mistoferin
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Joined: 10/27/2004
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housesub4you,
I'm sure all this info is a bit daunting. If this is your dream, your PASSION though....it will be worth all of the hassle to make it come true. Yes, there will be some of what you perceive to be stumbling blocks along the way...but the difference between stumbling blocks and stepping stones is how you choose to use them.
You have received some really good advice here...and well, some that is not bad but not well informed. Excellent advice is that your first step should be writing a business plan. Without that your chances of success are significantly slimmer. Not to mention that if you are considering a financial institution for help with financing...they won't even look at you without a business plan. There is a ton of info on the web with detailed instructions to help you write one. There is also an organization called S.C.O.R.E. that can provide you with a wealth of info and assistance. It is made up of retired business owners who volunteer their time to help people in the business start up process. I would also check into programs through your local unemployment agency and local colleges. I found a great deal of assistance through those sources...and it was all free.
I have two food related businesses. One is a catering company and believe it or not, it was MUCH easier to set up than a retail food business. Basically in that business the kitchen is what gets all the scrutiny by the Health Dept. and MUST be licensed. The other is a mobile retail business that does have a few lines of food products. Now mind you, these are products that are for the most part, dry goods or commercially made specialty foods that are all sealed and produced under strict conditions that comply with all health codes. BUT...if you want to sell gourmet or specialty food products you MUST provide samples of those products in order to sell them because they are impulse buys. If people can't taste them, they won't buy them. So if you open a product for sampling by the public...or mix a dry ingredient with a wet one to be sampled...you then have to follow and implement all of the procedures required by the Health Codes. There are several Health Codes that you will likely have to adhere to. There is the U.S. Health Code, your local state Health Code...and if you are selling your products at various venues such as fairs or farmer's markets...the U.S. Dept. of Agriculture Codes. The last one is a bit easier but there are still MANY regulations that must be followed.
You will see lots of folks at those types of venues that are selling products....many of them have not gone through the proper channels and are doing it without proper license. Some will tell you that going through the proper channels is a waste of time because they have been doing it for years and have never been caught. To this I say...it only takes once for an inspector to catch you....and the penalties are stiff. It only takes once for someone to become ill and sue you. Not a risk that I think is worthwhile, but you will have to make that decision for yourself. Can it be done? Lots of people do it.
So what do you have to do to be in compliance? First of all you have to find an approved facility. Difficult unless you own one yourself but it can be done. As your product is not time sensitive, meaning that it's not something that you prepare and must have served within a time frame of hours such as I do in my catering business...it opens up the possibility of finding someone more willing to share their kitchen with you. Your products can be prepared at "off peak" hours in a commercial kitchen and you can work around busy dining hours. Halls would be a good place to start. They are generally rented for the most part on weekends and sit empty throughout the week. Hall owners would likely be glad to have some income coming in from times when they generally would have none. The problems associated with that are the storage of your foods and equipment. They are not likely to want you using their pots, pans and utensils...so you will need to have your own and they may or may not have lockable storage for those. As for your food products, it can get very confusing (and many of them can come up missing or get used) if you are storing them there in a hall setting where many different people have access to them.
Obviously, the best scenario is to have your own kitchen. Building one from the ground up is REALLY costly so it is probably more cost effective to purchase an existing one. If you decide to do this at some point there are a few things to watch out for. The Food Codes have recently undergone some major changes and many existing restaurants and commercial kitchens are operating because they are "existing". However, if they are sold the new owners will be required to make some updates. The biggest of these is in the ventilation system "make-up air unit". These are costly. Depending on size the cost would start at about $20,000 for the unit and installation. The next concern would be in the plumbing...obviously that could turn into another huge expense. Finally, the cold food holding temps have changed so you would want to make sure that the refrigeration equipment is capable of keeping foods at those new lower temps....generally 40 degrees. Just things to look out for if buying is an option you are considering.
The Health Dept. or Dept. of Agriculture will require that you write Standard Operating Procedures (SOP's). These are very detailed and time consuming to write...the good news is that you only have to do them once. In them you have to detail every step of your process and how you will deal with any possible variances from those or problems that arise. They have a lot of written guidelines that are helpful in this process....but I am not going to lie to you, writing them is tedious and frustrating. Some things that you should consider if you will be marketing at different venues is that you can not just open a jar and sample. You must have procedures and equipment in place to keep your foods at proper temperatures, be able to keep them safe from the elements or insects and you must also have proper equipment for sanitation such as proper handwashing on site, water for use and also storage and disposal of wastewater.
When you have them done you will be required to have a plan review and inspection before your license will be issued. You have to pay for those and the cost varies but isn't astronomical.
Liability insurance is a MUST. You don't want to risk everything, especially today when there are so many people who are sue happy and looking for an easy buck. You don't want to consider any policy that offers you less than $1 million dollars in protection and coverage for injuries and also for your inventory and equipment. That may sound like a lot but policies for that amount can be had for $1,000 or less yearly.
Any way, I got pretty long winded but these are some of the things off the top of my head that you will need to consider and plan for. I've likely missed a few....like deciding how you want to structure your business...but I do hope these things are helpful. It is a complicated process but not an impossible one...and it certainly is worth it all in the end to realize a dream. Good luck and if I can help further please feel free to contact me.
< Message edited by mistoferin -- 6/26/2008 6:06:02 AM >
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Peace and light,
~erin~
There are no victims here...only volunteers.
When you make a habit of playing on the tracks, you thereby forfeit the right to bitch when you get hit by a train.
"I did it! I admit it and I'm gonna do it again!"
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