Home-based cooking businesses are gaining momentum, especially since we have really taken to heart the saying “you are what you eat”. More and more people are giving up mass-made processed food and fast food, exploring other options, including various diets and eating philosophies such as paleo, or raw vegan. Given the increasing demand, there is no wonder that people with a passion for cooking are turning their hobby into a business idea and opening home-based cooking businesses.
A Word of Warning
It is absolutely understandable that food businesses are under huge scrutiny from federal and state authorities. There are many regulations and restrictions which you must comply with if you want to open a small home-based catering or even cookie-baking business. Certain state and city authorities have enforced the rule that no food item for sale can be prepared in a home kitchen, but in a commercial-grade one.
You will also be required to keep strict track of all the suppliers from which you are buying fresh produce and other raw materials you use in cooking. Also, you must hold special liability insurance in case anyone eating your food gets sick.
If the perspective of undergoing close scrutiny, and repeated inspections of your home, records and cooking facilities does not scare you away, these are a few helpful tips to guide you in opening your business:
1. Offer Samples of Your Food at Public Gatherings
Town fair? Check! City council meetings? Check! PTA meetings? Check! All these and many other such events are great opportunities to allow people a taste of your cooking, by offering to bring a few snacks and refreshments. This is the small-scale version of offering tasting samples in stores and it is extremely effective in attracting potential customers.
2. Do Your Math
Before you actually open your home-based cooking business, make sure that its estimated revenues are worth your while. You have to take into consideration all the potential start-up and ongoing costs (leasing a commercial kitchen – see above, insurance, purchasing produce and other ingredients, utilities’ bills, etc.) and figure out how much you can charge for your products. Is this price feasible? Would people pay it for your products? Would YOU pay this price for a similar product sold by a neighbor?
3. Promote Your Business
You know the drill (if you have followed our blog so far, at least): social media engagement, blog, videos, newsletters and all the effective and affordable online marketing tips we’ve offered home-based business owners so far.
Not Willing to Take the Heat? Here Are Other Cooking Business Options
If you are not prepared to subject yourself and your business to ongoing intense scrutiny by state and federal food safety authorities, but you still feel that cooking is your ideal home business idea, you should focus on other, less risky, activities. These activities will not make you liable in any way and you can rest at ease that you won’t be having the FDA knocking on your door. Here they are:
1. Instant Recipe Service
This is an increasingly popular trend. People go to a website and type in the ingredients they have in the fridge and pantry and they get a recipe idea based only on those specific ingredients. You can offer this as a freemium service (the first X number of recipes ideas for free, the rest for a nominal fee or monthly subscription). As your business grows, you can even consider investing in a mobile app, allowing people to find instant recipes no matter where they are.
2. Chef on YouTube
A lot of home-based entrepreneurs make money by sharing videos on YouTube showing how they prepare various dishes. They are paid directly by YouTube. Yes, you have heard right – YouTube pays for videos with a large number of views. It works like this: once your channel has a sufficient number of followers, you can apply for membership in YouTube’s Partner Program. For every 1,000 ads served right before your videos, you get paid a percentage of the AdSense revenues obtained by YouTube. So, get your ingredients, let the camera roll and action!
3. Recipe eBook and Blog
This is a very common and popular way of making money from home as a cooking specialist. Monetize your recipe blog or launch a recipe eBook and apply the usual online and social media marketing strategies we’ve discussed so far and you will be able to make a sufficient income to support your family.
Whatever option you choose for your home-based business (cooking and selling food or online cooking ideas), we wish you good luck in your business endeavors!