Starting a home-based food business
By Diana McLaren • Bankrate.com

A few years ago I helped a young family member break the law. She was a new graduate of a Toronto culinary program and finding her way in the food business. When she was offered the opportunity to cater a trendy ad agency's client luncheon, it was a lucrative offer she didn't want to refuse.

Her mother and I acted as assistants and her small apartment kitchen was the scene of the chopping, pureeing, and baking.

That's where we ran afoul of the law. If money is changing hands, you have to prepare and store food in a commercial-grade kitchen that's inspected and approved.

That goes for cookies you sell at the local farmer's market, tomato sauce you make from a backyard harvest -- and ad agency catering jobs.

Amateur vs. pro
Michael Wolfson is a food and beverage sector specialist with Enterprise Toronto, the city's economic development agency that supports entrepreneurs and small businesses. He understands the ready appeal of food-based businesses since it's something everyone is familiar with, whether that's as a family cook, restaurant regular or trend spotter.

"There are two types of people who want to start a food business: people who just want to supplement their income a little and sell at a small farmer's market, and people who want to run a commercial food business on a larger scale."

The good news is if you want to keep your business small, these commercial-grade kitchens can be rented during off-hours from restaurants, catering companies and, in some cases, non-profit community organizations.

You can use your home for administration and marketing aspects of your business and to develop and test recipes for tryouts with your family and friends.

But if you're considering launching a commercial food business, read on.

Expert advice
Wolfson is heading up a three-year food business incubator project that includes a commercial kitchen, but the business side is never far from the picture.

"We don't teach people cooking skills," says Wolfson. "It's all about business skills and what makes a successful food business."

This might be innovative packaging, such as coffee-shop size portions, or riding the wave of some trend, such as functional foods (think adding omega-3 to your product).