Business Idea

Start A Food Donation

About

Starting a food donation requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell food donation services, or selling food donation services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$410B
starting costs
$22.5K
gross margin
90%
time to build
9 months

About

Starting a food donation requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell food donation services, or selling food donation services online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$410B
starting costs
$22.5K

 

gross margin
90%
time to build
9 months

Startup Costs

Min Startup Costs Max Startup Costs
Employee & Freelancer Expenses $151 $252
Equipment & Supply Expenses $500 $5,000
Website Costs $303 $7,015
Business Formation Fees $600 $4,700
Vehicle Expenses $0 $10,000
Retail Business Expenses $1,250 $6,650
Advertising & Marketing Costs $75 $3,986
Software Expenses $162 $2,720
Other Expenses $0 $800
Office Space Expenses $50 $100
Specific Industry Expenses $0 $500

Successful Businesses

Business URL Rank
GreaterGood greatergood.com #9,108
Feeding India by Zomato feedingindia.org #263,795
Food for the Hungry fh.org #435,935
Greater Chicago Food Depository chicagosfoodbank.org #502,065
Houston Food Bank houstonfoodbank.org #527,037
Food Bank of Contra Costa and Solano foodbankccs.org #563,663
Second Harvest shfb.org #564,632
Atlanta Community Food Bank acfb.org #638,140
The Greater Boston Food Bank gbfb.org #773,533
Alameda County Community Food Bank accfb.org #969,032
San Antonio Food Bank safoodbank.org #980,047

Pros & Cons

Pros Description
Little startup costs required The cost to start a food donation costs significantly less money than most businesses, ranging anywhere from 3,091 to 41,723.
Rewarding work Starting a food donation can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Pick & choose the clients you work with Food Donationes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!
Control of workload With starting a food donation, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Gain exposure and experience This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A food donation can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a food donation, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a food donation, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Taxes As a food donation, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net Typically, as a food donation, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.