• Home
  • Blog & News
  • Turning a sweet start into a smart start: Making money from honey with your start up business
Turning a sweet start into a smart start Making money from honey with your start up business

Turning a sweet start into a smart start: Making money from honey with your start up business

What happens when your small side business suddenly shows a whole bunch of potential? How do you turn a hobby into the startup business of your dreams? On The Money Show with Bruce Whitfield, Pavlo Phitidis chats to the founder of Honey & Co, who is facing this unique set of circumstances in their business journey and outlines the all-important questions you need to ask of yourself:

Why did you start?

Assessing your startup business, before you scale up, starts with remembering why you started in the first place. Ask yourself if you started this side business out of necessity, because a specific opportunity arose, or did you fall into it somewhat mistakenly? Similarly, ask yourself how suited you are the business – are you the technical whizz kid, the administrative professional, or excellent at making those sales? Answering these questions will help you to define where you intend this business to go, and decide whether you should, indeed, say yes to the big deal that’s come your way.

How did you start?

The genesis of your startup business comes from one of two places: You either came across a product that excited you, or you discovered a customer base that needed a problem solved. For Honey & Co, their gap in the market appeared when synthetic honey products flooded the South African chain stores. Honey & Co’s differentiating factor is that it produces pure, unpasteurized and natural honey, free of added sugars and synthetic substances.

How do you do what you do?

When the big deal lands for your startup business, there’s one thing you can’t compromise on – and that’s your product quality. To quickly expand your business, you’ll need to ensure that you’re equipped to supply, deliver, and live up to the demands of the deal. If you need to outsource your product manufacturing, how will that affect your product quality standards, and impact your ability to deliver on time? For Honey & Co, the quality of their product is closely linked to their reputation and the brand experience they offer is what’s made a potential big deal appear on their doorstep.

How did you get the deal & what’s the agenda?

Understanding how this deal landed on your doorstep, and what’s in it for each party is vital, and could help you make a firm decision on whether to pursue it or not. Build a relationship with your potential big client, so that you can understand their agenda and the benefits for each of you.

How can you negotiate the deal to let you build safely?

Slowly building your startup business may not feel like an option when you’re faced with the lucrative big deal, but it remains vital for ensuring the longevity of your business. Work with your customer to better understand their demands, and regulate your supply in a measured way, as you build up your internal capacity. Understanding your working capital cycle, and all the pressures that go with that, is key to being able to build a business that’s not only equipped to serve the needs of this customer but the proceeding customers too. If your customer seems to be demanding too much of you, too quickly, that big deal that’s landed in your lap may not be all it’s promised to be.

How do you fund the deal?

Finding the capital to finance your startup business’ expansion can get tricky. Consider your working capital cycle and find ways to finance your business by re-investing your profits, cutting back on your debts, and holding on to other securities that may help you finance your operations. If possible, look for ways you can partner with suppliers and customers to offer them profit margin returns, until you’ve built enough momentum to attract a potential funder. Once you’ve been able to prove your business expansion plan is working, you’ll be equipped to approach a funder, backed by evidence that you’re not a fly-by-night operation, are able to fulfil orders, and have customers on tap, who want what you’re selling.

How do you scale?

A business grows in the same way a human does – slowly, and in phases – nobody walks and graduates from University within the first week of their life, and your business can’t grow that quickly either. Recognizing where you are in your startup business development cycle will help you to act, and do the right thing, at the right time. Rather than jumping into the big deal straight away, start with a smaller-scale project, and build your business’ muscle to ensure you’ll be equipped to match up with bigger demands.

How do you compete?

Of course, as your startup business grows, you’ll soon attract the attention of competitors. It’s at that point that you’ll need to begin broadening your brand and operating ethos while scaling up. For Honey & Co, who focus primarily on producing natural honey, it may be an opportunity to work more closely with local communities and farmers, get involved in relevant marketing campaigns, and showcase their support for environmental programmes.

Don’t let the big deal take you by surprise. Chat to Aurik, and we’ll help you build your business into an asset of value.

Image source: https://bit.ly/2J7piuG

Tags: Business Opportunities, The Money Show, Start Up

Why waiting to act becomes the only act and how to ‘snap’ the bad habit
Asset of Value

Why waiting to act becomes the only act and how to ‘snap’ the bad habit

With the South African elections now come and gone, it feels like we have passed a milestone that we were all holding our...

Read more

Winning mindsets turning thought into action and action into results
Building your Business Business Growth

Winning mindsets turning thought into action and action into results

The distinguishing feature between business owners who crack it and those who drift along, and fail… is mindset.

Read more

How to structure the offer of a Management Buy Out
Business Succession Succession planning

How to structure the offer of a Management Buy Out

A hardworking, smart professional presented me with a scenario on an offer she had received to conclude a management buy-out. She...

Read more

Position your business for success and maximum impact
Positioning your Business Business Growth

Position your business for success and maximum impact

Wing Chun Kung Fu, a style of martial arts, requires that you have a secure footing on the ground in all its defensive and...

Read more

Building a business is like sailing a ship
Asset of Value Building your Business

Building a business is like sailing a ship

Analogies are very useful to simplify thinking and action. As a #businessowner, building a #business in a challenging environment...

Read more

What’s your business worth?
Business Growth

What’s your business worth?

Firstly, this only matters for 5.4% of all #businessowners since 94.6% of all business started fail to sell. They close at...

Read more

Creating wealth through your business
Business Growth Wealth Creation

Creating wealth through your business

Wealth describes an abundance of a desirable thing. It could be friendship, love, money, access to a foodstuff and so on....

Read more

Developing an effective marketing strategy
Business Growth Marketing strategy

Developing an effective marketing strategy

If you can’t and don’t get potential customers to know that you exist, they don’t care and you die. They don’t care because...

Read more

Build resilience into your business to take control of your future
Business Growth Strategic Planning

Build resilience into your business to take control of your future

We often hear about being resilient to thrive and survive in business today. Why does this matter and what does it mean?

Read more

Escaping the project revenue trap and why you should do it
Building your Business

Escaping the project revenue trap and why you should do it

Recently, at an Asset of Value event in Johannesburg, South Africa, a room bristling with 58 business owners that collectively...

Read more

What is your business building approach to 2019: Chose one of 3 strategies
The Money Show Business Strategy

What is your business building approach to 2019: Chose one of 3 strategies

2018 has been an exhausting year. Taking time off is important, so long as you don’t break the momentum of your business....

Read more

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures
The Money Show

How to Deal with Nightmare Partnerships, Collaborations & Joint Ventures

Collaboration is a key element for building your business into a successful Asset of Value. But, not every joint venture...

Read more

Why Collaboration is a Critical Skill for Every Business Owner
The Money Show Building your Business

Why Collaboration is a Critical Skill for Every Business Owner

We’ve entered the age of collaboration. Despite current events, like BREXIT, that showcase the opposite, collaboration remains...

Read more

Foresight and action can turn the potential sales you book in 2018 a certainty in 2019
The Money Show Sales

Foresight and action can turn the potential sales you book in 2018 a certainty in 2019

You’re winding down towards the end of 2018, and preparing to lock and load the early sales for 2019. If you’re not in this...

Read more

Turn 2018’s Exhaustion into 2019’s Business Acceleration
The Money Show Business Growth

Turn 2018’s Exhaustion into 2019’s Business Acceleration

Year-end fatigue is setting in - 2018 has been a tough year emotionally, economically, and physically. But that’s not much...

Read more

Building a Branch Network for Your Business
The Money Show Asset of Value Business Growth

Building a Branch Network for Your Business

Building a branch network for your business is still relevant and appropriate, despite the exponential growth opportunities...

Read more

Growing Revenues through Indirect Sales Channels
The Money Show Business Growth Sales channels

Growing Revenues through Indirect Sales Channels

Effectively growing your business revenue needs a lot more than just a regular sales effort. Developing and implementing...

Read more

Entering, Surviving, and Thriving, in a New Industry Created by New Technologies
The Money Show Business Growth Strategic Planning

Entering, Surviving, and Thriving, in a New Industry Created by New Technologies

We’re in the midst of the 4th industrial revolution, with many new technologies quickly entering the business environment....

Read more

Business Funding: How to Self-Fund your Business through its Lifecycle
The Money Show Business funding

Business Funding: How to Self-Fund your Business through its Lifecycle

Business owners and entrepreneurs often express the difficulty of accessing business funding as a key challenge. And yet,...

Read more

Building a business with confidence amidst uncertainty
The Money Show Business Growth Business owner

Building a business with confidence amidst uncertainty

A constantly changing business environment demands that business owners develop new skills to ensure business growth. Recently,...

Read more

Choose your Business Growth Rate and Build your Business Towards It
The Money Show Business Growth

Choose your Business Growth Rate and Build your Business Towards It

We may be living in a negative economic cycle right now, but it’s up to you to decide what your business growth rate should...

Read more

How to Build your Business & Capitalise on a Seemingly Negative Business Environment
The Money Show Building your Business

How to Build your Business & Capitalise on a Seemingly Negative Business Environment

The reality of a recession is sinking in, and it seems the echo chamber of negativity is overwhelming. South Africa’s business...

Read more

How to build a resilient business in a technical recession
Building your Business

How to build a resilient business in a technical recession

Our economy is in the midst of a technical recession and business owners are wondering how to weather this economic storm....

Read more

Marketing for Business Growth: Keeping your Customer Acquisition Cost in check
The Money Show Business Growth

Marketing for Business Growth: Keeping your Customer Acquisition Cost in check

You’re not alone. It’s becoming more and more difficult to generate leads, turn those into customers, and grow your revenue....

Read more