Home made hot sauce, how to start a home business? (commission, small business)
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Anyone had a home recipe and began a home business?
What should I expect to pay in % commission to someone, to get me customers?
Example: I give a few bottles to friends to taste test, pass around, and get some customers?
Any real hope of getting it, into family owned restaurants, etc?
Also, be prepared to accept the fact that food-based businesses are never really "home" businesses(unless you build a second commercial kitchen in your home). You'll need to find a commercial kitchen (one that has passed health inspection) to rent before you can begin.
Everyone in New Mexico and Texas has an aunt, cousin or cleaning lady who makes a homemade hot sauce that they say is the best. And, many of them are. If you were in NM you would see that and the bushels of chilies going bad in the sun because there is too much product and not enough buyers. But, if you are determined, move to NM and start experimenting with your own take on this popular condiment.
I had a buddy in HS whose father made the best hamburger sauce ever. He bottled it in his kitchen and went from store and restaurant selling a case here and a case there. And, he never made a dent in the market. It was delicious. Wish I had some now. But, he died broke.
Anyone had a home recipe and began a home business?
What should I expect to pay in % commission to someone, to get me customers?
Example: I give a few bottles to friends to taste test, pass around, and get some customers?
Any real hope of getting it, into family owned restaurants, etc?
As someone noted, food related businesses can't, legally, really be home based businesses.
Anyhow, you'd be competing against giants, food distribution and production is controlled by some rather large businesses. Is the hot sauce really that special? Is there nothing on the market available from distributors, etc that is similar?
There are a couple of specialty food conventions in the US each year. We went to the one in SF and were blown away by the hundreds (perhaps thousands) of new products being pitched for sale. Lots and lots of money goes into the development, packaging, legal work, etc. to prepare such a product for sale.
I will also repeat that you cannot legally sell a food product made in a home kitchen in most jurisdictions. In Indy, there is a commercial kitchen that rents space to new food businesses. Many find this a good way to start. Maybe you have a friend with a commercial kitchen that will let you work when the business is slow? We also have a small business generator to help those what want to develop new businesses. Maybe there is one around you?
I've been in a warehouse operation in SLC that specializes in internet hot sauce sales ... and they must have 200 different hot sauces bottled on the shelf, ready to take orders and ship out to those areas of the country where these condiments aren't so readily available.
Every one of those products is made in a commercial kitchen and bottled and processed and then labeled and marketed. It all takes money to do so, and it's all out of your pocket up-front. You'll find it's not cheap to be a legitimate entry into the retail consumer food marketplace, and there's enough competition to keep your prospective profits at a loss price point.
It's unlikely that anybody with a restaurant will want your product; if they need a hot sauce, most can make their own in-house as needed. Many do, and bottle it from their commercial kitchen for sale to their customers to take home.
What seems to catch a lot of customer's eye and buying of a product on the shelf of a store, or off the table at a Farmer's Market ... is a catchy label design. It's almost more important than the contents of the bottle for that initial sales appeal. Even if your sauce was the best in the world, you've still got to get the customer to want to buy it before they've opened a bottle. Are you as good a label designer as your product?
Anyone had a home recipe and began a home business?
What should I expect to pay in % commission to someone, to get me customers?
Example: I give a few bottles to friends to taste test, pass around, and get some customers?
Any real hope of getting it, into family owned restaurants, etc?
Thanks.
Howard. The first rule of entering a new market? Don't do it if there's a lot of competition. For even if you've concocted the best hot sauce ever, there are already hundreds that are taking up shelf space in grocery stores.
Unless you have a killer name (Bottled Hell is one of my favorite labels) and something that's absolutely unique, save your money. Because if the competition doesn't make things too tough for you, the regulations will.
Finally, if you ignore all that advice and go ahead, you need to be prepared to be your own representative for quite a while. Unless you get incredibly lucky and appeal to some buyer at a major grocery chain, you'll have an uphill slog for years. Also, be prepared to invest in quality marketing materials on the front end, from labels to cool bottle design to involving point-of-purchase material. Until you have all that in place, you're not ready.
Last edited by cpg35223; 11-01-2011 at 01:39 PM..
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