When I started working in the organic business, it was a small niche market. Thanks to living in Santa Cruz, California, an original organic hot spot, not many knew the farmers like I did.
Last year was unprecedented with far-reaching consequences for humans and our health, the environment, and the economy. Those concerns continue today—our lives remade by the global pandemic and unprecedented climate behavior.
Organic food sales and home delivery businesses are thriving as a result.
According to the Organic Trade Association’s Industry Survey, organic food sales surpassed $56 billion in 2020. It grew 12.8% percent—the highest rates recorded in organic in well over a decade.
The global online food delivery market is expected to grow from $115.07 billion in 2020 to $126.91 billion in 2021.
Since both organic food and delivery services are booming right now – it may just be a good time to activate your inner entrepreneur and start an organic food delivery service.
Find your Unique Selling Proposition
Consider how to make your business different from other organic food delivery businesses. What’s your edge? Organic food isn’t enough of a USP when today you need something unique to help you succeed.
This could include focusing on specific types of food that are readily available and desired in your target area. Next, define your customer, find out what they want and develop a business plan.
For instance, if you’re considering supplying restaurants, understand how you can make them stand out? With local pasture-raised eggs, specialty fruits and veggies, artisan breads? Partner with them on their signature dishes and supply local in-season food. This guide at https://sitepoint.com explains more about finding a USP.
Build a strong supply chain through partnerships
What areas can you outsource? Partner with others to work on local food production, warehousing, delivery, and order fulfillment strategies. Be nimble; you’ll have to adjust to dynamic markets and the fluctuations of availability. Supply logistics must be in place to avoid food waste and what we call “shrink” in the food business.
If your plan is to supply organic groceries, you’ll likely need to build a strong supply chain of organic farms. Focus on local farms and build relationships with them so that inventory goes in and out quickly. Freshness is everything!
Cut costs creatively
Food will spoil, and there will be losses. Try to find creative ways of cutting everyday costs to maximize profits to make up for this.
There are lots of ways in which you can save money. Instead of renting out an office, you may be able to save money by running your business from home – you can use virtual address services like https://physicaladdress.com/ to conceal this fact.
It’s also worth investing in technology to make online orders easier to place and process. You can’t do everything alone. You will need a team of specialty partners to put the pieces together and cut costs.
Know your audience
Understand and supply the unique products your customers want.
Do the market research and focus on products that are in demand. When it comes to groceries, food like bananas, tomatoes, romaine, grapes, mushrooms, and potatoes are high in demand. Restaurants are unique. One may want organic vegan products and another local organic butter and pasture-raised pork. Ask the chef what’s on the menu, or better yet, suggest something that’s deliciously in season to add variety and flavor.
When I began my business in 1996, it was with ingenuity, a passion for organic food, and the love of serving people. My motto was if everybody I did business with succeeded, then I would too.
Find your passion, be smart about it and get your groove on. It’s never too late.
Hi there! Thanks for reading. I included links within this post. I make a little money for some of these referrals, and the FTC wants you to know that. If you know me personally or have been a longtime reader, I hope you also know that I only recommend companies that I believe in. Live well, friend.
2 thoughts on “It’s Never Too Late to Start an Organic Food Business”
Thanks for encouragement. Today (8/29/21) there is a scary video on FB about big ag farmers being forced to plow under their crops. Looks like it could be a scam, for instance being forced to use a home lawnmower to destroy plantings. I figure organic farmers are not tied into the government and will not get such a letter, if it is true.