David Crabill
@david
active 2 days, 22 hours agoForum Replies Created
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I would only recommend crowdfunding or fundraising once you have a sizable customer base and a successful business. Typically, raising money is used to take a business to the next level (commercial kitchen, food truck, brick and mortar, etc). But when starting out, a few hundred dollars (or less) is all you need. Try going back and watching my mini course to see how to allow the business to pay for its startup costs.
- This reply was modified 2 years, 4 months ago by
David Crabill.
Hi Johnathan, it’s typical to feel overwhelmed when starting out. I don’t think you need a business partner at this stage.
Try not to get stuck on branding or being worried about something going wrong. Yes, starting a business comes with its challenges, but it’s hard to predict them. Usually the most successful entrepreneurs are those who put themselves out there and know that if a problem comes up, they will figure out how to fix it at that point.
It depends on your county/city. If they require business licenses, usually they require them for any type of food business. The only way to know for sure is to contact the dept that administers business licenses.
As far as I know, fermented foods are not allowed under VA’s basic cottage food law. However, you can sell up to $3k of acidified foods, including pickles (non-traditional) and hot sauce.
You MIGHT be able to use VA’s home food processing law to sell more than that, but I’m not sure how many ag dept allow home food processing operations.
And you can always use a commercial kitchen with the appropriate license (and likely required training) to produce these products without restriction.
I can’t remember… do they ask for a NAICS code?
If so, then it depends on your business, but most cottage foods businesses would use either code 445291 (Baked Goods Stores) or 445292 (Confectionary and Nut Stores).
Here’s the link: https://www.naics.com/naics-code-description/?code=4452
There’s still no information on the ag dept’s webpage that says you can or can’t sell homemade extracts. I’d recommend reaching out to them and they will likely have an answer: https://agr.georgia.gov/cottage-foods.aspx
Hi Jonathan, I don’t typically recommend getting an LLC unless you are hiring employees that you don’t know well. You will likely need to get FLIP insurance to sell at events and fairs, and that is the lowest cost insurance option I’m aware of.
Yes they should be allowed. You just want to make sure they are thoroughly baked and don’t have too much moisture that could cause spoilage. If your product is fine to leave at room temperature for 24 hours, then it’s a nonperishable food. Perishable foods should be refrigerated within 2 hours.
Yes it can. However, it’s usually very complex and expensive to do this. Only recommended if you already have a very successful business.
From my reading of their guide, I’d say that it’s unlikely that extracts are allowed. There are definitely restrictions on selling most anything that is flavored with alcohol (except candy which can contain 5% or less). However, they don’t clearly state that an extract is prohibited. My guess is that to sell an extract, you’d need a separate license for selling a product that contains a high percentage of alcohol. Here is the full food list: https://www.healthy.arkansas.gov/images/uploads/pdf/Homemade_Food_Guide_FINAL.pdf
- This reply was modified 2 years, 4 months ago by
