Penn State Food For Profit Series
Fact sheets you should read before starting a new food business in Pennsylvania
Before
you Start
Starting any business is no easy
task, and becoming a food entrepreneur is a special challenge. You'll
have to prepare yourself for the hard work and dedication it takes
to succeed in the food business. This fact sheet provides some considerations
in becoming a food entrepreneur.
Home Food Processing
 Setting up a food-processing business in your home has advantages and disadvantages. You can make your own schedule and cut commuting expenses. On the other hand, there may be added costs involved in getting your kitchen up to Pennsylvania Department
of Agriculture (PDA) sanitary standards.
Business
Planning
Before starting your new
food business, you need a clear vision of how you want your business
to operate; how it will be managed, marketed, and financed; and
how you expect it to perform in the future. To achieve this goal,
you need to write a business plan.
Marketing
Your Food Product
 When most people
think about the term“marketing,” they usually have
one type of activity in mind: advertising. Marketing is actually
much more than simply advertising; it is everything you do to promote
your business and your food products, from the moment you conceive
of a product to the point at which customers buy it.
Registering
Your Food Business
 All businesses
need to comply with local, state, and federal registration procedures
in order to legally operate. Food-processing businesses are no exception. This fact sheet from Penn State will help you learn about how to register your food business in Pennsylvania.
Insurance
for Food Entrepreneurs
 No matter how careful you are to ensure
that your work environment and products are safe, accidents do happen. As a business owner, you will be held responsible for any harm that
comes to your employees, visitors who come to your establishment,
and consumers who eat your products.
Working
with PDA
The Pennsylvania Department
of Agriculture (PDA) Bureau of Food Safety and Laboratory Services
is responsible for enforcing food regulations and inspecting food
establishments. Working closely with a PDA sanitarian as early as
possible in your business development can save you time and money.
Food Labeling
 Food label regulations are enforced by the Food and Drug Administration (FDA) and dictate the type of information that must be on the label and where the label can be placed on the package. Exact requirements for your package size and type can be confusing. Before you have labels printed, make sure you have met all labeling requirements.
Price and Pricing
There is a difference between price and pricing. The price is the amount of money you want for each product unit. Pricing is the process you need to go through to figure out what price to attach to each unit. Pricing, therefore, is a strategic process that you must learn, and use, for business success. Pricing strategies can be divided into two methods: competition-based pricing and cost based pricing. Each method has own advantages and disadvantages.
Price and Pricing Worksheet
Use this worksheet to help you determine the price of your product..
Order paper copies of these publications from the Penn State College of Agricultural Sciences website
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