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Like other businesses, a home-based food business requires a lot of research and planning to start.
Like other businesses, a home-based food business requires a lot of research and planning to start. However, you will require additional permits, inspections and marketing strategies before being allowed to make a sale.
Below are some things to consider when starting a food business from home.
Choose your niche
Decide what kind of food you want to sell and how. A variety of food-related business options include catering, meal delivery services and baked goods.
You can focus on specific niche markets, such as catering weddings, meal delivery for new moms or baked goods sold through local coffee shops or stores.
Conduct market research
It is very important that you do your research before starting your at home food business as the food industry is very competitive.
Go to business networking events such as those run by the Small Business Development Centers, SCORE, and your local Chambers of Commerce.
This gives you a great opportunity to pick the brains of local business people in the food industry and see what works and what doesn't.
Prepare a business plan
While a business plan doesn't have to be extra formal, it does help you take a vague idea for you're at home food business and make a more concrete plan for accomplishing it.
It is essential if you need financial backing, to convince your investors of your overall business strategy and financial outlook.
Licenses and permits
You will need to check your local zoning rules to make sure that you are allowed to run a food business out of your house. Otherwise, you may need to look into renting professional kitchen space.
Next, you will need to make sure that your cooking facilities pass all state food cleanliness requirements. Check with your state for more specifics.
In general, this will mean that you will have to make sure that your business kitchen is clearly separated from your personal kitchen and that you are not using the utensils in your professional kitchen for personal use.
Take some state required food handling courses to help you better understand all the requirements.
Lastly, you will want to get a business license and a resale license which will allow you to buy ingredients wholesale tax free.
Purchase your equipment
Purchase your food making equipment and ingredients from suppliers such as kaTom restaurant Supply, INC. or General Hotel & Restaurant Supply.
This is dictated by the type of food you'll be making but can include items such as bowls, baking dishes, mixers, spoons and other utensils and measuring items.
These should be stored separately from your personal items as should the food ingredients as well. If you will be selling your goods through stores purchase packaging materials to wrap your food items.
If your state has labeling laws, use a computer to create ingredient labels to stick to your food packages.
You can check with your state's Department of Public Health for more details.
If you will be working as a caterer, purchase serving trays, bowls and other items that look nice for public events.
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