There is just not enough time in a day to run a business, grow, and recruit, says Vincent Biscaye, founder of Step Two Advisors LLC, a boutique advisory firm for early stage startups in food and beverage. However, with flexibility, consumer engagement, and drive, it is possible to overcome the certain pitfalls and become a successful brand.
One day, Biscaye realized that every company in the CPG space faced the same challenges from pre-launch to about $10M in revenue. He also knew that his knowledge and experience would be useful to help them face those challenges. This is what led him to found Step Two Advisors.
Biscaye will be speaking at the Specialty Food Association’s 2019 Business Summit, taking place April 7-9 in Chicago. His session is titled “Finance 101” and will address how to read a general ledger, strategies for raising capital, and managing relationships with banks, lenders, and investors.
He recently talked to Specialty Food News about looking ahead to the coming year and how startups can get a leg up on more established businesses.
What are you most looking forward to at the 2019 Specialty Food Business Summit?
This is my first participation to the Specialty Business Summit event both as a participant and a speaker! I am very excited to be able to share some of the things I have learned along the way through my career in finance and, most recently, in CPG. The feeling of being helpful to other entrepreneurs is like no other. It will be a great experience to teach, share, and exchange with the group.
I am also looking forward to connecting and reconnecting with my peers. From investors, to retailers, as well as other service providers, it’s a great opportunity to network, catch up as well as share knowledge and opportunities.
What trends are on your radar for 2019?
The plant-based movement is one of the most important food and beverage transformations our world has probably seen, especially as we rethink the way we produce food in a more sustainable and healthier way. I am always on the lookout for alternatives to what we have done wrong for the past decades and we can do right today. Technology can have an important role to play but sometimes the simplest things are healthy and easy to manufacture. Finally, I am also looking at disruptors that attack large industries but from a different angle. People often say there is no potential unless you innovate but at times; to rethink food and do things differently but better.
What are some advantages that startups have over larger, more established companies?
The three most important advantages are flexibility, engagement, and drive.
Startups often lack funding, people, and other resources. However, what they do have over larger companies is the ability to fail, learn, fix, and repeat in a very short cycle without spending a lot at all. Those iterations are often what allow startups to improve quickly and perfect their product.
In addition, startups can address their demographics and create a following no matter how small there are.
Finally, we often see larger brands try new product lines or enter new categories. They use large budgets, try to go big or go home. But when it fails, they just kill the project and move on. Entrepreneurs don’t give up; they usually put everything in their business and will find creative ways to thrive. That hustle is what differentiates them the most from larger size companies.
What are some pitfalls that all startups face in the first few years of business? How can they combat these?
Going from idea to product is the first hurdle startups encounter. It is usually a long process and sometimes costly if done right. Once you have a product on hand, you need to work on branding and packaging. Most success stories in the recent years were not exclusively the result of a great product; now you can disrupt an industry just because of how a product looks on the shelf or how practical it is for the consumer to use.
It is difficult for startups to recruit talent because, often, they don’t have a lot of funding. High turnover is also an issue, and the cost to train and retrain is extremely burdensome for startups s.
Finally, access to investment is a common reason that companies fail. In an ideal world, you would want to start your business and run it profitably but it’s very hard. If you want to grow fast, capital is the only way to go. In recent years, there has been more capital available to startups than ever before, even in early stages.
from Foodservice http://bit.ly/2Sbz0S9
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