Many people have a special recipe or extraordinary cooking talents and think of developing a line of food products to capitalize on their gifts. However, more than a good-tasting dish is needed to start and grow a food business. In addition to legalities, which vary from state to state and even city to city, you will need to tackle marketing and developing relationships with retailers. If you have the ambition and drive, starting a food product business can be lucrative and rewarding.
1
Focus on a specific type, or niche, of food to produce. This should be something you're familiar with making, and that you can make in a way that's better or different from foods currently on the market. For instance, you can make vegan fudge sauce, soul food seasonings or organic dessert mixes.
2
Contact your state's department of public health and ask what are the requirements for starting a food product business. You may be required to obtain specific permits, such as a food enterprise license, or to rent a commercial kitchen to produce your food.
3
Write a business plan detailing how you will start and grow your food product business. Include information about your chosen niche; startup costs; three-year detailed operating expenses; three-year profit projections; analysis of your competitors; marketing and public relations plan; plans for expansion and growth.
4
Obtain the business permits needed in your area to run a retail business. This may include a fictitious name certificate (DBA), Employer Identification Number or state tax identification number. Your local small business development center can let you know what is required in your city.
5
Become familiar with U.S. Food and Drug Administration guidelines concerning the production and sales of food, including safety and sanitation regulations, how to choose appropriate packaging and how to properly label food products. Visit the USFDA's official website for the information you need at FDA.gov.
6
Develop appealing packaging for your products. For example, if you start out by placing your spice mixes in simple jars, you can design attractive, informative labels for them. Packaging that stands out will encourage curious consumers to try your brand, and will give retailers an incentive to carry your products.
7
Secure venues to sell your food products. Options include an internet marketplace, such as Foodzie, flea markets, fairs, festivals, wholesale to food retailers and grocery stores, or via your own e-commerce or brick-and-mortar store.
8
Join a professional food producer's association, such as the the National Association for the Specialty Food Trade. Doing so will help you meet new suppliers, get business tips and ideas from peers, connect with potential clients and keep up on industry trends.
9
Market your food product line. Send news releases to food product reviewers and publications that cover specialty food products, launch a promotional blog or website, and hand out samples at the events you attend.