Establishing a sauce business — whether it’s pasta sauce or chocolate syrup can be a lucrative endeavor. However, like with any business, you’ll need to plan carefully and execute the process properly to ensure a successful launch.
If you’re looking to make a profit or share your family’s special recipe out into the world of customers, farmer’s markets, and grocery stores, here are the steps you need to follow.
Take Care of Legal Matters and Create a Budget
Before starting your sauce business, you’ll need to take care of the ‘business aspects’ first, including legal matters and making a pricing strategy. Register your company with your state’s Department of Revenue and the Internal Revenue service. When determining a budget, make sure to consider everything related to the business. For instance, if you plan on sending your sauces across the country, check out the USPS shipping rates and ask about bulk discounts if they have any.
Test Your Recipe
Like with any food product, you’ll need to have a solid recipe to ensure a successful sauce business. Remember that it should taste the same whether you’re making it in batches or a single pot. Plus, it should be cost-effective. That’s because even if you have the best-tasting relish ever if it costs $10 to produce a single jar, where most sauce manufacturers charge the same price for their product, it won’t be profitable. You can grab great sales on fresh ingredients at your local farmers market or a commercial supplier to keep costs to a minimum.
Design Your Packaging
You’ll need an eye-catching and convenient packaging to make it stand out from the crowd. It’s best to consult with a branding consultant or graphic designer to help you turn your vision into a reality.
Know Your Local Food Production Laws
Check with your state’s food production laws because if you plan on selling them commercially, most don’t allow individuals to make food-related products at home. If required, you can make your sauce in a commercial kitchen in your area or hire a food producer to make and bottle the sauce for you. Plus, you’ll need to get a food handler and FDA certification, where you can consult with your local or state board of health for further assistance.
Set a Price
Once you’ve finalized your ingredients, it’s time to find commercial suppliers where you’ll be getting your ingredients from. Calculate how much one batch will cost you to make, divide it by the number of bottles it produces, then add the costs of all the overheads. Once you’ve calculated these, you can set a fair price to sell your sauce in retail and wholesale.
Get Your Sauce Out There
After you made your product and have taken care of all the paperwork, it’s time to get your sauce out there. You can sell your goods online or pitch in grocery stores or set up a booth at your local farmer’s market. You can advertise your brand by guest blogging, reaching out to consumers on social media, or sending our press releases to different media outlets.
Since individuals are always looking for unique taste sensations, there’s plenty of room in the market for new sauces and dips. But selling a single item can be challenging, but the steps mentioned can streamline the process of starting your sauce business.
