Food products will always be popular as the world needs to eat! Nevertheless, if your small business makes and sells food products to the mass market, there are certain considerations you need to think about. Food is a very touchy subject, and the food industry is under more regulations than most. So, if you want to open a business that sells food products, here are three key things to be aware of:
Cottage Food Regulations
Effectively, these are the regulations that apply to anyone selling food from their home. This applies to anyone that is selling food products created in the home – either at a market or online. It also applies to certain types of food products; baked goods, jellies, popcorn, dry mixes, nuts, and others. The Cottage Food Regulations can vary from state to state, and we strongly advise that you do your research beforehand.
Effectively, the main regulations are that you need a state business license, an annual kitchen inspection, zoning clearance, and can show proper storage of your food products. If you fail to adhere to these regulations, you won’t be able to legally operate your business!
Fair Packaging and Labeling Act
This is another government regulation that your small business should be wary of. In essence, it relates to the labels you put on your food products. The law states that all of your products need a label that lists:
- Every single ingredient
- Total weight of the product
- The net quantity
- Name & location of where the goods were made
Now, there are a couple of things to think about here, and one that stands out is the total weight of the product. You must ensure that your food products are weighed correctly to provide the right nutritional information for customers. There are different types of weighing scale to use for this, but you should opt for the most accurate one possible. Many food businesses have got into lawsuits over selling products that claim to be a certain weight but are actually much lighter. Or, they claim there’s only a certain amount of one ingredient in the product, only to find out there’s far more.
While the label is one aspect of your product packaging, you need to consider how the product itself will be packaged. This is essential when it comes to selling and promoting your goods. The right packaging can draw eyes, convincing people to spend their money. Also, consider things like the packaging materials. Ideally, people should be able to recycle 100% of your packaging. If you can create or find packaging that’s recyclable, it instantly puts your products ahead of the competition.
Ultimately, the products themselves will be what keeps people coming back for more, but the packaging is what lures them in. Hook a customer with great packaging, then let your food product do the rest.
Evidently, there are other considerations when selling food products from home. Nevertheless, these three points deserve most of your attention as they are crucial to how you’ll run your business.