So, what about licensing?

This is probably one of the most common questions we get…what licensing do I need and how do I get it?

First training that ALL of these licenses require is the Food Safety Manager’s Training. Always start with that. Several companies do it, we use the ServSafe curriculum. Do NOT mistake this for the Handler’s certification…Manager’s is more involved.

There are 3 agencies that regulate companies that make food for sale. The health department, the Department of Agriculture and the US Department of Agriculture. Which one you need depends on how you intend to sell your product and what you are making.

The health department—run by your state or local authorities—regulates direct to consumer food. This is any food that is made by you and sold directly to a customer. Food trucks, restaurants, farmer’s market vendors, etc usually fall under health department’s jurisdiction. As a general rule (but not ALWAYS true) a health department license is quicker to get.

The state-level Department of Agriculture regulates and inspects packaged goods intended to be resold (wholesale products) that do not contain meat. They do this on behalf of the FDA, which means once you get this license you may sell across state lines. In most cases, the process of getting this license usually takes 2-6 months from the time it is turned in. You need to have your labels created, your packaging ready, your HACCP plan (Hazardous Analysis Critical Control Point Plan) for each product and, if applicable, your product tested for bacterial growth and shelf life standards. Some products require specialized training (like acidified products or cold press juice, for example). While very small businesses ARE NOT required to have nutrition labels, they are a good idea and can either be tested by the lab or can be made by putting in your ingredients into a software program (we often use recipal.com).

The federal United States Department of Agriculture regulates all wholesale products containing meat. Those frozen meals in a grocery store? USDA. The USDA issues something called a Grant of Inspection for these types of products and it is involved. The certification requires you to be separated from all other products by time and space (shared spaces have to have allocated kitchens for this, for example) you to notify your inspector each time you are going to produce (they will usually be onsite for production). You will require HACCP plans, recall plans, manufacturing training and more, depending on your product. This is a significant investment for food producers.

For the new entrepreneur, this should be a step process as you put your business together. You can hold ALL of these licenses you want. Start with direct to consumer sales and, as your customer base grows, spend more and go through more processes.

Oh, and one last thing to remember. In all cases your products have to be approved AND your production kitchen has to be approved. You will need new licensing if you move kitchens.

5 Things to Prepare to Start Your Business

So you love to cook and want to start a business? You’ve come to the right place.

Making the decision to start a business is exciting.  You KNOW it is going to work!  Your friends love it, your family is supportive, your food is DELICIOUS. 

But off in the horizon is a dark cloud that you are trying hard to ignore.  Doubt.  Fear. 

You are smart.  You know the statistics.  The vast majority of new businesses fail.  In the food industry, that number is even higher. 

When I started my bakery business, I had these same doubts.  I’m an analyst, so I made a plan. I researched all my questions. I was motivated and my family was supportive.  Unfortunately, there were things I had no idea I didn’t know…and they sunk my business.  I closed it within two years.

Well, THAT’S not motivational!

But YOU can be different, you tell yourself. 

And you are right.  You can be.  But boy, is there a STEEP learning curve.

Since then, I co-founded Frontier Kitchen, learned from my mistakes and the mistakes of hundreds of other successful (and not successful) entrepreneurs and businesses. I’m going to try and share some of those lessons with you.

Unfortunately no one can tell you exactly how it is going to go. Some information you simply aren’t ready for—and that’s ok, you will get there. Other parts will be unique to your journey. Anyone who tells you they have all the answers is selling something.

However, you can prepare. Here are 5 steps to getting physically and mentally ready for this journey.

1. Complete your business set up before you EVER mix an ingredient. This means get your LLC, your EIN, your insurance and your food safety managers training.

2. Set up your business bank account and your accounting software. NEVER, NEVER, NEVER mix your business money and your personal money! You will watch your personal accounts be SUCKED DRY—that’s bad! (side note, skipping the accounting software takes out 50% of ALL new companies. Your company lives and dies on its accounting.) Related, set aside time each week to do your backend paperwork or hire someone to do it for you—many businesses go out of business because they never find the time to collect their money.

3. Find your support team. Go to Frontier Kitchen, SCORE, your local Small Business Development Center or Chamber of Commerce. Your friends and family are probably great, but surround yourself with people who have done what you are trying to do and those that are going through it with you.

4. Be ready to fail, but do it quickly. Do NOT wait a year to find out you aren’t making any money. NEVER say “about” when talking about your profit—you need to know to the penny what your food and overhead costs are every month. This is hard. Get help.

5. Be prepared to create processes and procedures. As the business owner, that is your primary job. It is great fun to create a delish chicken dish. Cooking 1000 chickens—less so. But this is your business. You are the creator, other people do for you (eventually). Make sure you are thinking about it that way.