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start up capital?


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#1 BadWolf

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Posted 02 June 2019 - 04:52 PM

Maybe i've missed this on the forums but I haven't found any information along these lines. I'm wondering what a good ballpark figure for start up capital would be to take the plunge and get all the licenses and process approvals and such.

For me, I think I would be starting very small scale, like start with sales to friends, family, coworkers, acquaintances, maybe some local farmers markets or festivals. I think renting commercial kitchen is the best option for me, I think i'd be able to work something out with a local church or restaurant. I absolutely want to do this the right way, everything legal and safe and proper. 

 

Keeping that small scale in mind, (and being aware too small of a scale might not be profitable/successful), what would a safe figure be for capital? $1,000? $5,000? $10,000? 1 million?? (LOL)

I know there are lots of variables and it's difficult to say, I'm just trying to get an idea before i get too far ahead of my little hobby now.

 

Also, bottles- i haven't seen anything mentioned about when/where the bottles must be cleaned/sanitized during the process, is it typically required that the bottles are prepped on the same site as the sauce is made? Or might it be possible for me to prep bottles at home (wash/rinse/sanitize) then haul to the commercial kitchen when its time to produce?

 

As always, thanks everyone for the help and advice. This site has been a huge assistance for me. I've only been making sauce for a few months now, its probably WAAAYY too early to think about going pro...



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#2 salsalady

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Posted 03 June 2019 - 09:21 PM

If you can use a commercial kitchen that has a decent gas stove, you are pretty much looking at-

licensing $500
Process authority product review- $250 per product
Better processing class, if required-$500
Insurance $500- may be able to do payments
Equipment (pots, food processor, ) $1,000
Starting inventory bottles and product $500
Labels(home printed or small runs at local print shop) $100
Farmers market tables, equip, canopy $600

That's what I can think of off the top of my head....

Edited by salsalady, 03 June 2019 - 09:22 PM.

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#3 salsalady

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Posted 03 June 2019 - 09:34 PM

Bottle cleaning is to be done at the processing kitchen. Most inspectors want all the equipment and supplies to remain on-site, no transporting. There are ways to prep the bottled ahead of time. If you can do a bleach rinse the day ahead, they can air dry and the bleach will dissipate. Or oven bake and leave in the oven to cool until ready to use.

Insider tip- I got a couple of racks from old dishwashers, the ones with all the spikes. I can wash and stack about 6 cases of 5 oz woozies in each rack.
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#4 BadWolf

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Posted 04 June 2019 - 05:23 AM

As always, thanks SL! Looks like neighborhood of $5k is a good starting point. Time to start pinching pennies while I practice making sauce!

#5 salsalady

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Posted 04 June 2019 - 09:43 PM

Insert the :you can do it: meme...:lol:
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#6 The Hot Pepper

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Posted 05 June 2019 - 09:37 AM

There's a killer co-packer right in your area:

 

They made some award-winning sauces (THPA winners) and opened a facility.

 

https://www.patterfa...atter-fam-foods



#7 BadWolf

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Posted 05 June 2019 - 03:22 PM

Looks like they're only about two hours away. I've also found some incubator kitchen options locally




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