It is all about the hustle nowadays, and having an additional source of funds is the norm as one in three Americans have a side hustle. Ideally, too, a side hustle should be one that you enjoy and are already good at. As such, if you’re someone who finds joy in creating delicious treats, or if you’re someone who takes pride in making healthy versions of food, then having a food business out of your own kitchen might be a good option for your side hustle. After all, the food industry, estimated to be worth up to $4.2 million by 2024, is booming. If you’re interested in opening your own food business at home, here are some things that you need to consider.
Preparation is Key
As with anything, launching your own food business, even at home, requires preparation. Before you even begin your food business, you need to develop a business plan and study the specific market that you are getting into. This means understanding if what you have to offer has a market need, defining your target market and your product’s unique selling point, as well as defining your brand and your price range.
Trying to study all these things when you can simply just cook and sell might seem tedious; however, the importance of these preparatory steps cannot be understated. After all, studies have shown that only 50% of small businesses make it past their five-year mark, often citing lack of business planning as the reason for their failure.
Licensing and Legal Matters
Once you have a solid business plan, you can now move on to the more legal side of the business. Different states might have varying licensing laws when it comes to food businesses, so you need to determine which ones you need to get. The best way to determine the licenses and permits that you need to acquire would be to visit the government website of your state, county, and city.
You might also want to make sure that you register your business, turning it into a legal entity. This is an additional step that provides you, as a business owner, with significant layers of protection as it will allow you to separate your business and your personal finances. This will also give you the opportunity to bring in investors. Another step that you can take in order to ensure that your business remains safe is to get food business insurance. This is particularly important when you have a small staff working for you, especially since injuries can be common in the kitchen, even if that kitchen is in your own home.
Casual yet Professional
Once you already have the more technical matters sorted out, it’s time to finally launch your business to the public. With your launch comes the need to present a professional image to your customers. Sure, you may still be working in your own kitchen, but having a professional image will ensure that you build trust with your clients.
Having a professional image entails having a professional website and at least a strong social media presence. As well, make sure that you are proactively promoting your product. For a small business to succeed, a significant amount of funds should be channeled to marketing and advertising right off the bat.
Starting a food business right out of your kitchen is very possible, and it can be a great source of income as long as you carefully study and prepare for it. As long as you, as a business owner, are prepared for this type of venture, you’ll soon find that your hobby in the kitchen can actually pay you back.