12 Tips for Starting Home Based Food Business with Low Investment


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If you’re interested in healthy home based food business ideas with small capital, this post is right up your alley. It is an easy business to start, as healthy food and a balanced diet are important in today’s nutrition conscious society.

Take a look around you. Food businesses seem to be thriving all over the place. However, you will have to apply for a certificate for handling food or running canteens in the US.

There will be regular inspections by the Health department, so you have to abide by the rules of the food industry and get the necessary permits.

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Moreover, in food business from home, change is the only constant factor, so you need to keep abreast with trends like organic food; convenience foods; portion control and the like in order to succeed in such a home based food business.

Check out these innovative home based food business ideas.

Home Based Food Business Ideas with Low Investment Fall in 3 Broad Categories

  • Food Processing services (involves transforming raw food ingredients into marketable forms. For instance, frozen foods)
  • Food retailing services (food sold in retail stores, including perishable and non perishable food)
  • Food services (involves restaurant business)

#1. Ideas for Business – Processing Tomatoes

When considering what business to start, it is a great idea for small-scale food processing projects. Tomato paste is a ubiquitous food item used in various recipes.

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Of course, the market is flush with several brands, but if you are an inspired entrepreneur, there’s no stopping you. Some of the popular products are tomato puree and tomato ketchup.

  • You will need basic equipment and some simple machinery.
  • Perfect your recipe and follow careful tomato processing procedures.
  • Obtaining a business license.
  • Begin by selling to neighbors, friends and relatives.
  • Print leaflets and distribute them to people while beginning this home based food business.

#2. Bakery

Bakery - 12 Home Based Food Business Ideas with Low Investment

You could have a retail location for selling your freshly baked products or you could just sell them from home, while looking for home business ideas.

  • Create a standard menu and decide on the food items you need, such as eggs and flour.
  • Buy the necessary kitchen equipment, such as a good oven, stand mixers etc.
  • Resource material that is cost effective for such a home based food business.
  • Set prices based on direct as well as indirect expenses. Check out the online prices of competitive bakers.
  • You can have some free give aways till you establish yourself in this home based food business.

#3. Cake Decorating Business from Home

Cake Decorating Business from Home

It’s an art to decorate a cake using icing or frosting and creating visually interesting patterns. There’s a huge profit potential in it. You can start the business from home, with practically no investment, offering one of the best small business ideas for women.

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  • Buy the necessary equipment, such as cake pans, turntables, icing tubes, mixers.
  • Take good photo shots of your cake for this home based food business.
  • Network with nearby bakeries and offer your decorating services.
  • Setup delivery systems for transporting cakes.

#4. Frozen Food

Frozen Food - Home Based Food Business Ideas with Low Investment

People prefer to just grab a piece of frozen chicken and cook a meal, rather than going through the tedious process of preparing fresh food. It saves a lot of time and is the best business to start.

Production of frozen food involves more capital. It is better to go in for unique food products to sell to wholesalers or retailers.

  • You can deal in poultry products; sea food; salads; vegetables; fruit juice; chopped potatoes; dairy products; meat; frozen meals; pizza and so on. Conduct a market research to check out what people in your locality buy.
  • Access a reliable supplier and one that offers you a reasonable price to ensure profitability.
  • Ensure that you preserve the food well. Equipment needed will be freezers; a generator; regular power supply; weighing scale and a delivery van.
  • You can sell to individuals; grocery stores; nearby restaurants in this home based food business.

#5. Catering or Personal Chef

Try catering for a small event for one of the low cost business ideas. You could specialize in a specific category of food or a particular type of event.

According to an article in Business Wire, the 50 best caterers in the US constitute only around 15% of the revenue in the industry. This means there’s a lot of room left in the demand sector for such home based business ideas.

For instance, if you are an expert in kosher food, you can focus on the Bar Mitzvah event. You can also focus on family reunions, weddings, birthday parties etc. All you need is good culinary skills. You can run it from home as a part time or full time business.

Home Based Food Business with Low Investment-min

Pic Source: woman.thenest.com

  • Follow rules of food handling. You may have to devote an entire kitchen to it.
  • Get the necessary equipment and the food supplies; cookware; utensils; tools.
  • Decide on the type of catering and get the licenses.
  • Create your menu, where your clients can mix and match.
  • Connect with vendors for getting wholesale supplies.
  • Print flyers for promoting business and getting more customers.

#6. Home Cooked Meals – Home Based Food Business Idea

Home Cooked Meals - Home Based Food Business Ideas with Low Investment

A very simple home based food business, where you prepare meals at home, package them and offer reheating directions. You can deliver the food to clients or have them pick it up at a set place.

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  • It’s a good idea to target big office complexes with such startup business ideas.
  • Distribute leaflets with your menu to employees in offices.
  • Take orders on the phone or online.

#7. Cooking Lessons

Cooking Lessons - Home Based Food Business Ideas with Low Investment

Seriously, you will not believe that there are several people who would love to learn how to cook. You can focus on niche categories while considering business ideas from home:

  • Gluten free food/vegan or paleo diet recipes

Take cooking classes in your home or online, as it is one of the business ideas with low investment and high profit and offer certifications.

#8. Food Truck

Food Truck - Home Based Food Business Ideas with Low Investment

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Everyone now seems to be getting into this act though it was once one of the new business ideas.  Food trucks have become popular eateries in many cities.

  • Get a food truck, or if you want to be more economic get a food cart.
food truck business-min

Image HomeBusinessCenter.com

  • Select a niche, such as tacos, gourmet foods, cupcakes, lunch truck, etc.
  • Find a safe parking spot in a crowded area.
  • You can also cater for events or functions.

#9. Delivering Groceries

Delivering Groceries - Home Based Food Business Ideas with Low Investment

Many working parents don’t have the time to go grocery shopping. You can hire a vehicle and spend time during the weekends or in the evenings supplying groceries to a busy family.

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  • Collect grocery lists from your clients.
  • Collect the payment when you deliver.
  • Shop wholesale to get the best deal.
  • Put your own unique spin to it by delivering ingredients and recipes for cooking a specific meal.

#10. Home Gardener

Home Gardener - Tips for Starting Home Based Food Business with Low Investment

If you love gardening and planting vegetables in your home garden, you could consider becoming a vendor at farmers’ markets. You can make profits on your produce by signing up to be a vendor at these markets.

There are many avid supporters of naturally grown, organic fruits and veggies.

  • Decide on what you want to sell, such as vegetables; fruits; home baked goods or sauces.
  • Arrange for transportation to get the food to the market.
  • Get in touch with the market organizer.
  • Check out the competition. For instance, if there are 15 other stalls already selling berries, your produce of berries will not have sufficient demand.

#11. Chocolate Making

Chocolate Making - Tips for Starting Home Based Food Business with Low Investment

On an average, an American consumes 25 pounds candy a year. You can start your candy or chocolate business by selling to local markets initially.

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Check out online to find out popular varieties and do your reconnaissance. It is among the top 10 small business ideas.

  • Decide on the space, the brand name, the funding etc. Start small. You can start it in your kitchen.
  • Get chocolate making equipment, thermometers, baking sheets, pans, wrappers, lollipop sticks and so on.
  • Sell to retailers or wholesale. Sell at events.

#12. Coffee Services – Home Based Food Business with Low Investment

Coffee Services - Tips for Starting Home Based Food Business with Low Investment

America is a nation of coffee drinking people and you’ll agree with me that there are coffee shops in every corner. You can deliver the coffee to businesses or even deliver equipment for coffee making, such as filters.

  • Decide what you want to sell.
  • Get a delivery mode or ship your products.
  • You can also offer pastries along with coffee or even tea products.
  • Offer coffee mugs with your logo on it to increase brand awareness.

There are several tips to starting a home-based food business. Do your research for your business niche; check out the numbers and profitability; identify the target market; have a business plan or a marketing strategy.

Who would have thought that something fun as cooking could also be a great means of making money as well?

If you don’t have enough funds to start any of these business projects, consider approaching investors and lenders to raise the money. Get better control over your finances with a home-based food business.

Advancement in technology has made the dream a successful reality for many. Don’t expect a miracle from day one, but with the right planning, you could be one of the successful home-based entrepreneurs.

Top 12 Home Based Food Business Ideas with Low Investment

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