How to Start a Granola Baking Business

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If you're targeting gourmets, make your packaging as interesting as the recipe.

Granola helped lead the nation's natural food revolution in the 1970s, providing a trendy, healthy alternative to toast and eggs. Simple recipes of oats, dried fruit and nuts grew more elaborate as gourmet varieties took their places beside big-name cereal brands on grocery shelves. If your granola recipe has turned you into a Pied Piper of taste with a loyal following, it's time to take your secret (or not so secret) recipe public, so the world can also enjoy your granola.

Things You'll Need

  • Business plan
  • Start-up funds
  • Marketing plan
  • Logo
  • Packaging
  • Warehouse
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Instructions

    • 1

      Write a business plan. Include goals, objectives, a budget and marketing strategies. Undertake a competitive analysis so you know your competition before you launch your product line. Once your business plan and budget are formulated, apply for a business loan with a local bank or venture capitalist to acquire start-up funds.

    • 2

      Rent a kitchen, if your plan is to make batches of granola yourself and you lack equipment or room. An alternative is subcontracting your recipe to a commercial kitchen and paying bakers to produce your recipe; however, it will cost more when you are just starting out. Locate local food suppliers capable of supplying bulk quantities of all ingredients.

    • 3

      Develop packaging, marketing and promotional plans. You will also need a clever name for your granola product, a logo and an attention-getting package design. Turn to your market for inspiration. Poly bags with header cards are adequate for large-store distribution, but you'll need a more luxurious package if you hope to compete with high-end granolas on food boutique shelves.

    • 4

      Draft a list of marketing strategies that will introduce the public to your granola brand. Consider coupons, sampling, on-package premiums (e.g., your logo on cereal spoons), a newsletter and other innovative ideas. Appeal to the health- and weight-conscious or market to families looking to make sure their kids get a nutritious breakfast.

    • 5

      Set up a warehouse big enough to efficiently inventory your products. Use your granola's shelf life to estimate how much you can warehouse to avoid spoilage issues. If your recipe includes no preservatives, you will be on a tight schedule to make, box and distribute.

    • 6

      Hire a sales force or make sales calls yourself to introduce your product. Bring along samples. Prepare to talk about production quantities and delivery parameters so prospective buyers feel confident of reliable delivery. Arrange for transportation to get granola orders to stores. Stay apprised of the breakfast food industry as you open new markets for your brand or try new formulas or spin-off products like granola bars.

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References

  • Photo Credit Jupiterimages/Brand X Pictures/Getty Images

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