingredient costs, perishable inventory, international shipping delays and payments spread across co-packers and freight forwarders, your cash can be tied up for months before your food products even reach customers. The good thing is, you have a surprising amount of control over how and when your company’s debts are paid. Start from the inside out… Read More