How to Start a Candy Making Business at Home
Successful companies may start small. Henri Nestle and his partner, Daniel Peter, could not foresee how much their business would grow after they mixed milk and cocoa powder in the 1800s. Perhaps you have a candy recipe that is a hit with your family and friends, or perhaps you have a touch of genius in the kitchen. With the proper licensure, you can make candy at home and sell it on a retail or wholesale basis.
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Things You'll Need
- Business license
- Resale license
- Catering license
- Kitchen implements
- Candy molds
- Candy ingredients
- Business plan
- Logo
- Candy boxes
Instructions
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All businesses in the United States must be licensed. A home candy business will require a business license from your town or city, a resale license from your state and a catering license from your local health department. Each of these licenses must be paid for and renewed on an annual basis.
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Write up a business plan. You will eventually show this business plan to the Small Business Administration, or SBA, in order to get a loan to start your candy business. Your business plan must include startup costs, how much money it will take to run your business on a monthly basis and how you intend to sell your product and make money. It takes time to put together a well-conceived business plan.
Startup costs include expenses like candy molds, double boilers and any tools you will need to make candy. It's best to keep candy making supplies separate from personal kitchen supplies. Expenses to run the business include energy, gas spent to make deliveries and raw materials, such as chocolate to make candy with. These types of expenses are ongoing, unlike pots and pans, which may be purchased once and used for a long time.
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Consider to whom you will sell candy. Perhaps there is a gift shop or boutique nearby that would like to buy your candy from you on a wholesale basis. Check with buyers in candy kiosks in the local mall, or look into renting a small retail space in a mall. You will be available to hungry shoppers.
Another option is to sell your candy retail at craft shows. Most fairs and shows include food vendors; a food vendor fills out a specific application. If you choose to work shows, your startup costs will include display items.
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Submit a completed business plan to the SBA and apply for a loan, if you need one. A business loan will allow you to cover all of your startup costs and start working. SBA loans are good deals for small business owners.
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Plan your workdays. If you have five recipes, you may wish to make one recipe on each workday. Make the candy in bulk to save time, and freeze or refrigerate the finished product, if necessary. Section out a time each week to make deliveries.
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Package homemade candy in an artful manner. A graphic artist may help you design a logo for your business. A logo can be put on stickers in bulk, and you can place a sticker on each box of candy before you deliver to buyers.
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