Can I make Food at Home and Sell It?
Business questions and answers as well as questions and answers for entrepreneurs That was a nice one, to be honest. That's all fine. So, if you guys were unaware that we have a podcast, you can actually listen to us on a variety of platforms via streaming. Spotify and iHeart radio are playing in the background. You may also find us on a variety of other platforms, including Google Podcasts, Cast Box, Deezer, podcast, junkie, and pod chaser, among others. As a result, I'll include some links in the section below. For those of you who were unaware that we had a podcast, you may now subscribe to it and listen to us while on the move. We've already published almost 200 episodes, and we've received around 50 or 60,000 downloads, depending on how you count it. So, thank you very much for your interest in our show. So, in this episode, I'd want to address a few questions that you've sent.
These are questions about beginning a home-based food company, and the answers are provided below. This is something that a lot of people have been thinking about since, of course, last year when they were either out of job or searching for more income. And this is a fantastic approach to go about it. So the question I had was, of course, very, very straightforward. Is it possible to manufacture food at home and sell it? So, sure, it is absolutely possible to produce food at home and sell it. Cottage food rules are now in effect in the United States. These are laws that have been enacted by each state and which permit you to really manufacture specific food items. As previously stated, the secret to this is that it cannot be a potentially dangerous food product, as they are classified. And these are products that are really classified as time-sensitive or temperature-sensitive in some instances. These are items that must be kept at a specific temperature, have a specific expiration date, or will go bad if not consumed within a given time period, among other things.
It doesn't matter if they're refrigerated or not. So, yeah, in the most of cases, every single state; I believe New Jersey is the only state that does not now have cottage food legislation in place, which is terrible. And if I'm mistaken, please correct me in the comments section below, but that is the only state that I'm aware of that produces cottage food, out of all of the states that produce it. So, do you think you'll be able to manufacture food at home and sell it? Yes, without a doubt. It is an excellent method to start a side hustle or even a side business that may ultimately grow into something bigger and better, whether it is done online or in a commercial facility and then expanded from there. So, what can you make? The majority of what you can make is baked goods. Some states allow you to make salsas, spices, herbs, and even tea and coffee, while others do not. Businesses can be run from home based on your state's laws, and the easiest way to find out is to go to Google and enter in the terms "cottage," "food law," and the name of your state to get the most up to date information.
Okay. However, the first, second, and third results of Google searches, or the first, second, and third Google search results, are going to contain information from the state, so pay attention to those. You'll want to seek for a domain name with a.gov extension or a.gov kind of extension. That information will come directly from your state. There will be more precise information. Now, as I stated, I'll include links to our podcast in the descriptions, which you should really check out if I haven't already, and I'll also include a few links to other videos down below in the descriptions. We've also posted a few films on our YouTube channel about cottage, food, and state cottage food laws. So you might want to have a look at those. Okay. Once the meal is created, how do you go about turning it into a profitable business? First and foremost, you must obtain a business license in order to operate. As a result of the cottage food law, numerous states are no longer required to do so.
Okay? This does not necessitate the possession of a license in the traditional sense. This is one of the nice things about cottage food, however I strongly advise you to obtain a business license as well as business insurance before starting your business. You need to obtain them for additional levels of security, and you should also incorporate yourself into the company. So you'll need to form some sort of LLC, whether it's a S Corp or a C Corp; whatever you decide to do with it is OK with me. And, based on my own personal experience, I would strongly advise you to form a limited liability company (LLC). It's a pretty straightforward method of forming. In addition, if you're not sure how to do it, you should look into Inc file. They may be found right there on the website, at checkoutincfile.com. I've included a discount in the product description. I'll provide them with a link. Let's have a look at one of the sites that I recommend to a lot of folks that they should absolutely check out.
And you can truly assimilate yourself into your state in less than 10 minutes, according to some estimates. Okay? Although the state does not require you to have these insurance policies, if you plan to sell food from your house, you should absolutely have them. You should consider forming LLCs. Legally, you should have these as additional levels of protection. Why? Assuming you make a product, whether it's a trail mix or a spice blend, it doesn't matter whether it's herbs, spicy sauce, or even their salsa; it doesn't matter if it's a trail mix or a spice blend. And your state gives you the authority to do so. And you go to a farmer's market, and guess what happens? Someone becomes sick. That is going to fall on your shoulders. That's right, you're going to be the one. You're the one who has to take responsibility. Okay. The fact that you are operating a cottage food business does not free you from the risks associated with running a food business. As a result, I strongly advise you to do so, even if, as I previously stated, most states do not compel you to do so.
Some states, however, are quite strict when it comes to selling food from home, and they will need you to have a business license and even insurance before you can do so. Okay. While going to a farmer's market is a good idea, there are certain farmer's markets that you'll want to attend during our local events, festivals, or fairs. They're going to demand some sort of evidence of insurance or even a business license that you have to show them because farmer's markets have the authority to set their own rules and regulations, believe it or not. Of course, they are subject to company regulations and have zoning concerns with the state as well as the local municipal and county governments. But, at the end of the day, they have the last say on everything. So farmer's markets tell you that you should consider starting a food company from your house. You want to sell this fantastic, bring your items in, however we need to see verification that you are a legitimate firm before we will accept your stuff.
Okay. Also, you haven't incorporated, and hence haven't got it either. I mean, all of these things, and sometimes even evidence of insurance at farmer's markets, are necessary because they will try to shift the risk to you rather than themselves. It is not the farmer's market's obligation to deal with this issue. If someone becomes ill or experiences an allergic response. Okay. So, what are the best methods for marketing and promoting a home-based food business? Isn't that the following question? So that's a fantastic question as well, especially if you're from the area. Now, I would recommend that you resort to Facebook, and just Facebook. Why? This is because you can explicitly create a page devoted to your home-based food company, and you may do so inside the zip code that you are now located in. It is possible to accomplish it within a county or a city. After that, you may really update that you're going to a local farmers' festival that's only down the street from your house.
You may tell everyone who follows you on Facebook who is a fan of your page. That I'll be there at this event on Saturday is a given. The next Saturday, I'll be at this other event, or I'll be at this festival, depending on the situation. It's possible that there may be a food truck event where you can set up a tent and sell culinary items. In order to promote through Facebook and create your own page, you should connect with local Facebook sites. Okay. There are community pages that are dedicated to the community in which you reside, which is evident. That is why you want to be a member of such groups since it is a fantastic free method to meet people. In addition, I'm receiving a lot of local exposure to let people know that I'm running a home-based food company. I can cook food at home and sell it at farmer's markets in my neighborhood. Now that I've recognized it, I've created my own company; come check us out. We're making jams or jellies, or whatever you want to call them. However, marketing using social media platforms like as Facebook and Twitter is a bit different.
In terms of a more regional method to market, I don't believe you can necessarily tap into it. Facebook is an excellent social media tool for small and medium-sized companies as well as community organizations. You may tell people, "Hey, come out and support me." If you have a church group that you're affiliated with in your community and they have thousands of parishioners who are all members of that group, that's OK. I'll be at the farmer's market, which will be right next to the church or whatever it happens to be. However, localization of your marketing campaigns and localization of your marketing concepts will benefit you in your home-based food company endeavors. Okay. So, Damien, what precisely am I trying to sell you? For example, how much money can I make in a year now? That's a really good question, as is another. Every state has its own set of rules for how much you may sell as a home-based food enterprise. The amount of money you can make will be dictated by the amount of food you prepare at home, the amount of food you sell at fairs and farmer's markets, and the amount of food you sell at local events.
Some states, believe it or not, have a very low minimum or maximum wage, depending on the state. Unfortunately, several of them are in the six, seven, 8,000, and even 10,000-person bracket. Florida, for example, has gone from 50,000 to 225,000 or 200,000 people in a matter of months, which is incredible. Some states have an infinite amount of money. They don't even put any restrictions on you. I am convinced. And it's possible that I'm incorrect. According to my research, Texas or Arizona have an almost infinite amount of money that you can truly make, which I confirmed a few of days ago. That being said, please correct me in the comments section here or on our show, but please do it immediately after reading this. You'll need to figure out how much money you can make. Why? Because you're going to have to take, take that money at some point, and you're going to have to pay taxes on that money. So be conscious that you are running a company, even if it is a cottage food business, even if you could certainly make a profit from selling fruit from your house, which has shown to be profitable for me.
I've been able to make a substantial amount of money doing it. I've been doing really well. Is it necessary for you to be aware that you will ultimately be required to pay taxes on that income? Okay. Later on, the IRS will enable you to pass that revenue through as an LLC, or you may pass that income through as your own social security number when you first start out, depending on your situation. Okay. However, you are required to account for your earnings. And after you've reached that limit, you'll most likely need to start looking into renting a commercial kitchen since you've reached the maximum amount of money that the state will allow you to earn in a given year. This is something you don't want to overdo since you'll wind up getting into a little trouble for it as well. So, the next step is to figure out how you're going to package your food if you're going to sell it from home.
Obviously, packaging your goods is something that a lot of people are unaware of, yet it is really necessary. And if you're planning to establish a small food company from home, this is something you should consider as a starting point. You're not going to stay here indefinitely, you know that. If this is your passion and you enjoy what you do, you can be certain that you will be working in a commercial kitchen. You'll be able to connect to the internet. Perhaps even retail establishments, whether you believe it or not. Even in certain states, you are permitted to sell food straight to retail establishments. It's true that I believe the state of Florida does this as well, and the state of Florida is extremely permissive when it comes to the sorts of rules they have in place for cottage food companies. In order to produce a product at home and sell it locally to retailers, including restaurants, or to sell it in cafés or coffee shops, you must first create a packaging that contains the product.
Logos and brands are required for any business venture to be successful. Now, you might be thinking, "Wait a minute," to all of this. This is becoming very complex. It's not precisely down at the bottom of the page in the description. Also, please have a look at this video, which I will post on the podcast and then on our YouTube channel. This will be uploaded on YouTube, however you should certainly consider having a brand or a logo produced on fiber optic material. It's a really reasonable price. It does not come at a high expense. This is something I've really done. I believe we've reached around 30 or 35 repetitions at this point. I've worked with fiber on a variety of projects. Make a logo for yourself and put it on there. On the low end, you can purchase one for as little as 15 to 20 dollars. And they're a very good place to start out with. It's important to remember that you can always modify and evolve your product, but when it comes to packaging, whatever the product is that you're creating, do you need to consider whether or not it's a bag?
Is it a plastic container, or something else? Is it a squeeze pack or a blister pack? If you're doing spices, do you use a glass bottle, a spice, or a bottle of some sort? Or are you putting together a plastic one? What method are you planning to use to seal it? Lid. All of these items are additional considerations when running a food company from home, so keep them in mind. And the notion that you can make money selling meals from the comfort of your own home is a nice one, but you must present yourself in a professional manner and carry yourself as such. It's not a good idea to do it in those situation. You know, I'm just trying to earn a fast buck for the next few of months, and I'm not really serious about it. After that, I'm finished. To be successful in this as a company, you must first take it seriously and then follow through on your commitment to do so. So, package logo branding is the first step, followed by a website.
In spite of the fact that you operate a home-based food company, you must have an online presence. If you're selling meals out of your house, you might consider setting up a website. You know why, don't you? Because it lends credibility to the work you perform. It lends credibility to the work you conduct as a business. Furthermore, it will enhance your professional appearance. Okay? Therefore, doing this in a way that others are unlikely to take you seriously is pointless and wastes time. They aren't going to buy your stuff, believe me. It operates in the same way as any other product or service. Bringing yourself to the marketplace and seeming professional while doing so will cause others to consider you seriously, and you will have the opportunity to develop your business. As a result, having a website helps you to be more prepared in terms of e-commerce. For the time being, you cannot establish an e-commerce website from your house due to the fact that you cannot legally send food over state borders, as this is against the law, but you can develop an educational website that informs visitors about who you are and what you do.
Even the backstory is important. One of the most important factors in determining whether a food business will thrive or fail is the company's history. People enjoy hearing your tales, especially the ones about how you got started and the obstacles you had to face. What are you thinking by doing this? What is it about this food product that you are so enthusiastic about? Whatever it is, it may be a family recipe that has been passed down for four generations. It doesn't make a difference. The backstories on your website, on the other hand, provide even more incentive for consumers to purchase your items or meet you at that farmer's market. Aside from that, you may utilize a website to post every day that you're going to be in a specific location, such as, say, this weekend. I'm going to be at this X event that's coming up. I'll be going the following weekends in March and April. I'll be here here, right here, right here. It's a fantastic method to stay in touch with friends and family. Aside from that, you may link your Facebook page and all of your other social media accounts to your website.
There are some SEO benefits to this as well, but that's a topic for a whole different episode. So you've completed your task. You've obtained your driver's license. You've gotten your insurance; now it's time to take yourself seriously. Yes, you may start a food business from your house if you want to sell your products. Google your state's laws and regulations to find out exactly what they allow and how much they're willing to let you do. Also consider whether there are any additional permissions or regulations that you need to take care of before you can get started. Of course, each entrepreneur experience is likely to provide challenges at some point. You're not going to get answers to all of your questions every time. I've been doing this for 12 years. As for this one, I'm still baffled as to what I'm supposed to do with it. As a result, continuing to learn about and gain a knowledge of the entrepreneurial experience and journey will undoubtedly propel you forward. You must be patient during this process.
You must take pleasure in the process. Don't constantly gaze towards the final objective. The most essential element is the point between a and B, which is the center section. And that's the portion about which you should be most concerned. The procedure should be enjoyable for you. Excite yourself about the prospect of receiving a permit, about purchasing a tote bag, and about your company logo. Every element of it was a success. That is what has motivated me to build six e-commerce firms from scratch, and I've gone from having nothing to overcoming financial difficulties with my wife in order to attempt to start this business to now having numerous six-figure enterprises that we operate. It's not an easy path, believe me, but if you're going to get started on it, you've got to do it well. I can assure you that. If you alter the course of what you're doing now, because you don't like it and you dread it so much 10 years from now, if you continue to do the same thing you're doing, are you going to be happy?
Most likely not. Taking a chance and enjoying the ride, if you're looking forward to the excitement of starting a business, thinking for yourself, and being an entrepreneur, believe me when I say it will be far more rewarding than you could have imagined. Money can come and leave at any time. No, it isn't about that. It's all about the thrill of accomplishing something you've been wanting to achieve for a long time. In addition, you are just doing it, rather than going to a job and having someone tell you what to do. If you want to accomplish anything, you have the ability to think for yourself and take the initiative. So that brings this episode to a close. And, as always, as I previously stated, you should absolutely look into food marketing on the internet. If you're looking for us online, I've included links to a few different sites where you may find us, as well as some other resources. And we'll soon be on the Apple platform. I've submitted an application to get our podcast published on Apple. I haven't heard anything back yet, but we are currently on a number of different platforms, which is a good thing. So I'll see you on our future episode and encourage you to subscribe to our YouTube channel. I'll upload this on YouTube, and you'll be able to see it there as well as everywhere else.