Think about how you can differentiate your product from the competition. It helps if you can fill a specific need and tailor your products to a specific audience. For example, you might offer cookies in more unique flavors than your competition, thus catering towards an audience that wants a more adventurous cookie. Alternatively, you could cater towards an audience with certain dietary restrictions by offering cookies that are vegan or gluten free. Now is also the time to figure out financing. Once you know how you plan on operating your business, you should have some idea how much it will cost upfront and on a monthly basis. Most lending institutions will want to look at your business plan when deciding whether to loan you money, so make sure your business plan is very thorough. You should also come up with a name for your business, and maybe even a logo or some sample promotional materials. If you’ve never written a business plan before, you may want to consider hiring a professional to help you.
Limited liability corporations (LLCs) are popular among small business owners because they help you avoid double taxation and protect you from being personally liable for money owed by your business. There are other options as well, including sole proprietorships and corporations.
Limited liability corporations (LLCs) are popular among small business owners because they help you avoid double taxation and protect you from being personally liable for money owed by your business. There are other options as well, including sole proprietorships and corporations.
If you plan to sell in a state that has a sales tax, you will need to register your business with the state’s Revenue Agency. [4] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source
If you do not plan to open a bank account for your business or hire employees, you may not need an EIN to operate certain types of businesses. Check with your local government to learn more.
If you plan to operate your business from home, you will also need to get approval from your local zoning board. If you are not permitted to use your home kitchen for your cookie business, you may be able to find an established local business that will allow you to rent out their kitchen during off hours. [8] X Research source Some states have special provisions for the cottage food industry, which might exempt you from needing a licensed kitchen. There are also restrictions, however, regarding what kinds of products you can produce, where you can sell your products, and how much money you can make. Check with you state’s Department of Agriculture and Rural Development to learn more about the local laws you must abide by. [9] X Trustworthy Source State of Michigan Official website for the State of Michigan Go to source
It is essential to keep accurate records regarding the sourcing of your ingredients and the ultimate destination of each ingredient. The purpose of this is to enable the government to track food borne pathogens in the case of an outbreak. [12] X Trustworthy Source US Food and Drug Administration U. S. government agency responsible for promoting public health Go to source
The USDA provides guidelines for calculating the nutritional values of your products, but if you do not feel comfortable doing this yourself, you can outsource the task to a specialized company. Make sure you understand the legal definitions of special phrases like “organic” or “gluten free. " If you cannot prove that your products actually meet these stringent requirements, you may not be allowed to use the term. Keep in mind that your labels will have to change whenever you make a change to your recipe.
Make sure to consider major items, like ovens and mixers, as well as smaller items, like mixing bowls, sheet trays, and packing materials to neatly pack the cookies. Think carefully about what equipment is absolutely necessary for the production of your product and what equipment is optional. You may want to save money upfront by only buying essential items, and then upgrading with fancier equipment when your business becomes more established.
Keep in mind that certain wholesale customers may demand specific food safety procedures beyond those that are required by law.
Coming up with new and exciting products will keep your brand relevant and your customers happy. Make sure to always keep up with industry trends, as well as the products your competition is offering. You might want to get some feedback on different recipes with friends and family, or even from a random sampling of potential customers, before deciding which to produce.
Never stop doing market research! You need to make sure you are actively meeting your customers’ most relevant needs, and these are always changing. You might want to consider hiring a marketing agency or a dedicated employee to help with marketing, especially as you grow. Between a professional website, an active social media presence, and print materials, it’s easy to get overwhelmed with marketing. Once you’ve sold a customer on the idea of your product, you need to follow through by always providing great quality and a fantastic customer experience.
