Smoothie Startup From Home

[chris.green]

Hi there everyone,
my wife and I are into raw vegan-ism and smoothies. We had this idea of starting a smoothie business. We want to make fresh smoothies from organic fruits and veggies, bottle them up and selling them to busy working people who would rather buy something nutritious and healthy then average snacks.
We would sell these smoothies by a pre order system. Something like this: a potential customer browses our website and pre-orders a smoothie for the next day or any other day then the current day to a specific time. When the right day comes we deliver the smoothie to the customer.
Can we start this business from home, or do we need to rent a commercial property? Most of the commercial properties have kitchens with ovens and cookers and stuff like this, but we do not need them as we only deal with fresh organic raw fruits and veggies. We do no cook, boil, fry steam or anything. We just blend fruits and veggies. I mean, are there any regulations regarding the raw vegan foods?
About the delivery...it can be done with our personal car as these smoothies do not require any refrigeration for short period of time? Or we need to get one of those special car with refrigeration?
Any advice is highly appreciated.
Regards,
Chris

 

[ethical PR]

Hi Chris

Sounds like you have lots of research to do.

Developing your business plan ( lots of free templates online and through banks) will help you identify whether you have a viable business model and whether a home operation would be viable .

Speak to environmental health about what you would need to do to operate from home.

Research your costs to see if you can do it in a way that makes it a profitable scale able business.

Do market research to establish there's enough of a market that you could deliver to.

If you decide to go ahead sounds like you would be better selling at markets to test the product, price points etc.

And ask yourself why people should buy your products rather than similar ones already in the market place.

Good luck

 

[chris.green]

And ask yourself why people should buy your products rather than similar ones already in the market place.

Good luck

Where I live there are no other similar products in the market. My smoothies are fresh and made only from organic fruits and veggies with no added sugars, additives, preservatives or any other nasty stuff. Just organic fruits and veggies blended with a bit of water.

 

[dan@webpeasy]

Something like this: a potential customer browses our website and pre-orders a smoothie for the next day or any other day then the current day to a specific time.

Have you investigated how this will be fulfilled?

Most delivery companies deliver any time between 7am and 7pm. Unless you're referring to an AM/PM slot?

 

[chris.green]

my idea of delivery goes like this: today we've got let's say 20 pre orders for tomorrow. being a startup business my wife and I will be making the smoothies by night, keeping them refrigerated until the next day when I will do the delivery using a time slot. each customer will be given a time slot to choose from when pre orders.
our main market are busy working professional so I will deliver to offices and businesses.

 

[Christine Hough]

I don't know about this as a business without knowing a lot more about your area, but here's a vote for juices.

At first I balked at the amount of fibre which is thrown and thought it would be too expensive for me. Yet my weekly shopping is not much different and I enjoy juices. I am convinced fresh juicing has many health benefits. (Though this am I mixed fresh with carton juice)

 

[ethical PR]

I'm a busy working professional and drink organic juices and smoothies but I struggle to see how this would work.

I drink these and make them myself at home in the mornings . I wouldn't want them delivered at work.

Have you done your research to see which companies would allow you to deliver? And whether customers want your product?

Have you done your research on your costs for example how would you make a profit on 20 juices taking into account delivery labour petrol marketing etc.

You'd probably be better looking at gyms and health food stores and as I mentioned before markets for bigger quantities if your research shows your target market wants the product.

 

[mckellar]

so of the 20 people who want to order your smoothie.

can all 20 people order "around 12pm" theres no point delivering at 1pm as they specified 12pm - roughly i'd guess when the customer has lunch.

can you make any money delivering 1 drink to 20 locations without charging "delivery"

 

[Tradepage.co]

Think carefully about your selling approach here. You may find the individuals that consider a day in advance their drinking requirements are a very specific percentage of the demographic you are attempting to reach.

Furthermore, you would likely need an very well integrated service that fits well into their daily routines, which may prove a big investment to achieve. Delivery prices might also cause issues with your working margins based upon an assumption of your retail price and knowledge of delivery costs for products of a similar size and weight.

Potentially, more traditional selling methods could serve you well here i.e. selling directly to businesses, market stall etc. Perform some primary research in your local area to gauge interest and if it is possible to do so, working from home will definitely help reduce your financial risk.

 

[toastking]

Are you in London by any chance? Or within easy reach?

Escape the City are hosting an event soon (sign up via Eventbrite) where there is a foodie entrepreneur giving a talk about how he has launched and been a success. This will give you a good platform and inspiration, but then you will have the chance to network with likeminded foodies and entrepreneurs and ask questions of others and how they've achieved things.

Might be worth a gander and its only £11 I think...

 

[michaelmc]

Sorry to sound negative but if I was going to spend the time logging in online and choosing a smoothie I would just make it myself.

Personally I think the majority of smoothie purchases will either be impulse or regular purchases based on merchant location.

One thing that could maybe work is a subscription model whereby you deliver every day? You could also control your stock better that way?

I could be totally wrong though - all the best in your venture

 

[Caz12]

I like the idea, I've just bought a juicer to make my own but I made one and it was vile! I couldn't drink it lol. It would be nice to have somebody else make them so they at least taste as good as juices veg can taste.

However I see the delivery being a big issue as other posters have stated. Can you not make them so they can be frozen? customers could then order a minimum or a weeks worth of juice (2 a day so 14 juices) and just put them in the freezer. Or you could bottle the juices and go big - trying to supply supermarkets with a range. offering a product instead of a service.

I think it is unrealistic to expect to be able to drive around delivering a solitary juice - the juices sold per day probably wouldn't even pay for the fuel and ingredients used. The concept is good but I would keep exploring.

 

[JEREMY HAWKE]

I'm a busy working professional and drink organic juices and smoothies but I struggle to see how this would work.

I drink these and make them myself at home in the mornings . I wouldn't want them delivered at work.

Have you done your research to see which companies would allow you to deliver? And whether customers want your product?

Have you done your research on your costs for example how would you make a profit on 20 juices taking into account delivery labour petrol marketing etc.

You'd probably be better looking at gyms and health food stores and as I mentioned before markets for bigger quantities if your research shows your target market wants the product.

You might clever enough to make your own smoothies but not all of us do . Its an effort for me to make some toast !!!

I like the idea I think more and more people are careful about what they put in their system . I have always been a runner and need some good stuff to keep me going as my age is no longer a low number . I would buy smoothies if you actually knew what the ingredients were. I would never buy any off the shelf as it is just really another processed food

 

[chris.green]

Thank you guys for all your advises. The delivery issue will be sorted out. You know the saying "if you wanna do business you have to be in business". Certainly I will not deliver just one bottle of smoothie to just one customer; either he has to order more bottles or to buddy up with some colleagues or friends. This issue will be sorted out as well. My concern is with the actual process of production and bottling. I doubt it can be done at home. So far I couldn't find any kitchen space for rent in my town.
As for the market research, I have got this idea smoothie sampling cups. I will just go to businesses with these smoothie sampling cups and ask for opinions. What you guys say about this?
I might start by selling smoothies and juices at the local farmers market as well.

 

[Tradepage.co]

The smoothie sampling idea sounds like a good one for your market research. This could also work well with your local consumer to find out more on how and when they make their drink purchasing decision, if they would be interested in your ordering concept as well as opinions on your recipes? Not only should the feedback be of a higher quality as they are getting something for sharing their insight, but also this could serve as a great marketing approach to demonstrate how good your products are for brand awareness and future business opportunities. The efforts placed here will no doubt be of great use to how you develop your business approach.

In relation to not working from home, maintain a cautious approach here as you could get locked into financial commitments that place unnecessary strains on your business's potential. Could their still be a lower risk solution available? For instance, could a local business be prepared to hire you their kitchen area out of hours as a pose to renting the entire space for your own purposes? Could you further adjust your space at home to fulfill this requirement?

The local farmers market seems like a good idea too, however, is it well situated in your town centre? Is it a popular location for your demographic? Is there a potential to trial this location before making a full commitment?

 

[ethical PR]

You might clever enough to make your own smoothies but not all of us do . Its an effort for me to make some toast !!!

Hi Jeremy ....nothing too clever about it I'm afraid - I just chuck the ingredients into a blender

 

[fisicx]

Certainly I will not deliver just one bottle of smoothie to just one customer; either he has to order more bottles or to buddy up with some colleagues or friends.

That's quite a big ask for a startup. And even if you do get the big orders, how are you going to deliver to two places at once, especially if they are on the opposite sides of town?

And your USP was freshly made. You now suggest you are going to make them the night before and keep them in the fridge. If you are going to that I might just as well buy an innocent smoothie on the way to work.

I think it's a great idea but the logisitics is where you are going to fall over. Making the stuff is easy. Set up a production line in the kitchen with 20 smoothie makers and you can get the whole lot done in an hour. I did just this when we did a stand for a school fete.

Another thought. People often don't just want the smoothie, they will want the carbs that go with it. So if you deliver wraps and other goodies as well out you may have a something a bit more viable.

 

[chris.green]

.

Another thought. People often don't just want the smoothie, they will want the carbs that go with it. So if you deliver wraps and other goodies as well out you may have a something a bit more viable.

Right, well I did not tell you that I am into green smoothies... these green smoothies are packed with protein, minerals, vitamins, enzymes, fiber, complex carbs, nutrients and phytonutrients.
Basically an 18 oz bottle of green smoothies will deliver energy and satiety and a normal person won't be able to eat anything else (due to high quality fiber), unless he/she is willing to overeat.

.
And your USP was freshly made. You now suggest you are going to make them the night before and keep them in the fridge. If you are going to that I might just as well buy an innocent smoothie on the way to work.

My USP is 100% organic with no added sugar (including raw honey which is basically processed sugar by bees), no artificial coloring, no preservatives, no chemicals, no etc. Just 100% organic fruits and veggies (specially leafy greens, which by the way should not be confused with normal veggies) and water. It's that simple. Usually that innocent smoothie you can buy from the shop is not 100% organic and it has some preservatives and other stuff in it in order to get a long shelf life. Of course any smoothie or juice is best consumed right after it's made.

 

[fisicx]

Hmmm....

So you are offering a very niche product I can only buy if a group of us want it on the same day at the same time. Can't see this working at all, it's just not viable.

 

[MikeJ]

I think you should forget the delivery aspect, and trade through local sandwich delivery people. That gets rid of the hassle of delivering to individual buyers, and allows you to concentrate on making the smoothies.

 

[Gordon544]

Question. Price point? You are saying yours will be organic. The premium on organic is considerable. Perhaps you should trial at the farmers market to see whether people are willing to buy in to your products.

As for producing at home first....check with your local environmental health officer (local council). I think you may be able to do small quantities from home. They will tell you the rules.

I worry your business is too niche, too expensive tbh, but until you try you never know. Good luck

 

[chris.green]

The production price for one green smoothie bottle (500ml glass bottle - I am for glass because glass is 100% safer then plastic) is around £3. All ingredients are organic certified. My green smoothies are 100% superior to other smoothies you can buy at a cheap price from supermarkets or coffee shops. My green smoothies are environmentally friendly (we use just organic fruits and veggies). My green smoothies will boost your health and will change your life style. Probably the green smoothies will be a bit expensive but I will educate the potential customer about its benefits on the long run. My green smoothies are like an investment plan in your health. I believe it's all about educating the potential customers about your products. Let's say I will not sell green smoothies but health, joy, education, life style. It's about perception. When I buy a camera from Currys I do not buy just a Camera, but I buy memories. Do I make sense?
So, I strongly believe that a 500ml bottle of green smoothie for £4 it's not an end of the world taking into consideration all the benefits of it.
Let's say I come around your business with some green smoothie samples, I show you all the benefits and advantages of it and I give some free tips about a healthy life style and what foods you should eat to get healthier. After that I tell you the price, £4 - 500 ml. Buy more I give you a discount. Would you pay the price, knowing this green smoothie is superior to average smoothie (which by the way it's not organic and NOT GREEN) you could buy at a smaller price at supermarkets?

 

[fisicx]

You are now projecting a lifestyle ethos on the product. If people have already brought into the green smoothie concept then you may well be able to sell to them. But I think you will have an uphill struggle to convince people to try the product and then but in sufficient quantities as each location to make this viable.

The suggestion to supply existing shops, stalls and mobile units might give you a lead but selling the concept is still going to be difficult. I like smoothies but I'm not sure I want to try yours just yet.

 

[Vectis]

The production price for one green smoothie bottle (500ml glass bottle - I am for glass because glass is 100% safer then plastic) is around £3. All ingredients are organic certified. My green smoothies are 100% superior to other smoothies you can buy at a cheap price from supermarkets or coffee shops. My green smoothies are environmentally friendly (we use just organic fruits and veggies). My green smoothies will boost your health and will change your life style. Probably the green smoothies will be a bit expensive but I will educate the potential customer about its benefits on the long run. My green smoothies are like an investment plan in your health. I believe it's all about educating the potential customers about your products. Let's say I will not sell green smoothies but health, joy, education, life style. It's about perception. When I buy a camera from Currys I do not buy just a Camera, but I buy memories. Do I make sense?
So, I strongly believe that a 500ml bottle of green smoothie for £4 it's not an end of the world taking into consideration all the benefits of it.
Let's say I come around your business with some green smoothie samples, I show you all the benefits and advantages of it and I give some free tips about a healthy life style and what foods you should eat to get healthier. After that I tell you the price, £4 - 500 ml. Buy more I give you a discount. Would you pay the price, knowing this green smoothie is superior to average smoothie (which by the way it's not organic and NOT GREEN) you could buy at a smaller price at supermarkets?

I really think you're going to struggle with that pitch if you plan on visiting workplaces - how long do you think you'll get in a busy office or workplace to sell your product? A few minutes at lunchtime probably. They'll take a sample and drift off. If you manage to leave a few leaflets you'll be doing well. Your market is obviously the 'green' market, but how do you find those people in an average workplace mix?

I have to say too, and this is from personal experience, that the word 'organic' is viewed with a lot more caution than it used to be, so I wouldn't expect people to start ordering just because it says 'organic' or 'green' on the label.

You come across as almost evangelical about your product and its benefits (which is good in many ways) but there's a fair few people who might be put off by this approach. Your post, above, is almost like something I'd expect from the Jehovah's Witnesses on the doorstep - a bit like you're preaching or, as I said, evangelical.

Plus, having to think and organise/order your lunch a day or so in advance is going to be a big turn off to most people.

Also, are you intending telling the customers that your product is frozen and not fresh?

Like others have said, perhaps think about getting your product into a few local shops or a local market first and see how it goes as the logistics of delivering to a set time (and all in time for lunchtime) is undoable without a huge setup.

 

[14Steve14]

Be careful making health and lifestyle statements. You will have to verify and prove them and that means tests and lots of research. You will also have to consider the legalities of any claims on your labeling and marketing materials.

If you claim a product to be freshly made, how recently has it to have been made. Can you call something fresh if it was made and stored over 12 hours ago. I am not sure I would buy a smoothie online with a delivery time. What happens if you get delayed in traffic or turn up late. Breech of contract or what ever could apply.

As for working from home, you will have to speak to your local environmental health people. I know someone who makes cupcakes from home and they had to make loads of modifications to their kitchen, working and storage area, but they did do it as it was worth it before obtaining better premises.

 

[Gordon544]

I echo the above. your margin is low - 25%. Really you should be looking at a minimum of 40% but as you are looking to sell direct, 60% has to be your target, which prices your smoothies out of the market.

 

[roydmoorian]

I think you should forget the delivery aspect, and trade through local sandwich delivery people. That gets rid of the hassle of delivering to individual buyers, and allows you to concentrate on making the smoothies.

That makes a lot of sense - They too are aiming at those who are too idle to prepare their own nutrition.

 

[linda@premier]

Hi Chris,

Best of luck with your business venture!

I have just tried to post a couple of links regarding regulation of the food industry which you may have found useful, however I am a new member and apparently can't post links until I've written 30 messages.

But if you look up Food Standards Agency you will find a lot of advice on their website, they regulate the industry including food prep at home.

You will want to consider insurance also, Public and Products Liability in particular. That is not a legal requirement but prudent to have. If you get to the stage of employing staff, then it is a legal requirement to take out Employers' Liability Insurance. I'm an insurance broker, if you need any advice or assistance in this regard I would be happy to help.

Linda

 

[chris.green]

Hi guys, thanks for helping.
I am currently doing a bit of a market research.
I have this idea of making some smoothie samples and deliver them to people at business parks and so on. I am likely to invest up to £500. Samples are made from fresh organic veggies and fruits, bottled in 60 ml glass bottles and labeled with my logo. What do you guys think about this? I am also trying to get a stand at the local farmers market to make fresh smoothies on the spot.
As for the online market research regarding smoothies and juices, it seems there is a growth tendency in for this business.
Any ideas? Thank you

 

[Caz12]

I like the idea of going to business parks. Have you considered maybe setting up a stall in a local shopping centre or gym? There are often lots of stands in shopping centres where I live selling various items cheap, so I imagine the renting costs would be fairly cheap. We actually have a smoothie bar stand in one of our really big shopping centres. I am just thinking if you don't sell all of your juices daily you will lose money because they will go off. If you serve in plastic Starbucks looking containers and rent a small space in a shopping centre where you can make them fresh as people purchase you may find that it will cost you the same as the money lost on: delivering to business parks, glass bottles, wasted product etc. Just something you could look into I guess. Once you have established a customer base and are still making profit you could start handing leaflets out to customers offering your delivery service for bottles juices.

 

[Ola1]

I'd be concerned that a one product business might struggle with repeat business, and without economies of scale, might be a tad expensive.

Anyways, after finding out about the practicalities of making and selling the product, do spare some time for determining whether the business figures add up to a profit.


Have you done any financial projections.

 

[ethical PR]

As advised when you initially posted last month. I think you will struggle to make a viable business delivering this product to individuals based at businesses. But if your market research shows there will be a demand for your product at the price you want to sell it for and that it would give you a viable business model, then certainly look to trial.

I would reiterate my initial advice that you would be better looking to trial your product at farmers markets, street markets for example Whitecross in London which is made up of mainly food stalls and where people are happy to pay premium product prices. And look to supply through gym cafes etc

It would give you a much more viable business model to deliver in bulk to set destinations than relying on individual orders from those who may or may not order.

 

[NickGrogan]

The production price for one green smoothie bottle (500ml glass bottle - I am for glass because glass is 100% safer then plastic) is around £3. All ingredients are organic certified. My green smoothies are 100% superior to other smoothies you can buy at a cheap price from supermarkets or coffee shops. My green smoothies are environmentally friendly (we use just organic fruits and veggies). My green smoothies will boost your health and will change your life style. Probably the green smoothies will be a bit expensive but I will educate the potential customer about its benefits on the long run. My green smoothies are like an investment plan in your health. I believe it's all about educating the potential customers about your products. Let's say I will not sell green smoothies but health, joy, education, life style. It's about perception. When I buy a camera from Currys I do not buy just a Camera, but I buy memories. Do I make sense?
So, I strongly believe that a 500ml bottle of green smoothie for £4 it's not an end of the world taking into consideration all the benefits of it.
Let's say I come around your business with some green smoothie samples, I show you all the benefits and advantages of it and I give some free tips about a healthy life style and what foods you should eat to get healthier. After that I tell you the price, £4 - 500 ml. Buy more I give you a discount. Would you pay the price, knowing this green smoothie is superior to average smoothie (which by the way it's not organic and NOT GREEN) you could buy at a smaller price at supermarkets?

(500ml glass bottle - I am for glass because glass is 100% safer then plastic) - Any evidence to back this claim up? Glass is not the Green/environmentally friendly option.

My green smoothies are 100% superior to other smoothies you can buy at a cheap price from supermarkets or coffee shops. - as you don't know what smoothies my supermarket/coffee this is a meaningless statement.

My green smoothies are environmentally friendly (we use just organic fruits and veggies). - Are they locally sourced, or shipped from around the world? What energy supplier do you use? How do you clean the fruit/vegetables?

My green smoothies will boost your health - No. they won't.

and will change your life style - Again, no they won't

Vitamins are generally unstable, some more than others. Making the smoothies the day/nigh before, storing them in a domestic fridge and then delivering in a nice warm car will significantly reduce the nutritional value.

And your price is too low. Making £1 per bottle gross profit on something you plan to deliver is not viable.

 

[Sam Cowley]

My green smoothies will boost your health - No. they won't.

and will change your life style - Again, no they won't

Although I agree with your other points, I have to disagree with these two points. Eating/Drinking fruit and vegetables has been proven to make you healthier which involves the second point, if your physically healthier, you will usually become more mentally healthier and happier meaning you are more likely to do exercise or energetic things to make you feel healthier and better about yourself.

 

[NickGrogan]

Although I agree with your other points, I have to disagree with these two points. Eating/Drinking fruit and vegetables has been proven to make you healthier which involves the second point, if your physically healthier, you will usually become more mentally healthier and happier meaning you are more likely to do exercise or energetic things to make you feel healthier and better about yourself.

Eating and drinking fruit and vegetables INSTEAD of processed or unhealthy foods is proven to make you healthier. Having a smoothie, with a packet of jaffa cakes, bar of chocolate and slice of pizza won't.

The 2nd point is a correlation, not a causation. People who buy expensive green smoothies, tend to care more about their health, therefore they are more likely to exercise, etc. It starts from caring about health, not drinking the smoothie.

 

[fisicx]

It hasn't been proven to make you healthier, all that has been proven is someone who exercises and eats a balanced diet will generally have less health problems that someone who doesn't.

And unless you are a dietician you cannot be sure your smoothies don't have a delibitating affect on those drinking them. I'm a diebetic and there are all sort of things I shouldn't eat. It's the same with people who have all sorts of other medical conditions.

Nothing wrong with your smoothies themselves - but your claims will need verification.

 

[Sam Cowley]

Eating and drinking fruit and vegetables INSTEAD of processed or unhealthy foods is proven to make you healthier. Having a smoothie, with a packet of jaffa cakes, bar of chocolate and slice of pizza won't.

The 2nd point is a correlation, not a causation. People who buy expensive green smoothies, tend to care more about their health, therefore they are more likely to exercise, etc. It starts from caring about health, not drinking the smoothie.

I dont see him mentioning jaffa cake smoothies which I would have btw, but I understand your point. However I do still stand by my previous point regarding the smoothies make you healthier and also changing your lifestyle. If you are wanting to go on a healthy diet you could purchase the smoothies which would then give you energy to do things you wouldn't usually do which is therefore changing your lifestyle.

 

[Sam Cowley]

Eating and drinking fruit and vegetables INSTEAD of processed or unhealthy foods is proven to make you healthier. Having a smoothie, with a packet of jaffa cakes, bar of chocolate and slice of pizza won't.

The 2nd point is a correlation, not a causation. People who buy expensive green smoothies, tend to care more about their health, therefore they are more likely to exercise, etc. It starts from caring about health, not drinking the smoothie.

I dont see him mentioning jaffa cake smoothies which I would have btw, but I understand your point. However I do still stand by my previous point regarding the smoothies make you healthier and also changing your lifestyle. If you are wanting to go on a healthy diet you could purchase the smoothies which would then give you energy to do things you wouldn't usually do which is therefore changing your lifestyle.

 

[Sam Cowley]

My post just duplicated itself, apologies.

 

[NickGrogan]

I dont see him mentioning jaffa cake smoothies which I would have btw, but I understand your point. However I do still stand by my previous point regarding the smoothies make you healthier and also changing your lifestyle. If you are wanting to go on a healthy diet you could purchase the smoothies which would then give you energy to do things you wouldn't usually do which is therefore changing your lifestyle.

I meant Jaffa cakes, with the green smoothie - but now that you've planted the idea of a Jaffa Cake Smoothie, I may have to make one.

Your argument is that buying healthy drinks makes you healthier - but spend 30 minutes in McDonalds and look at the people ordering the diet coke... Most of them with a Big Mac or two and large fries.