Many people have a favorite family recipe they would like to sell on store shelves across the country. New food entrepreneurs unfamiliar with the food industry, imagine the cheapest and easiest way to accomplish this (while making a profit) is to find a food manufacturing business that can produce and sell their product.
They are thinking about using a “co-packer” – a business that has the ability to produce a recipe, getting it ready for the marketplace. If this is the route you want to go, we need to remove the idea of “cheap” and “easy.”
You will need to work with this business on converting your home kitchen recipe into a commercially produced product. This includes multiple testing for initial conversion, scale-up, packaging, labeling, shelf life, and storage. And unless you pick up and deliver products yourself, you’ll need to find salespeople and a distribution method. This process is not inexpensive. Be prepared to spend well over $100,000 for start-up; plus on-going expenses.
For anyone interested in becoming a food entrepreneur, I always suggest that the simplest way to start is to do small scale production. It is the cheapest and easiest method. Check your cottage food laws to see if it’s possible to begin in your home kitchen. Or look into renting a commercial kitchen so that you can develop, market, and sell the product yourself.
Home-Based Baking at its Best! Aim big, start small!