If the way to man’s heart is through his stomach,
then the way to a booming business is through millions of small intestines. Although I’m
not a man, I can attest to the purchase-inducing power of good homemade grub.
Just recently I picked up what looked to be a homemade concoction called Pam’s
pimento cheese – a surreal combination of white cheese, cheddar cheese,
pimentos and dill. One spoonful, two spoonfuls … the next week I found myself
craving the stuff.
Pam’s pimento cheese is a staple in the pre-packaged foods section of
Texas-based H-E-B supermarkets. No fancy label, no fancy packaging; just a big
scoop of goodness with a barcode on top. It reminded me of the pleasure that a
homemade meal brings – especially when it’s not homemade by me.
So, just how easy would it be to create and sell a homemade food
product? This idea for a small business depends on where you live. But if you
can handle the headaches of the initial red tape,
you may find that building a business around your creation is as profitable as
it is rewarding. Here are some considerations to set your mental rolling pins
in motion:
1. Permit yourself to start slowly.
Like it or not, laws have changed a bit since the
days when Ninnie Baird baked bread in her home and then sold it to neighbors.
However, with tenacity and determination (and an outstanding product), there’s
no reason why you can’t be the next Mrs. Baird.
Before you begin, however, you’ll want to get your
legal ducks a l’orange in a row. While permits will vary from state to
state and city to city, the one thing you can count on is being required to
have them. A few examples are a food-handler’s card, a vending license,
a basic business-operations license, a “doing business as” permit … Even the
Department of Health and the Department of Agriculture are in on the game.
According to Lawyers.com, “The local Public Health Department inspects food
sold at the place of production, while food manufactured for wholesale
distribution is under the supervision of the state Department of Agriculture.”
But don’t worry; there’s help. The Small Business Administration has several
pages on its Web site dedicated to helping entrepreneurs navigate the seas of
federal, state and local regulations.
2.
Weigh your options.
Lest you perceive regulations to be an insurmountable obstacle, keep in
mind that not all states are created equal. Some states are actually starting
to cut the red tape. California, for example, ushered in 2013 with the California
Homemade Food Act – part of its effort to recognize (and encourage) a growing
category of food production known as “cottage food operation.” Although meats
and dairy products are excluded from the Act, Californians will now have an
easier time starting a homemade-food business right from their kitchens.
Other cities (New York City being one) are making it easier for
entrepreneurial cooks to learn the ropes of
transitioning from home kitchen to industrial kitchen. Through “kitchen
incubator” programs, future cooks and business owners can hone their craft on
government-approved city-owned equipment, and receive training and technical
skills with which to start a food-product business.
3. Relish the trendy.
While the obvious product to capitalize on is the one people rave about
every time you make it, current food trends can provide inspiration, too. One
of the most popular trends of the day is an oldie but goodie: popcorn.
According to Sterling-Rice Group in Colorado and the National Association for
the Specialty Food Trade in New York, the demand for gourmet popcorn has grown
so much in recent years that it’s now considered one of the top 10 food trends
for 2013. Orville Redenbacher would be pleased.
Another trend is Local. Not local consumers or
local manufacture, but local ingredients. According to the National Restaurant
Association, “three-quarters of retailers say that Local is the most
influential product claim today and two-thirds report the claim will grow the
most in the next three years.” Specifically, locally sourced meats and seafood,
and locally grown produce top the “What’s Hot” list for 2013. Not
that you can’t reinvent Thousand Island dressing … but it’s never a bad idea to
fish where the foodies are biting.
4. Pack a punch.
Initially, it all comes down to first impressions.
In terms of food products, that often means first glance. (Say what you want,
but I have a feeling that Pam of Pam’s pimento-cheese fame has an “in” at
H-E-B. It’s hard to get far with just a barcode and plastic.) The right packing
should invite a lift of the jar, a turn of the label or, better still, a drop
in the shopping cart. ThomasNet.com is a good source for bottles, cans and containers; and
Lightening Labels (lighteninglabels.com) can create a high-quality custom label
that screams, “You gotta try this!” Once people do, the
rest is up to your product.
5. Now, spread the word.
With a packaged product in hand, you’re ready to
roll. Develop awareness. Create demand. Go to county fairs, outdoor markets and
independent grocers, as all are good suppliers of willing taste buds. And then
tell the masses. Social-media sites like Pinterest and Facebook are great ways
to let people know your brand is alive, as well as inspire shoppers to give it
a try.
But for the long haul, just remember: A good
product will sell. It might even become the symbol of the brown-bagged homemade
sandwich.
These are tips for starting a small business that is very useful for me. Thank you for sharing this very useful business tip. I will bookmark it and come back here next time to read more other posts. Kind regards
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