As you may know, parents have two options when it comes to weaning their babies onto solid food. Once a baby hits six months, they slowly transition from a diet of only breastmilk or formula and begin to have the addition of solid food. Some families choose to go for the baby-led weaning method of feeding their children, which involves giving children the same food that they eat in finger-sized pieces to make it easy for children to grab. Then there are those who prefer the traditional weaning method, with spoon fed baby food that is highly nutritious and packaged in jars or pouches to make life easier for parents. There are plenty of baby food companies out there that specialize in this type of food, creating the food and the packaging and selling it directly to customers through retailers.
The global baby food market is worth more than $70 billion and this figure is going to grow. It makes sense, then, that you’d want to learn to start your own baby food company. Below, we’ve got a few steps that you need to know so that you can start out on your own in the baby food industry.
Create a business plan
Every single business in every single industry needs to have a clear plan for success as an entrepreneur. You need to know your startup costs and ongoing costs, and you need to know your target market, too. Detailing this in your business plan is vital and you can then work out how much you can charge customers, your business name and more.
You’ll need a commercial kitchen to prepare food as well as the certifications necessary to confirm that your business space is safe and hygienic. Your business plan has to detail your expenses and how you plan to finance it, too.
Know your costs
What are your expenses for your baby food company going to be? You need to consider the costs of the commercial kitchen, the cost of supplies and your packaging costs, too.
Research your target market
Of course, your target audience is going to be babies, but as they’re not busting out their wallets to buy your product, it’s the parents that you have to appeal to. Parents will be willing to pay a premium for excellent baby food but you need to ensure that your product is worth the price you set for it.
Forming your business
Understanding your business structure is important, but it’s going to be important for you to also figure out which type of business you want to have.
Get registered for taxes
You will have to register for a range of state and federal taxes before you can open your new baby food company and you need to ensure that you are using the help of a financial expert to help!
Get a bank account sorted
It’s vital that you open your own business bank account and credit card account so that you can protect your personal assets. You should ensure that you keep your business finances and your personal finances separate as it’s a risk to you to mix them together.
Obtain permits and licenses
While you’re talking to financial experts, you need to think about ensuring that you have the right permits and licenses to run your business. Failure to do this will result in your business being shut down, heavy fines and the issue that you could be sued. Baby food needs to be created carefully and in a hygienic environment, and you can better do this when you have the right licenses. As a baby food company, you need to have a license from the health department and you need to pass a health inspection. You should know that there are regulations that will tell you whether you can sell your products and even use the ingredients.
Don’t forget insurance
Your business needs a range of insurances to be able to keep going. You have to consider general liability insurance as well as workers compensation insurance, and if you are in a retail setting, public liability insurance is a must.
Define your brand
Lastly, your food company will need a brand. That’s a name, a hook and a website to let the whole world know who you are and what you can do. If you’re not feeling confident about your logo or your business brand, then it’s time to call in an expert and get their help!
Your baby food company will thrive with the right support.