When most people think about selling their signature dishes, they often envision the daunting process of getting a business loan, renting or purchasing property to make into their restaurant or café, and then worrying to death over if they can pay their bills and employees. Not to mention worrying about if they will have customers! However, there is a growing movement to change how a restaurant is born.
It Starts in the Kitchen
Because of the growing number of financial issues that result in difficulties in trying to get those much-needed loans to open an eatery. Most cannot save the money needed for a startup or struggle to find investors. Many people just want to find a way to make extra cash for home repairs or holiday celebrations. So, they turn to their own kitchens and begin shelling out catered meals or baked goods to fulfill their dreams and goals.
How Do They Do It?
So how do they manage to make their dishes and build a business? Quite a few folks use blogging and various forms of social media to advertise beyond just friends and family about their services. While it does begin with a bit of word of mouth, posting to your local connections on a Facebook group will put yourself out there as a serious contender in the food business.
Isn’t the Home Kitchen Too Small?
It can be. Many start out using their home equipment and ingredients from the grocery store. As orders start racking up, they can then save up and get some equipment from a restaurant supply store. Grabbing a mixer from a restaurant supplier will translate into bigger batches and bigger batches means more money made in a smaller amount of time.
When to Transition
Ultimately, when you transition from home based business to commercial is up to you. Some gradually grow into renting commercial kitchens before plunging into an actual restaurant or café space. Some choose to bottle or package their product and sell to local restaurants and grocery stores. Many famous people (Jimmy Dean and Paul Newman come to mind!) start out of their kitchens and move to a production line!
Ideally if you notice that your kitchen can’t keep up with your orders and if you are unable to work your regular job and this side job, it’s time to move. Using healthy money habits as you go will allow for you to take your business to the next level.
Is it Legal?
For a long time, many states did not allow for the sale of homemade foods. Fortunately, many states have now changed their minds and have passed laws and ordinances around what is called the cottage food industry. You should first check with your state to make sure it’s legal and that you are following health and safety inspections. There may also be ordinances about which ingredients can be used in your items for health purposes.
Starting a food business from home is really one of the easiest ways to make extra cash on the side. Building a reputation by word of mouth, social networking sites, maintaining a food blog, and ethical practices are sure ways to increase business. Eventually those businesses can grow into catering companies, food trucks, bakeries, cafes, and traditional restaurants!