Should a buisness be in Food tourism

When the rate of change outside of your business is quicker than the rate of change inside your business, you have a short-lived business Jack Welch, CEO, General Electric, USA As food tourism is a growth sector of many economies around the world, should every rural food-based producer consider moving into the sector? The answer is a definite no. Businesses in tourism have a different focus to those that are purely in production and the skills to develop a tourist-focused business are completely different.
A business should move into the tourism sector because it can see the opportunities, not out of desperation because what they are doing now is not working and they think more profits will be generated by simply changing the business model. Often the decision depends on where the business is on the sigmoid curve. The sigmoid curve is a mathematical formula that applies to life cycles in businesses. Every business is situated somewhere on the sigmoid curve and an astute business knows where it is on the curve. The sigmoid curve represents the lifespan of the business; it is not based on the number of years in business. In the beginning, a new business tends to start slowly through learning and experimenting. Once a business model has the correct formula it progresses and prospers and grows stronger. Moving up the sigmoid curve, at some point a business hits the high water mark or ceiling and then, unless it reinvents itself, it starts declining. As mentioned, the lifespan of a business is not based on years; the time line alters with each business model. Entrepreneurs develop businesses in the lower half of the upward swing of the curve, whilst many businesses that fail, leave it too late in the curve before they try to reinvent themselves. A business should venture into culinary tourism because the passion is there, not because the business is failing and an alternative has to be found. Many growers and farmers have ventured into food tourism; some have prospered while others have failed. Farming is an industry that relies on the seasons and it is also a ‘non-people’ profession. Farmers often work all day without seeing another person. In workshops we have held we have observed that farmers’ motivational needs are often driven by ‘achievement’ rather than ‘friendship’. Food tourism is a ‘now’ industry in the sense that the consumer is in front of a business representative and wants instant gratification. Plus, our farming clients involved in tourism often tell us there is ongoing people pressure. If you do not like dealing with the public, then culinary tourism may not be the right business model for you. The key to success is to work ‘on’ a business plan and not ‘in’ the business. Many businesses fail to work because the owner fails to plan. Food tourism is a fun sector to be in, but it is still business and a business plan is essential. Before starting any business the following questions should be asked: • Are you a self-starter? • Can you start and follow through on what will be a long project? • Can you accept responsibility? • Are you prepared to work long hours, 7 days a week? • Are you in sound health? • Is there a replacement procedure if you are taken sick? • Are you a natural leader? • Are you an organizer? • Are you a logical thinker? • Can you easily work with others and the public?
Can you compromise? • Are you a good listener? • Have you a background in food tourism? • Can you cope in a crisis? • Do you have the knowledge to start a business? If the answer is no to any of the above questions you should seriously ask yourself if you want to venture into food tourism. Many businesses fail because of the management team’s attitude rather than what they produce. There are many books written on business planning and we recommend you read these and carry out the necessary research prior to developing a food tourism business. It is essential that a business plan be prepared before you venture into the business. Questions that need to be asked include the following