Steps to Getting into the Food Business

John E. Rushing, Ph.D.

Types of Food Businesses Difficult for the Entrepreneur

Meat processingCanning low-acid foodsRestaurantCatering when not associated with a

restaurantFrozen dinnersHome meal replacement when served

ready to eat

Constraints to the Entrepreneur

Lack of business experienceInadequate capitalLack of planningInadequate facilitiesAccess to market outletsNeed to manage production and salesPartners and family relationshipsTrying to maintain a career

Food Businesses for Entrepreneurs

Acid and acidified foodsCandiesBaked goodsSpice blendsJams, jellies and preservesSome frozen foodsSome dried foods

Getting Started

Get a plan to make sure you have a concept that you can sell at a profit

Gauge the market potential and identify your competitors

Assess your assets and access to capital Find out what it takes to manufacture your

product safely and legally Choose whether to use a copacker or not

Business Assistance

Setting up a business, planning and identifying marketsNCSU Ag. and Resource EconomicsNC Small Business Technology

Development CentersUse the internet

Marketing and SalesNCDA&CS Marketing Division

Regulatory and Technical Assistance

RegulatoryNCDA&CSCounty health department for ready to eat

foodsTechnical Assistance and Testing

Food Science ExtensionConsultants and testing laboratories

Once the Initial Planning is Done…

Call the Regulatory AgencyFacility information and inspection visitPermit and license for ready to eat foodsCategory determined for processed foods

Ask Food Science ExtensionShelf stability and safety determinationProcess and control requirementsTraining Labeling assistance

To Copack or Not to Copack

Copacking advantagesAllows the entrepreneur to concentrate on

sales and marketingShorter lead time to market

Copacker disadvantagesLoss of control of the product and its

manufactureExpense and loss of profitWed to a particular package and style