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