So you want to get into the food business? You love to cook or bake and have mama's secret recipe that's been handed down from generation to generation You have a great product and you are wondering how to bring it to the masses. Here are a few tips from someone who with her sister is doing just that.
1. Where are you producing your product? Is this something you can make in your kitchen at home and sell or do you need a commercial use kitchen? Call your local health department and find out licensing and inspection requirements and restrictions on what you can legally produce and sell from your kitchen at home. If you do need a commercial use kitchen look for a "shared use kitchen" or a "community use kitchen" in your area to start. These generally have a small monthly fee and you pay by the hour when you use the kitchen. This is a great way to keep costs low while you grow your business.
2. Determine price point. Break down what it cost to produce your product and comparison shop. Purchase a similar product through a local specialty food store or market and through an online competitor. Ask yourself can your product command the same price, more or less. What will it cost to put your product in a customer's hand?
3. Labeling. Check with your local state health department and the FDA for labeling requirements. There are federally regulated guidelines you need to follow and there may be local state, city or town labeling requirements. Check on these and make sure you are adhering to them before you hire someone to create your labels. This could be a very costly mistake if you need to reprint your labels or pull your product from a shelf because the labels are incorrect.
4. How are you packaging your product? Wherever you intend on selling your goods, you need to test, test and test. You can't just put perishables in a box and send them. When you order from your competitors pay attention to how you received the goods. Did they include an ice brick or was it vacuum packed for freshness. Is this something your goods would need to arrive in edible condition? Test your packaging in a variety of climates. Send samples to your Aunt Betty who lives in Arizona and ask her to leave the sample outside all day to see how the contents hold up. Remember, when shipping to a residence someone may not be there to immediately take the package into the house and refrigerate. You need to plan for this. If you intend on selling in a store how will your packaging differentiate your product from the rest. Separate your product from the clutter.
5. How many products are you selling? If you are selling more than 1 item, don't be afraid to cut from your list of items, those that don't sell or no one is interested in. Do not get attached to products because they're one of your favorites but no one else is interested in them. When it's something your offer on your website or business, you need to have on hand the ingredients to make it. Never use old ingredients to make a product, it will affect the taste and ruin your reputation. Cut out what is not working. Think of your inventory as money with an expiration date sitting on a shelf just waiting to be thrown away.
There are a lot of other considerations before you start your business such as business name, web address, getting a trademark, business certificates, getting insurance, hiring a lawyer and so on. Make a list and work your list. It all starts when you implement. Remember you can have a great product or idea but if you do nothing about it it's nothing more than a great idea or product.
1. Where are you producing your product? Is this something you can make in your kitchen at home and sell or do you need a commercial use kitchen? Call your local health department and find out licensing and inspection requirements and restrictions on what you can legally produce and sell from your kitchen at home. If you do need a commercial use kitchen look for a "shared use kitchen" or a "community use kitchen" in your area to start. These generally have a small monthly fee and you pay by the hour when you use the kitchen. This is a great way to keep costs low while you grow your business.
2. Determine price point. Break down what it cost to produce your product and comparison shop. Purchase a similar product through a local specialty food store or market and through an online competitor. Ask yourself can your product command the same price, more or less. What will it cost to put your product in a customer's hand?
3. Labeling. Check with your local state health department and the FDA for labeling requirements. There are federally regulated guidelines you need to follow and there may be local state, city or town labeling requirements. Check on these and make sure you are adhering to them before you hire someone to create your labels. This could be a very costly mistake if you need to reprint your labels or pull your product from a shelf because the labels are incorrect.
4. How are you packaging your product? Wherever you intend on selling your goods, you need to test, test and test. You can't just put perishables in a box and send them. When you order from your competitors pay attention to how you received the goods. Did they include an ice brick or was it vacuum packed for freshness. Is this something your goods would need to arrive in edible condition? Test your packaging in a variety of climates. Send samples to your Aunt Betty who lives in Arizona and ask her to leave the sample outside all day to see how the contents hold up. Remember, when shipping to a residence someone may not be there to immediately take the package into the house and refrigerate. You need to plan for this. If you intend on selling in a store how will your packaging differentiate your product from the rest. Separate your product from the clutter.
5. How many products are you selling? If you are selling more than 1 item, don't be afraid to cut from your list of items, those that don't sell or no one is interested in. Do not get attached to products because they're one of your favorites but no one else is interested in them. When it's something your offer on your website or business, you need to have on hand the ingredients to make it. Never use old ingredients to make a product, it will affect the taste and ruin your reputation. Cut out what is not working. Think of your inventory as money with an expiration date sitting on a shelf just waiting to be thrown away.
There are a lot of other considerations before you start your business such as business name, web address, getting a trademark, business certificates, getting insurance, hiring a lawyer and so on. Make a list and work your list. It all starts when you implement. Remember you can have a great product or idea but if you do nothing about it it's nothing more than a great idea or product.
