Since home-based food businesses often are built out of a hobby, many food entrepreneurs make the mistake of continuing to run their business in a casual way. You could have the best cupcakes on the planet or the tastiest dry rub ever invented, but if there's not a market for your product, you won't generate enough revenue.Ĭhef Veronica Rains, author of Sell Your Organic Food Product, recommends doing focus groups, making small batches with inexpensive packaging, and selling your products to a few retail locations before fully investing in the business. “Failure to do this correctly will jeopardize the company’s ability to produce and sell product,” Gerber noted. Some states, such as California, have a law that allows home-based food businesses meeting certain criteria to operate without being certified as a commercial kitchen.Īccording to John Gerber, founder of law firm Upstart Legal, there can be additional local requirements to consider, including zoning, business licensing and permitting, and production and safety requirements for the specific product you sell. Your first step is to determine the rules for a home-based food business in your area.
Here are 10 things you should know before opening a home-based food business. As with any business, you need to plan and research before picking up your mixer or designing labels for your salad dressing. If you've gotten countless compliments on your cupcakes or find yourself with requests from friends to be their personal chef for special occasions, a home-based food business might be a great way to earn extra money while doing something you enjoy.īut even though frosting cakes or bottling your homemade barbecue sauce may seem fun, a home-based food business is still a business.
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