artwork Been there? Done that? Or one day I dream of starting my own fiery foods business?

Husker21

Husker21

I know there are lots of threads that focus on various aspects of the business.  Many thanks go out to Lucky Dog Hot Sauce and Salsa Lady.  I have been reading your content likes its gospel.
 
But I am really curious... How many of us have the dream to start a fiery foods business?  How many people have tried it and couldn't get past some early hurdles?  How many people tried and failed?  How many people have a small business plus a day job?  How many people are living the dream and do this full time?  What are your experiences and lessons learned if you care to share?
 
I am in a weird place right now.  lol  I have a friend who owns a restaurant.  I gave him some of my sauces and jams during the holidays and now he wants to put them on his menu starting around Super Bowl time.  I know I can use his kitchen to produce what he wants....  But I immediately started thinking past this one "order."  
 
What has me hung up is taking the leap.  I have 1 sauce that I think is ready to go to market.  I have two more that need a little fine tuning.  I also have a bbq rub and seasoning salt that I think are ready for market. If I make a business out of this my friend has offered to let me use his kitchen for FREE  I know securing a commercial kitchen can be daunting, but literally had one fall in my lap.  I have a good break down of all of the fees, licenses, regulations, and start ups costs.  I have identified a couple of farmer's markets I could sell at, a couple of vendors that would be willing to sell my products, and 2 restaurants that would be willing to place my sauces on the table of their establishment.  Financing is a big one.  I have a potential financial backer that will be sitting down with me this weekend to go over my business plan.  But as much as I am excited about this, I know there is a good chance at failure.  Right now I can make my hobby sauces and hand them out to friends  The kudos I get are awesome... But I fall into the go big or go home category.  If I am going to do this I need to be all in.
 
I am looking for any feedback or personal experiences that might sway me.
 
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Had a great meeting with a potential investor last night. I need to finalize my business proposal before we finalize the kick start game plan.

I also need to 'drop by' the local dept of health tomorrow. I left two voicemails last week and didn't get a call back. :(
 
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Excellent books that helped me and will help any/all business/self employed people (imo):
 
The E-Myth Revisted - especially the part about 'the technician'.
 
Fish - story about the famous fish market in Seattle, the lesson is 'choose your attitude'.
 
Ready, Fire, Aim - about the guy who started Subway
 
My own advice:
1. Get legal - know your lawyer and local laws and abide by them :)
2. No paralysis through over analysis - someone else mentioned not getting caught up in what ifs (what if I get lots of orders!?).  Stick with the now and keep moving is more important than figuring out what you'll do when you get on FoodTV.
3. Go with what you got - you're motivated and have products so get them out.  Try and remain open minded along the way though - you might make a couple sauces and rubs right now but just maybe down the line you'll make a mustard that ends up making you the most money.
 
Good luck bud!  
 
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Husker21 said:
Btw a big reason I went LLC over sole prop is because the entity tax in CT is only $250 and is due every other year.
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Weird. I was having a discussion about the tax pros and cons of each yesterday. The conclusion was that sole prop was better in my case (not pepper related business), but I think I'm going to pick up the phone and revisit it.
Very glad to hear you're pursuing it. Congrats and much props!
 
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fwiw- LLC licensing is a STATE license and tax entity.  For the IRS, sole proprietors and LLCs all file as sole proprietors.  Only full-on corporations can file with the IRS as corporations and are subject to all the corporation tax laws and deductions.  
 
 
This may or may not have an impact on how much taxes you will be paying when filing your state income taxes and federal SchC's.  (If you just said to yourself "what's a SchC?"...then you really need to talk to a financial person!!!!  Or start reading on the I-net! )
 
Just keep in mind that as a self employed person, either as a sole proprietor or as an LLC,  the IRS will require about 18% due in taxes on all the business's profits. 
 
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Lucky Dog Hot Sauce said:
What are these "profits" things of which you speak?
:o
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dunno.....but someone somewhere said that being self employed is very profitable.    I'm still searching ....
 
 
I read it on the internet, it must be true....right???
 
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Can't wait to start this course!!!!!!   Doing it online so I hope to rip through the content and exams!
 
book_zpsedc83af3.jpg
 
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I passed my course!  With an A+.  :)  Very interesting.  I wasn't this attentive and open to learning when I was in college.  Don't tell my Dad.
 
Lots of cool stuff about to happen in the next week to a month.  Website is due to be up this week.  I will hook in the social networking elements at the same time.  I am about to buy some cooking equipment and make up my samples to send out for testing.  I will be doing this at the kitchen I lined up for production.  I am also planning the first promotional events and getting lined up for farmers markets.  I am also working with a wood working buddy do design a package that I can use to bundle two of my products together for sale. 
 
Momentum is contagious!!!
 
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Husker21 said:
I passed my course!  With an A+.   :)  Very interesting.  I wasn't this attentive and open to learning when I was in college.  Don't tell my Dad.
 
Lots of cool stuff about to happen in the next week to a month.  Website is due to be up this week.  I will hook in the social networking elements at the same time.  I am about to buy some cooking equipment and make up my samples to send out for testing.  I will be doing this at the kitchen I lined up for production.  I am also planning the first promotional events and getting lined up for farmers markets.  I am also working with a wood working buddy do design a package that I can use to bundle two of my products together for sale. 
 
Momentum is contagious!!!
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Congratulations!  I just got my certificate.  Good luck!!
 
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foodproductlaunch said:
 
Congratulations!  I just got my certificate.  Good luck!!
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Good on you!  I am trying to finalize my business insurance and nail down my purveyors this week.  My primary goal is to have everything squared away mid May which seems very doable right now.
 
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