Starting a Food Business | How-to Guides for running your business from Business.com

Whether you’re ready to sell your secret barbecue rub or your family’s famous brownies, getting into the food manufacturing business isn’t easy. Depending on what you want to make and sell, different products like canned food, baked goods or refrigerated products have different regulations. Along with ingredient costs, you’ll have to factor in costs like testing the products for safety and shelf life. And in some counties, you’ll have to rent a professional kitchen. By planning ahead, you’ll save time, money, and hopefully create a profitable product that will be on the market for years. If you’re thinking about starting your own food business, take these steps:

Determine the product.
Create a business plan.
Put your food production systems in place.

Action Steps
The best contacts and resources to help you get it done

Meet FDA requirements

It’s imperative that you meet the regulations for the type of products you want to produce, including food safety and labeling requirements. Note that some small businesses may qualify for an exemption from the FDA’s food labeling requirements.

I recommend: The U. S. Food and Drug Administration Center for Food Safety and Applied Nutrition has information on food safety guidelines and regulations for creating and distributing food products, as well as lists of local bureaus. Check out the site’s Guide to Self Inspection for the Smaller Food Processor and Warehouse for a checklist that will help you detect and solve possible FDA compliance problems. Find out if your company is eligible for a food labeling exemption and download the exemption notice form. The FDA also offers guidance for manufacturers of a variety of food products.

Have a plan

Being able to create beautiful wedding cakes or perfect tamales is just the beginning. If you’re going into business, you’ll need a detailed plan. A business plan will help you figure out your operations from filling a market niche to marketing your perfectly packaged product. Often, it’s hard to get funding without one.

I recommend: Plan Magic and Business Plan Pro make it easy with formats specifically for the food business.

Take a class

Making sweets, snacks and all things savory is big business. Some universities have food science or entrepreneurial business departments that host seminars for people looking to start or expand their own food companies.

I recommend: Check out a school in your area: the University of Nebraska – Lincoln, the University of Minnesota, Rutgers University in New Jersey, Purdue University in Indiana, and Oregon State University all have seminars that cover everything from recipe development to promoting your product.

Join a trade association

There are many trade organizations that have educational resources to help you learn about every aspect of creating your own food business.

I recommend: The Food Institute which has easily downloadable Webinars and the National Association of Specialty Food which has a national food show each year with educational resources.

Test your products

Find a food scientist who can help solve shelf-life and safety problems, as well as expand a recipe’s proportion for larger production while keeping taste and texture intact.

I recommend: Find food technologists and scientists at the annual FoodSmarts Meeting & Expo.

Packaging counts

It isn’t enough to have a great-tasting product. You need a killer package, too. A great package often sells a new product so it’s important to design packaging that’s appropriate and eye-catching.

I recommend: Find a host of packaging solutions for dry foods at Creative Food Packaging. For glass, plastic or metal containers, go to SKS Bottle & Packaging Inc.

Get your product out there

Figure out the best sales outlets and distribution system for your products. Contain costs by starting small, selling your products through local retailers or launching an e-store.

I recommend: Consider joining your local Chamber of Commerce to promote your food products to local retailers. You can launch an eBay store in three easy steps.

Hire an expert

There are a number of food consultants and professionals who will help you develop, improve and sell your products.

I recommend: Food Consultants Group lists a variety of professionals with different specialties from market research to strategic planning and public relations.

Tips & Tactics
Helpful advice for making the most of this Guide

Know your city, county and state’s food manufacturing and distribution regulatory laws.
If you can’t produce the product in your own kitchen consider renting space from community center kitchens, local kitchen incubators, or pooling resources with other small food manufacturers.
Check the market for your product through testing. Give samples to consumers and ask lots of questions. You’ll get an idea of how people respond before ramping up production.

The official source of Starting a Food Business is
the Food and Beverage Industry Franchise Consultants page at Business.com

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