Part 4/8:
Despite the allure of creating delicious products, the financial aspect of food manufacturing is complex. Larger corporations like Unilever and Mars benefit from economies of scale, making it tough for smaller players to compete. Costs for raw ingredients fluctuate, making pricing volatile. Moreover, packaging can sometimes costs more than the ice cream itself, leading to potential cash flow issues.
Investments in machinery and automation are a necessity, but they can drain resources. For instance, basic stainless-steel machines needed for operations can quickly add up, and entrepreneurs are often taken aback by the cumulative costs of both machinery and raw materials.