Small food production unit for wholesale

Restaurants, cafes, caterers, grocery stores, school and office food services, and some direct customers.

You sell by the case, tray or weekly standing order at wholesale prices. Regular accounts bring steady income, and margin improves as production becomes more efficient.

• Production planning and food safety
• Costing and managing suppliers
• Building and keeping wholesale accounts

• Zoning, build-out and plan review requirements, so check before you commit to a lease
• State or local food manufacturer licenses and regular health inspections, which differ by area
• Larger facilities may fall under FDA registration or other federal rules, so check what applies to you
• General liability, product liability and workers' compensation insurance once you hire
• Equipment, rent and spoilage are fixed costs, so cash flow can be tight in the first months

Startup costs are typically around $30,000 to $150,000, depending on your lease, equipment, build-out and first stock. These are estimates. Rent, equipment and spoilage are fixed costs, so cash flow can be tight in the first months.

Monthly revenue is typically around $8,000 to $40,000, depending on your product, volume and how many wholesale accounts you build. These are estimates, and costs such as rent and ingredients come out of that.

Check zoning, build-out and plan review requirements before committing to a lease. Also check state or local food manufacturer licenses, health inspections, whether FDA registration applies, and insurance such as workers' compensation once you hire.