Packaged food brand made in a shared kitchen

Independent grocers, specialty food stores, cafés, restaurants and online customers who reorder your product.

You sell units wholesale to stores and at full price online or at markets. Your margin depends on ingredient costs, kitchen rental hours and packaging.

• Scaling a recipe consistently
• Costing, pricing and wholesale selling
• Organizing production, packaging and orders

• Health department permits or a food manufacturer license, which vary by state and county, so check what applies to your product
• Labeling rules, including nutrition facts and allergen statements, with possible small-business exemptions to check
• Products such as sauces, canned or acidified foods may need a process authority review or special training
• Product liability and general liability insurance, which shops and kitchens often require
• Sales tax registration and resale certificates for wholesale orders, per your state's rules
• Kitchen rental costs can eat margins if batches are small, so track cost per unit

Startup costs are typically estimated at around $3,000 to $15,000, depending on your product, packaging, labeling and kitchen rental. Rental costs can eat into margins if batches are small, so track your cost per unit.

Monthly revenue is typically estimated at around $1,500 to $7,500, depending on your product, how many stores and customers you reach, and how often they reorder. This is revenue before kitchen rental and ingredient costs.

Check health department permits or a food manufacturer license, which vary by state and county. Also check labeling rules, whether sauces or canned or acidified foods need a process authority review or training, and sales tax and resale certificate rules.