Slawsa, Recently Featured on ABC's Shark Tank

I am an avid fan of Shark Tank on ABC. For many years, it was my dream to start a food business. Originally I was hoping to vend bbq, then cater it, and eventually open a bbq restaurant; but my dream has changed over the years.

I tested the viability of selling bbq sauce and bbq spice rub at bbq competitions and from my bbq blog. My story has been well documented in a previous article, so I won't rehash it all again in this post.

When I learned that Slawsa would be featured on Shark Tank in the November 15th episode I watched with a lot of interest.

I bought a jar today my local Kroger supermarket

As luck would have it, the Sharks didn't share the same vision for the possibilities for making Slawsa a household name. But Julie Busha should certainly hold her head high and be proud for the way she told her story and represented her brand in the prime time national television spotlight.

You win some, you lose some; but I think Slawsa is already a big winner. The product is sold in more than 5,000 stores at this point and is available in more than 1,000 Kroger locations. I actually bought some today at my local Kroger in Canton, MI.

Julie wrote a guest blog post for SharkTankBlog.com providing more insight about what it takes to start, grow and profit from a niche food product business. I hope you enjoy reading it as much as I did. If you like what you read, I urge you to support a fellow food-preneur and give Slawsa a try.

Here's a clip from her segment on the television show:


 

Julie has written other articles providing insight into the food business also available on Slawsa.com at the following link: Click here.

The following quote from Slawsa.com kind of sums up the Slawsa philosophy quite succinctly:

SLAWSA breaks the mold of modern condiments, boldly creating a whole new category of food, and standing alone in its realm of flavor. A delicious cross between a slaw and a salsa and far healthier than other toppers, more versatile and is a must-have for your pre-game tailgate, grilling at your backyard barbecue or to spice up your mid-week family dinners. We beg you, don't serve your guests boring condiments.

Starting a Food Buisness and the Cottage Food Law

In a previous post, I wrote about cottage food laws. Michigan and many other states have enacted sets of specific rules and regulations that allow a framework for food entrepreneurs to get started on a small scale. These laws allow individuals to do some test marketing before plunging headfirst into a full scale, licensed, food processing business.

The cottage food laws do have limitations. There are labeling requirements, limitations on the types of foods that can be produced for sale from a home kitchen, and guidelines for maximum annual revenues that can be earned.

Outside of the cottage food law allowances, many states and county governments offer other resources to help guide a prospective small business owner through the process of operating a food business legally. In Michigan, the state government provides significant resources online. The 64-page Guide to Starting and Operating a Small Business in Michigan provides a checklist that can be used to plan for a start-up. The guide covers taxes, business plans, licenses and regulations, hiring, financing, managment, and insurance considerations and many, many more.

All of this may seem like a lot of red tape and hassle for folks that just want to grow a hobby or personal passion into a source of income. I've seen and known many bbq enthusiasts who do bbq and other types of catering "under the radar" and out of compliance with legal requirements. This may seem like a harmless undertaking, but upon closer examination this is a pretty risky proposition. The personal liability is significant and should not be taken lightly.

There is a lot of information available to help you do it right, if you take the time to look for it. And the best part is that most of it won't cost you any money while you progress through the initial planning stages.

If you are aware of other resources that would be helpful along these lines, feel free to post them in the comments section or send me a separate e-mail so I can share the information with others who may find it useful.

Here's an example from the Small Buisness Administration (SBA):

Small Business Assessment Tool

Good luck.

Cottage Food Law

I wanted to share some research I've been doing regarding the cottage food laws that provide some possibilities to prepare certains types of food products from a homebased kitchen. Not all states offer this possibility, but certain states do. Here's a list. Farmer's Market Coalition has a nice article that offers sources for further research as well.

It's important to understand that all states are different and what's allowed in Illinois might not be allowed in Florida, for example. While jams and jellies are allowed in many states, canning pickles from home is rarely allowed. As with any regulation, they are subject to change. If you decide to pursue this, it's important to stay current with changes to the rules that affect homebased operators. This might be a viable avenue for homebased production of bbq spice rubs and seasonings as long as labeling requirements are followed carefully.

From HomeBasedBaking.com:

As with any other business endeavor there are certain rules and regulations that govern the industry. These rules and regulations are set by the individuals states and cover the types of items that can be sold, where vendors can sell, how products must be packaged and labeled and much more. There are currently 31 states that allow citizens to bake from home for profit in some form.

Most of the states have a cap on how much revenue you can earn from a homebased food business. In my state, Michigan, it's $15,000. In other states it's $25,000, or somewhere in between.

Many local Michigan micropreneurs have used the cottage food law to launch their business with low costs and then once established transitioned to a larger commercial operation once the $15,000 cap is reached. Here's an article about a cupcake baker.

The farmer's market near my home is packed with small farmers and urban gardeners taking advantage of these new regulations to launch their own small businesses. Here's a link to the specific rules in Michigan.

I applaud the states who have crafted regulations to losen the reins on some of the food safety regulations. I've read many other accounts online where the unemployed and under-employed have launched small businesses to help them overcome their current financial struggles.