Do you know that 9 out of 10 beverage start-ups usually fail?
Market analysis. Why no one is doing any market analysis? Yes! Your drink can be “unique” and “original”, however, if there are no demand for it no one will buy it. It is worth investing time and money to get some knowledge whether there is a market for your unique product.
Unrealistic sales expectations. We suggest starting with low quantities. Try to lower your risk as much as possible. Entrepreneurs with low experience in beverage industry should try to start with a test batch.
Lack of knowledge in distribution. Do you have any knowledge about retail sales? Do you have experience in it? We are beverage development company, however, entrepreneurs are asking us to distribute their product. Try to get some knowledge about retail, distribution, margins etc. .
No marketing money. One of the most popular problems! A lot of entrepreneurs are thinking that the main problem is to bottle the drink. No, no, no! Do not think that the main challenge is to put your drink on the retail shelve. The main problem is to prove to the consumer that your product is worth buying.
Lack of financing. You should never start a beverage business without a financial support. There are several scenarios for lack of financing:
Not enough capital to bottle the drink
Not enough capital to put the product on the shelves
Not enough capital to advertise the product
Not enough capital to produce another truck of your drink