How to start a spice business with step by step tutorial information. We are Marketing Food Online Youtubes premere food entreprenure channel teaching you how to get your own spice business up and running. If you are looking to sell spices in your own store, online, in bulk, or from home we got you covered.
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All right. So if you have had a dream of starting a spice business or getting in the spice business, I'm going to give you a few tips and pointers on how to get started, how to find a supplier and whether you should be online or selling local. And we're going to get to that video right now.
And it's marketing food online. And in this video, I'm going to cover a fantastic question. I get a lot of spice business questions on how to start a profitable, small spice business, either from home or even in a commercial facility, getting it up and running in a larger scale. But we're going to go into a handful of different tips and pointers on how to just do that. And if you're not a subscriber, by the way, you definitely want to hit that subscribe button. We've got over 800 videos. We are YouTube, premier food entrepreneur channel, giving you all kinds of great ideas on how to start extremely profitable food businesses and get them up and running either from home or online, or even just in a food truck or everywhere that you want to sell. Food is definitely the channel you want to be subscribed to.
So now let's jump right into it. So one of the most important things, when you first start out in your spice business is you definitely want to have a handful of recipes. If you've got your own recipe booklet, or if you've got a handful of collected recipes of your own spice blends, or your own take on a certain type of spice, that is going to be a huge plus that a huge benefit for you, the more creative you could be with something original or something, that's got your own spin on it, the better off you're going to be when it comes to selling in the marketplace, whether that marketplace is online through e-commerce through your own website, um, if you're going to be selling locally and you're going to be under the cottage food laws that are going to sell through local farmers, markets, festivals, or fairs, all of that, we'll talk about a little bit in a few minutes, but I definitely want it to say that if you're going to get into a spice business, if it's done correctly, spice businesses, that can be extremely profitable.
Um, I read an article actually just yesterday doing some research for this video. And I came across a company that did over $10 million or about, I think, three or four years they were into it. It doesn't happen overnight, Garrett granted, uh, but once they started going, they, they really took off and it was a hugely successful business, uh, within a matter of about three or four years doing $10 million annually is pretty impressive. Um, so let me jump right into it. So the other question that's really, really important is going to be where are you going to actually be doing the business from if you're going to start from home? Um, there definitely are still ways that you could sell quite a few venues and local events. Um, and I know that due to the situation that we're all currently in right now, a lot of social distancing as such as is occurring, but it's little by little as it begins to lighten up a little and we have the ability to get back into farmer's markets or fairs or festivals or different types of outings.
Um, there's definitely going to be a need for spice businesses in any type of food businesses selling locally. So if you're doing it locally, some questions you need to ask yourself is of course, what does the city and County require as far as licensing permits, uh, and being incorporated, um, uh, getting yourself an LLC or creating, uh, definitely a business within the home itself. See what the state requires your city and your County, um, finding out how do you do that? Do you mean how do I find out if my city or County, well, you could go to Google and type in home based business and then your County. So let's say you were in Los Angeles, you could type into Google. How do I start a home based food business in Los Angeles? Um, every County and city for the most part, a and I know for sure when it comes to the States, they have their own websites set up to give you that specific information saying, Hey, you know what?
You need to take a food handler's course. Maybe you just need this permit and you need to be incorporated. A lot of States, believe it or not. When you're doing a home based business, don't require you to be incorporated. I know that may sound odd, but, uh, they do have certain permits and licensing granted, but not always are they requiring to be incorporated. I'm going to give you some advice. You need to incorporate yourself as a business, separate your business entity. You can go online. You could find that out on an ink file. You can even do it through ink express, or there are a lot of websites. And I actually have a couple, by the way, down in the description below this video, there'll be a handful of other resources to help you incorporate. If you're looking to do that as well, you can do it online and less than 10 minutes, but make sure that you've got those guidelines followed.
So then the next step would be if you're doing it from home, find out where you can tell it to. Now the great thing about spice businesses when you're starting a very small spice business and you want it to become profitable, doing it from home is a great, no brainer. And here's why, because you don't have to rent a commercial kitchen or a commercial space. You don't have to invest so much money out initially before you begin to really make sales. So starting it at home on a small part time basis, even if it was to be for additional income, a spice business can be profitable that way, because you're not having to put out so much money. Um, you can also package them very simply. A lot of bags and containers for spices are within about a 50 to 70, 80 cents, or even less than that per unit to package.
Um, so they're very inexpensive to produce, but the markup is tremendous. If you go to a local grocery store, I can tell you from the years of experience, I've been in the food business, um, even working for groceries chains. When I was in college, I can tell you that the spices you see for three or $4, that it costs pennies pennies to make when they're mass produced, um, the markup in the margins are shocking. So getting started locally and doing it from your home is there as a really great way to get your feet wet and kind of get a taste for being a spice business. Now,
Number two, the next one, okay.
Is once you've got your recipes, you've got your formulations be able to scale it. You need to be able to make them in larger quantities. Now you're probably thinking, well, that must be really simple. All I got to do is multiply it times five times or six times. That's true, but keep in mind spices. When a customer buys your spices, they're going to expect it to be consistent. You want to make sure that consistency is on your priority list, because if you start mixing spices and you've got a blend and you're short on one spice, or you're too much on another, it can throw it off and actually cause your customers to not buy it anymore because it's not something that's consistent. So they always look for consistency. So try to figure out the best way to accurately scale the recipe for your spice blends or your spice in general.
And then from there, you always have that consistent quality for your customers. Keep that in mind as well. Now, the next step, the next thing you want to look at is where are you physically going to do it? Do you have the space? If you're going to do it from home, let's say, and you get approved and you've get everything checked out. You've got your permits. Do you have the space set aside dedicated to your spice business? You don't want to be doing something in your own kitchen in your home while you're cooking, obviously meals for other people. And you're blending spices have a dedicated professional business section in your home, an area where you've got tables, you've got sealers, you've got bags, containers, whatever it is, as far as the equipment's needed, but it's separated. Make sure that that happens. Okay, because you want to make sure that you're not overlapping your food production for your home, like cooking and such and making lunches with your actual business products.
You don't want to do that. So next up finding a supplier. You want to make sure that your suppliers have your product. I recommend always have three rely on two of them, but have three. Why would you need three Damon? Well, I can tell you when I first started my food business over 12 years ago, um, we had some situations where I didn't know this at the time, but one of our suppliers for some of the products that we need was out of a certain item and I desperately needed it. So then I realized I needed to find somebody else, but I didn't know the quality. I didn't know the company. I didn't know nothing. So I was in this panic mode trying to figure out who can I get to supply the same ingredient, but you know, tastes the same, obviously, and the same quantity that I needed.
Make sure you have reliable suppliers and have three of them rely on two. So if something goes wrong with those two, you have a third one as a backup. Okay? You want to make sure that the quality of the product is there. Can they deliver on time? Um, is the shipping cost the pricing of the product? Is it actually reasonable or is it inflated? You need to do a little research for all four of those parameters, the pricing of the shipping, the timeframe, the quality of the product and the cost of the product. Some websites actually will have like a minimum order quantity. They're going to say, look, you have to order a thousand dollars worth of product. Try to find one that has a lower minimum. So that way, when you invest by starting this business that you don't know for sure if it's going to work, when you start your spice business, you want it to be profitable right off the bat, obviously, but you don't want to accumulate 7,000 pounds of spices because you're meeting minimums that are outrageous.
Okay. Try to find a smaller price point and a smaller minimum that's needed in order for you to buy from. So you're not investing such a large amount. Okay. So next up, what kind of marketplace? So where are you going to sell it? You need to do some research locally. Um, what type of farmer's markets are available? What type of maybe some food events, maybe there's some music festivals. There's a lot of different places that offer food that may not actually be associated with food itself. What does that mean? There are some art expos there's music expos. There's also a book events. There could be something at a local school. There could be something at universities that are get togethers for certain types of interests. Always try to look outside the box and think outside the box. When you're trying to start a profitable spice business, you want to make sure that you find those places where you could sell and sell a lot of it.
So do a little bit of investigation, look into it, do some research and find out which one of course is going to be the best for you. And then don't go to just one, sign yourself up for a bunch of them. Always have multiple venues that you can go and sell these spices to. So next up you want to make sure that once you're there, these events, that you've got some type of advertising, you want to catch people's attention. So it's not just a table that you put some tablecloth on and drop some spices. You need to have maybe some brochures, maybe put together some business cards with your website address. Okay. And then also make sure that if you've got a tent, you've got some large signage that has really bright colors. It gets people's attention and gets them over to your booth or where you are that you're selling.
All of those parts are part of marketing and advertising, even though you're at these events, that doesn't necessarily mean that you're going to get the attention of everybody. So make sure you've got a materials maybe even informative or educational materials. Maybe there are some health benefits to some of the spices and arms that you have. And you can mention some of them, even your website, uh, not necessarily giving doctors advice or anything like that, but helping people understand what the spices are that you've got and why is it that they want to buy them? So the next one up is I wanted to cover is if you are renting a commercial kitchen that opens the doors to being online, that can open the doors to a lot of other possibilities. So you can actually go into, for instance, get a, your own website on Shopify.
You can go to Weebly, you can get yourself a domain name, sign up, create a website, get yourself a hosting company that will host your website for you, and then start selling your product online, which can open up the doors to millions of customers, not just a few hundred locally or a few thousand locally, but millions. I highly recommend that direction. Not necessarily, uh, for, uh, the sake of spending the money for the commercial kitchen, but looking at the bigger picture and having the opportunity to be online with your spice business is huge. Okay. Um, even if you put yourself on an eBay or even at, before you even go to Amazon or something to that effect, you can get your product in front of the eyes of a lot of people. And that is a huge plus, trust me, because if you're looking at this as a long run business, longterm business, being online is a no brainer, especially with food nowadays 40% increase, uh, in the second quarter, Amazon had over 40% increase in their sales for food alone, just in the second quarter for three month timeframe that is gigantic.
That's like hundreds of millions of dollars in increase just for food. So beat online with the spice business. Definitely do it. Okay. Renting a commercial kitchen is, is easy to do. It may be hard to find one, but once you get the kitchen, you're there just packing your spices, producing your product. You want to do it the most effective and efficient manner because you're renting that space. Think about that as well, is that if you're putting money out for a two hour, three hour, four hour period, try to produce as much as you possibly can. That's a huge plus as well. So if you've got any questions about how to create a extremely profitable food business, such as spice, blends, or spice and herbs, let me know down below and we'll help you out. Take a look at the rest of our channel. Of course, remember subscribe and I'll see you on our next video. Thanks for watching marketing food online. And if you are looking to create your own food truck, start at home base food business, or the cottage food law franchise, a food operation start a packaged food business, private label, your own food product, sell on Amazon, get your own online store or sell food online. Remember to subscribe and check out these videos for more resources, take care.