Want to start a food business, need advice

[Amail]

My wife makes the best baked beans I have ever eaten, bar none. I'm not the only one who thinks so - everyone who eats them raves about them.

I've told her we should market and sell her beans. The problem is, I've never started a goods business - just service, and even that was little more than a paying hobby.

In order to really make this work we need to set it up right; develop a realistic business plan, and move on it.

Anyone here BTDT with food products?

[wcc]

I'm in the process of opening a Ice Cream/Sandwich/Salads/Soups shop. Yes, small and simple right? WRONG! I'm WAY late on opening and over budget! Whatever you 'have' to open with add 50% to it and plan on a least a couple months of and other BS before you open. The Health Department takes at least one month here then you have to address their comments. PM me if you have questions or want more info or if you just want to bounce ideas around. Are you going to lease or buy space?

EDIT: I forgot the funny stuff! 'Beans, Beans, the magical fruit. The more you eat the more you toot!' Also, 'every time you toot, you kill a puppy!'

[Amail]

I've been focusing more on the marketing end of this than the production end. Production should be relatively easy. We don't need a nice store front, just a commercial kitchen with the capacity to make what we can sell. I suspect we can work out a deal with someone locally to rent their facilities and look closer at taking it "in house" if/when our production needs change.

[Don Plumley]

My business partner has been in the specialty food products business (dressings, sauces, soups) for the last dozen years. For production you'll use a co-packer. Do you have any experience scaling a recipe? That's a skill in and of itself. What about food labeling laws? For distribution it's up to your geographic range. But it will be up to you to sell it - no matter how wonderful they taste.

Are you talking about going retail with the product? Then it's a whole 'nuther story with getting shelf space. How big is your checkbook for pay for that space?

Not for the feint hearted at all. Don't go in as a novice, you will be eaten, literally, alive.

Yes, you need a business plan which is great. But there are huge structural elements involved and you are in the middle of a contracting market. What would drive a consumer to try your product? Can you manage all of the in-store promotions yourself, or will you hire a demonstration company? Can you coupon the product to encourage trial?

If the product is natural you can start building buzz at the small grocery level. But to make the numbers work you'll need big regional or national chain coverage.

[ben parrish]

Don't forget the two million dollar liability policy that any distributor/retailer will require you to have to re-sell your product.

[M.D. Holloway]

I visit food processing facilities several times a month - from baked goods, meat processing, fruit and veg, softdrink, beer, confections - you name it - my advice...don't do it.

[onlycafe]

these guys roll out products for people around here.
call them and talk.

http://www.nelsonfarms.org/

best of luck with the new enterprise.

[Tishabet]

I have a friend who went through this exact scenario a while back... he makes ridiculously good mango salsa (literally the best I've ever had), and he would bring it to get-togethers to share with friends. We all encouraged him to go commercial, and he decided to go for it. He made it happen, but the tale of the hoops he had to jump through was astounding to me... but perhaps par for the course for this kind of thing. Prepare yourself for significant expense and time before you are holding the product in your hand.

If anyone wants to check out the best mango salsa in the world, check out
http://bigorson.com/

[Moses]

I had a friend who went commercial with his beef jerky recipe. He hooked up with Costco and made a fortune. He sold the jerky business then did the same thing with tamales. He lost his ass on that one. Risky business.

[cashflyer]

AFAIK, to make a product for resale, your preparation must all be done in a FEDERALLY licensed facility - not just local health department hoops, federal hoops. Flaming federal hoops.

Almost impossible for a little operation to create that environment, so most will take their recipe to a company that will make it for you, package it, etc.

Still, it's up to you to market it.

In other words, LOTS of hoops and expenses!!

[Amail]

Originally Posted by Don Plumley

My business partner has been in the specialty food products business (dressings, sauces, soups) for the last dozen years. For production you'll use a co-packer. Do you have any experience scaling a recipe? That's a skill in and of itself. What about food labeling laws? For distribution it's up to your geographic range. But it will be up to you to sell it - no matter how wonderful they taste.

Thanks for pointing out some of the alligators. We need to find a co-packer (I sure don't want to build a packing plant). We haven't tried to scale the recipe beyond backyard parties for 30 folks, so that will be a challenge. Food labeling I suspect is something the co-packer could help with.

Originally Posted by Don Plumley

Are you talking about going retail with the product? Then it's a whole 'nuther story with getting shelf space. How big is your checkbook for pay for that space?

Not for the feint hearted at all. Don't go in as a novice, you will be eaten, literally, alive.

We want to go retail, but we want to build this slowly. I realize we're novices, but how else can I get the experience myself?

Originally Posted by Don Plumley

Yes, you need a business plan which is great. But there are huge structural elements involved and you are in the middle of a contracting market. What would drive a consumer to try your product? Can you manage all of the in-store promotions yourself, or will you hire a demonstration company? Can you coupon the product to encourage trial?

If the product is natural you can start building buzz at the small grocery level. But to make the numbers work you'll need big regional or national chain coverage.

My thinking was to initially sell at the La Jolla farmers market to gauge their popularity in the wild and perhaps attract the attention of somebody in the biz. I'd also market to local deli's. As the business grows I think we'd hire a demonstration company. Ultimately I'd like to package them in clear plastic tubs with heat sealed plastic tear-off tops and sell them at Costco, but there's lots of steps before that, I'm sure.

[Amail]

Originally Posted by ben parrish

Don't forget the two million dollar liability policy that any distributor/retailer will require you to have to re-sell your product.

We'll have to look into that. Seriously, $2M? I wonder if Wawanesa offers this?

[Amail]

Originally Posted by LubeMaster77

I visit food processing facilities several times a month - from baked goods, meat processing, fruit and veg, softdrink, beer, confections - you name it - my advice...don't do it.

Why not do it? We've got Stone brewing just down the road, and they make their own beer - sure looks like a good time to me.

[Amail]

Originally Posted by onlycafe

these guys doll out products for people around here.
call them and talk.

http://www.nelsonfarms.org/

best of luck with the new enterprise.

Thanks for this - I'll get in touch with them.

[Amail]

Originally Posted by Moses

I had a friend who went commercial with his beef jerky recipe. He hooked up with Costco and made a fortune. He sold the jerky business then did the same thing with tamales. He lost his ass on that one. Risky business.

I want the fortune part, not the lose my ass part. Thanks for the tip, we'll stay away from tamales.

Seriously, I know if we got these beans to a Costco sampling cart we'd make a mint.

[Amail]

Originally Posted by cashflyer

AFAIK, to make a product for resale, your preparation must all be done in a FEDERALLY licensed facility - not just local health department hoops, federal hoops. Flaming federal hoops.

Almost impossible for a little operation to create that environment, so most will take their recipe to a company that will make it for you, package it, etc.

Still, it's up to you to market it.

In other words, LOTS of hoops and expenses!!

That sounds like exactly what we need to start. Got any names of companies that do this?

[TSNAPCRACKLEPOP]

my friend is a food scientist, PhD for Interstate bakeries, does this all the time. email me if you like.

It is hard to get a product on the shelf, i mean shelf space.

then there is the story of Mrs. Fields cookies. turns out she loved the cookies she baked, not corporate americas way of doing things.

[ClickClickBoom]

Locate next to these guys:
Is pot actually still illegal?
eric