Traps for young players

[Bumper]

A question for the sauce and powder producers.  We recently had a game changer of a Budget here in Australia.  Until June 2017, small businesses can write off on tax up to 20k in capital costs. While I have mused over the idea of a small hobby business, I hadn't really thought about it beyond that until now.  The market in my home town is untapped, the only way you can get sauces and powders beyond tobasco is ordering online or make your own. We have a bunch of deli's and markets here every weekend.  So my question is this if you are willing to share:
 
If you were starting up a new small business in the industry, what would you do differently from the first time round? 
 
 

 

[SmokenFire]

Mostly I'd tell you to go for it.  Avoid paralysis through over analysis.  Don't sweat the hows and whys of how you're going to deal with all the details - often people will put obstacles in their way when considering taking the leap.  Sweat the product and the process first and the rest will come in time.  And get 'legal' quickly - licensed, insured, open a separate bank account and do all the transactions through that for tracking, etc.
 
Making hot sauce doesn't have to be a 'quit your job, mortgage your house' kind of endeavor.  Keep some perspective; this is something you love, something you do well, something you can take some time to see if the surrounding area agrees.  If they do then its time to start thinking big.  If not you've still got the day job and can regroup/reformulate.    

 

[Bumper]

Mostly I'd tell you to go for it.  Avoid paralysis through over analysis.  Don't sweat the hows and whys of how you're going to deal with all the details - often people will put obstacles in their way when considering taking the leap.  Sweat the product and the process first and the rest will come in time.  And get 'legal' quickly - licensed, insured, open a separate bank account and do all the transactions through that for tracking, etc.
 
Making hot sauce doesn't have to be a 'quit your job, mortgage your house' kind of endeavor.  Keep some perspective; this is something you love, something you do well, something you can take some time to see if the surrounding area agrees.  If they do then its time to start thinking big.  If not you've still got the day job and can regroup/reformulate.

I like your philosophy a lot. I have worked desk jobs for nearly 20 years, and considering it as a side business that means I can get out of the office a bit more and perhaps generate a bit of extra revenue, meet and share things with people who love flavours as much as I do. but it isn't really about the $ more embracing the range of artisan skills that I fill my spare time with and learn as much as I can about. It just all the more appealing when the govt will pay for your start up! Thanks!

 

[Lucky Dog Hot Sauce]

Interesting question - I think if you look through the business forums you'll see a lot of answers to this in the form of people talking about mistakes they've made.

I am only three years in, so it's hard to say. I think if you ask me into years I have a much better answer.


Ok, just thought of one:

Business cards.

Back in the day I put out a stack of business cards. Dozens of customers per farmers market would take my card. Back then I thought that was how it was done.

For the last year I tell "normal" customers "the website is right on the bottle & the contact us goes right to my email."

I keep a few cards on-hand for store owners/potential wholesale accounts.

I looked at 2014 - 2x 5000 card orders, and I saw very little return. Business cards seem like kind of an anachronism at this point. I'll never give out 10,000 a year again.

 

[PepperDaddy]

Interesting question - I think if you look through the business forums you'll see a lot of answers to this in the form of people talking about mistakes they've made.

I am only three years in, so it's hard to say. I think if you ask me into years I have a much better answer.


Ok, just thought of one:

Business cards.

Back in the day I put out a stack of business cards. Dozens of customers per farmers market would take my card. Back then I thought that was how it was done.

For the last year I tell "normal" customers "the website is right on the bottle & the contact us goes right to my email."

I keep a few cards on-hand for store owners/potential wholesale accounts.

I looked at 2014 - 2x 5000 card orders, and I saw very little return. Business cards seem like kind of an anachronism at this point. I'll never give out 10,000 a year again.

 
I'm beginning to believe the business card thing is a waste of time as well.  I only gave out 1,000 cards over the last 8 months and most just vanished.  A store carrying my sauce wanted to put my cards next to the sauce because people were asking for them.  I brought in cards and a card holder. and the cards vanished almost immediately.  Don't know if I sold one bottle.  But the real kicker is the stinkin' kids at farmer's markets who want to grab a card.  Parents usually tell them they can have just one.  Why should a 5-year old have any?  Last month I had a rug rat take my last card.

 

[Bumper]

That is really interesting, cards were one of the first things I put in the marketing spreadsheet. It makes sense though if I reflect on my own behaviours with cards. I have and will continue to trawl through, there are so many great bits of advice in so many threads.