Love food? How to turn it into a business

The food industry has become a delicious inspiration to entrepreneurs.

Food start-ups are attracting significant cash from venture capitalists. Food technology businesses — such as grocery-delivery app Instacart, monthly snack subscription service NatureBox and meal-prep company Blue Apron — raised more than $1 billion in 2014, according to CB Insights.

Funding in food and beverage, food tech and restaurant start-ups grew 378% in the last two years, according to CB Insights, primarily because the food industry represents the opportunity for huge scale, and technology has made it easier for companies like Blue Apron and Munchery to offer consumers high-quality food at lower prices, says Mike Dempsey, research analyst with CB Insights.

And because food is a near-constant need and consumers are increasingly attached to smartphones, Dempsey says investment will only continue to build — 2015 is already on track to surpass 2014 in venture capital investment.

Looking to attract some of those dollars? USA TODAY talked to accomplished food entrepreneurs about how to get started, their biggest mistakes and what you need to make it in the industry.

Talk about your idea

Start figuring out just how plausible your idea is by talking about it with other entrepreneurs, says Amanda Hesser, co-founder and CEO of Food52, which launched in 2009 as an online community for home cooks. It won a James Beard Award for Publication of the Year in 2012.

"People will ask you questions that you haven't thought to ask yourself," she says. "And it starts the process of breaking down the idea into its parts so you can rebuild it as an actual viable company."

Then...

Look outside your friends for input

It may be an entrepreneurial rite of passage to start a company in your dorm/garage/basement with your best friend/roommate, but there is such a thing as relying on those closest to you too long.

One of the biggest mistakes entrepreneurs make is often talent-related, says Josh Wand, founder of Force Brands, whose two offshoots, BevForce and FoodForce, help food and beverage start-ups recruit employees.

Entrepreneurs need to be "disciplined enough to know your limitations and when to bring on the right people with the expertise to really help you scale," Wand says.

The same applies when you're looking for feedback on your product, says Mark Ramadan, co-founder and CEO of gourmet condiment company Sir Kensington's, launched in 2010.

Your product needs to appeal to the masses, not just your brother and your girlfriend. Ramadan says one of the biggest mistakes his company made was failing to listen to a broad enough group of people about Sir Kensington's sauces. It wasn't until two years in, when Sir Kensington's ketchup started being rejected by diners at restaurants, that Ramadan says they realized they needed to tweak the recipe.

"One big lesson that we learned was your best friends and your closest allies are not going to be the ones who tell you the truth," he says. "Being willing to listen to people who you may not know or don't like, to take that harsh feedback ... and also to just take the time that it takes to rework your baby, that's hard. Our biggest mistake was not doing that sooner."

Have tough conversations early on

Ultimately, while it may not feel like it in the beginning, you're running a business. That means dealing with employees, contracts, hiring, firing and other necessary logistics. It's imperative to set parameters and rules early, says Danielle Gould, founder and CEO of Food+Tech Connect, a website and networking tool focused on innovation in the food industry that she started as a blog in 2010.

"One of the biggest mistakes that I made was being a little bit too shy and not being upfront with some of the people I brought into the business about what the expectations were," she says. Make agreements with your early business partners and employees in writing, even if it feels awkwardly formal, she says.

"You can get yourself in a situation where if it's not laid out crystal clear, it leaves a lot of ambiguity," she says.

Changing food culture takes time

Food habits are ingrained in consumers over years, and purchasing decisions don't change easily. If you want to be in the food industry, you need to have patience.

"When you're creating food and beverage brands, it takes awhile for consumers to become accustomed to buying it and eating it every day," Wand says.

Ramadan was trying to change a more than century-old business dominated by a few well-known brands when he started peddling all-natural versions of classic condiments like mayo and mustard.

"It takes thick skin and patience," he says. "Technology can be adopted very quickly. But people have been buying these mainstream condiment brands ... for 100 years."

You better love food

Above all, you need to love food. A passion for making a difference in the way people eat will take your company much further, Hesser says.

"The successes you see tend to be companies founded by people who have a real passion for food or how food is made or where our food is sourced," she says.

The food industry is also an extremely customer-focused business — you need to build trust if you want to build a customer base willing to make your product part of their daily diet.

Food entrepreneurs need "a desire to connect with consumers on such an emotional level because there's such an attachment to products that you actually have to put in your body," Wand says.

Follow USA TODAY reporter Hadley Malcolm on Twitter @hadleypdxdc.