Starting up a new business

[slimjim1009]

Hey all,

Saw this forum and thought why not try get involved and make use to help me if possible.

I’ve always got new ideas so list them all down, and some may never amount to anything but always a chance.
I would very much like to utilise on ideas I had over the years For creating some new table sauces (ketchup, bbq sauce, rubs etc.) which I feel would work pretty well in the market.

Has any other on here created a sauce company and had any tips at all for this and ways to work out start up costs better?

I know I won’t make it into supermarkets right away so website is key and maybe a Shopify store would work well for the design and easy usage.

Some insights would be amazing to hear just for feedback and to help me along a new journey
Thanks

 

[Mark T Jones]

It's a saturated market (sorry, couldn't resist)

But seriously, you might make a living selling locally, at food fairs or even, if you're lucky into some independent delis. Beyond that, you have massive hurdles, both in getting stocked and getting paid.

The 2 big questions behind any idea are:

1. Who are your customers going to be?
2. How will you differentiate yourself?

 

[slimjim1009]

It's a saturated market (sorry, couldn't resist)

But seriously, you might make a living selling locally, at food fairs or even, if you're lucky into some independent delis. Beyond that, you have massive hurdles, both in getting stocked and getting paid.

The 2 big questions behind any idea are:

1. Who are your customers going to be?
2. How will you differentiate yourself?

It probably is with the main ones already stealing the market!
I had thoughts in the hurdles but sometimes it’s hard to comprehend how many they’ll be.

I have thought of customers would be bbq users to enhance the food flavours but again could be used in households as a side sauce

I feel many of my ideas haven’t been released in the supermarkets so possibly options to gain customers that way and also make them extra tasty with colourful packaging to draw them in

 

[Mark T Jones]

It probably is with the main ones already stealing the market!
I had thoughts in the hurdles but sometimes it’s hard to comprehend how many they’ll be.

I have thought of customers would be bbq users to enhance the food flavours but again could be used in households as a side sauce

I feel many of my ideas haven’t been released in the supermarkets so possibly options to gain customers that way and also make them extra tasty with colourful packaging to draw them in

But there are hundreds of barbecue sauces - many with colourful labels. others with olde-worlde labels etc etc.

So why will yours appeal to a specific group of people? No need to answer on here, but it's the deep thought behind those answers(not the quick easy first ones you think of) that will differentiate a successful brand from just another one that will be lost in the noise.

 

[fisicx]

Levi Roots famously sung his way to success on Dragon's Den. He is an outlier.

If you want to get into the supermarkets you need massive investment in both production and marketing.

So just start batch production and sell locally. Do all the local farmers markets, garden centres and other outlets. Promote the website but you first need to get people interested in the sauces.

We brought a chili sauce a while back at a fete - it was OK but we probably won't ever buy it again. The cost compared to those in the supermarket made it too expensive for the occasional use.

 

[pavp]

These days breakout brands are content-led

1. The best chance you have for getting followers is through content (youtube + tiktok + instagram)
2. Take people on a journey / story - be genuine about your process and how you are making sauces. Share the fails. Aim to post 3-5 times a week
3. Start batch production and sell locally and online delivery
4. Promote the website

 

[slimjim1009]

Levi Roots famously sung his way to success on Dragon's Den. He is an outlier.

If you want to get into the supermarkets you need massive investment in both production and marketing.

So just start batch production and sell locally. Do all the local farmers markets, garden centres and other outlets. Promote the website but you first need to get people interested in the sauces.

We brought a chili sauce a while back at a fete - it was OK but we probably won't ever buy it again. The cost compared to those in the supermarket made it too expensive for the occasional use.

What kind of price were they selling for in comparison to others?
I’m not a chilli lover so would need help on those flavours but would focus on other areas first.

I do agree I think Levi roots was at the right time and fair play to him!

I think it’ll be sometime before I’d tackle supermarkets but if it worked well with a website and local shows it’s a good start

 

[slimjim1009]

These days breakout brands are content-led

1. The best chance you have for getting followers is through content (youtube + tiktok + instagram)
2. Take people on a journey / story - be genuine about your process and how you are making sauces. Share the fails. Aim to post 3-5 times a week
3. Start batch production and sell locally and online delivery
4. Promote the website

It’s true TikTok is helping people massively so a good platform to use.

It’s always nice to bring people along from the start and of course so wins and losses to be more authentic.

I do need to research all the right equipment to buy and also any checks by local councils to be doing it properly, I think not knowing aspects in these areas makes it daunting but suppose it’s worth the efforts.

 

[Mark T Jones]

You can make market sized batches using t he equipment in your kitchen.

You'll need to be familiar with food hygiene and food labeling regs

Other than that, get yourself a stall and start selling. If possible collect data, taking as much note as possible of their demographic

 

[fisicx]

What kind of price were they selling for in comparison to others?

£4.50 if I remember correctly. My wife says it wasn't just the price, it was availability. I can go to the supermarket or my butchers and pick up a bottle or whatever at anytime. If I wanted the sauce we brought it means an online order which incurs P&P.

Forget about the supermarkets. It's not going to happen without big bucks. Focus on local sales. You can make a decent living selling locally. Either your own stall or negotiating with local stores. either way it means getting out in your van with product in the back.

Have you made any sauces, dips, rubs or whatever? Have you invited the neighbours round for a tasting session?

 

[BusterBloodvessel]

I haven’t seen any reasoning WHY you want to get into sauces? Do you already make them? Are you passionate about flavours, sauces, seasonings?

If you are and some of that can come across in your story, great. If you’ve just thought “I could make and sell sauces”……

 

[fantheflames]

A friend of mine sells sauces, she has put a lot of money into it. It's not something she can live off completely, but it tops up her income every two or three months. Her sauces are in a couple of stores and restaurants. Her sauce is incredible, but as you can imagine it's not cheap.

I think it depends on lots of factors, but having enough reach, funds, and the right amounts of marketing would be essential. Social media could play a huge factor in navigating its competitive market and getting interest from food bloggers to expand your reach.

I think focusing marketing efforts online and locally, rather than nationally, is where you'd want to do.

 

[Paul Kelly ICHYB]

maybe a Shopify store

Why a Shopify store over any other e-commerce system?

Anyway, I have worked with several people making sources/condiments and, sadly, none have made it big. When you start to look at retail prices, retailer margins, production volumes and the financial commitments & returns involved, it soon puts people off.

Almost every home made sauce that has gone big had some form of media exposure - they are VERY rare! You could count on one hand the number of kitchen startups that went big and stayed/became established.

 

[MarkOnline]

You can make market sized batches using t he equipment in your kitchen.

You'll need to be familiar with food hygiene and food labeling regs

Other than that, get yourself a stall and start selling. If possible collect data, taking as much note as possible of their demographic

^^^^^^^ THIS^^^^^^^^^

 

[slimjim1009]

Why a Shopify store over any other e-commerce system?

Anyway, I have worked with several people making sources/condiments and, sadly, none have made it big. When you start to look at retail prices, retailer margins, production volumes and the financial commitments & returns involved, it soon puts people off.

Almost every home made sauce that has gone big had some form of media exposure - they are VERY rare! You could count on one hand the number of kitchen startups that went big and stayed/became established.

I thought Shopify to be user friendly from past experience unless there’s other just as good ones?

I do agree there’s quite a lot involved in the process to make sauces and cost is a huge factor to set out retail prices. I know it’s hard to contend with the big names as they make so much their costs will be way cheaper.

I know some artisan sauces can do well depending on the style and audience but again I suppose it can be a long road to get to that point

 

[fantheflames]

I thought Shopify to be user friendly from past experience unless there’s other just as good ones?

I do agree there’s quite a lot involved in the process to make sauces and cost is a huge factor to set out retail prices. I know it’s hard to contend with the big names as they make so much their costs will be way cheaper.

I know some artisan sauces can do well depending on the style and audience but again I suppose it can be a long road to get to that point

You're better off having a WordPress website. If you can, stay away from Shopify and Wix.

 

[Mark T Jones]

Why are you rushing into a website before you have a product or any comprehension of your market?

The classic newbie 'marketing' mistake is to gallop to the point of visibility before any of the real work is done.

 

[fisicx]

I know it’s hard to contend with the big names as they make so much their costs will be way cheaper.

Then don't. Be special, individual, unique.

We were at a village fete last weekend and there was a couple selling chutney and sauces. The product tasted great and they were doing a brisk trade. One of things they had on display was a selection box. Buy the time we left they had sold out.

Forget about selling online. You need to get out on the streets with your table and gazebo.

 

[fisicx]

Probably too late now but you could be here:

Newbury Show 2024 – Newbury Showground

newburyshowground.co.uk

 

[peterrepair]

Why are you rushing into a website before you have a product or any comprehension of your market?

The classic newbie 'marketing' mistake is to gallop to the point of visibility before any of the real work is done.

Setting up a shop on the given platform, getting familiar with the app, getting verified for payments, placing test orders, even if product doesn't exist can be useful.

Imagine sitting on a product and having no store. That way you can have it ready to go, as you did the home work.

You can also make product announcement, gauge interest from sign ups and so on.

 

[fisicx]

Setting up a shop on the given platform, getting familiar with the app, getting verified for payments, placing test orders, even if product doesn't exist can be useful.

Imagine sitting on a product and having no store. That way you can have it ready to go, as you did the home work.

You can also make product announcement, gauge interest from sign ups and so on.

But you then need to market the products. Nobody will be looking for your sauces unless they have already tried. Which means getting out and selling at events and local shops.

 

[peterrepair]

One does not exclude the other, but you're right.

 

[louis292]

Hey all,

Saw this forum and thought why not try get involved and make use to help me if possible.

I’ve always got new ideas so list them all down, and some may never amount to anything but always a chance.
I would very much like to utilise on ideas I had over the years For creating some new table sauces (ketchup, bbq sauce, rubs etc.) which I feel would work pretty well in the market.

Has any other on here created a sauce company and had any tips at all for this and ways to work out start up costs better?

I know I won’t make it into supermarkets right away so website is key and maybe a Shopify store would work well for the design and easy usage.

Some insights would be amazing to hear just for feedback and to help me along a new journey
Thanks

Stumbled onto this thread while doing some deep research, and since it’s been nearly two years since the OP, hopefully, it’s still useful for someone building their sauce brand today.

Scaling food products is brutal on the margins - don't let bottling costs and label printing sneak up on you; they can kill your cash flow fast. Another thing that caught me off guard early on was vetting suppliers and potential distributors. Keeping documentation squeaky clean is essential if you want to be taken seriously by retailers later. Having access to a reliable LEI Lookup tool actually saved me a massive headache recently when I had to verify registration details for a potential distribution partner. It’s one of those background administrative tasks that you don't think you need until you’re deep into the negotiation phase and realize you need to be absolutely sure who you're dealing with.

 

[Ozzy]

Having access to a reliable LEI Lookup tool actually saved me a massive headache

I'm going to add for anyone else reading this, do not fall for LEI tools. They do not make a difference, and there are so many scam ones out there that trick people into thinking they are official registries, which they are not.

If you want to list your business on a directory, just use the one here on this site. It's about as 'official' as some of these LEI directories except considerably cheaper.