Starting a Food Manufacturing Business
You’ve been told that your sauce, spice, rub or that dish you always take to family get togethers is so good it that you must put it on the market. But where do you start? Well, here is a quick guide to what you need to do before going to market.
First you need a product.
- You may already have this but what is it? What is your story behind your product? How much does your product cost to make? How much can you sell it for? What is your demographic?
Test Market:
- If you’ve made it this far, you probably already have a good product. Now you need a test market. Find people that will give you honest feedback, not friends and family. They want to see you succeed and may not be completely honest with you.
- Calculate the cost. You need to know exactly how much it will cost you to make your item. Knowing what your item will cost is critical to determining if you will be able to make money selling your item.
Labels:
- https://www.fsis.usda.gov/inspection/compliance-guidance/labeling/basics-labeling
- Visit this website to learn the specific label requirements regarding your food item. It is imperative that you get this information correct. Retailers will not be able to sell your item if the labeling is not correct.
Company:
- Once you decide to move forward and sell your item to other stores you will need to form a company. You will need an EIN number. This number is issued by the IRS. Retail stores will need this number before they sell your item. Forming a company doesn’t have to be complex, but it is best to consult with an attorney to decide which option is best for you.
- https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number
Inspection:
- The next step is to obtain the appropriate inspection. Depending on what you are manufacturing you will need to call the USDA, FDA, NC Meat & Poultry Department or the NC Department of Agriculture.
- https://www.fsis.usda.gov/inspection
- Obtaining a USDA stamp (inspection) will allow you to manufacture items with meat, poultry and egg products and sell those items anywhere in the United States.
- https://www.fda.gov/food/compliance-enforcement-food/inspections-protect-food-supply
- The FDA inspection is for food products that do NOT contain meat, poultry or eggs. This inspection will allow you to manufacture and sell your food item anywhere in the United States.
- https://www.ncagr.gov/divisions/meat-poultry-inspection/obtainstateinspection
- The North Carolina Department of Agriculture is responsible for both meat and non-meat food item inspections. There are two divisions within the department. Meat and Poultry inspection will allow you to manufacture food items with meat and poultry products. Unlike the USDA, this inspection only allows you to sell your product within the state of North Carolina. Once you cross state lines you must obtain a USDA stamp. The other department is the Department of Agriculture. This inspection will allow you to manufacture food items that do NOT have meat or poultry in them. As before, this inspection only allows you to sell your item within the state of North Carolina.
Photography
- Most people eat with their eyes first so creating appetizing images is crucial. If you are so inclined, take the photographs yourself or find a good photographer to take the photos for you.
Sales Slick
- A sales slick is a fact sheet about your item. It will contain all the information regarding your item such as, photos (those professional photos you had taken), description of your item, cost (what you are charging your wholesale customer), MSRP (Manufacture Suggested Retail Price), Margin and/or Profit Margin, shelf life (how long will your item last or when will it expire), and contact information. This information will tell your potential customer everything they need to know to make a decision about your item.
Customers
- Now that you have everything in order, you need customers. This is where we, NC Provision Company come in. Once we enter into an agreement, we will market your item to our customer base.