In this GST era (lol) home made food business indeed has favourable rules with regard to taxes.
A few points you may have to consider before venturing into home made food business.
- Selection of the product requires market analysis with respect to region, demand, competition, etc.
- You need to consider production and packaging as food items have limited shelf life.
- Ensure that the ingredients you require to produce the product is available at a competitive rate and also with good quality.
- Plan your production strategy as initially home based mixers / grinders / ovens will be useful. However, if the quantity of production increases, you may have to go in for industrial grade grinders and other machines. This means more investment in terms of assets and also running costs like electricity, labour, etc.
- Ensure that you get licensed with FSSAI as this is a mandatory requirement.
- Also, register your company and get the required certificates to avoid any legal issues.
- Marketing, marketing, marketing… This is the key area you need to focus, as money comes in only through marketing and then sales.
- Prepare a project plan and find out the Break even point.
- Think a lot before starting the business. But once started, never ever think of alternatives.
- The most critical point : Be Focussed.
Hope my few thoughts helps you in your business venture.