The sky is the limit in food production. Anything from eggs and bottled water to candy and organically grown tomatoes can be manufactured by a home-based entrepreneur. What’s involved in such a business varies greatly, depending upon which product you choose, but either offering a unique food item or marketing a tried-and-true favorite in a new way spells success. A package of pasta, for example, can be produced for as little as 46 cents and sold for $3.50 or more. How about pizza? Everyone loves pizza, it’s easy to make and, with your own marketing or recipe twists, you can make a tremendous amount of money. Want more ideas? How about food by mail order, a food-preserving business, specialty breads, sassafras tea, holiday cookies, or maple syrup? If you are willing to learn the ins and outs of producing and marketing a particular food product, you can establish a profi table business.
Start-up costs depend on the food product you choose. If you need ovens or an assembly line to manufacture your products, it may be relatively expensive to begin. On the other hand, a product such as soup can be started on a shoestring. Packaging and marketing costs for any product must be carefully considered. Explore your market area, examine packaging of similar products, and research the costs.
Your livelihood is greatly affected by weather and the seasons if it requires growing a crop. You may need considerable knowledge about fertilizers, plant diseases, and so on. You must have a consistent supply of ingredients and a consistent manufacturing method to ensure that your products always taste the same. Any food product is subject to safety and health regulations. The good news is that many food manufacturing operations are quite simple, requiring few ingredients and no great technical skills. Everyone loves to eat, so food products are always in vogue.
Approx. cost of start-up: $500 to $5,000 (depending on the food product)
Approx. potential earnings:$30,000 to $75,000
Typical fees: As high as $50 for some items, but most range $2 to $25 each
Where to promote: Mail-order catalogs, brochures, direct mail, groceries, farmers’ markets, Web site with testimonials about your products and an online store with a secure server for safe ordering
Qualifications: Knowledge of how to manufacture and market the item
Things needed: Depends on the item
Required staff:None
Hidden costs:Legal advice
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