During the Covid pandemic, when my restaurants were largely shut down, I started an initiative called the Cottage Cupboard Cooperative (CCC). The idea was to help people who were homebound, by necessity or choice, to start successful home-based manufacturing businesses. This was a business option open to all and, depending on the product (e.g., food, clothing, crafts, cosmetics, or art), a relatively modest investment.
It could be a potential activity between jobs or a longer-term career based on interests and life circumstances. It is a way to develop a range of practical skills including entrepreneurship, operations, research and development, marketing, and sales. These are skills that can help a person go far in all aspects of business and potential future employment.
CCC included a 20-part podcast, a Facebook page, and a personal manufacturing journey. I developed a line of food products and spices that I sold locally and through an online store. This required registration and approvals as well as going toe-to-toe with a local zoning officer to convince him why my request to make and sell baked goods from home should be approved. Developing my own home-based business was an amazing experience and a positive bug that has stuck with me.
It therefore may not be a surprise that I am considering adding a new home-based manufacturing initiative as part of Doab Development. Nothing is finalized yet, so it is premature to discuss the specifics, but I have been conducting early market and operational research about a variety of products. What I do know is that the new endeavor will be rooted in healthy eating and healthy living (pun intended!).
What is striking this time, as I am more inclined to make this a meaningful part of my work portfolio instead of one small element of the CCC experiment, is the special challenges that small-scale businesses face in production costs, marketing, and pricing compared to bigger, more established businesses. My revelations are not novel or surprising, but they are now much more personal and imminent. As an example that I discussed in another recent article, I have been excited about hydroponic and vertical farming as part of the future solution to food justice and climate viability. I had considered farming leafy greens and herbs as part of a new home-based initiative.
However, after substantial research, the economics do not work for my specific situation. The location where I would be growing already has a well-established market for healthy, locally grown produce at reasonable prices. A variety of outstanding, entrepreneurial local growers have already established deep relationships with vendors and customers and are selling their produce in creative ways and at price points that simply would not justify the kind of capital investment to start a new farm.
These are not mega-producers from across the country who ship produce thousands of miles and grow relatively tasteless produce that is grown for longevity. They are local farmers who are growing nutrient-rich, flavorful vegetables at premium prices. Yet they are still operating at a scale and depth that makes it difficult for a new producer to compete.
This dynamic is the norm and not the exception. Companies that manufacture at scale have a huge advantage in the marketplace. How, then, can a new, home-based manufacturer compete? Following are three recommendations for ways to improve business opportunities out of the gate:
- Make sure there is sufficient demand. As you conduct your market research, make sure that there is ample demand for your product through the specific sales channels you intend to use. In some instances, even with a large number of producers, there may still be sufficient demand for your product in the marketplace. In other instances, your variation of the product might trigger a new demand. Check with the local intermediaries who may help sell your proposed product. Look at trends in online sales using Google and Amazon tools. Try to anticipate future demand and whether your planned product is more than a fad and will have staying power.
- Consider ancillary products and services to supplement your core business. You can lower your risk in pursuing a particular product line if there are additional products and services that can be related to or a spin off-of your core product. This can even include educational courses or tours of your production facility. Invite the community in to see what you do!
- Give back! It is no longer sufficient to talk about a product being “local” as a basis for customer interest or brand loyalty. First, there are already a lot of local producers doing great work and promoting their own brands. Second, people still want value for money or some other compelling reason to purchase a local product. One great opportunity is to build community support into your product development and business model. Think about how work in your production facility can bring the larger community into the process and whether there is a way to use your resources, expertise, or product to add value to the larger community. Integrating more deeply into your community—in person or virtually—can generate substantially more interest in your work.
None of these is a panacea for success in starting a new production business, but they can help start with a stronger foundation and more momentum for support. Do you have experience starting a successful new home-based manufacturing business? What are your recommendations for jump-starting a new endeavor? Please join the conversation, and let us know what you think.
