Should I Start a Home-Based Food Business?

Do you love to bake or cook? Would you like to earn money doing what you love without leaving the comfort of your home?

For anyone who loves to bake or cook, the idea of turning a hobby into a source of income is enticing, especially in slow economic times when jobs are scarce. With minimal start-up money, anyone can turn their talent into a lucrative business. But how does one go about turning this interest into a money-making venture?

There are many aspects to running a food business. In addition to the actual processing of food, there are many other issues that must be attended to if the business is to be successful and profitable. Entrepreneurs must develop and test new products; understand pricing guidelines; use proper packaging and labels; create marketing and sales venues; develop good customer relations; hire and manage employees (if applicable); have good bookkeeping skills; and plan for growth.

While many provinces and states allow for the sale of home-processed foods, there are several areas that strictly prohibit any home processing. Laws vary from state-to-state and province-to-province, so readers should check local laws to be sure of local regulations. If using your home kitchen is not allowed in your area, there are some ways to deal with your particular problems without having the expense of renovation or renting a retail storefront.

Even if the sale of food is prohibited from home in your area, keep in mind that your home can be used as the business base, from which you conduct your business, keep your books, and correspond with clients and suppliers. Put another way, using your home as a base for your business and using your home as the base for food production are quite distinct.

If you are unable to use your home kitchen for food production and cannot afford to outfit a secondary kitchen, follow the guidelines outlined in Start & Run a Home-Based Food Business for setting up an alternative space for your cooking and baking. Beginning a food business in this manner is often far cheaper than renting a commercial space. Even if you make the actual food somewhere other than your home, small-batch food processors are still considered home-based food entrepreneurs if they run the business side of the business from their private residence.

About  Start & Run a Home-Based Food Business is a great guide to running your own food business, right out of your own kitchen (or any kitchen you can find). Whether you’re interested in part-time employment or a full-time business, this book will guide you step-by-step through the entire process – from your initial business idea right through the delivery of your products to customers. Author Mimi Shotland Fix (who has also written Home Baking for Profit), discusses pricing, labeling, and packaging products; how to find customers and keep records; and begin the process of obtaining the necessary legal permits. In the event you are unable to operate your business from home, this publication also discusses alternatives for you to start your business comfortably and locally. The book is available in our Web store.