The year 2020 rendered a lot of businesses obsolete. Regardless if it’s a huge company or a small-scale business, the pandemic closed a lot of doors for many people. However, 2021 is different. We now have a vaccine, and the global economy is slowly beginning to stand on its own two feet again. If you are thinking of starting a business from your home that can help you financially, a food venture is the best and safest bet for you. To get you started, here are a couple of things that you need to know when starting a business in the food industry.
Register Your Business Name
Turning your culinary skills into an income-generating business takes more than just posting photos of your deliciously cooked meals. Like with any other type of business, you need to have your name registered for you to be recognized as a legal business entity. There are basically three ways for you to register your name: federal or national, state, and local.
For a majority of small businesses, the process is straightforward. You can go to your city’s municipal hall and ask for the specific requirements in your state. You can also visit the website of the United States Small Business Administration for a more detailed explanation of the whole process. Either way, you would need to register your name at least on a local or city level.
Secure a Business Permit
The requirements needed when applying for a business permit vary depending on which state you’re in. Generally speaking, you can get this document from your local health department by providing your address and some personal information. In some cases, the local health officials will visit your home to ensure that you are following food hygiene protocols.
Same as with the requirements, the cost to get a business permit is different based on your location. On average, the registration normally costs around USD 50, while the price of the license itself costs anywhere between USD 25 and USD 5,000, depending on the scale of your proposed business.
Get an Employer Identification Number (EIN)
Everyone who wants to run a business inside the territory of the United States needs to obtain an employer identification number. It serves the same way as your social security number, but this one is for business purposes. Moreover, the Internal Revenue Service (IRS) issues this number, which and will be used to identify you and your business on their database.
Buy Your Equipment
Now that you are done with the tedious paperwork, the next thing for you to do is to buy the equipment. In fact, you may not need to spend a lot of money on this because you already have a working fridge, range, and oven in your home. It is not advisable for you to buy commercial-grade and heavy-duty equipment since you are just starting with your business.
However, you should invest in stainless steel food bowls, hand mixers, food processors, non-stick pans, forks and spoons, hand gloves, and of course, packaging. If you are living in a state that has labeling laws, you need to adhere to that by printing out labels that show the list of ingredients that you have used for that dish or food.
Promote Your Business
There are endless ways for you to promote your business now that we are living in a digital age. Before, you would need to print out posters or fliers. But now, you can advertise your product simply by increasing your presence online. You can begin by taking photos of your foods and dishes and posting them on your social media accounts.
You can be more creative and write a blog or make video content. Ask the help of your friends and family by making your post public and shareable. This way, you will reach a wide range of potential clients just by taking advantage of social media.
Deliver Your Products
Face-to-face and social interactions are still limited because of the pandemic. This can be a slight problem for small business owners since they are usually unaware of how to go about the logistics of their deliveries. The good thing is that there are various types of third-party cash-on-delivery couriers that you can count on. All you have to do is book an appointment, and they will pick up your product and deliver it straight to your clients.
This year can be your chance to bounce back after being hit by the global health crisis. By having adequate knowledge of this industry and sheer determination, you can expect brighter days to come. Remember, food is a necessity, and you will be there to deliver it to your clients.