Guide To Food And Beverage Manufacturing In Ontario 2015

Formal TrainingYou can go to school to study business and thefood industry. To find a list of institutions thatoffer various courses go try/food proc guide html/institutions.htm)To find a university or community college near you,go to: Ontario’s Ministry of Training, Colleges andUniversities lege-or-university-ontarioJob ShadowingOne of the best ways to learn about the foodprocessing industry is to work in it. Considervolunteering, job shadowing, or working as anintern. This will give you valuable experienceand connections. To find a position, get in touchwith an industry association or a career andplacement centre.Business IncubatorsA business incubator is an organization that offersa wide range of services and resources to helpgrow your new business. These include physicallocations, mentoring assistance, managementassistance, business counseling and advisoryservices, technical information, financial advice,training, networks, and more.Some incubators are general in nature andwill accept new clients from a variety of sectors,while others focus on specific industries ortechnologies. The Toronto Food Business Incubator(http://www.foodstarter.ca/) is a non-profitorganization that assists entrepreneurs inestablishing and growing food processingcompanies. Find more resources on businessincubators in Appendix A.Resources for Young EntrepreneursCanada Youth Business Foundation(http://www.cybf.ca/) provides mentoring,coaching, peer networking, financing andother resources for people ages 18–34 whoare starting up a new business.Resources for Aboriginal BusinessesAboriginal Affairs and Northern DevelopmentCanada 75202816581) helps Aboriginalentrepreneurs and organizations achieve theirbusiness goals.Think you are ready to run a business? Now itis time to learn more about why you need abusiness plan.Section 1: Starting Your Business with a Plan and Support3

Why You Need a Business PlanWriting your business plan will help you see if your idea could work. It will spell out thesteps you need to take to grow a successful business and identify the resources needede.g., equipment, other partners, business space, and even employees.Others Expect You to Have a PlanPlanning Takes Research—Lots of ItIf you need money to help get your business going,investors, the bank, and any government fundingprograms will require a plan.Writing your business plan will take a lot ofresearch. The more research you do, the better.Research can show you the hurdles you need toovercome, identify unexpected costs, and help youavoid spending time and money on a project withlittle or no chance of success. Research can helpyou “fail small and fail early” or not fail at all.Key Elements of Your Business PlanBusiness plans come in many different forms and lengths, but they all contain the samecore information. You can find many business plan templates on line.The Canada Business Network (http://www.canadabusiness.ca/eng/page/3426/) containsdetailed information on writing a business planas well as sample templates. See also Appendix Afor links to business planning software availablefor purchase.is detailed elsewhere in your plan, so keep it brief.The Executive Summary should include:Your business plan should include:Executive SummaryAn executive summary of your business plan can beone to two pages in length. Investors especially willlook at this section to see if they are interested inlearning more about your business. Everything hereSection 1: Starting Your Business with a Plan and Support4 A general description of your product, the marketin which you are entering, and what makes yourproduct different from your competition Short and long term goals (start up, growthpotential, new markets, and expected income) Ownership structure (sole proprietorship,partnership, corporation, and themanagement team) Financial highlights and other financialrequirements

Business DescriptionMarketing StrategyInclude a general description about your business,such as:Provide details about your: History Vision and/or mission Promotion strategy (see Section 5:The Marketing Plan) Goals and objectives Placement strategy (see Section 5.1: PlacingYour Product) Ownership structure and the expertise theybring to the business Pricing strategy (see Section 5.2: PricingYour Product)See also Section 2.1: Setting up your Business.Inventory OverviewDemonstrate the potential success of your businessby discussing the size and growth of your industry,and the key markets within it. Be sure to include: A realistic analysis of your market share Major players in your industry Industry and economic trends affecting yourindustry Certifications, insurance, and industry orgovernment regulations required Overall growth potential of your industrySee also Section 2: Stages of Business Growth forFood and Beverage CompaniesProduct(s) DescriptionGo into details about your product(s) including: Features and benefits Competitive advantages How and where your products willbe producedOperations PlanProvide: A profile of your management team(see Section 3: Financing Your Food andBeverage Business) A human resources plan (see Section 7:Human Resources) Your business location and facility, productionplan, and an overview of day-to-day operations(see Section 4.1: Manufacturing Your Product)Financial PlanSome believe this is the most important part ofa plan. You will need to show at least three years’worth of projected financial statements, includingincome statements, and monthly and annual cashflow statements. Be sure to document all of theassumptions you used in forecasting your revenuesand expenses. See Section 3: Financing Your Food andBeverage Business.Now that you know some of the key elementsrequired in a business plan, it is time to startyour research.See also Section 4: Developing YourProduct Prototype.Section 1: Starting Your Business with a Plan and Support5

Researching Information for Your Business PlanInvest the time required to research the information needed for your business plan.This is a key step and critical to your success. One great place to start your researchis by looking at other food and beverage manufacturing businesses to see what theymake, how they make it, their target market, and more.You can find a list of trade associations on theMinistry of Agriculture, Food and Rural Affair’swebsite /food proc guide html/associations.htm).Search Your Library Profiles and studies of other food andbeverage industries Annual reports of other food and beverageindustriesFor details on Canada’s food and beverageprocessing industry in terms of value of productionread Significance of the Food and BeverageProcessing Industry in Canada tor/processedfood-and-beverages/?id 1361290991391). Articles and newspaper clippings about theindustry or participants Company directories Company documents Trade magazines (see Appendix A) Industry association’s newslettersCheck also this site on Statistics and MarketInformation by Product de/statistics-and-marketinformation/?id 1361289956531).Learn about Ontario’s Food and Beverage industryon the Ministry of Agriculture, Food and RuralAffair’s website nt/learn-about-fb-ind.html).Online Resources Canadian Manufacturing: Food in Canadahttp://www.canadianmanufacturing.com/food Statistics Canada information Reference books on starting a businessIndustry reports that have already been done canhelp you identify specific market information e.g.,food consumption habits, consumer price indexes,and income groups. This type of information willhelp you determine potential target markets orproduct demand. Be sure to also search theinternet for relevant YouTube videos and TedTalks. Canadian Manufacturing: Canadian agingSection 1: Starting Your Business with a Plan and Support6

Food Product DatabasesPaid Food Product Databases:Look for research, consumer surveys, businesstrends and developing technologies fromall over the world on a wide variety of foodproduct databases.Global New Products /You can access some for free at a library or on theInternet. Others are available through data servicesfor a fee.Make a list of key words that describe the industry,the business and the topics you are researching.Examples include: Company names Industries Products Topics Individuals LocationsEuromonitor et Retail http://www1.planetretail.net/Learn from ExampleIt helps to know how other entrepreneurs startedtheir businesses. Read this article to learn abouttheir successes and failures.“Start Your Own” http://v1.theglobeandmail.com/startyourown/Once you have completed your research, you shouldtalk to an expert who can help you finish your planand provide advice and support for your business.Finding SupportNow that you have done your research you know about the demand for your product,how to make it unique, and what it will take to get it produced. You are ready to speakto experts or others working in the industry for more advice and guidance.This support can come from a wide varietyof sources.Industry AssociationsThese are made up of businesses that operatein a specific industry. You can contact associationsfor more information about your industry, orbecome a member to get regular updates ontopics that will affect your business, and keyfactors for success.You will find a list of them on the Ministry ofAgriculture, Food and Rural Affair’s ndustry/food proc guide html/associations.htm).Advisory Board/Food Industry MentorsMany successful businesses have advisory boards.These are made up of experienced people whogive the business owners advice and guidance.You might want to create your own advisoryboard or find a mentor to advise you.Section 1: Starting Your Business with a Plan and Support7

Look for someone with food industry experiencewho is willing to share what they know with you.Potential mentors, or board members, could be: Retired/previous owners or managers ofsimilar businesses Non-competing business owners Potential customers Key suppliersPeer NetworksLook for local or internet-based businessprofessional and entrepreneurial networksthat will share their support and information.These networks do not need to be food related.Peer networks are great for learning best practices,making industry connections, developing potentialcustomers, and promoting your business. Theseare some examples of peer networks: Lawyers Chambers of Commerce Accountants Food industry associations Financial planners Local food groups Bankers Investors Social media networks (e.g., Facebook,Twitter, LinkedIn) Technical experts Women in business networksSuccessful business people in non-food relatedsectors can also provide valuable advice on how tostart up and manage your new business. Tips andexperience from one type of business often workjust as well for another.The Ontario Network of Entrepreneurs(http://www.onebusiness.ca/) is a one-stopshop for anyone involved in planning, launchingor building a company. The network’s websitewill connect entrepreneurs across the provinceto advisors in their communities, who can helpwith everything from writing a business planto developing a strategy to export products. Young entrepreneur networksOn-Farm Value-Added Productsor ServicesFind new value, profit and success from what youalready produce on your farm to create a newproduct or service. Before doing this however,make sure you check your municipality forzoning regulation by-laws.Learn from successful farmers who did it andcomplete training that will guide you through theprocess. The key is to create a plan that suits yourneeds and outlines your next steps. Avoid pitfalls,plan ahead and learn from others. The OntarioMinistry of Agriculture, Food and Rural Affairsoffer a host of resources to get you /diversifyfarmbus/valueadded.htm?utmsource shortlinks&utm medium web&utmcampaign e996).Section 1: Starting Your Business with a Plan and Support8

CHECKLIST I am ready to be an entrepreneur. I can describe my business concept(what my idea is) in one minute. I know what makes my product better ordifferent. I have set up a research binder to file myinformation. I have researched other food and beveragemanufacturers to see how they succeededor failed. I can describe the customer that wouldbuy my product. I have contacted industry associations tofind experts who can advise me. I am learning about the demand for myproduct. I have a business plan template and havemade progress in filling it in. I can list my competition and have begungathering information on them.Section 1: Starting Your Business with a Plan and Support9

SECTION 2:Stages of Business GrowthStarting a food and beverage company and becoming successful can take up to 15 yearsand a huge investment that includes money, time and commitment. It also requiresa great deal of patients and foresight as your business will go through many differentstages as it grows.At each stage, you may want to ask yourself if this is the size of business that satisfies youin the long term. It is not too early to have an exit or succession plan as you will not bearound forever to run your business. You may be happy with a part-time food-sellingenterprise that can be sold for a substantial profit, or you may want your business to besustainable and return a significant profit which you can pass down to your children. Youshould try to identify the desired size of business as well as your exit plan when you writeyour strategic plan (see Section 2.1: Setting up your Business).Each stage of building a food business has issues and “growing pains.” Businesses that thrivewill evolve through each stage. Review these stages. It helps to know what to expect.In this section you will learn: The microbusiness stage The cottage industry stage The emerging business stage The small to mid-sized manufacturing stage The large or multinational enterprise stage Idea generation

The Microbusiness Stage (Sales under 25,000 per year)This is the start-up stage where you first learn about making a commercial product.Preparing your productProduct costing and pricingYou made a prototype at home, now at themicrobusiness stage you will need to use anapproved and inspected site for food preparation.Many entrepreneurs start up in an inspectedchurch, community centre, or municipal foodincubator kitchen.There is a difference between product cost andproduct price. Product cost is the sum of all of thecosts you incur to manufacture your product. As anew start-up business you need to be prepared forany additional costs later on. You cannot changeyour price to the consumer once you have set aretail price point. See Section 4.1: ManufacturingYour Product to learn more about product costingmodels. Product price is your final selling price ofyour product. The pricing of your product will bebased on your product cost and what customers arewilling to pay (see Section 5.2: Pricing Your Product).Product salesProducts tend to be sold at se

Welcome to the 2015 edition of the Guide to Food and Beverage Manufacturing in Ontario. Congratulations on being part of Ontario's food processing sector. The largest in Canada, the sector employs over 100,000 people across the province.1 This guide is just one of many resources that the Ontario Ministry of Agriculture, Food and Rural