Darryl is a Consultant Who Will Work With You as Your Temporary CEO:

If you are looking for an interesting, creative and profitable businesses, then look no further than products in the dairy and non dairy industry, such as ice cream or frozen vegan product. When I mention to people my full time business is a consultant in the industry, their typical response is “boy that sounds like fun” and indeed it is. Not just for the amazing products introduced, but the interesting people I get to work with. The greatest challenge I face does not stem from the task of the job, but rather working through the convincing phase of the value that I will bring to the business. Most often, the individuals contacting me have their own businesses success stories and share that they’ve taken a previous business venture from nothing to something and now ready to do something fun. So with that mindset comes the confidence to question the importance of my services and involvement. Most often I am asked to “sell myself” on why I should be hired and my response is always the same. “I’m sure you’ll be able to get the business up and running, but will probably pay more in time and money that required”. My tag line is “Now-a-day’s you can’t afford to learn from your own mistakes” and notice mistake is plural. On any given day I hear from someone that thought they could take the initial steps on their own and now find themselves in deep with no close end in sight. On many projects, I actually consider myself my of a janitor thank consultant, for reasons previously mentioned, but that’s ok because I happy to get the project upright and moving forward.  

Additionally, I confess that I don’t consider myself a salesman, probably because I’m not keen on most of the sales tactics and approach taught or practiced. However, I also confess that I have closed numerous deals over the course of my career and not from applying sales pressure or asking for the sale, but rather by demonstrating that I clearly understand their needs, listen to the concerns or challenges and layout an action plan they recognize being in their best interest, a win, win for all parties. The sale is what I call “the consequence of a valuable and respected interaction with the client”. Why am I sharing this with you, because I believe you should understand the person you could hire to take your business and project to the next level.

A Clients Stream of Conscious:

  1. My concept is unique and I feel it will be a huge success
  2. The product has been tested in my kitchen and so far gets rave reviews from family and friends
  3. The recipe has been modified several times and now ready to make for public sale         
  4. I’m sure any manufacturer will be interested in making my product
  5. Not sure how much money to start, but can rely on friends and family for support
  6. I’ll find a co-pack manufacturer make in low quantities  
  7. I’m sure the co-pack manufacturer is excited to take on my product and will help in any way possible
  8. Products will be sold to a distributor
  9. The plan is to sell at Whole Foods and other national grocery chain
  10. I know what to charge for my product
  11. It shouldn’t take long to turn a profit

 A Consultants Stream of Conscious:

  1. Has the recipe been converted to a proven formula
  2. Has the formula been tested on commercial equipment
  3. Have product specifications have been identified
  4. How will the product perform after 100 days
  5. Have all reliable ingredient suppliers been identified
  6. Is the schedule A & B in place on all flavors
  7. Who is the initial customer
  8. Does the package size match customer needs
  9. Have the plus and minus of direct selling as opposed to a distributor been outlined
  10. Has a frozen warehouse been established to store products
  11. Id the delivery process in place  
  12. Have the cost of goods been calculated and gross margin identified
  13. Are all certifications in place
  14. Is there a growth plan for year one through three

The thought process between a professional and first-timer typically are vastly different and respectfully so. When the course of your career expands decades, there’s not much you haven’t seen or experienced and that’s why I urge a prospect client to benefit and take advantage of my knowledge base, to achieve their goal in half the time and cost. When delving into the business of ice cream or non dairy desserts, there are more minor details to understand than large ones. Typically the client will want to start a discussion on equipment, sales, warehousing, distribution etc, when the topic should be on product concept, testing and proven formula, core ingredients and product specifications. I compare the initial interaction to a person preparing for drivers education, who only wants to talk about car amenities, to me there are larger questions. Placing the cart before the horse won’t get you far. Just because you made a product at home doesn’t suggest that it’s ready for the commercial environment. My message is not to diminish your dream or capability, but simply paint a clear and realistic picture of the tasks at hand. Don’t be concerned about who will make your product, when the question could be “who’s my initial customer” or “are my ingredient suppliers and manufacturer capable of meeting the growth demands”?

Should the client have already considered a few 101 business questions, maybe. Personally, I believe that at the beginning stages of the decision process, the client has more emotional based ideas than strategic plan and understandably so. Most times the individuals I meet with have been fine tuning a recipe for months, tested at home, tested by and received praise from friends and family, so now believe they’re ready to enter the commercial space. Remember, if it is was easy everyone would be doing it and believe me when I say your idea has been thought of before. I believe that knowledge comes from the struggle and the companies that entrepreneurs want to emulate, had struggled for many years before the brand caught on to become famous.

Typical Start-Up Hurdles:

  • Limited cash
  • Establishing a realistic budget and forecast
  • Making emotional based decisions
  • Establish a realistic time period to see a return on investment (think – paying back family and friends)  
  • Lack of reserve funds to get the business off the ground
  • Knowing the required equipment to make and serve product
  • Understanding how a co-pack dairy operates  
  • Identifying the initial customer
  • Realistic timeline for production to first sale  
  • A true cost of goods
  • A gross margin to sustain the business
  • Where and how to store finished product
  • Shelf life options
  • Packaging, tamper evident seals and label requirements
  • Initial purchase order quantity of flavors by size      

Hiring an Expert in the Dairy Field:

It’s one thing to come up with an idea, it’s another to see it become a reality and most importantly, a success. Clients tell me they want to be as recognizable a brand as say Ben & Jerry’s or more recently Halo Top, but with little comprehension of the difficulties and hurdles the brands went through. I still like to use 5 years as the point to say “I have a successful business model”. Many start-up’s look at 6 months as a measure of success, but did not calculate in growth expenses or retooling of an initial concept that did not fly. I recommend giving yourself ample time to learn and get to the next step.

The Halo Top Phenomenon:  

Competition in the frozen dessert category especially in pints is greater than ever before and if you want to see your product on the grocery shelf survive then know the odds are the lowest of all selling categories. Halo Top is an example of a never seen before marketing approach and over the past six years has grown to the number one item in the frozen dessert category, in a pint cup. Why, Product?, maybe, Concept?, probably. This became a sought after item, because it’s the first to banner in large font size the “total” number of calories per container. Fan reviews state they love the fact they can consumer an entire pint and only 320 calories. So unless you are introducing a never seen before product or creative marketing slant, then understand the competition is fierce, abundant and ongoing. As a consultant, I would first establish what you believe to be unique about your brand, product or image. That may sound simple, but recognize some brands became a success, not for the product, but rather the image or message created. The real picture, be amped up about your product and concept, but understand the people looking and purchasing your products are strangers, not friends and outside of your home.

Know Your Strengths and Limitations:

You got this far by achieving something that you enjoy and have a passion for, but consider other important functions of the business.

  • Manufacturing
  • Accounting
  • Storage & Transportation
  • People Skills
  • Managing

Simply because you came up with a really good product, doesn’t suggest you’ll be proficient in all aspects and positions in the business. One of the biggest complaints I hear from owners, is they wish they had more time to do what they do started and do best and not spend a large part of the day in other areas of the operation. When you go to a great restaurant, the award winning chef is in the kitchen, not roaming the floor shaking hands with the patrons, why? Because he knows where he is most effective. When a client tells me their very smart and a fast learner  and capable of doing every job in the place, my comment is they may be able to do the job, but probably not as well as a person with prior experience that’s done it previously. Message, don’t be scared to hire other professionals, the return on investment will be quickly realized. A common downfall in business stems from ego from the top and in my opinion, the killer in any organization.     

Stay smart, get your idea off the ground, contact Darryl he has the experience to get you going in half the time and expense it would have taken YOU.

Darryl David
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