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RED Business Ideas
MEMOs (Micro Enterprise Model Opportunities) are simply fabulous ideas for starting up an enterprise. The site contains over 100 great enterprise ideas! Each Memo takes a small business idea and shows our users how to establish and run that business.
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An example of a RED MEMO - Fruit & Nut Packaging
The following information is taken from the RED MEMO, Fruit & Nut Packaging. It introduces the requirements of the business and provides helpful information that you may previously have not considered.
Wholefoods Packaging
- 1) The Big Idea
- 2) The Ethical Edge
- 3) How it Works
- 4) Equipment and Premises
- 5) Customers, Competition and Marketing
- 6) Estimated Start up Costs and Finances
- 7) Legislation, Training and Responsibilities
- 8) Further Information
| Capital Start Up Costs | £350 |
| Sales Units | 50g bag |
| Recommended Retail Price | £1.75 |
| Break Even Point | 71 Units Per Week |
| Key Markets | Retail, Local Markets |
| Jobs Created | 2 - 4 |
| Grade | N/A |
The Big Idea
This business takes advantage of increasing public desire for healthy snacks. It involves purchasing wholefood dried fruit and nuts, repackaging them into smaller bags and selling the smaller packets to retail outlets.
The Ethical Edge
There are number of different opportunities created by this enterprise. This enterprise is also able to cater for participants with a wide ranging set of needs.
Jobs are likely to include:
- Rough Weighing
- Exact Weighing
- Sealing
- Labelling
How it Works
This enterprise is comparatively easy to operate. Stock is bought wholesale from suppliers. Once you have purchased your foods stock it is weighed then packaged into smaller bags, these bags are then labelled and sold onto retail markets. Your most likely retail outlets will be local corner shops or health food shops. However, it may also be advisable to contact canteens in schools, care homes and hospital as it is likely they will have specific requirement for healthy foods. Your mark up should run at about 40%. (For more assistance with pricing your goods, please see the members resources available on our website.)
Equipment and Premises
No specialists premises are required to operate this business. However, you will need to ensure that you have adequate operations and storage space and that the building is fit for purpose.
Some specialist equipment is needed, particularly in relation to the packaging side of the operation, firstly you will require scales to way out your products. Secondly you will also require a programmable label marker so that your products can be identified. (COPE has used a combined set of scales and label printer effectively for number of years.) It will be also be necessary to purchase a sealer for you plastic packaging, this will ensure that your products stay fresh and can be easily shipped.
Customers, Competition and Marketing
The snack market is a mulit-million pound industry and is incredibly competitive. It is therefore unlikely that you will be able to get your goods onto supermarket shelves.
You should instead focus on supplying local retailers such as health food shops. Schools, hospitals and other public buildings with a health agenda may also show interest in your products and it may be wise to approach them to establish another route to market.
You can of course sell your products directly to the consumer. One of the easiest ways to achieve this is to open a stall at your local market. Not only will this give you an opportunity to sell face to face, it will also provide a chance to hear consumer feedback. Markets can also prove to be a valuable marketing tool for generating a ‘word of mouth’ buzz about your products. Give flyers out with every product and other consumers highlighting your product range and where they can be purchased. Use every opportunity to sell the benefits of your business.
You may also wish to approach a local newspaper to run a feature on your business highlighting its social attributes.
Whichever marketing strategy you decide upon, you must focus on one that takes full advantage of the benefits of your product and your own characteristics.
