Forums: Discussions for entrepreneurs and small business.

My mom makes an incredible Indian Chili Masala (old family recipe).  I thought, hey why not make a business of it.  What do you all think, and where do I start?  Fresh homemade ingredients, and incredible taste....I think the skies the limit.....who knows...

Thanks,

Rusty

• Finding a commercial kitchen who would prepare the food in bulk based on the recipe and ingredients.
• Even with the commercial kitchen, there were FDA approvals and other licensing issues involved.
  
• Developing a package, which entailed a design company. They had a design then went around showing it to potential food chains.
• The design they chose and spent $10K on, turned out to be a problem for all the store reps, so they had to scrap it and make another one.
• They invested in a new technology out of Europe for freezing in pouches, to make for easy preparation by the end buyer---the home customer.
• They also invested nearly $20K to have a booth at a high-exposure trade show in New York.
  

Stami, call your local health department and the Dept of Ag for Florida. They will be able to tell you everything you need for licensing. In Michigan, the costs are not much, under $100 for the license.

Will you have a dry ingredient mix that they add to something or will you "can" the chili, pre-made? Of course dry ingredient is a lot easier to work with, but if you have a way to make and store large batches, this can be done also without a lot of cash outlay. Depending on what your recipe is and what is contained in the chili (whether it needs to stay chilled before serving) will make a big difference in how you packag it. I have seen vendors selling some relish and soups just put in the deli containers, like the 2 or 3 cup plastic containers with lids. They must not be considered "potentially hazardous" as they bring them to the craft shows and they are there for 6 hours selling them. If this is the case for you, piece of cake.

You should check and see what licensing you should have, find a craft show or expo near where you live, make a few large batches, package it up and go try and sell, see what happens you may be pleasantly surprised and may be able to get started pretty easily!

Thanks you all for your input.  I called the Florida Depart of Ag.  They will send me info about getting a permit to make and sell the product.  Apparently you cannot make the product in a home setting as you all mentioned.  It has to be an approved commercial establishment.  I have a friend who is opening an Indian restaurant in the area, maybe that is a possibility. 

Do you think I can still make it and sell it or offer it for free "on the streets" or to neighbors to get a feel for its potential?

Thank You for all of your help. 

Stami, the rules or laws for food production differ from state to state, I can only speak about how things are done here in Michigan. You cannot make the product in a residential kitchen, unless you have a seperate kitchen that is licensed and dedicated to manufacturing the products. This must be the only use. It must be seperate or completely closed off from any other areas of the residence you reside in. If you are unable to do this, check with your local churches, lodges, or bakery/deli`s for example. Some small business will work a deal with you for a small fee to come in after hours and produce your goods. Most churches have a licenced kitchen and will let you use it.

Make some and try it out on anyone you can get to try it. In Michigan, if you prepare the product in the home that it will be served in, you are ok to do this. For example, if a friend wants you to cater an open house and you take all the food to the site and prepare it in their kitchen, you are allowed to serve it. This is how some of the home party plans get around preparing and serving food. They make very simple dishes, right at the hostesses home and can serve them without any licensing.

You can do this, don`t give up!

Also, the cost for most craft shows, bazaars are not that expensive, Some can run $1,000 - $2,000 or a little more, not usually. Most, depending on what you are looking for (schools and churches) run $30 - $100 for a booth.

You should try getting a website done up and start doing SEO and place advertisements to get traffic. Next you should look for a logistic company to handle the deliveries.