If you think your homemade sauces are good enough to sell, then starting a home sauce business might be your ticket to success. You will need to know how to obtain wholesale ingredients, market your sauces and adhere to safety regulations.
Items you will need
- Glass bottles or jars
- Kitchen that's approved by the health department
- Computer with graphic design software
Perfect your recipe. To be successful at selling your own sauce, you need a solid recipe that never changes. Double and triple your recipe at home and share it with friends to ensure that it comes out the same every time. Sometimes when a recipe is increased, the spice proportions and fat content don't increase at the same rate as the other ingredients.
Decide whether you'll use readily available Mason canning jars or browse online glass jar wholesalers to order your jars and lids. Decide on the exact specifications of each bottle so you can design a label and figure your pricing.
Contact Food Service of America, Sysco Foods or another grocery wholesaler to order groceries and spices at wholesale prices. If you use fresh produce, contact a local farmer or produce co-op to inquire about ordering large quantities of fresh vegetables.
Obtain a business license from your city, county or state (each state has different regulations). Contact your local health department to learn the regulations for starting a home sauce business.
Design a label. You may want to consult a graphic designer for suggestions.
Calculate the exact cost of each bottle by first analyzing your food cost. Figure out how much an ounce or gram of every ingredient costs. Multiply the cost by the recipe quantity to get a batch cost. Then divide the batch cost by the number of bottles you get from a batch. Include the cost of the jar and the label. Create an hourly wage for your production and factor that in by dividing it by how many jars you can make in an hour. When you have established a cost per bottle, double it for wholesale orders and triple or quadruple the cost to find a retail price.
Begin by selling your sauces at the farmer's market or at local gourmet groceries. If you need a bar code, look online for services that allow you to purchase a scannable bar code for your own printing. Incorporate this possibility into your label design.
Give your sauce as a gift to friends and family. Donate jars of your sauce to charity auctions to generate interest.
Consider creating a website where consumers can purchase your sauces. Posting testimonials, recipes and beautiful food pictures can be an effective way to promote your product.
Depending on regulations, you might not be able to make the sauce at home, even if the rest of your business is conducted from home. In that case, consider borrowing a professional kitchen at a restaurant. Ask permission to use it during a slow time or on a day when they're closed. Some churches also have professional quality kitchens.