artwork Need Advice on Where to Start

L

Lost0

So I recently found this forum and I have to say I am very thankful that I might be able to find some direction finally. I have a hot sauce I want to bottle and sell, yet have no idea how to move forward with this idea. After reading the sticky in this section ‘Resources for staring your food business’, I have more material to mull over than I could have wished for. Unfortunately, I am still left pondering where do I actually begin? Is there any good literature that outlines a necessary progression when starting a small business?

Most of the advice I’m seeking is business related, well before I even get to the manufacturing (the questions will really start flowing then). First, do I need to, or should I establish a business name, i.e LLC before moving forward with anything? Is this required for separating business expenses for taxes? Its funny, I see many sauces where the corporation is an LLC and I’ve read about the benefits of an LLC for small business entrepreneurs, but little is referenced as to how to begin this process. Do I need to contact a lawyer? I figured I would need to contact a lawyer sometime during this process, but do I start out contacting a lawyer and use them as my resource for moving this whole process along?

I guess I’ve just been a little gun shy not having a good idea of the steps I’ll be taking in this journey.

If the pro’s on this board could provide a little insight into the process they went through to get started, I would be elated.

Any help is greatly appreciated,
:cheers:
 
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Is your manufacturing facility in your home? or else where

do you have your recipe/recipes dialed in.

do you have partners ( god I hope not)

do you consider your recipe intellectual property

are you currently selling product

do you have all art work, labels, nutr info, barcode, shipping card board
 
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DEFCON Creator said:
Get a food lawyer, NOT a regular lawyer, trust me, you'll save a dumptruck full fo $. Form an LLC, you can combine the company taxes along with yours. Make sure you get product AND personal liability insurance, try www.hartford.com.
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Thanks for the input, I will try to touch base with a food lawyer next week and run my questions past them as well.

DickT said:
Is your manufacturing facility in your home? or else where

do you have your recipe/recipes dialed in.

do you have partners ( god I hope not)

do you consider your recipe intellectual property

are you currently selling product

do you have all art work, labels, nutr info, barcode, shipping card board
Click to expand...

Manufacturing isn't even on my mind yet, but I expect it will be a through a co-packer or rented commercial kitchen. From what I have read, personal kitchens are not an option.

I do have a recipe that I've tuned over the past 6-8 months, but have yet to make a large patch. I have done a PH test (4.3) on the batches, so I know what packing options I can use. As for large quantity batches, I will be converting my recipe to weight/volume from tbs/cup measurements. I figure once I get the business separation to split expenditures I can order necessary equipment/scales to begin this.

This is a personal venture, no other will be harmed in my incompetent business journey. But I have to start somewhere. :)

On the IP question, I guess this would be a better discussion with a lawyer, as I don't have the slightest.

I am not currently selling or bottling anything. Except for the mason jars of sauce I've given to friends/family.

I'm not even close to this point yet, hopefully this will be a major concern in the near future, but I want to lay the groundwork before I start building a structure.

DickT said:
where did you go?
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Im back, don't worry. I didn't go anywhere!

Keep the feedback and info coming. I read the board yesterday, but didn't have a chance to respond.
 
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One thing about large batches.... simple conversion doesn't always work. You'll have to taste along the way and make adjustments. When your 40+ gallon batch tastes just like your 30 ounce batch, that's when you record your measurements. It's a lot of trial and error, and sometimes it will get expensive.

Here's what I would do.

Hunt down suppliers. Bottles, ingredients, labels, packaging, and shipping.

Decide on a name, and research it. You don't want any lawsuits from other companies. Register the name and get your business license.

Get your barcodes. Remember, they're not entirely necessary, but you'll be glad you have them in the future. Nutrition information can be found on the FDA website and can be downloaded for free. There's also a lot of good information about labeling you should be familiar with.

Hunt down co-packers and/or commercial kitchens. Get things lined up with them including storage of product. Chances are, you can't store it at home. See about any bottling classes that might be needed. Also a good time for insurance to be in place.

Find a food lawyer. The Creator outlined that pretty well.

Get a website with SecurePay or Pay Pal. It doesn't have to be really fancy, but pictures are pretty important. People like to see what they're buying.

Open a business bank account and keep it separate from your personal account. Things get really muddy if you don't.

When all of that's done, then the work/fun begins!!!!
 
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For starters you don't have any partners ( thats great) don't worry about dragging partners down for they will only drag you down.

What state do you live in? I live in Maryland ( fairyland) where you are allowed to produce up to $40,000 dollars of commercial food business from your own home. Have you ever watched QVC , The people who sell crab cakes on there have there manuf plant across the street from me, they started in a row home. I would check this out first and formost.

At this point in the game I would not seek a lawyer at this time. You're not ready for that exspense.

What do you want to call your Corperation? Establish that and contavt an accountant and see if the name you want is available. If the name of your corp name is available, incorporate as a sub chapter S corp . This will cost between 400 to 600 dollars. More than likely if the corporate name is available, you'll be able to name your product the same.

I have to go now but check this out first, if you can work from your home and establish a small business foundation. This will keep the ball in your court and allow you to price shop in the future. Post your state of residence and I'll do a little research for you, since I already know where to look.
 
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DickT said:
For starters you don't have any partners ( thats great) don't worry about dragging partners down for they will only drag you down.

What state do you live in? I live in Maryland ( fairyland) where you are allowed to produce up to $40,000 dollars of commercial food business from your own home. Have you ever watched QVC , The people who sell crab cakes on there have there manuf plant across the street from me, they started in a row home. I would check this out first and formost.

At this point in the game I would not seek a lawyer at this time. You're not ready for that exspense.

What do you want to call your Corperation? Establish that and contavt an accountant and see if the name you want is available. If the name of your corp name is available, incorporate as a sub chapter S corp . This will cost between 400 to 600 dollars. More than likely if the corporate name is available, you'll be able to name your product the same.

I have to go now but check this out first, if you can work from your home and establish a small business foundation. This will keep the ball in your court and allow you to price shop in the future. Post your state of residence and I'll do a little research for you, since I already know where to look.
Click to expand...

I live in California, San Diego to be more exact. Being able to establish a home base, at least in the beginning would be a big plus.

I've given a corp name a little thought in the past, but I want to have a small list if first choice is not available. I'm doing more research on an S-corp vs LLC determining which would be the best route for me.
 
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If you are thinking of making your products in your home, MAKE SURE you are allowed to. The FDA is quite strict, and the fines are hefty. I think you'll find the LLC much more accomadating when you start up. You can combine your personal and business taxes into one, which makes for a much easier tax filing season. I would strongly advise you get all of your legal stuff out of the way before focusing on your products (personal/product liability, trademarking, company formation, etc.).
 
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Lost0 said:
I live in California, San Diego to be more exact. Being able to establish a home base, at least in the beginning would be a big plus.

I've given a corp name a little thought in the past, but I want to have a small list if first choice is not available. I'm doing more research on an S-corp vs LLC determining which would be the best route for me.
Click to expand...

You'll have to ask an acct on S vs LLC as States differ. In MD S is better if you are doing less than a million dollars in business.
 
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DEFCON Creator said:
If you are thinking of making your products in your home, MAKE SURE you are allowed to. The FDA is quite strict, and the fines are hefty. I think you'll find the LLC much more accomadating when you start up. You can combine your personal and business taxes into one, which makes for a much easier tax filing season. I would strongly advise you get all of your legal stuff out of the way before focusing on your products (personal/product liability, trademarking, company formation, etc.).
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Thats what I'm attempting to do. I want most of the paperwork out of the way so I can focus on products. It's slow going, but I'm in no rush. I want to be thorough and not forget or miss an important step in the process.
 
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We're in canada so I don't know about US stuff. BUT. we've been very successful so far doing small batches (100 bottles or so), and the business is rolling along nicely. We haven't put any extra money in after startup business licences etc.. We do have the advantage of access to a commercial kitchen any time we need it. You seem to want to start big, which is ambitious, but slow and steady may win the race, after all.
 
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