Since home-based food businesses often are built out of a hobby, many entrepreneurs in the industry make the mistake of continuing to run their business in a casual way.

“Whether as an LLC or corporation, the business owner should form an entity and operate the business as that company, as opposed to themselves individually,” Gerber says.

Choose a Point … Even though you are casually making food at home for sale, it's important to know about licensing, taxes and best practices for running a small business before announcing you're in business.

Construct a Business Plan. Assemble Your Team. A restaurant ... Acquire Your Equipment.

The first and most important step to starting a food business is constructing a feasible business plan.

Starting a Food Business Checklist: What You Need to Know. Obtain Licenses and Permits.

The takeaway is to learn the ins and outs of running a small business. If you are starting a home-based food business, you will need to understand the regulations of FDA and your state and local health department. Stavrou used the East London Small Business Centre, which offers free workshops covering all aspects of starting a business. “There are so many good resources out there, you just need to …