3 Lessons Learned From Running a Small Food Business
Published: February 27, 2024
Growing up in an entrepreneurial household laid the foundation for quite a unique journey for my future. When I was in high school, my family started a small confectionary company called Das Foods, selling French salted caramels and exotic sea salts from around the world. I remember hand–wrapping the caramels after school every day while my parents hustled trying to get the business afloat.
Fast track to college, I was given the option of either finding a summer internship or managing Das Foods and naturally, I opted for the latter. Managing Das Foods opened my eyes to the world of small business. Like many startups, we had successes, but we also ran into challenges along the way.
Here are the top lessons I learned from managing a small food business.
Lesson #1: Be Ready for the Unexpected
Life has a way of throwing curveballs at you when you least expect it, and for startups, these curveballs can be the difference between the company staying afloat or going under. Lesson #1 is always to be ready for the unexpected. We learned this firsthand when COVID-19 hit in 2020. Every industry had to pivot in one way or another to stay alive. The pandemic is just one example of an event that affected the entire world, but what about the everyday challenges?
For small businesses, being agile is a game–changer; one way to do this is by using a low-code platform. With low code, non-technical users can build custom apps in a fraction of the time and cost of traditional development or off-the-shelf solutions. What’s more, platforms like Caspio allow for unlimited users, so everyone in the company can have access to the tools.
At Das Foods, I remember receiving this massive order from Crate & Barrel about a year into the business, and of course, they were on a deadline. As a small company, we did not have enough inventory readily available, so we had to pivot and find a proper inventory management system that could get implemented quickly and didn’t cost a fortune to meet the deadline.
Looking back on it now, a low-code platform would have saved us both time and money, and we could have built not only the inventory management system we needed but also any other tools we would need in the future.
Starting a small business is difficult enough as it is, so equip yourself with tools that allow you to not only scale but to pivot at a moment’s notice.
Lesson #2: Invest in a Reliable Tech Foundation
This brings me to lesson #2: invest in a reliable tech stack. A common misconception is that to start a business, you need to invest in expensive off-the-shelf solutions to manage your data and operations. While you do need the right tools, they don’t have to break the bank. Options like low-code platforms are more cost-effective than ready-made software and allow you to build the tools you need, as you need them, to your specifications.
We used multiple types of software and didn’t have a centralized place to manage everything. Our tech stack included Peachtree Accounting for our finances and ShipStation to create shipping labels. We didn’t have an inventory or order management tool, let alone a CRM. We worked with not only 1:1 customers but also larger companies like Amazon and independent sales reps who helped get us into retailers, so having a proper CRM would have been a game-changer.
So, as you’re starting your new business, ensure you have the proper tools to help you along the way.
Lesson #3: Deliver Exceptional Customer Experiences
Lastly, delighting your customers during every step of their buying journey is essential. Companies need to invest in providing amazing customer experiences to stay afloat — from being available on every platform their prospects are shopping on to delivering personalized experiences to their inbox. If you’re interested in learning more about enhancing customer experience, check out this blog post where we discuss valuable tips and tricks to improve CX with no-code/low-code platforms.
Another major aspect of CX is providing rewards and loyalty programs to your customers. If you want your customers to keep coming back, what better way to do so than to reward them when they do shop with you?
Companies investing in CX initiatives improve their chances of doubling revenue. In fact, studies show that as much as 86% of buyers are willing to pay more for a premium customer experience.
Looking back on it now, it would have been great to have a loyalty program for customers who ordered directly through our website. But as a small business, we just didn’t have the resources.
Along with building custom apps like inventory management systems and CRMs, low-code solutions also allow you to build tools like custom loyalty programs. In Caspio’s recent Low Code/High Impact podcast, Mackbron PTY LTD, an Australian-based IT company, was able to build loyalty program software for luxury brands using Caspio. Aside from featuring an intuitive drag-and-drop and point-and-click interface, Caspio also comes with advanced capabilities like email and SMS notifications, allowing businesses to reach their customers anytime, anywhere.
Final Thoughts
Providing outstanding customer experiences isn’t just a luxury; it’s vital for small business survival. Ensure your tech stack includes tools to help you prepare for contingencies, transform the way you work and please prospects at every step of their buying journey, turning them into life-long customers.
My final recommendation for small food business owners navigating growth phases is to open a free trial of Caspio’s low-code platform. Having experienced the challenges of running a small business firsthand, I understand the value of efficiency and adaptability in scaling your business.