Pay attention to the date that your license expires—different states and cities have different rules about when to renew business licenses. Since you’re selling food, you won’t need a federal license.
Even if it’s not required in your state, it’s wise to have liability insurance in case of misunderstandings or unhappy customers. The deductible amounts range from $1,000 to $25,000. If you’re running a small business with relatively low risk, you can stick to a lower deductible.
Even if it’s not required in your state, it’s wise to have liability insurance in case of misunderstandings or unhappy customers. The deductible amounts range from $1,000 to $25,000. If you’re running a small business with relatively low risk, you can stick to a lower deductible.
If you register for a DBA without first forming an LLC, your business will be recognized as a sole proprietorship. An LLC isn’t required in most states, but it is beneficial for ensuring limited personal liability (i. e. , your business debts won’t be seen as your personal debts). There’s also less paperwork and, depending on your state, some tax benefits. Come up with a memorable DBA name that relates to your product in some way. For instance, if you’re selling vegan baked goods, you might call it “Mindful Muffins. ”
Some areas won’t charge you for obtaining a tax permit while others only charge a small fee (anywhere from $10 to $50). Apply at https://www. sba. gov/business-guide/launch-your-business/apply-licenses-permits
For instance, the state of Texas requires specific steps to be taken in order to legally sell pickled and fermented foods. Cottage Food Laws in most states have the following principles in common: You have to have proper stores for all food (cold or dry). No pets allowed in the kitchen. You need a state business license. You must get zoning clearance and all necessary permits from your local government. You have to have a kitchen inspection at least once a year (performed by the health department).
You must score a 70 or above on the exam to obtain your food handler’s card. It expires 2 years from the date that you completed the course.
If you rent space in a shared commercial kitchen, they’ll already have their permits in order.
If you don’t want to design your own logo or label, some custom labelling vendors have templates for different types of products. You can also hire a designer to create a unique logo.
Shop around online for discounted packaging supplies. Get quotes from multiple packaging and shipping suppliers before making a decision. If you’d like to have exterior printed packaging with your company logo, this will cost extra. Think about whether you’ll need extra space in the package for promotional items and any freebies you may want to offer.
Use colors that reflect your business aesthetic and attract people to your product. For instance, bright reds, yellows, and greens are great choices for hot sauces while muted colors might work better for milder-tasting goods. For your contact information, list a professional email, not your personal one. Let your customers know you’re open to feedback. For instance, before your contact info, you might write: “We’d love to hear what you think about our pickles! Write us at Snipnpicks @snpco. com. ” Make sure your logo is interesting but still readable. For instance, avoid cursive scripts for small font and make sure the text on the package is large enough to read. Don’t use font colors that are similar to the background color (e. g. , bright red text on a maroon background).
Take the cost of packaging into consideration when calculating your total expenses. Make sure the packaging is appropriate to the product. For instance, if you’re selling muffins, make sure they’re in a sturdy container so they don’t get smashed during shipping. Consider the weight of the packaging—heavier items will cost more to ship than lighter ones.
For example, you might write “Allergens: Wheat, eggs, peanuts” in bold font under the ingredients list. If you have a website, you’ll need to put the ingredients on there as well. That way, customers won’t have to ask you questions about particular ingredients.
If you’re renting space in a commercial kitchen, they probably have kitchen scales for this purpose. If you’re working from home, get a small kitchen scale to measure the weight in grams and ounces. If your product is liquid, take note of how many cups and ounces go into each bottle or jar and be consistent with your serving sizes.
For instance, saying that your macaroons are made from organic free-range eggs on your own family farm might draw people who like to eat local goods, avoid animal cruelty, and support independent farms. If you’re using a supplier, stating their name on the package will draw in more customers who already like their particular products.
You might give an expiration date (“Use by 10/6/20) or state how long the product is good after opening (e. g. , “Use within 7 days of opening”). If your product requires reheating, give specific instructions on how to do that. You can send a small leaflet with the product or put it on the package. For instance: “Preheat oven to 300°F (148°C). Wrap each muffin in foil. Place muffins on baking sheet. Wait 10 to 12 minutes. Enjoy!”
A few popular web builder sites include Shopify, Weebly, and Wix. Start a blog where you offer an inside look at your business practices (like recipes and what inspired you to create your business) to draw in a following. Allow customers to sign up for newsletters via email so you can send them special offers, news about your business, and any other market materials. Just don’t flood their inboxes!
Take photos close up to show texture and true-to-life coloring. Lifestyle photography is a great way to show off your product. Show it being served in a way that reflects your company’s core values.
Keep in mind that they’ll take a cut of the profits. Target retailers with your intended customers. For example, your vegan gluten-free cookies are more likely to sell from an online specialty foods vendor than they are a general grocer that sells mass-produced products.
For instance, if it takes $4. 00 to make a single jar of pickles, selling them for $5. 50 is going to give you a profit of $1. 50 per jar sold. If you sell (on average) 20 jars a week, that’s a total profit of $30. 00 per week. Think about how much you, as a customer, would be willing to pay for your products—keep the prices realistic and attractive.
Keep all of your social media accounts consistent in terms of the color scheme, photos, and tone. Offer discounts and giveaways to followers for tagging their friends—this will help reach more potential customers.
Make sure the shipping box says “Keep Refrigerated” on the outside so the customer knows they need to open it and refrigerate it as soon as possible. Pack your products in sturdy boxes that won’t bend, break, or squish the food. Avoid sending packages at the end of the week so they don’t end up sitting at a mailing facility over the weekend. Let your customers know that you only ship cold items at the beginning of the week.
