Home Based Chocolate Business Ideas

Tuesday, December 2, 2014

Home Based Chocolate Business Ideas

Home Based Chocolate Business | Small Business Ideas

Chocolate is a typically sweet, usually brown, food preparation of Theobroma cacao seeds, roasted and ground, often flavored, as with vanilla. It is made in the form of a liquid, paste or in a block or used as a flavoring ingredient in other sweet foods. Cacao has been cultivated by many cultures for at least three millennia in Mexico and Central America. The earliest evidence of use traces to the Mokaya, with evidence of chocolate beverages dating back to 1900 BC. In fact, the majority of Mesoamerican people made chocolate beverages, including the Mayans and Aztecs, who made it into a beverage known as, a Nahuatl word meaning "bitter water". The seeds of the cacao tree have an intense bitter taste and must be fermented to develop the flavor.

If you’ve decided to channel your chocolate passion into a home-based business, you’ll want to stay apprised of changing trends in the chocolate market. For instance, be aware of new consumer flavor preferences, says Joan Steuer, owner of chocolate industry forecasting firm Chocolate Marketing. In addition, creative packaging ideas or tie-ins with other products will help you stand out. You'll also need to be vigilant monitoring other industries to identify trends that apply to the chocolate industry, Steuer says. With this knowledge, you'll be set to embark on starting your home business.

After fermentation, the beans are dried, cleaned, and roasted. The shell is removed to produce cacao nibs, which are then ground to cocoa mass, pure chocolate in rough form. Because the cocoa mass is usually liquefied before being molded with or without other ingredients, it is called chocolate liquor. The liquor also may be processed into two components: cocoa solids and cocoa butter. Unsweetened baking chocolate (bitter chocolate) contains primarily cocoa solids and cocoa butter in varying proportions. Much of the chocolate consumed today is in the form of sweet chocolate, a combination of cocoa solids, cocoa butter or other fat, and sugar.Milk chocolate is sweet chocolate that additionally contains milk powder or condensed milk. White chocolate contains cocoa butter, sugar, and milk but no cocoa solids.

There are many home based chocolate business ideas to suit all skill levels and every personality. Whether you love working in the kitchen, at the computer, or in front of a group of people, as long as you love chocolate you are sure to find a business idea that appeals to you.

Type of Chocolate

Several types of chocolate can be distinguished. Pure, unsweetened chocolate contains primarily cocoa solids and cocoa butter in varying proportions. Much of the chocolate consumed today is in the form of sweet chocolate, combining chocolate with sugar. Milk chocolate is sweet chocolate that additionally contains milk powder or condensed milk. In the U.K. and Ireland, milk chocolate must contain a minimum of 20% total dry cocoa solids; in the rest of the European Union, the minimum is 25%. "White chocolate" contains cocoa butter, sugar, and milk, but no cocoa solids. Chocolate contains alkaloids such as theobromine and phenethylamine, which have some physiological effects in humans and has been linked to serotonin levels in the brain, but the presence of theobromine renders it toxic to some animals, such as dogs and cats. Dark chocolate has been promoted for unproven health benefits, as it seems to possess substantial amounts of antioxidants that reduce the formation of free radicals.
White chocolate, although similar in texture to that of milk and dark chocolate, does not contain any cocoa solids. Because of this, many countries do not consider white chocolate as chocolate at all. Although white chocolate was first introduced by Hebert Candies in 1955,Mars, Incorporated, was the first to produce it in the United States. Because it does not contain any cocoa solids, white chocolate does not contain any theobromine, so it can be consumed by animals.
Dark chocolate is produced by adding fat and sugar to the cacao mixture. The U.S. Food and Drug Administration calls this "sweet chocolate", and requires a 15% concentration of chocolate liquor. European rules specify a minimum of 35% cocoa solids. Dark chocolate, with its high cocoa content, is a rich source of epicatechin and gallic acid, which are thought to possess cardioprotective properties. Dark chocolate has also been said to reduce the possibility of a heart attack when consumed regularly in small amounts. Semisweet chocolate is a dark chocolate with a low sugar content. Bittersweet chocolate is chocolate liquor to which some sugar (typically a third), more cocoa butter, vanilla, and sometimes lecithin have been added. It has less sugar and more liquor than semisweet chocolate, but the two are interchangeable in baking.
Unsweetened chocolate is pure chocolate liquor, also known as bitter or baking chocolate. It is unadulterated chocolate: the pure, ground, roasted chocolate beans impart a strong, deep chocolate flavor.
Raw chocolate, often referred to as raw cacao, is always dark and a minimum of 75% cacao. Because the act of processing results in the loss of certain vitamins and minerals (such as magnesium), some consider raw cacao to be a more nutritious form of chocolate.
Chocolate may have whitish spots on the dark chocolate part, called chocolate bloom; it is an indication that sugar and/or fat has separated due to poor storage. It is not toxic.
Whether you are passionate about creating rich, creamy chocolate masterpieces or just passionate about indulging in them, there is a home based chocolate business that will suit your talents and tastes.

Things Needed

Business license
Sales tax license
Product line information
Promotional plan
Chocolate-making equipment
Health department certificate
Packaging supplies

Instruction:

Think about other chocolate treasures you make that get rave reviews from friends and family members. Chocolate-dipped plastic spoons or chocolate scones and biscotti might appeal to local coffee shops. Visit business complexes with a basket of chocolate muffins, cookies, and cakes wrapped in individual servings in the afternoons to tempt office workers chained to their desks yet craving an after-lunch goodie. Gift baskets are appreciated year-round and make a great home based chocolate business idea. Load attractive baskets with assorted chocolate candies, cookies, fudge, and even chocolate-flavored coffees.
Organize your chocolate business. Meet with a certified public accountant experienced with home-based businesses. Determine the best business structure: sole proprietorship, limited liability company or corporation. Consult a commercial insurance agent about the proper policy for your homemade chocolate business. Visit your city or county clerk’s office for a business license, and inquire about other necessary permits. Contact your state department of revenue for a sales tax license.
Finalize your product line. List your chocolate creations by variety and flavor. For example, you can produce chocolate, chocolate divinity and chocolate peanut butter fudge. If cakes are on the menu, create a well-rounded selection for different tastes. Finally, remember that chocolate devotees appreciate unconventional creations as well. Explore new product and flavor combinations with trusted family and friends.
Create a yearlong promotional plan. Spread out your calendar and identify dates that would be enhanced by fine chocolate products. Examples include Valentine’s Day, Mother’s Day and birthdays. Design a promotion for each event, and integrate all of your products into the overall plan. Explore a “Chocolate of the Month” promotion to create a regular customer base. Finally, widen your circle of contacts by holding chocolate tasting parties at friends’ homes.
Obtain the equipment needed. Making a batch of fudge for friends is different than turning out 50 pounds in a few days to sell at a food fair. Candy making requires exact temperatures and timing, particularly since chocolate burns easily. Storage of the raw ingredients may mean that you need additional cabinets. Unprepared chocolate and the finished candies require storage within a limited range of temperatures. A wine refrigerator is ideal. The kitchen, or wherever the chocolate is being made, needs to be kept between 65 to 68 degrees Fahrenheit, according to the website baking911.com. That may require an additional air conditioning unit.
Obtain health department approval. Since you’ll be making and selling products for public consumption, your local health department will likely need to approve your production facility’s cleanliness and sanitation. Obtain information on local requirements, and schedule an inspection date. Thoroughly scrub your preparation area beforehand, and correct any discrepancies immediately.
Purchase your chocolate packaging supplies. Obtain quality cake and candy boxes for your chocolate confections. Explore quantity discounts by anticipating your packaging needs for all of your promotions. Include nonperishable chocolate-making supplies as well. If you plan to market your products in local retail outlets, order a selection of stands and display fixtures.
Market a demonstration batch. Create and package two or three varieties of candy or fudge, and personally visit day spas and upscale beauty salons with samples and product for sale. Continue your “free sample” tour at professional offices and real estate agencies. Provide popular restaurants and delis with samples, and ask the owner or manager if the eatery will agree to carry your products.
Market through your chamber of commerce. Join the chamber and take advantage of the opportunities you’ll receive as a member. For example, you can bring product samples to a member seminar or exhibit at an upcoming chamber business expo event. Pinpoint member businesses that would benefit from regularly gifting clients with your chocolate products. You can join your local chamber through the U.S. Chamber of Commerce.
Find a market niche. Determine what will make your chocolate business different from others in your area. For example, there may be lots of people offering gourmet truffles but only a few who offer exotic fruit-flavored truffles, chocolate-dipped fruits or monogrammed truffles for weddings.
Line up suppliers. Reliable sources are critical with a food business. The taste of your chocolates should not vary. Customers expect the raspberry bars they buy this month to taste exactly the same as the ones they bought last month. Packaging is an important factor in gourmet chocolates. If you're charging $25 a pound, customers expect fancy boxes and ribbons. A plain Jane white paper bag won't make your chocolates seem as attractive.
Determine where you will sell your chocolate. Selling at arts and crafts shows requires traveling and investing in a booth. Farmers' markets take place in the same location each week so you may not need to travel far but you'll still have to invest in a booth and a way to keep the chocolates from melting. Providing your chocolates to restaurants only requires delivery but you won't be able to charge retail price for your delicious creations.

Tip

Set up a website to capture sales from buyers who shop online.
Of course, if you are making and selling food products, you must abide by laws and regulations regarding food safety and handling. Your local Chamber of Commerce can point you in the right direction. Further, make sure you charge enough for your products to cover your expenses so you make a profit.

Warning

Many residential kitchens won't pass a health and safety inspection. Find a backup facility in case yours is not up to health department specifications.

Store the chocolate and transport it in coolers kept between 65 to 68 degrees Fahrenheit. Storing the chocolate at a colder temperature results in the surface becoming dull with a whitish cast. This doesn't affect the taste of the chocolate but does mar how it looks. Storing the chocolate above 70 degrees Fahrenheit makes it subject to melting.

Reference

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Tuesday, December 2, 2014