Start Home-Based Food Business To Make Money
In this article, we are going to talk about how to start a small cooking business from home with all the details. Food business has always been one of the most profitable businesses so far. You can see this from food industry going crazy all over the world. Working from home, though, adds up a lot of advantages to profit and time you will be spending. Let’s talk about all the details on making money selling food from home.
What Are The Advantages Of Starting Up A Home Based Food Business?
Starting a home based food business has a lot of advantages comparing to working from a cafe. Let’s see what they are; they will help you on idea how to make money selling food from home.
- No extra bills. First off all, you get rid of extra bills that may come up, such as rent, buying more appliances than you need and etc.
- You plan your working hours on your own. Most of the times, it is up to you to cook in the afternoon or at 5 o’clock in the morning. You also do not pay extra money for food you would buy if you would be working in a cafe.
- It is time saving. You do not spend extra time on the way to and from work.
- It is flexible. You can cut off your working day any time you want or take care of yourself in the middle of the day.
- It gives you more time to spend with your family. Your husband/wife and your kids will not be complaining about not being able to see you the whole day. You have extra time to spnd with them. It is not boring. You make money from your hobby.
How To Start A Food Business At Home?
Firstly, we should mention that a home-based food business is a really profitable one, if you are willing to give enough time and quality, hence if you love your job. If you do so, other parts are easier to deal with. Now, let’s see the tips to start home food delivery business.
- Take regulations into account. Make sure you know about all the regulations of home-based business in your state. At this stage, you may need to talk to the professional, fill out some forms, sign some papers. Do not consider it as a waste of time or money, since rules are the rules and you want to do your job the right way.
- Make a choice of your niche. Decide on what you are specifically willing to do. Search for home based food business ideas. It may be cooking all kinds of cakes, or cookies, or choose the specific ones and get pro on that. Usually, enterpreneurs who focus on one stuff at a time, and add up some new stuff to it are being more successful.
- Research the market. Look up for the food trends and their prices. Make sure to check the prices from different sources.
- Make a business plan. Make a good business plan of yours. Include each and every detail in your plan. If you do not know how to write one, there are plenty of sources to read in the internet.
- Be creative. To be successfull in any job, creativity is the must. If you come up with creative food ideas that you think will get attention of people, give it a go. It will give people a specific reason to order your food.
- Know who you are working for. Choose people for whom you want to give your food service. Decide if you want to sell your products online, for a company, or for any specific group. Consider the cons and pros. If you want to work for a company, search what they are looking for when buying food.
Who Can Start A Food Business At Home?
The short answer is anyone. If you believe in yourself and have enough money and time to set aside, home based food business is just for you. Remember that the most important criteria is being hygienic, making a safe and tasty food. Getting a food professional’s idea on additional criterias will be the plus.
How Much Do You Need To Start This Business?
Here are the average prices for all your expenses:
- Insurance of Product Liability (about $600 a year)
- Recipe Process Approval ($80 on average per recipe)
- Ingredients ($100 for the beginning)
- Packaging ($20 for the beginning)
- Sale sheets ($30)
- Business cards ($50)
- Website for starting a food business online ($1000)
- Kitchen Equipment (depends on kind of equipment you are going to buy, $500 on average)
- Licenses of food (from $100 up to $500)
- Registration Fees of state business ($100)
- Bank account fee ($50)
How Much Can You Earn From This Business?
This is the most important part of deciding on food business from home. After searching the market, you will get an idea of pricing and you may even want to set your price afterwards. We offer you not to. Before setting your price and thinking virtually about how much you can earn, you need to do some calculations.
The first thing you need to do is to calculate your expenses. Let’s say you are decided on selling cookies. Let’s get an estimation of what you can earn.
How much should you spend per serving a cookie ? – Using good ingreadients, the price per cookie is 50 cents.
For how much you can sell your cookies? – The average price is $2.
How much do you earn in a cookie? – $1.50
Consider selling only 10 cookies a day, which means $1.50 x 10 = $15 profit a day.
$15 x 30 = $450 profit for month.
With the same calculations, you can see that you will earn around $600 a month from cupcakes, $300 from drinks and if you are thinking about cakes your average profit is going to be $1000 a month.
If you are making all of these, you will make $1000+$300+$600+$450= $2350 a month.
This was the average estimation of how much you can earn from cakes and cookies. If you are thinking about dishes, or fast food, though, you will be earning a lot more.