Pivot to the Right Products to Get in the Black Faster

Most early-stage food companies lose money. Anywhere from 10-50% every year.

Much of this comes down to low product gross margins getting chewed up by fixed operating costs and various onboarding fees at retailers.

Getting to a scale that lowers absolute COGS still remains the primary way to solve the problem.

The ‘co-man tolling penalty for being small’ favors food businesses that start with a lot of seed money.

Raising money to cover the negative years is also a tool.

Financially efficient growth becomes crucial to shorten the ‘red’ time to scale.

Fan-driven, exponential growth remains the smartest way to pull this off with limited funds.

But you generally need a short purchase cycle innovation to rely on demand in this way.

If you do not have this kind of purchase cycle, you need to rely on a very high product margin from the start.

For those in food thinking of a pivot- think weekly purchase cycle and daily consumption among fans..this is the design sweet spot that gives your P&L a fighting chance.

Interested in learning how to guide a decision to pivot your brand? This paid webinar will walk you through a rigorous analytic process to help a decision that could save your business and send it up the Ramp of Exponential Growth—$ 249 for a single seat. Multi-seat discounts for leadership teams are available.