Starting your own food business isn't as easy as it looks. There's tons of regulations, financial plans, and the reality is harsh. But, you can get through it. Read this document to get a first-hand look at what it's like to start your food company.

2. It
starts
with
an
idea…
And
You’ve
got
one.
Maybe
you
want
to
bo3le
Grandma’s
grape
jelly
or
manufacture
your
awesome
BBQ
sauce.
It’s
delicious
and
friends
&
family
love
it…
But
you
don’t
know
where
to
start.
NavigaDng
the
industry
can
be
overwhelming.
There’s
lots
to
learn
–
and
it’s
not
as
simple
as
making
your
product
in
your
house
and
selling
it.
Before
we
dive
into
the
ni3y-­‐gri3y,
it’s
important
to
cover
the
basics
of
the
industry
–
the
14
things
you
need
to
know
before
you
start
bo3ling
your
legendary
sauce
or
pedaling
your
macaroons.

3. It’s
the
hardest
thing
you’ll
ever
do
I’ve
been
in
the
specialty
food
business
for
almost
ten
years.
From
cookies,
to
energy
bars,
and
now
gourmet
mustard,
it’s
been
the
hardest
thing
I’ve
ever
done.
And
I
want
you
to
know
it
won’t
be
a
cake-­‐walk
for
you
either.
Why
is
it
so
tough?
There
are
so
many
moving
parts,
legaleeze,
health
inspecDons,
and
decision.
It’s
just
like
running
any
business.
You
work
incredibly
long
hours
to
make
your
product.
Then,
aOer
slaving
over
the
hot
oven,
you’ve
got
to
do
the
books,
make
sales
calls,
schedule
store
demos,
making
point-­‐or-­‐sale
materials,
etc.
Say
hello
to
60-­‐70
hour
weeks.

4. It’s
tough
to
stay
passionate
AOer
making
the
same
product
over
and
over
again
for
several
years,
you
start
to
get
sick
of
it.
I
know
several
food
producers
who
don’t
even
eat
their
own
product.
This
makes
it
tough
to
stay
passionate.
I’ve
found
the
best
way
to
stay
passionate
is
to
always
be
tesDng
–
new
flavors,
new
store
displays,
new
labels,
new
sales
techniques,
etc.
If
you
keep
your
company
stale,
you’ll
lose
passion.
Make
sure
to
keep
yourself
on
your
toes.

5. You
need
to
know
your
numbers
Yep
–
I’m
sure
you
can
make
delicious
food,
I’ve
had
my
fair
share
from
across
the
country.
But
your
specialty
food
company
goes
far
beyond
making
something
people
want
to
eat
tons
of.
Just
like
any
business,
you
need
to
know
your
numbers.
AccounDng
is
tough
–
and
a
pain
in
the
bu3.
I
don’t
like
to
do
it
any
more
than
you
do,
but
it’s
a
necessary
if
you
want
to
make
some
money.
From
finding
the
right
suppliers
to
cosDng
out
your
recipes
and
determining
the
best
distribuDon
channel,
it’s
all
got
to
be
figured
out.
And
on
a
monthly
–
if
not
weekly
–
basis.
Grab
your
calculator
and
get
ready.

6. Other
companies
will
copy
you
You’ve
got
a
stellar
product.
And
you’ve
got
compeDDon.
Every
product
in
your
four-­‐foot
secDon
in
the
grocery
store
is
a
compeDtor
–
even
the
naDonal
brands
who
you
will
never
be
able
to
beat
in
price.
But,
they
will
copy
you.
Take
the
opportunity
to
smile.
New
products
will
be
launched
that
look
just
like
yours
–
same
flavors,
different
recipe.
But
you’ve
done
your
research,
so
you’ll
squash
them
like
a
bug.
Being
imitated
is
not
a
bad
thing.
It
just
means
you
need
to
keep
on
doing
what
you’re
doing
and
not
worry
about
your
compeDDon.
You’ll
be
out-­‐selling
them
in
no
Dme
anyway!

7. Try
to
revoluDonize
the
industry
Just
like
other
companies
are
going
to
copy
your
company,
resist
the
urge
to
do
the
same.
Thinking
about
making
your
Aunt’s
spaghe[
sauce?
Check
the
grocery
store,
first.
If
there’s
tons
of
something,
there’s
less
room
for
innovaDon.
Look
at
food
trends.
Ask
around.
Do
something
different.
When
I
sat
in
on
a
meeDng
with
Alan
Newman,
the
co-­‐founder
of
Magic
Hat
Brewing,
he
said
“We
looked
at
what
everyone
else
was
doing
and
we
did
the
exact
opposite.”
With
that,
how
can
you
be
different
in
your
industry.
Being
different
makes
everything
easier.

8. People
will
dislike
your
product
Don’t
take
the
opinion
of
a
four-­‐year
old
seriously.
I’ve
had
them
cry
when
they’ve
tasted
my
products.
But,
I
have
been
hurt
by
people
who
flat-­‐out
don’t
like
my
product.
They
may
not
tell
me,
but
I
can
see
it
in
their
body
language.
Look
at
distaste
for
your
products
as
an
opportunity.
Whenever
someone
doesn’t
like
your
product,
ask
them
why
–
especially
when
you’re
tesDng
out
a
new
product
line.
It’s
invaluable.
And
remember,
don’t
make
what
you
want
to
make,
make
what
your
customers
want
to
buy.

9. People
will
love
your
product
These
people
are
my
favorite,
for
obvious
reasons.
And
hopefully
you
have
a
lot
of
them
(if
not,
you’ve
got
to
change
something).
Here’s
a
Dp
to
harness
your
ecstaDc
customers.
Ask
for
tesDmonials.
TesDmonials
are
social
proof.
They
not
only
help
on
your
website,
but
they
help
in
person.
Take
what
your
passionate
customers
have
said
and
use
it
in
your
sales
pitch.
Maybe
your
neighbor
uses
your
marinade
in
his
awesome
steak
recipe.
Let
your
other
customers
know!
It
helps
for
them
to
imagine
using
your
product.

10. Your
family
is
your
best
free
help
I
wouldn’t
have
go3en
anywhere
if
it
wasn’t
for
the
help
of
every
one
of
my
family
members.
My
parents
helped
sell,
package,
distribute,
label,
and
create
new
flavors.
My
sister
taste-­‐tested,
and
my
brother
kept
my
companies
in
healthy
financial
shape.
Family
is
an
asset.
They
want
to
see
you
succeed.
When
they
ask
if
there’s
anything
they
can
do,
hop
at
the
opportunity.
You’re
an
entrepreneur.
That
means
you’re
doing
a
million
things
already.
Wouldn’t
it
be
great
if
you
had
one
less?
Oh,
and
you
don’t
have
to
pay
them
much
(but
you
do
have
to
pay
them
back
–
maybe
free
product?)

11. You’ll
never
be
saDsfied
with
anything
I
know
I’m
not.
And
that’s
why
something
is
always
changing
at
my
company:
display,
packaging,
financial
reports,
website,
ecommerce
shop,
recipes,
research,
etc.
Lesson?
Embrace
change.
You’re
going
to
have
to
make
a
lot
of
changes
when
you
start
your
company.
Whether
it’s
tweaking
your
process
to
get
approved
by
the
food
lab,
finding
a
new
ingredient
that
makes
your
cost
of
goods
go
down,
or
adapDng
to
a
new
retailer’s
needs,
it’s
always
something.

12. Age
Has
No
Limit
Are
you
young
and
sDll
in
high
school?
Or,
are
you
reDred
and
looking
for
something
new
to
occupy
your
Dme?
Either
way,
in
the
food
biz,
age
means
nothing.
I
started
my
first
food
company
at
the
ripe
age
of
15
years
old.
You
can
start
whenever
you
want
–
you
only
live
once.
You
are
your
own
person.
Whether
you’re
16
or
60,
there’s
always
Dme
to
do
what
you
love.
Yes,
there
may
be
a
learning
curve,
but
it’s
easy
to
get
over
the
iniDal
hump.
So,
what
are
you
waiDng
for?
Get
out
there
and
just
do
it.

13. It’s
not
all
about
the
money
Think
specialty
food
is
the
road
to
millions?
It
might
be
but
you
won’t
get
there
for
several
years.
On
every
unit,
you’ll
be
making
several
pennies,
up
to
a
couple
of
bucks
if
you
sell
direct
to
your
consumer.
The
food
business
is
all
about
volume
–
how
many
units
can
you
sell?
So,
what’s
a
realisDc
number?
That’s
totally
up
to
you.
For
me,
I
started
my
company
when
I
had
no
other
obligaDons.
And
even
though
I’d
work
for
50-­‐60
hours
a
week,
my
company
didn’t
grow
too
fast.
Make
yourself
a
goal,
whether
it’s
$2,000
or
$20,000
and
do
everything
to
work
towards
it.

14. The
food
community
is
awesome
We’re
all
in
this
together.
If
your
company
makes
a
couple
thousand
bucks
a
year
or
you
have
a
small
commercial
kitchen,
we
have
the
same
pain,
the
same
struggle,
and
the
same
successes.
It’s
great
to
be
able
to
reach
out
when
you
need
it.
We
all
share
resources,
funny
stories
from
tasDng
events,
and
how
we
were
able
to
solve
problems.
From
the
smiles
to
the
tears,
we’re
one
huge
community.
You’ll
see
online
communiDes,
statewide
chapters,
and
even
a
naDonal
organizaDon.
There’s
always
someone
able
to
lend
a
hand.

15. Hold
on
to
your
cash
–
it
comes
in
handy
If
there’s
one
thing
I’ve
learned
in
my
ten
years
owning
a
specialty
food
company,
it’s
this:
cash
is
king.
You
need
it
to
operate
your
company,
pay
bills,
get
glass
jars,
build
websites,
ship
samples
out,
etc.
Remember
#3
about
knowing
your
numbers?
Be
conscious
of
whether
or
not
you’re
burning
through
cash
like
crazy.
My
first
few
producDon
runs
cost
me
thousands
of
dollars
and
my
cash
was
always
Ded
up
in
inventory.
Lesson
learned?
Keep
a
watchful
eye
on
your
bank
account.

16. Store
demos
are
a
necessary
evil
When
you
get
into
a
couple
of
retailers,
one
of
the
best
ways
to
get
your
name
out
there
is
to
do
a
store
demo.
They
usually
last
a
couple
hours
and
people
taste
(and
hopefully,
buy)
your
product.
So,
what’s
so
bad
about
demos?
Your
Dme
is
precious.
You
may
have
to
run
back
and
make
more
product,
go
to
another
store
for
a
delivery
–
or
heck,
pick
up
the
kids
form
soccer
pracDce.
Time
is
money,
and
when
you
sell
a
handful
of
units
at
a
three
hour
demo,
it
can
be
a
li3le
discouraging.
But
remember,
you’re
ge[ng
your
product
out
there
for
people
to
taste.
It’s
going
to
be
necessary
for
the
first
few
years
to
sacrifice
those
Saturdays
for
demo
days.

17. Gredio
is
a
web-­‐app
to
quickly
calculate
your
food
product
cost
and
manage
your
ingredient
inventory
to
make
sure
your
next
producDon
goes
off
without
a
hitch.