Roast my product idea against the CENTS framework

[darkomind]

Hi everyone,

The aim of this post is to learn from your replies.

I'm new on the forum and new on the Fastlane. Having zero experience with entrepreneurship, I decided to just start somewhere and base my business on a product I am familiar with: A dessert from my country of origin, based on the recipe I 'inherited' from my grandma.

My observations:

• This dessert is popular where I live. It's served in restaurants and sold in supermarkets, in packaged trays or single portions.
• The supermarket quality, and often the bar/restaurant quality, is way lower than what I can make. It's just too sweet, bland, and soggy. Many people from my country that moved here (Netherlands) agree with me.
• The few lucky friends that tried it in the past few years said I should sell it. This sparked the idea of actually makiung it the base of my business.

My doubts:

• Am I making the mistake of following my passion (cooking)?
• Does this product fulfill a need. Is this product really cutting edge compared to the competition, or am I just biased?
• I wonder if I should pursue a digital product instead. More margin, easier to replicate, less expenses (I just read the @uhhfeef tread about coding using GPT4).
• I foresee the shelf life being quite short, as the product contains pasteurized eggs and dairy. This is a problem that can be solved. I just fear it'll require adding preservatives and other crap to it.

How I see my product against the CENTS framework (Please correct me if I'm wrong):

• Control: My aim is to diversify my options for suppliers and distributors, in addition to having my own website. I don't see how and why I should largely depend on third parties.
• Entry: Many people can make this dessert. Few people are making it this good. Fewer are willing to push through all the norms and regulations to commercialize food.
• Need: People don't need this product. It doesn't solve a problem per se. What I'm based on is that it's so much better than what I find around.
• Time: Unsure about this. I will be the only one making it until I can scale and have copackers cooking it for me. Does this mean it is independent of my time? I could be sleeping or be at the gym while someone places an order or buys it from a restaurant I sell to, so maybe yes.
• Scale: is possible via a co-packer, just like Jeff and Sam did. This will allow me to stop the cooking and working on managing the production and distribution.

I'd love to hear from more expert Fastlane entrepreneurs if this idea has what it takes to make me successful. If not, whether I should drop the idea completely or make some specific considerations.

 

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[Zontora]

It sounds like a good experiment, I suggest you try it. However you should consider the risk of employing people, will that remove problems or add add problems? Will you find good workers? I wish you good luck

 

[StrikingViper69]

Read MJs book The Great Rat Race Escape , he lays out some key ideas for this type of business and gives a few industry insights you’ll find useful, and I’m sure after reading it you’ll know exactly what you need to do next.

 

[MJ DeMarco]

I created a personal ChatGPT assistant that has learned my CENTS Framework and grades ideas, much like GradeMyBusinessIdea.com -- here is what it said...


I'd like to create a popular dessert product in the Netherlands, is this a good idea?

Wealth Analyzer MJ

Creating a popular dessert product in the Netherlands sounds like a promising business venture. Let's break it down using MJ DeMarco's CENTS framework to assess its potential:

1. Control: In the food industry, control can be a bit tricky due to reliance on suppliers, distributors, and possibly regulatory bodies. However, owning the brand and recipe gives you a significant level of control over the product.
2. Entry: The barrier to entry in the food industry can vary. If you're creating something unique or with a special twist, this could raise the barrier and set you apart. However, remember that the food industry is competitive and requires adherence to strict health and safety regulations.
3. Need: The success in this area depends on whether your dessert fulfills a specific need or desire in the market. Is there a gap for a new kind of dessert in the Netherlands? Are you offering something different, like a healthier option or a unique flavor that isn't currently available?
4. Time: Initially, this business might require a significant investment of time, especially in product development, testing, and establishing sales channels. However, over time, you could automate production and distribution to reduce your time investment.
5. Scale: The food industry has good scalability potential, especially if your product becomes popular. You can expand through online sales, distribution to retailers, or even franchising.

In terms of being a "Fastlane" business, it has the potential if the product becomes a hit and you can scale it up effectively. It could also form a "Productocracy" if the dessert is exceptionally good and drives organic growth through word-of-mouth.

Here are four actionable steps to begin executing this idea:

1. Market Research: Understand Dutch dessert preferences, identify gaps in the market, and analyze your competition.
2. Product Development: Develop a unique and appealing dessert. Consider taste tests and feedback loops to refine the product.
3. Regulatory Compliance: Ensure your product meets all food safety and regulatory requirements in the Netherlands.
4. Distribution and Marketing: Develop a strategy for getting your product to market, whether through local shops, online sales, or other channels. Focus on strong branding and marketing to make your product known.

Overall, I would rate this business idea as a "B+" in the CENTS framework. The food industry is competitive, but with a unique, high-quality product and a solid business strategy, there's a good potential for success. Remember, execution and continuous innovation are key.

 

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[Kung Fu Steve]

Sounds like a decent idea to me.

Can you go do some tests with some local restaurants and get purchase orders before putting a lot of time/effort into it? Make up a couple batches and go knock on some doors.

EDIT:

I was just thinking. We have a chain of restaurants in the US called The Cheesecake Factory. They have a full menu but they also have a large focus on cheesecake (obviously).

I'm not sure exactly when this happened (maybe during covid) but they started delivering custom cheesecakes to other local restaurants in the area for their own menu.

They wholesale cheesecake desserts to a dozen other restaurants in the area. Brilliant in my mind.

 

[AppleTree]

I think that you shouldn't just switch to a digital product just because it has a lower barrier of entry. Digital products are quite competitive and need a lot of marketing on your end.

Your food product on the other hand definitely looks more promising. Have you considered attending a food show?

 

[Kak]

Forget coding. There are a lot of food billionaires out out there. The world is full of companies doing well from food.

We just got a Crumbl cookie down the street. Maybe an interesting case study. The story behind Crumbl Cookies’ sweet success

Each location, and they have 400, does $1.7 million a year.

They're just really good cookies very well marketed and distributed.

 

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[amp0193]

Sounds very similar to guys I know that started this business: Crispy Cones

Frozen treats from the Czech Republic. Franchise restaurant model.

So yes, fastlane potential here if you can execute.

 

[darkomind]

Thank you all for your replies! I love how active and helpful this community is, I guess it's a byproduct of having a common goal.

I'll tackle them one by one:

It sounds like a good experiment, I suggest you try it. However you should consider the risk of employing people, will that remove problems or add add problems? Will you find good workers? I wish you good luck

Yes, I'll definitely try it. My favorite part of the fastlane is that as long as I don't give up, I'm in the game. There are many problems ahead but solving them isn't impossible. I just need to wear the problemologist hat. In some cases I will need to employ people, at least for mentorship (like Jeff and Sam in The Great Rat Race Escape did with a food scientist). I will employ only if the problems solved with employing outweigh the problems caused by it.

Sounds like a decent idea to me.

Can you go do some tests with some local restaurants and get purchase orders before putting a lot of time/effort into it? Make up a couple batches and go knock on some doors...

I'll look into the story of the Cheesecake Factory, thanks for editing your post to mention it. Your comment made me rethink the strategy to get started. I was focusing too much on making batches to give out for free to friends and colleagues. I better put that money into getting unbiased feedback from bars and restaurant staff. If I get purchase orders, It'll make sense to invest time and money into HACCP certifications and other legal permits to sell, including registering my company at theChamber of Commerce etc.

Forget coding. There are a lot of food billionaires out out there. The world is full of companies doing well from food.

We just got a Crumbl cookie down the street. Maybe an interesting case study. The story behind Crumbl Cookies’ sweet success

Each location, and they have 400, does $1.7 million a year.

They're just really good cookies very well marketed and distributed.

Sounds very similar to guys I know that started this business: Crispy Cones

Frozen treats from the Czech Republic. Franchise restaurant model.

So yes, fastlane potential here if you can execute.

So simple yet so good, thanks both for sharing the case studies. Building something like that is the dream. If they made it, why can't I?

I think that you shouldn't just switch to a digital product just because it has a lower barrier of entry. Digital products are quite competitive and need a lot of marketing on your end.

Your food product on the other hand definitely looks more promising. Have you considered attending a food show?

Thank you for your feedback! I must arrange all the legal stuff before I can attend a food show, but I'll definitely add that to my plan.

My food product something that's conceptually ready (I am proficient in making it) as opposed as having to think about a digital product.

 

[darkomind]

Read MJs book The Great Rat Race Escape , he lays out some key ideas for this type of business and gives a few industry insights you’ll find useful, and I’m sure after reading it you’ll know exactly what you need to do next.

Read that! I started thinking about which of my signature dishes I could start selling after reading about Jeff and Sam's soups. I also got to know about the concepts of co-packer and food scientist.

I created a personal ChatGPT assistant that has learned my CENTS Framework and grades ideas, much like GradeMyBusinessIdea.com -- here is what it said...


I'd like to create a popular dessert product in the Netherlands, is this a good idea?

Wealth Analyzer MJ

Creating a popular dessert product in the Netherlands sounds like a promising business venture. Let's break it down using MJ DeMarco's CENTS framework to assess its potential:

1. Control: In the food industry, control can be a bit tricky due to reliance on suppliers, distributors, and possibly regulatory bodies. However, owning the brand and recipe gives you a significant level of control over the product.
2. Entry: The barrier to entry in the food industry can vary. If you're creating something unique or with a special twist, this could raise the barrier and set you apart. However, remember that the food industry is competitive and requires adherence to strict health and safety regulations.
3. Need: The success in this area depends on whether your dessert fulfills a specific need or desire in the market. Is there a gap for a new kind of dessert in the Netherlands? Are you offering something different, like a healthier option or a unique flavor that isn't currently available?
4. Time: Initially, this business might require a significant investment of time, especially in product development, testing, and establishing sales channels. However, over time, you could automate production and distribution to reduce your time investment.
5. Scale: The food industry has good scalability potential, especially if your product becomes popular. You can expand through online sales, distribution to retailers, or even franchising.

In terms of being a "Fastlane" business, it has the potential if the product becomes a hit and you can scale it up effectively. It could also form a "Productocracy" if the dessert is exceptionally good and drives organic growth through word-of-mouth.

Here are four actionable steps to begin executing this idea:

1. Market Research: Understand Dutch dessert preferences, identify gaps in the market, and analyze your competition.
2. Product Development: Develop a unique and appealing dessert. Consider taste tests and feedback loops to refine the product.
3. Regulatory Compliance: Ensure your product meets all food safety and regulatory requirements in the Netherlands.
4. Distribution and Marketing: Develop a strategy for getting your product to market, whether through local shops, online sales, or other channels. Focus on strong branding and marketing to make your product known.

Overall, I would rate this business idea as a "B+" in the CENTS framework. The food industry is competitive, but with a unique, high-quality product and a solid business strategy, there's a good potential for success. Remember, execution and continuous innovation are key.

Thank you, MJ! Cool customGPT you built here. The goal is definitely to build a Productocracy based on a delicious product customers recommend their friends.

A rating of B+ is enough to motivate me to continue. I must keep quality high using great ingredients to have a chance.

 

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