Often, people don’t start food businesses thinking about how they are going to finance what they do or the returns they will get. Big food companies are excited if they earn 5% net income per year. If you don’t love what you are doing, don’t do it!
Most entrepreneurs need help putting together their financing requests, including documenting everything and putting together the best sources of capital for their particular business model. A business model, not a product, determines whether a food or beverage company makes money. If the entrepreneur has a business model that can work, people will look at their documentation and plan and get how the business going to make money and give it to them.
There are different kinds of money that you should use for different things. Debt and Equity both have different cash flow, governance and other implications/obligations. Often, entrepreneurs need multiple sources of money to properly finance their business, and they will be raising money serially i.e. again and again at multiple stages of their business. It becomes a part of what they do and they need help doing it.
