Forums: Discussions for entrepreneurs and small business.

I have a very good recipe for a food product that I think it will sell very well. I get very good feedback from any one who taste it. I did benchmarking and nothing in the market tastes like it. I`m playing with the recipe now to see what appeals to the highest number of people. This same recipe can be used on other food products also so there`s a potential to expand in the future also. It can be made organic also.

What`s best, find a producer and sell it or market it myself? I need to find a production facility bacasue I can`t go into production at home. Any advice from people who went through this business before me?

Hi Naseerw, Depending the type of food. I would get a non disclosure document ready. I would contact the food mfd that makes that kind of food and have then sign your agreement. Sell the the type of recipe and make a royalty. You can make from 2 to 7% for doing nothing. Please remember that you will need an attorney write the agreement or to read there agreement.

Special Note: This is how Campbell get there ideas.

To answer your question: The goverment has SIC Codes for all companies. You will need to find food mfd. Then you can by a database of all of them in the United States. I would look first in the state you are in. There is a good chance they are in your back yard. This is target marketing at its best. 

Hope this will help you. Let me know if you have any other questions.

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Tony

Those who care teach.

Hello Naseerw!

From Kitchen to Market: Selling Your Gourmet Food Specialty By Stephen F. Hall

This might be worth the investment.

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Leslie
Founder and President
Charmed Life Products LLC
Grill Charms™… The MUST HAVE grilling accessory that is revolutionizing the American Cook-out AND The perfect gift for any occasion!
Grill Charms
                                                                                                    

Tony,

Thanks for the info. I thought about this options from the beginning and I might still do it.

Leslie,

I`m assuming this is a title of a book. I`ll look for it at Borders. Thanks

Naseer

Naseer,

Past clients of mine have all started production at home and as things grew moved to a larger location until they were able to create enough demand for a larger manufacturer.  This way you aren`t putting a lot of money into product that might take awhile to sell.  It`s easier to grow as you move along.

Best of luck,

Jennifer

Hi Nasser

Not being able to produce your product at home can be an issue - Our state does not allow home kitchens to make anything that needs refrigeration or to do catering. That requires commercial kitchen space.  You may want to see if a local health foods store has a kitchen might be willing to "rent it out to you" on their slow day or time.  Or perhaps a bakery that closes early in the day might be willing to rent to you.  Until you have a proven customer base renting space on your own may be a little too costly for a start up phase of your business.

Good luck with your product.

   

 

If you need commercial kitchen space for production, find out through your local health departments if a church qualifies. Sounds odd but many churches have commercial style kitchens and where I live, they qualify. I know because a friend of mine started her catering business renting space at a local church because the health dept. found out she was running it illegaly out of her house. FYI - The  rent was dirt cheap!

I also want to start cooking dog food and deliver it.
Helen wrote that it`s not allowed from your house.
what states are we talking about (I am in California) ?
what is the reason for this limitation and where can I get formal information about
the regulations of this kind of business?  (FDA, websites or or anything relevant)
should I search for dog food or is anything for humans also apply for dogs?

thanks,
Oren

I was briefly involved in a cupcake biz, but I didn`t follow through. I believe you just rent space....even churches and stuff may be ok to do this......

HOWEVER, if you can produce at home, think about selling at farmer`s markets. I believe the rules for commercial kitchens is for hard storefronts, might want to check.