Home based cooking business
Home-based cooking business are often created out of a hobby. As such, many of these home cooks do not run their business as a legal entity, but rather, conduct their business operations in a casual manner.
no matter how unprofessional home based cooking business looks like, its still very profitable.
you can start with Bakery. The bakery is one of the most profitable food processing business opportunity ones can initiate at home.
before you start a home based cooking business, make sure you get the below steps right
Be smart about your product pricing. What to charge can be tricky for newbies who’ve previously given their wares away. “You have to know your worth to turn a profit,” said Davis. “Figure the value of your time as well as your cost of raw materials and do your homework on what the market will bear.” Davis says home cooks can usually price their food higher in cities than selling in small towns or rural areas.
Test, and taste. Offer samples at any market where you’re selling and listen carefully to customer feedback. Since cottage food producers create in small batches, it’s not complicated to alter a recipe to broaden its appeal..
Use social media and the web to get the word out about your goods. Get a Facebook page or start a website. Also, post on a hyperlocal site like Nextdoor to let customers know the farmers markets or holiday bazaars where they can find you and your tasty items.
Put your personality into your product. Part of the customers’ pleasure in buying from home cooks is finding treasures that aren’t mass produced. Don’t be afraid to put your picture on your label or tell your story on your website and on the label.
Make foods that you and your family truly enjoy. “In a worst-case scenario, if what you make doesn’t catch on, you’ll be stuck with your leftovers,” said Kivirist.
Steps to start a small cooking business from home
You must have proper storage for all food, cold and dry.
When considering a home based cooking business, the storing of the food is one of the major role, pets in your kitchen can cause a bad remark, so make sure your storage is very neat and secured.
Know Your Competition
Once you know what restrictions you’re dealing with the next step is to decide on what you want to sell. Chances are if you’re interested in starting a business you already have a product in mind. But if your goal is to sell from a website or eventually expand your business to sell into stores, you’ll need to make sure that your idea is viable.
The easiest way to do that is to check out the competition. Are there any other brands selling something similar? Is there a big enough demand for your type of product? What could set your item apart from anything else on the market?
Knowing how your product could fit into the current food landscape will go a long way to ensuring your business’s success.
also read How to start a Laundry Business Service
Get a Business License
Cottage laws aren’t the only legal hurdles you’ll have to face when starting a small business. Depending on where you live (both state and city/town) you may be required to have a license to operate out of your home.
The good thing about business licenses is that they’re easy to obtain and don’t require a huge fee to get. Plus they’ll help you avoid any penalties or legal hassles that occur if the government finds out you’re operating without one.
The US Small Business Administration is the best place to start to find out more.
And don’t forget! If you are ever unsure about the legal side of things, look locally for business owners or legal experts who can help you make sure you’re operating on the right side of the law.
Choose a Business Name
According to Inc., your business name is as important as what your business does. Not only does it help to dictate how the public perceives you, but it also has a critical impact on your marketing, branding, and internet presence.
Here are some essential tips on what to think about when picking your name:
● Choose something unique
●Make sure it’s easy to remember
●Shorter is better
●Avoid any crazy spellings
●Make sure the name is related to your business
And remember, it usually takes some time to think up the perfect name so don’t stress out! Instead, keep working on other areas of your business like perfecting your recipes or researching your local business requirements while you think.
Once you’ve settled on a name, it’s time to tie everything together with branding. To present a professional image for your business, it’s a good idea to make sure that all of your elements (logo, website, packaging, etc.) are tied together cohesively.
An easy way to get a professional look is to use a designer to create your logo. Websites like Fiverr, Etsy and Airtasker are great places to get started when looking for reasonably priced graphic designers. Keep in mind though that the more customized your branding/logo is, the more it will cost.
And don’t worry about committing to a more reasonably priced but generic logo and branding design early on — you can always rebrand later!
Starting a business is a big undertaking, even if you’re running it out of your home. Here are some other things you’ll need to consider:
Form an LLC or sole proprietorship to protect yourself legally. Here’s a great article on the difference between the two.
Register your business with the IRS (and get your tax number).
Open a business bank account to keep business funds separate (and make everything easier come tax time!)
Starting a home food business can be little more complicated than manufacturing your product and selling it online! But for individuals who are interested in making the transition into the world of food, it’s a great way to familiarize yourself with the industry and find out if your product can potentially be a success.