How Do I Start a Chocolate Candy Business?

You love chocolate so much you want to make it your livelihood.

According to Time, chocolate is one business that is recession proof. People will buy chocolate even if they cannot really afford to. If you love chocolate and you think your recipe and product branding are unique, you should consider going into business as a chocolatier. You can start your business with relatively little capital investment. Since chocolate is a food, though, you need to make sure that you are following all state and federal laws when you manufacture, package and ship it.

Things You'll Need

• Business license
• Joint venture agreement
• Seller's permit
• DBA license
• Taxpayer identification number
• Chocolate
• Packaging and shipping materials

Instructions

1. Write up a business plan. Decide what kind of chocolates you want to make and how you want to brand and package them. Experiment with chocolate recipes at home and have your friends and family test your product to give you feedback.

2. Find a local restaurant or catering company to go into joint venture with. This means that you will use the restaurant or catering company's kitchen and equipment in exchange for either a rental payment or a cut of your profits. Chocolate is a food and you can not sell chocolate that you made in your house. You need to have a commercial kitchen approved by a health inspector. Going into joint venture will spare you the expense of building or renting your own commercial kitchen while your business is small. Note that you will probably only be able to use the kitchen during certain hours.

3. Visit your local county clerk and obtain a business license, a seller's permit and a DBA (doing business as). You can apply for all of these things on the same day. You will need to fill out forms and pay fees. You need all of these things to run your business legally.

4. Apply for a taxpayer identification number from the Internal Revenue Service. You can do this online and obtain your number immediately. You need this number to open a business bank account, hire employees or buy supplies at wholesale prices.

5. Study the food labeling laws set forth by the Food and Drug Administration. You will need to include nutritional information with all of the chocolate you sell.

6. Choose vendors to purchase your ingredients and packaging from. It will probably be easier to use the same food vendors that your business partner is using. Remember, though, that the quality of your chocolates depends on the quality of ingredients you use. You may need to find another vendor if the one your business partner uses does not carry fine cocoas.

7. Hire a professional to design your website. A professionally designed website makes your business look established and legitimate. If you are selling fine chocolates, it is especially important that you have a polished-looking site. You will take orders from your website and collect payments. Your website will also be your most important marketing tool.

8. Market your business. Visit boutiques, markets, hotels and restaurants with free samples of your chocolate. Attend trade fairs hand out business cards to potential professional contacts. Most importantly, provide excellent customer service to the customers who order from you, making sure to always thank them and follow up with e-mails informing them about new products or notifying them of specials.

References

• Time: Chocolate Sales - A Sweet Spot in the Recession
• Entrepreneur: Candy Maker

Resources

• IRS: Apply for a Taxpayer ID number
• FDA: Labeling and Nutrition