Even if you don’t need a permit, you’ll still need to label your goods with all of the required information (weight or volume, your business or personal or business name, your address, ingredients, and the words “this item is home produced”). If you don’t want to put your home address on the label, use a P. O. box instead. If you’re selling pickles, refrigerated items, or anything pressure canned, most states will require you to get a permit (and some states ban these homemade items outright). Most states will only allow you to sell things like breads, jellies, baked items, and foods that aren’t dairy or meat.
Get a “Class-A” CFO license to sell directly to consumers via your home, your website, farmers’ markets, or other venues where you directly interact with customers. Get a “Class-B” CFO license if you also plan to sell your goods at restaurants, retail stores, and other vendors.
Potable water will be used for cooking, washing utensils, and washing hands. There are no rodents or insects in the food preparation and storage areas. There are no pets or children under the age of 12 in the kitchen area. There are sanitary food preparation and storage facilities. Domestic activities like family meal prep, laundry, dishwashing, and entertaining guests are not performed in the same kitchen. Anyone with a contagious illness isn’t working in the kitchen.
Online courses typically take about 2 hours to complete and costs around $10. The card expires 2 years from the date that you completed the course and passed the test. You typically don’t need a food handler’s card to sell small batches of food at community events. However, some farmers’ markets may have different rules for their sellers.
Look up your state’s business permit office online to apply.
You can also form an LLC to sell your homemade goods as an official small business. It’s not required in most states but it does have some advantages like securing limited personal liability and—in some states—tax benefits.
You must have proper storage for all food and ingredients (cold or dry). No pets in the kitchen. You have to get zoning clearance and all necessary permits from your local government. You must have a kitchen inspection at least once a year (performed by the health department).
They’ll probably ask you what you’re selling, what times you need to be there, and whether or not you need to bring your own table (among other supplies). Note that some states have a maximum dollar amount of sales you can make at farmers’ markets, bake sales, and charity events. On average, most states will allow $10,000 to $20,000 in sales per year, but that number can range from $5,000 to $50,000 depending on where you live.
Note that if you’re selling at a charity event, it’s typically a faux pas to take 100% of the profit for yourself. Work with the charity and let potential customers know you’re donating a portion or all of the proceeds to the charity.
You may want to come up with a catchy name for your page like “Margo’s Macaroons” or “Marg-a-roons” to catch people’s eye.
Start a food blog where you share your recipes and food related stories and tips regularly. Include lots of photos to entice potential customers. List the ingredients of each product on the website or offer your contact information so customers can ask you directly. You may want to set up a separate email address for your business so your personal emails aren’t mixed up with customer or professional inquiries. Feel free to share some information about yourself and, if you like, how you make your goods on your website’s “About Me” page.
For instance, if it takes $2. 00 to make a single cookie, setting the price at $3. 00 is going to give you a profit of $1. 00 per cookie sold. Be realistic and put yourself in your customers’ shoes—would you be willing to pay a certain amount for the product?
Know that the vendor will take a cut of whatever items are sold, so negotiate with the vendor beforehand and factor the cut amount into the cost of the product. Target retailers that already attract your intended buyers. For instance, your vegan brownies are more likely to sell at a small vegetarian and vegan grocery store than they are at a small butcher shop or regular bakery.
You’ll also need to work with a shipping company or get your own shipping boxes that protect the product. This can be pricey, so shop around before signing on with a delivery company.
Note that you’ll need to get your food truck inspected and certified just like a regular kitchen. Just like a regular car, you’ll also need to get your food truck insured. Food trucks and delivery services typically require extra help, so you may want to find a friend or family member to be your business partner. Don’t forget to include the cost of gas in your total expenses!
For instance, you might write: “Allergens: Wheat and peanuts” in bold font in or next to the ingredients list. Depending on your location and what you’re selling, you may not need to have detailed packaging if you’re selling your food just once or twice at local community events. However, it helps to keep an ingredients list handy in case potential customers have questions.
For example, your package might read: “Net Wt. 2 oz. (57 g) Qty. 2 Cookies”. Get a small kitchen scale, measuring cups, and measuring spoons to calculate the weight of your products. If you’re working with liquids, try to be consistent with how much liquid goes into each container. This isn’t required if you’re selling at local community events, but some customers will probably appreciate it!
In most states, this is required if you’re selling wholesale, but some states may require it if you are selling without a business license at local community events. For example: “Made by Papa’s Pops at 43 Sugarland Drive, Hot Springs, Arkansas” or “Proudly made by Sue McMarfa’s Treats, P. O. Box 22, Little Rock, AR using local ingredients provided by Stan Family Farms, 984 Juniper Road, Little Rock, AR. ”
You can also make your logo from a template provided by an online custom packaging service. For example, if you’re selling organic, gluten-free, vegan cookies, you might choose compostable packaging to fit with the theme of not harming animals and the environment.
