Want to turn your home kitchen into a business? We'll in almost every state you can, but there are some things you need to know before you start!
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One of the most profitable food business ideas to run in 2020 is a home-based food business. Or as it's known a cottage food business and this video, I will give you all the information you need to know to get your food business, home-based bakery or candy business up and running in the state of Georgia. And we're going to get to it right there.
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All right. So in the state of Georgia, it can definitely be a profitable food business starting from home. And for the biggest reason is, well, it's from your home. Um, having a minimal investment right off the bat can be a huge incentive to start any small business. And when I started my retail bakery, of course, one of the biggest expenses was the rent. So when it comes to using your home as a small business to begin with, it's absolutely genius. And the multitude of tax benefits also are enormous when you operate a home-based food business, but definitely check with your accountant about that. So let's get into exactly what is a cottage food business in the state of Georgia and what are you able to do and how do you get it started? What are the necessary requirements? So I'm going to give you a general, uh, understanding of what you need to do.
But after you get your business license, you definitely want to look into some food producers, insurance. And if you're going to use your automobile, uh, in any of this type of, of, of transition, or if you're working for anything where you're dropping off ingredients or picking stuff up for your business, check out a commercial auto insurance policy as well, that's going to be something that's going to be a huge asset for your business. Um, so where can you start? So I'm going to give you the six steps to do this. And the first one is going to be, where can you sell? That's a great question. So once you create your product in Georgia, you can do events like farmer's markets, roadside stands, you can sell online, but you have to actually do the transaction with the individual itself. So if you sell a product, you have to transact it.And then down in the description below the video, check-in the description section, and I'm going to put a few links to the Georgia website, that'll help you understand more particularly about what else is needed and what you can do. So let's get into it and figure out exactly what you can and can't do. So it's the state of Georgia. It's a little bit of a challenge at first because you do have to get a business license. You have an application and a home inspection as well, and you do have a course such a training course that you have to take. Um, and I believe it's a food handlers course, and we'll check that out in one second. I'll get into details about that, but those are the four main things that you definitely want to do. Now, I personally would recommend, um, liability insurance for your, uh, your LLC or however you want to form your business.
You got to give it directly to the end-user. You can't do like as far as restaurants or wholesale or a third party, who's going to resell the product itself. Um, that's something that's not allowed. So you definitely want to look into that. You can also do home sales, where you produce the product, and if you're comfortable with strangers, I mean, obviously they are, but if you're comfortable with customers coming to your, you can definitely have them come to your house and pick up a food product that you're producing there as well. Now, some of the prohibited or, uh, venues and avenues that you can't sell to, like I just mentioned briefly, wholesale is not a type of business that you can do from home. You'd have to be in a commercial kitchen for that. Uh, restaurants and retail stores is also a, another Avenue that can't be done from home, just because it's going to be considered a third party until that restaurant or store sells it then to another customer.
So there'll be three people involved in the transaction that is not allowed. So next up we have, what types of foods, step two, what kind of food can you sell? Well, it's actually pretty big to list, to be honest with you. And again, I want to refer to that link in our description for much more detailed, but here's a basic understanding you could do cakes, um, sweetbreads and scones, muffins, and brownies, uh, cook cookies, bread, um, candies like brittles fudge, cotton, candy, truffles chocolates, um, actually even condiments like vinegar, uh, dry goods, like mixes, dried fruits, herbs cereals, uh, dried vegetables and even spices. And as I mentioned in a lot of my other videos about cottage food businesses, um, spice businesses are hugely profitable because of the fact that the ingredients are so cheap. So starting something like that from home is a huge, huge thing you should think about if you're not even in spices and you want it to get into the spice business, it's definitely wanting to do from home.
you can also do pies and pastries, but keep in mind when you do pies and pastries that they can't be refrigerated or considered potentially hazardous food products. So if their time or temperature-sensitive, it's definitely a product that you can't do from home, but there's a huge variety of other pastries and pies and things of that sort that you can do, and definitely sell them locally jams and jellies and preserves snacks like caramel, corn, granola, popcorn balls, uh, nuts and seeds, crackers, and pretzels, and chocolate covered items. Those are also allowed as well. Now, as far as the limitations, let's take a look at some of the restrictions. Okay. So step three was going to be the restrictions and limitations that you can't. There's a great thing about the sales. There is no sales limit, which is fantastic. So you can really, really leverage your home and create a really full blown business with no sales limit on the amount of money that you can sell. Now, you can't use, though, when it comes to your kitchen, you can't have pets or anything of that sort, uh, or they're kind of restricted when it comes to having them in that area. So when you're working for your cottage food business producing products, make sure there's no pets, no other what they call domestic activity.
Cool.
And also known as interstate sales, those are prohibited. And what that means is I'm selling a product from your state to another. And again, that would be almost something that would be online, which again is prohibited, but you, you can't actually transact outside of your state. And if you're working in a home-based kitchen, it to be a noncommercial equipment, you can't necessarily have a 300 pound bread mix or a dome mixer in the middle of your kitchen. That's something that's not allowed. You would have to get into a commercial space to do that.
No,
On to the legalities. Like I mentioned, in the beginning, the business legalities, what is it? As far as business licensing thing, you have to definitely have one of those. The, uh, operator must apply for a business license. Um, in specifically the County that you are in the Cal TB permits department. And normally it's between about 50 to a hundred dollars for those types of permits, but you definitely need to have a business license. Now, the two things that are really super important are the next two. If you're off of a, well, if you're dealing with, on your property, you're dealing it with water that comes into your house from a well, the well has to be tested. Okay? So if you have a private, what's known as a private water source, if you have that, you're going to definitely need to have that tested. Even if you're on a private sewer system that has to be inspected as well. Why is that important? Well, here, here's why, because when you are dealing with equipment that you're washing and cleaning and sanitizing in your kitchen home, and you're producing food for the public, the local offices, the local departments when County departments want to make sure that that water is not tainted, that the water is clean enough for you to be cleaning utensils, pots, and pans that are gonna be,
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Food products for people to consume. So they want everybody to be safe. Okay. And that even includes your, your sewer water, your sewer as well. If you're on a private sewer. Now, the next thing you have to do is you have to get a N S I accredited food safety course, something that similar to like the surf safe, uh, which is actually an online courses. And they're running about 125 bucks. And those are courses that will teach you everything about food, sanitation, how to handle food, how to package it, prepare it and hold it and all of that good stuff. Um, so next step would be your cottage food license. So in the state of Georgia, when you get that cottage food license, the license itself is around a hundred dollars. If you actually incorporate yourself and you get the license after June 30th, the fees around 50 it's about half that it's about $50 for the, for the rest of the year, but it's something that has to be renewed annually. Okay? So keep that in mind too. Next step is your home inspection. So now once you get this set to go and you get to, before you get to license, you need to contact the department of agriculture and they will set up an appointment to actually have the cottage food inspection of your kitchen and the area that you're going to prepare the food. So do keep that in mind as well.
Well, now
Next up. What about food insurance? Yes. As I was speaking earlier, step five is going to be food business insurance. Now not every state requires you to have insurance policy for your food business from home, but I highly recommend in order for you to be financially safe and safer than, sorry, to be honest with you, you need to have some type of food business, producers insurance. Now there are programs like the flip program.com that actually sells, um, uh, home-based food policies. And you can actually get a policy. We're going to dive into which you can and can't do it and give you some tips. They gotta find out it's about $500 a year can really dictate exactly how definitely Bayer can prepare her. So get yourself some insurance for that truck now really quick. I want them to jump them. Lastly is number six. How do you layout what exactly is a commercial kitchen?
Because I know many of you made not selling this shelf has a different type of label, never worked in one number one from allergists. So basically make sure that on base six major allergens outside of your home, outside of your business address, and it's a licensed facility, it needs to be on the label as well. Inspected by once you create a name for your business, you gotta have that name fully set up. Kitchen grease, no Brady equipment got to make sure people know what is your side of it? What are the storage area, net, all the equipment that you would need inside. If you're selling a product by weight, you would actually went on a set is the way that the product minus any package, transport that you have truck [inaudible] menu on your food truck. Now the product name Sarah's chocolate chips, a young lady who was tasking, actually she needed to could prepare.
And then lastly, you want to have a statement that says, basically our product is producing an uninspired. This is going to be dictated on this, the whole city and the County. You want to make sure that that has how they set up a disclaimer produced and to make it more it's actually every city and County commercial entity it's produced home in some cases, commercial. So trucks, these are some really great basic outlines. What you can can't wire to get yourself up to the commissary kitchen information, definitely click on this. They were not allowed to prepare food video with truffles prepared. I will see you guys on the next video and slicing and cutting and getting all that pro all the ingredients together. So if you're looking to start your own food business, check out these videos for more resources, whether you want profitable food, business ideas, other cities, and how to start a food truck business can use it as an option. All about cottage food laws create a home business for selling food truck itself and how to start a catering business from home. So you do have to do many more small food business ideas are all at your fingertips. When you subscribe to marketing at online.
Here are some more resources to help you get started !
Food business Tax Exemption https://youtu.be/wN0Hwh8wUIY
Selling food at Farmers Markets https://youtu.be/ojDSmIQiQnY
The $200,000,000 Dollar Jerky Business Success https://youtu.be/EfuZhLWJIoU
Selling Food on Ebay https://youtu.be/oditO05Fq8Y
Getting an investor for your food business https://youtu.be/pTx3u18EB1c
6 Tips for a successful Catering Business https://youtu.be/GSwPdTn4eAE
10 Questions to ask a Co Packer https://youtu.be/6wFLrC3TJQ4
5 Reasons to NOT sell to retailers https://youtu.be/A0HqyVqNOjI
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