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Is Your Business Ready to Hire a Small Batch Co-Packer?

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StrategyDriven Managing Your Business Article |small batch co-packer |Is Your Business Ready to Hire a Small Batch Co-Packer?Your food products may be gaining traction in the marketplace. Now is the perfect time to scale, but you have to find out the best way to do that.

It can be difficult to know if your business is ready to hire a small batch co-packer or not. What does a food co-packer do and how do you know if it’s time to hire one?

Keep reading to find out.

What Does a Food Co-Packer Do?

A food co-packer is also called a food contract packer. They are an existing food manufacturing plant that you contract with to produce your food product.

Many small consumer packaged goods companies will use food co-packers as a way to outsource food production.
This can be a game-changer for small businesses because it allows them to focus on the operational side of the business, and marketing and sales.

The fees for a food co-packer will depend on a number of variables. The size of the order, the ingredients involved, the co-packer’s labor and production costs are the main variables.

When you work with a small batch co-packer, you will have several advantages. You’ll be able to maintain high standards of quality. You’ll also have lower minimum order standards to meet.

This can be a great step if you want to move your business out of your small kitchen and you’re not at the point where you need to place a huge amount of orders.

How to Know if You Need a Food Co-Packer

A food co-packer can be a great asset to have if you are ready to scale up your business. How can you be sure that this is the right time to create a partnership with a food co-packer?

Here are some signs that you’re ready to take the next step in growing your food business.

You’re at Capacity

Have you taken your own manufacturing capabilities to the brink? You’ll find that you can only support a limited number of sales.

If you’re at the point where you have more demand for your products than you can handle, then it’s time to find a small batch co-packer.

You Can Scale Your Recipe

You may have initially developed your recipe in a tiny kitchen. You were able to scale it to satisfy more customers and still retain the quality of the final product.

Consumers are demanding healthy food. If your product falls in this category, you need to make sure that your recipe can handle large production runs with healthy, natural ingredients.

When you created your recipe, you may have used approximate measurements and still had great results. It’s much different working with a food manufacturer.

You have to give the manufacturer precise measurements to ensure quality. You have to do the same with cooking times and temperatures. Your recipe should deliver the same exact result no matter who the manufacturer is and which employee is managing production.

Sales Demand

You may be at capacity right now. Do you expect your sales to grow over time? Are your sales seasonal? Co-packers require a minimum run to make manufacturing your product profitable for them.

You may be able to try a test run of 1,000 units with a small batch co-packer to see how fast you sell the product.
That’s only a viable option if your product has a long shelf-life. Keep in mind that you’ll need to absorb storage costs if your sales slow below your projections.

If your product has a short shelf-life, your sales projections have to be as precise as your recipe.

You Have Capital

For businesses that have a significant amount of cash set aside, you can afford to take a financial risk and hire a co-packer.

There are other costs involved in co-packing that can make it challenging. You may have to pay research and development costs to the manufacturer. They will improve the recipe and give it a longer shelf-life.

There may be additional costs if your co-packer supplies the ingredients. At the same time, you may be able to save money if they provide the ingredients because they get a better volume discount.

A food co-packer requires significant investment. You want to make sure that you understand the risks involved before you hire one and you have enough capital on hand.

How to Find a Co-Packer

Do you think that your business is ready to work with a small batch co-packer? You have to find the right food co-packer to work with.

You should start by researching co-packers in your area. Talk to other food producers in your area and ask them how they manufacture their products.

You need to make sure that you find a co-packer that’s the perfect size. A co-packer that’s too large will be difficult to maintain. You’ll outgrow one that’s too small.

You’ll start to understand how food co-packers work and what you need to look for in a co-packer agreement.
The most important thing to know is that you cannot rush the process. Expect to invest at least six months before making a final decision.

A Small Batch Co-Packer Helps Your Business Grow

As a food business, you have to walk a very thin line between having enough inventory and having enough sales to move inventory.

That makes growing a food business a challenge. If you grow your capacity too fast, you don’t have the sales to support it. Grow your sales to fast, you have customers waiting for your product.

Both options can cost money. The best way to grow is to use a small batch co-packer, which gives you more capacity, but not too much. You also maintain quality as you scale your recipe up.

Finding the right small batch co-packer is a big step. You have to know what questions to ask and understand how co-packers work.

Be sure to visit this site often for more business and leadership insights.

Future-Proof Your Career

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StrategyDriven Professional Development Article |Future-proof your career|Future-Proof Your CareerTimes are uncertain, particularly when it comes to the world of work. You may be worried about your future and what your job will look like next year, in five years’ time or even a decade or so down the line. You might be worrying that what you do will become obsolete. It’s only natural, but instead of worrying, wouldn’t it be better to take action and dow what you can to future-proof your career?

If you want to ensure that your skills and experience are still required in years to come, here are a few things you can do to future-proof your career starting now…

Work for academy organizations

Academy organizations are companies that invest in the development of their employees. When you work for them, you will be given lots of opportunities to learn new skills and reach your full potential. Because they take your development seriously, you are far less likely to be redundant in the future, Companies that are known to be academy organizations include Randstad and AT&T, but there are many more and you would do well to find some in your industry.

Stay Tech Savvy

There’s no turning back the clock when it comes to technology — it is in all our futures and that includes the future of our work as much as anything else. That is why if you want to future-proof your career, you really do need to keep up with technology and keep improving your digital skills whether that means learning how to code or studying for your agile product owner certification. The better you understand, and are able to use, technology, the more likely you are to remain employed now and in the future.

StrategyDriven Professional Development Article |Future-proof your career|Future-Proof Your CareerFocus on Transferable Skills

The business you are working for now might not still be in business 10 years down the line, so if you want to remain employable, it’s a really good idea to focus on transferable skills — the kind of skills that any employer in any sector will be looking for. This includes things like communication, leadership, creativity and management skills. If you keep these at the core of what you do, you will always be in demand.

Build a Global Network

The more people you know, the more opportunities are going to come your way. So, if you want to protect your career in the future, you need to build lasting connections now in the present, and you should ideally do so on a global level if you want to maximize your opportunities. So, connect with people on social media, attend trade events and conferences, write a blog, and do anything you can that will enable you to form bonds with others in your industry and adjacent industries that could use your talent.

Review Your Options

You may love your career now, but it pays to keep your options open, review the current climate and identify potential new opportunities, on a regular basis. By doing this, you will always know how you’re doing now and what else you could be doing if things start to change and you need to protect yourself.

The world might be changing, but you can maintain your success by being careful, staying up to date and building your network. I wish you luck!

10 Legal Tips that Can Save Your Business

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Whether you’re just starting out or have been operating for years, there are many legal issues confronting business owners. This article will identify tips to take that can save your business.

Tip 1: Incorporate

Legal documents must be filed in order to incorporate your business, thereby protecting your business and personal assets. If you are operating as a corporation, you need to file articles of incorporation, and if you are operating an LLC, you need to file articles of organization. Fill them out and file them.

Tip 2: Select an Appropriate Busienss Name

Ensure that your business name is different than the names of existing businesses that offer the same or similar products and services, in order to avoid litigation over use of another business’s trade name. Check state and federal name registries to see whether other businesses have the same or similar names.

Tip 3: Obtain All Necessary Licenses and Permits

Many businesses require licenses and/or permits to operate, whether they are issued a federal, state, or local government. Research the requirements for your business, and obtain them.

Tip 4: Adopt Governing Documents

The structure you choose for your business determines the type of governing documents you need to have in place, such as operating agreements, bylaws, etc. Governing documents should be adopted for every business. These documents identify and set out the company’s structure, ownership, voting rights, responsibilities of directors, day-to-day operations, how profits and losses will be treated, and more.

Tip 5: Implement Written Contracts and Agreements

Many businesses make the mistake of operating without written contracts. This is an antiquated practice. Having written contracts helps all parties understand their rights and obligations.

Tip 6: Market Properly

There are many legal issues that arise relating to the way businesses market and advertise their products and services, which are governed by the Federal Trade Commission (FTC) and also by state and local laws. The most basic rule with regard to advertising and marketing is: don’t lie.

Tip 7: Protect Intellectual Property

Intellectual property is a creation of the mind. Every business has some intellectual property, whether it is the special method for creating your product or simply your business name or logo. There are specific steps you must take in order to protect your business’s intellectual property, which can be protected through copyright (written and artistic content), trademark (logos and slogans), or patent (inventions).

Tip 8: Comply with Employment Obligations

If your business has employees, you need to ensure that your business complies with a number of federal and state employment laws. For starters, you must pay employees at least minimum wage, operate a safe workplace, and treat employees fairly. If you are not interested in having employees but need help operating your business, then independent contractors should be considered—but they come with their own legal issues.

Tip 9: Get Your Financial Metters In Order

First, open bank accounts and obtain credit in the name of your business, and keep those accounts separate from your personal accounts. Failure to do so may result in a court finding that your business is not a separate legal entity, resulting in you becoming personally liable for debts against the business. Second, ensure you pay all necessary taxes—employment taxes, income taxes, sales tax, etc. Third, get insurance. Fourth, manage your receivables. If someone doesn’t pay you and there’s no basis for the non-payment, pursue them.

Tip 10: Adopt a Recordkeeping Program

As your business grows, you will have to maintain accurate records for your business. A common issue for small businesses is failing to maintain the required records. These records may include minutes of corporate meetings, stock certificates, financial statements, payroll documentation, injury logs, etc. Adopt a record keeping program and follow it.

Regardless of the type of business you operate, you need a trusted attorney to help you wade through the many legal issues you will encounter in the operation of your business. To find the perfect attorney for you and your business, quickly post a short summary of your legal needs on www.legalserviceslink.com, and let the perfect attorney come to you. No time, no hassle, no cost.

About the Author

Matthew Horn, Esq.Matthew Horn, Esq. is the President and Co-Founder of Legal Services Link, a platform allowing those with legal needs and attorneys to quickly and easily connect via email. Matthew is a frequent speaker and author on various tech, business, and legal topics. He holds a BS in Accounting from the University of Illinois, Urbana-Champaign, and a JD from The John Marshall Law School.

How You Can Avoid Bankruptcy as a Business

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StrategyDriven Managing Your Finances ArticleOne of the worst nightmares for any business owner is their business becoming bankrupt. While some companies have been able to rise from the dust in such instances, this isn’t the fate for many. In this case, it’s safe to say that if you can, avoid getting to the point of bankruptcy in the first place, you should. However, this means paying close attention to your business’ finances by budgeting and closely watching your expenditures.

In case you’re wondering what steps you need to take to avoid such from happening to you, you’re going to find a few essential ideas you can try below.

Get a Qualified Accountant

One of the first ways to avoid bankruptcy as a business is to invest in a qualified accountant. Seeing as they have experience and the required knowledge when it comes to finances, they’re in the best position to help you avoid major money mistakes and keep your books in order. When you’re looking for an accountant, be sure to look for someone who has experience working in your sector if possible. They should also be certified as you’re entrusting your business’ finances into their hands. In addition to this, other general qualities to look out for are someone who is detail oriented enough to pick up on irregularities and mistakes as well as an accountant that is trustworthy.

Get a Mobile Office

If a physical office isn’t an absolute necessity, why not get a mobile one? Doing so should help you keep expenses to a minimum and free up your finances. Renting out an office space can be incredibly expensive, especially if it’s in the city center or a mainstream area. However, by getting a mobile office, you can reduce that cost as well as move your office just about anywhere you want to! If you’ve never heard of them before, they can be used as alternatives for conventional office spaces, as conference rooms, or as a training facility. If you want to save even more, this company has used construction office trailers you could consider.

Manage Your Debt

One of the most common causes of bankruptcy is debt. Businesses often need to borrow for a variety of reasons, such as to give their business a push or to help expand operations. However, when debt spirals out of control, it can be extremely damaging for a business. Keep track of the institutions that you’re owing and try to pay off your debts as quickly as possible. Also, before taking out any loans, make sure you’re getting a fair deal in terms of interest and repayments. Nevertheless, debt can help to jumpstart your business when its used and managed in the right way. Some of the ways it can include tax deductions in some cases, faster growth, and better credit if you’re consistent with repayments.

Lower Expenditures

When it comes to bankruptcy, one of the biggest culprits is probably unnecessary expenses. There are so many things that you may feel you need as a business that ends up being entirely unnecessary. Have a look through your outgoings for the past three months and make a note of what you’re spending on. Identify any patterns, such as spending too much on work lunches, high travel expenses or anything that can’t be accounted for. There will be things that aren’t essential to business growth like cable TV, for example. Other practical ways to cut business expenses is by reducing office supply expenses, looking for ways to save on insurance, and doing in-house marketing to mitigate costs. The point is to be as frugal as possible so that you can save money and avoid hitting rock bottom.

Separate Accounts

You’d be surprised at the number of businesses that go under because of a failure of owners to separate accounts. When you’re depositing and withdrawing from a business account for both business and personal reasons, it can throw your finances off course and make it difficult to see how your business is growing. The easiest way to avoid this is to make sure your personal account is entirely separate from the business one. Once you pay yourself a salary every month, there should be no reason to dabble into business funds. Also, by getting your business a separate credit card, it should ensure that any small or miscellaneous purchases you make for the company are easily accounted for.

Consolidate Loans

In addition to the mentioned, you should think about consolidating your loans. Managing your debt adequately is imperative if you want your business finances to remain healthy. If at any point, you notice that your repayments are becoming overwhelming and you want to reduce the amount you’re paying, why not try and see whether you can consolidate your loans meaning you take out a new loan to pay off liabilities and consumer debts on more favorable terms. Although paying smaller amounts means it will take you longer to repay, it frees up your finances so that you can use them for operations or to expand your business and increase revenue. In some instances, you could even get lower interest rates.

Revisit Your Budget

When trying to avoid debt, it always boils down to one thing which is your budget. See how you can improve this so that you’re genuinely saving all that you can and financially managing your business in the best way possible. There’s always room for improvement and an opportunity to ensure your finances are improving as opposed to declining. You can do a regular audit as well as occasionally shop around to see if there are cheaper alternatives to all of your expenses. Ultimately, always think about every expense carefully and how it could impact your business.

Conclusion

Bankruptcy doesn’t have to be something your business experiences if you learn to be frugal as a business and budget. Your focus should be on raking in steady income and new business as opposed to unnecessary spending. When you’re able to do this, you should find that you’re moving forward and growing financially as a business.

5 Easy Ways To Keep Your Employees Happy

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StrategyDriven Managing Your People Article | 5 Easy Ways To Keep Your Employees HappyA happy workforce is a productive workforce, so it’s vital to ensure you look after your employees throughout the highs and lows of your business journey. When people are feeling the strain, they become demotivated, and this can lead to low productivity levels, which is not right for overall company goals. However, there are some simple ways to make sure everyone stays chipper through the best and worst time.

Take a look at some of the critical areas to consider below:

1. Recognise and praise success

It’s easy to forget the little things in the workplace due to the amount of work going on. However, just saying ‘thank you’ for a job well done, or recognising a team on completion of a successful project can work wonders for self-esteem. When people feel they are going unnoticed, they will eventually lack the motivation to put the effort in. This, in turn, will affect levels of productivity and willingness to put maximum effort in.

2. Offer good benefits

Not all companies can afford to give an all-encompassing benefits package, but making small steps can be a huge motivational boost. Anything from supplying coffee on-site, implementing a cycle to work scheme and using eyecare plans, so employees don’t have to pay if they need glasses for VDU use is a great way to show you care about their health and wellbeing.

3. Create an inspiring work environment

No one likes to sit and stare at four walls all day so it could be time to start thinking about your office design. Optimising natural light is a great way to boost morale and happiness in a workspace. Plus, dedicating areas, so individuals don’t feel tied to their desk can give employees some freedom to move around and feel creative in a collaborative space. On an interior aspect, why not add colourful prints or incorporate a creative décor theme to add some fresh and vibrant vibes to often whitewashed walls.

4. Trust individuals

One of the main frustrations from many employees is that they feel management don’t trust them to make the best choices. In many cases, management cannot do and control everything on a daily level, so delegation is a must. Assigning trust and responsibility to people gives them a sense of pride in their work. It also helps people to strive for better results.

5. Communicate well

Communication is another sticking point in organisations, and many people always feel out of the loop. Of course, you can’t disclose everything to employees. Still, there will be times where sharing details of projects and plans is beneficial, so everyone understands the bigger picture. This can also work in business slumps as if you don’t share concerns and strategies for improvement; employees can feel vulnerable and out of control of their personal circumstances.

These are simple ways to get your whole team on track and get the best out of everyone daily. They are also easy to implement, and you’ll reap the rewards in loyal and trusting staff that want to see the business succeed.