Although getting started in the food industry can be simpler than opening your own restaurant, it involves more than making and selling food. There are requirements to make your business both legal and safe to your customers. Once you've fulfilled them, you can run a small food business from the comfort of home.
Business Plan
Aside from the joy of cooking, other important aspects of your food business include who your customers will be and how many employees you will need. Your business plan doesn't need to be elaborate --- one written paragraph is plenty, according to Scott Gerber, the founder of Gerber Enterprises, a company that helps entrepreneurs start their businesses. Write down what your food business will provide, how, why it's different from competitors', who your customers will be and how you'll find them, and how your business will make money. Your customers will likely be in your state, since the U.S. Food and Drug Administration doesn't allow companies to sell food across state lines when it's prepared in a home kitchen.
Liability Protection
Purchase liability insurance to cover costs resulting from possible lawsuits. Not only can liability insurance protect you if a customer claims your food made him ill, it also protects you if an employee or delivery person claims she got hurt on your property. Contact insurrs in your area to find out what insurance they offer for home-based food businesses. Compare the terms and purchase the insurance that best suits your needs. You can always adjust your insurance plan later.
Kitchen Supplies
The supplies you need to run your business efficiently will depend on the type of food you plan to make, how many employees you'll have and how you'll deliver the food. For example, if you make only cakes, you need only cake-making tools and ingredients. Yet, if you and three employees will share the kitchen, you will need multiples of each tool. Also, consider packaging for your finished goods --- not just attractive boxes and bags, but also cooling or heating devices if you plan to make deliveries. Buy wholesale to receive a discount and to avoid sales taxes, which you will charge your customers.
Kitchen
No matter where you live, the law requires that your kitchen pass health code inspections if you sell food to the public. Some laws forbid entrepreneurs from selling food prepared at home. If this is the case for you, find an incubator kitchen near your home. An incubator kitchen is a commercial kitchen open to people who want to start their own small food businesses. For a deposit of a few hundred dollars and a small hourly fee, you can use the kitchen to prepare food legally for your business.
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