For millions of people around the world coping with job loss. The coronavirus disease 2019 (COVID-19) pandemic has been a horrific disruption to life. Whether it’s temporary or permanent, unemployment has lead to stress, anxiety, and depression. Workers have lost their health insurance and steady income. There is a home-based business opportunity that can create a stream of income, however, and it is called Cottage Foods. There are many jobless folks seeking to start their own business. My recommendation is to “Learn Before You Leap.”
The information you will receive is not a sure fast solution and will not make you rich. What you are about to read will offer insight into a little known opportunity if you like cooking or baking. Are you jobless? Do you need extra income? Are you a culinary creative? Read on.
Cottage Food Operations
Cottage Food Operations have been around for years and although it is common to women, anyone can be a cottage food operator.
Making food from your home kitchen for sale to the community can become a stream of income.
For those in the restaurant industry, it is possible that tough times call for tough measures.
Operating a cottage food business will involve using a bit of elbow grease and learning social media marketing. It means becoming a food entrepreneur and producing a product that community members are willing and able to buy.
What is a Cottage Food Product?
What is a cottage food product? Non-hazardous food products that are not time or temperature-sensitive.
Examples of non-hazardous food products are different depending on the state in which you reside. Every state is different and the best cottage foods are often the foods missing or unavailable in your community.
The Most Popular & Profitable Cottage Food Products
I was teaching a food entrepreneurship workshop a few years ago. One of the participants in the course asked, “What is the most popular cottage food product to sell?”
Shocked by his questions, I responded it helps to sell a product you enjoy making. The product should also be missing from the marketplace. It helps if what you want to make is something consumers in your community want to buy.
This was not the answer he wanted. He wanted a magic pill. The participant’s focus was on making money. He was not interested in offering consumers a quality-in-demand product. If you are jobless and seeking something that will bring in income, cottage foods may not be the magic pill. Starting a cottage food business requires patience and a willingness to learn about marketing, business development, and commitment.
This is one of the major mistakes cottage food operators make. They want to offer what they like to make and not what consumers demand. It is imperative that you seek out products that are missing in the marketplace. You can introduce your specialty once you provide what consumers need and are willing to pay for.
Can I produce a product I am passionate about and make money?
The answer to this question is complex. The key to making money as a Cottage Food Operator is selling a product that consumers want. And selling a product consumers are willing and able to pay for.
It helps if the product is a high end, unique, and something consumers are seeking. You know, have a strong desire to buy.
What might make consumers line up for your product?
Why do consumers line up for Krispy Kreme donuts when the “Hot & Ready sign is on?” What is driving folks to do that?
Recently, an article reported coffee sales are up, particularly in the afternoon. Consumers are seeking an afternoon pick-me-up. Starbucks is experiencing a swarm of customers after 1:00 p.m.
Let’s examine the approved cottage food products allowed in Arizona
Fruit Jams and Jellies
Breads and Sweet Breads
Cakes with Hard Icings or Frostings
Fruit Pies with Fruit and Sugar Fillings
Brownies and Fudge
Roasted Coffee Beans
Popcorn, Kettle corn
Dry Spice Mixes
State of Arizona: Nonapproved cottage foods
Before you start planning your food business do a thorough search for products that are missing in the community.
Post a survey on social media asking folks in your community what is missing in the market place.
Living with COVID-19 means many bakeries and food businesses have closed. Where does your product fit in? What is your specialty? Have you tested the waters? Now is the time to see if what you have to offer is what consumers want.
Why Start A Cottage Food Operation
I often recommend that everyone start a small business at some time in their life. The insight gained in operating your own business is priceless. It separates the men from the boys and the women from the girls.
A small business does not have to be something you operate full time. You can view it as one stream of income or one of many.
If you are jobless and you are a recipe developer with a product to sell, this could be one option.
Understand how a small business operates gives you insight into how to create jobs. You learn how local economies work. Do you know how to grow wealth? What about understanding what it takes to support your neighborhoods and communities?
This is the knowledge you often leave to others to figure out. Why? You are intelligent. You can’t you a foot-hold in building a business that supports you and your community?
Are you ready to start a home-based food business? If not, why not?
Streams of Income
Finding ways to generate streams of income is on the minds of everyone today. Even folks with a job learned during COVID-19 that employment is not promised. The economy can change at the drop of a dime.
For example, a company may have a steady income stream of clients. But, the minute sales decline, social distancing ceases to work. Money can disappear like snow in a furnace.
Many Americans are learning making ends meet involves having many ways to make money.
Do you need to do freelance work? Can you work as a web developer, online marketer, copywriter, or online instructor?
Reducing work hours might mean taking on a part-time gig. Or learning to sell those amazing brownies you give away at work parties.
Take a look at what one woman did to save her home when she was behind in her mortgage. This trailer is based on a true story.
What You Need to Start A Cottage Food Operation
If you are jobless, seeking a way to make ends meet and now sure if your product will sell there is only one thing you can do.
Try. “Learn Before You Leap” and take your product to market. Below is a checklist of what you will need to do before you start marketing and advertising your product.
Select a product that is missing in the market place or a product your community wants and needs.
Check the Cottage Food map for the rules and regulations surrounding what you need to do to get started.
Visit your state, county, and city or parish website addressing how to start a small business. (Simple Google “How to start a business in _____________________),” you should do this for your state, city, and county/parish.)
Once you know what you want to produce, cost out the product in its entirety. If you do not know how to cost out your products enroll in the free course How to Operate a Home-based Bakery Micro Course.
The information above is relevant even for those producing non-baked goods. If you are jobless and completely unfamiliar with operating a home-based food business you may want to enroll in the Foodpreneur Institute’s Udemy course and join our private Facebook Private Group Foodprenuers Online.
Got questions? Contact us today.