Six simple ways to avoid being doomed in the produce business

A produce associate commented to me, “Our company is taking it on the chin with heavy profit losses. We’re actually on the verge of closing down. Our top executive blames us for the results, yet he was ignoring staff information related to new threatening market trends that he claimed would not develop. Now we’re just a business failure waiting to happen.” 

This is just one example of how some companies are spinning downward and headed for the doom pit. This is forcing struggling companies in the food industry to take drastic measures to cut back on operational costs. 

Businesses fail for many reasons. Most of the failures could have been prevented before the company went down the tubes. There is absolutely no reason to allow the more efficient companies to take over the business of those that were once most successful. 

There is a certain fear factor in workers today that a weakening company could possibly fail at any moment. Truly, it could happen if management teams wander onto the road of complacency. 

Here are six simple ways to avoid being doomed in the produce business. 

(Apply each factor that may pertain to your company whether you are a grower, packer, shipper, distributor, or a retailer.)

Don’t become stagnant — We deal with change and uncertainty every day. Trends change overnight. People, lifestyles, and shopping habits change. Nothing stays the same these days. If your company gets stuck in the same growing, packing, shipping, buying, warehousing, or retail habits, it won’t be around for too much longer. 

Be a creative trailblazer — Keep pace with the consumers and their newer shopping behaviors. Invent better ideas of change.  Give your company the recognition for being a “go-getter.” Whether it’s new packaging, convenient product line, labor-saving method, better merchandising style; keep your company moving forward into anything that is different. People are immediately interested in anything new. 

Control that shrink waste — The perishable nature of fresh fruits and vegetables involves some degree of waste. It happens, but it doesn’t have to be made worse. If you are a top executive or company owner, have you looked at your company shrink waste lately? I don’t mean just on paper. Have you physically looked at the product going in the tank? You should see the real world. A penny here and a penny there could be your survival ticket.

Invest in people — Many companies spend money foolishly. Primary spending should be invested in people, not fancy meetings, and golf outings. Good people make a company successful, so do all you can to keep good workers. Take time to constantly  train them. The better they become, the more the company will prosper.

Don’t disregard competition — Becoming overly contented because your company has always been triumphant could make it a serious candidate for failure. Any one of your competitors could easily attract your customers over to their side. Good operating competitors keep getting better. Keep both eyes on your customer base. You just can’t keep relying on customer loyalty. 

Get out into the action — Company executives should regularly get out from behind the office desk and get out to see how the business is running. Check out the growing fields, packing facilities, warehouses, shipping, trucks, and especially retail stores. Managing the numbers and meetings are important, but it’s not the whole game. Get out and motivate your workers.

There is more that can be added to this list, but it’s a start. Prevent your company from becoming doomed. Don’t become complacent by operating the same old way while others move forward into a different age with consumers.

What do you think? Write to me at ronprocon@gmail.com