How to Start a Meal Prep Business

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Meal prepping provides affordable, simple, plus healthy solutions to making meals for an person or family in a way that saves time.

Jumping in for the meal prep bandwagon can be wise for the future business owner, since it’ s a market that doesn’ big t seem to be slowing down any time soon.

But with a lot of meal prep businesses on the market, it isn’ t always easy to stand out.

This guide can help you make the most of the potential that a meal prep business has so that you also can find achievement in the niche.

The Easy Parts of Beginning a Meal Prep Company

Meal preparing is so popular that these businesses often sell themselves. You won’ t have to invest much time convincing customers that meal preparing is good for them by saving time and money and putting healthy food available.

And if you love cooking and learn how to put healthy components together, you don’ t have to have any special licenses or even degrees to get started. On this industry, people often value the final item more than the credentials you have.

A meal prep business that starts small, as much do, doesn’ capital t require a significant expense to get started, either. It’ s plausible that you should start your business from your home kitchen with an investment decision of under $5, 000 until you really feel ready to scale.  

You can also have a lot of work off your shoulders by investing in dinner prep software, like Meallogix. The software provides you with a custom electronic storefront, a list of elements to shop for based on your orders, an inventory manager, and nutrition brands to transform your company into a legitimate company.

The Difficult Areas of Starting a Meal Preparation Business

Truth be told, the most challenging component of a meal prep company will probably be learning how to stay ahead of the thousands of similar companies in the industry. Dinner prep has indexed so much steam in the last few years that it change for you to distinguish your business as different from other people. You should consider spending plenty of time nailing down a unique niche before formalizing your business.

Climbing a meal prep company can also be difficult. Using fresh ingredients may limit how far you deliver your meals, which restricts the customer foundation you sell to. To grow outwards, you’ ll need to spend money on better shipping options and potentially a lot more manufacturing facilities towards your fresh foods to people who want them. This certainly requires a significant investment to make these types of changes.

Checking up on customer service can also be the full-time job in itself. Meal prep businesses need to be available 24 / 7 to answer questions about ingredients plus solve problems in relation to deliveries and spoilage. It pays to have a dedicated person or team to help, but that’ s another price you’ ll have to figure in.  

Finally, food prep business owners exercising of their own kitchens will dsicover it tough to individual work from their private life. With all the work you put into your company, you might even shed a bit of the enthusiasm that convinced you to definitely start your business to begin with. Working at a service rather than the home might help, but it may not solve the problem.

The first step : Set Up Your Business

Before serving clients delicious meals you’ ve prepped your self, you’ ll require time to set up your company correctly. A strong foundation ensures that your business is legally ready to go and it has a clear business model that will customers will cling to.

Decide On a Niche

The most crucial part of the planning stages is coming up with a business structure for your meal prep business. Since these businesses are common today, it’ s necessary to discover a way for your business to stand out with a special niche.  

Start by deciding whatever you can offer your customers. Will your meal prep business target a specific group, like kid-friendly meals? Would you focus on plant-based meals? Or, maybe you wish to help people with specific dietary needs, like low-carb eating.  

Once you have a niche, you can carve out your space in the food prep world. Your company name, marketing strategy, plus business model can almost all fall into place.

Legally Form Your Business Entity

At this point, decide on which business entity you’ ll have:

  • Sole proprietorship: Single proprietorships have only one owner and are regarded a pass-through enterprise, meaning that all your business income passes through to you. You’ ll report your business taxes with your personal tax come back using IRS tax form Schedule C. This is a simple company structure to set up, because it legally forms once you start conducting company.  
  • Partnership: A partnership is a business along with two or more people revealing ownership. Each celebration is responsible for funding the business and sharing its profits and deficits.
  • Limited liability company (LLC): LLCs require a lot more paperwork than a singular proprietorship to start, but a single owner might form one. It’ s also a pass-through entity that can simplify tax filing, plus it protects the owner’ s personal possessions from legal situations involving the business.  
  • Corporation: Corporations exist totally separately from proprietors and shareholders. They’ re more expensive and complicated to start and also have several requirements to stay in business, like conducting shareholder meetings. D corporations are not pass through entities, while H corporations are regarding tax purposes.  

You can file your business documents through your state’ ersus Secretary of State website or make use of a business formation services to help. Inc Authority is an excellent option for LLC owners, as it provides free LLC formation and a tax preparing consultation.

For other formations, try Incfile, an affordable service along with free registered agent services for one year.

Get Insurance policy

Because you’ ll be serving food to customers, you’ ll want to protect your business with insurance. Not only can the right insurance shield the equipment and space you use to cook meals, but it may also safeguard your business if a customer gets sick from your food.  

Business insurance firms offer different types of insurance for various business models. However , general liability is a should for a meal preparation business. General responsibility insurance can defend your business from lawsuits, attorney fees, plus medical expenses that the business may be accountable for.

If you’ re cooking from your own home, you may also need extra homeowner’ s insurance coverage to protect your home plus kitchen equipment. Separate facilities should have house insurance to protect against natural disasters or even environmental hazards which could damage your business house.  

Individual Your Finances

Even though you have a pass-through business entity, you should consider isolating your personal from business finances. The easiest way to do that is to set your self up with a business banking account. Come tax time, having all your business income and expenses together in one account will make filing extremely easier.

Plus, having a separate account can make it easier to establish that your business is really a legitimate, legal business.

Online financial offers additional conveniences for business owners, like having 24/7 access to your money and mobile depositing capabilities. Novo is one of my favorites intended for small business owners, but LendingClub is a great option for expanding businesses. If you prefer having both on the web and in-person business financial, open a Chase Business Complete Banking account.

Step 2: Prepare for Business

Together with your business legally shaped and ready to roll, it’ s now time to get more details ironed away that will help you run and market your business.

Set Up Business Software

Let me begin by saying that if you can discover software that will help you run your business, get it. Basically.  

For any meal prep business, Meallogix is the solution. This software requires backend business duties off your plate, like figuring out which elements you need to order and calculating nutrition information for the meals you make. And it helps to keep everything organized in an easy-to-use dashboard that has every metric, transaction, and report at your fingertips.

Meallogix is fully designed for meal prep companies. The software produces shopping lists depending on what customers have got ordered to avoid waste or missing substances. You’ ll additionally obtain a meal planning calendar in order to plan out a few weeks or even months ahead of time. Additionally , Meallogix includes:

  • Payment digesting
  • Formula cost analysis plus reporting
  • Customer management
  • Meal program subscriptions
  • Inventory control
  • A customized online storefront

Meallogix starts at $149 per month, and you can request a demo before you join test it out plus make sure it’ ersus the right choice.

Obtain a Website

In the event that you’ re going with Meallogix, you can get your custom storefront together with your subscription. This will be the least expensive way to go since it offers several features you’ d find on other ecommerce builders plus its payment processing, reporting, along with other perks. However , in case Meallogix isn’ t in the budget now, you can start your website elsewhere for less money.

Either way, a website is really a must. People can visit to learn more about your meals and ingredients, pricing, and what makes your company different. It can also behave as your customer service hub, allowing customers to make contact with you with questions and concerns.

If you have no website-building experience, it’ s best to start with a website builder designed for ecommerce. For most people, I recommend Wix. It includes more than 500 templates, payment digesting support, a drag-and-drop builder, and several ways to give customers special discounts to keep them returning.

Wix starts in $23/month for its ecommerce plans. However , if you need to offer subscription programs for your meal preparation customers, you should go for at least the Business Limitless plan for $27/month.

Step 3: Nail Down the Details

While you get closer to preparing delicious meals for customers, there are several more details to determine for your meal prep business.

Form a Budget

Very first, there’ s the budget you have to work with while you start serving customers. A meal prep business can be costly initially because you might not have the resources available to get the most affordable pricing just for packaging and delivery costs. It’ ersus necessary—at this phase, especially—to work within a strict budget that ensures you’ lso are making a profit on your time and money spent.

At least for the very first few months of company, jot down every single cost, from each component to each dinner package you pay for. Figure in shipping costs, the time it requires you to make each meal, and company costs, like your month-to-month meal prep software subscription. Are the prices you charge addressing all these costs plus giving you a profit?

It’ s within your best interest to employ an accountant to assist you stick to a budget plus determine whether your pricing and expenses match. If you don’ capital t yet have the way to afford one, consider using QuickBooks to track this information yourself until you can range up.

Source Ingredients

Buying substances in bulk can generally save you money over buying smaller quantities. However , you also have to become mindful of your business structure. If you say you only use plant-based elements, you need to make sure you’ re sticking to that.

Your best bet is to research food marketers in your area. They usually offer bulk food items for prices less than what you’ g find in supermarkets. Plus, you can agreement with them to supply continuous ingredients you often use in your meals.

For produce, use local farms and farmer’ s marketplaces. You can have the additional advantage of marketing your meals as ones that include components from local maqui berry farmers.  

Most importantly, compare pricing. As you inch deeper into the business, you’ ll learn where you can cut costs for effective pricing. But price reviews are at the heart of the. Get price lists from different vendors and manufacturers to find out which ingredients to order from each place.

Determine Where Your Customer Base Will Be

Logistics can hinder an excellent meal prep business model. Shipping to people out-of-state adds a whole new layer of complication to ensuring freshness and keeping expenses down. As a new business, it might be best to cater only to local customers that you can deliver or ship to very easily.

Of course , this particular limits your achieve. If you’ re sure about wanting to set your places on selling to people outside of your immediate area, talk to shipping companies to determine the rules for doing so. Several states have specific regulations for delivery fresh food that could make deliveries to the people areas unprofitable.

Step 4: Find Your own Ideal Clients

Your business is away to a great begin. Now, it’ s time to grow this through marketing to the people who will be interested in it.


Meal preparation businesses cater to specific demographics. People who adore healthy meals but additionally love to save period are perfect clients. However , they still want to know what your business will do differently compared to hundreds to a large number of other meal prep companies in the industry.

That’ s exactly where your advertising is available in. Your website will be an essential part of your marketing because it is where individuals will go to learn more about you. But you’ ll need to pull customers there first.

Paid research ads on Google is definitely an excellent way to grab people who are already looking for a business like yours. To start a new campaign, create or log into your Google Ads account. Then, click on the + sign to create a campaign.

Next, choose a goal for the campaign. When starting out, you’ re trying to get new customers over to your business, so Brand awareness and reach would likely be the greatest goal for you.  

From here, Google Advertisements walks you through the process of setting up your campaign. Choose your daily budget, geotargeting, key phrases, and other metrics. When finished, review what your ad will look like and start getting clients.

Leveraging Social Media

Social media is a must for meal prep business owners, simply because people looking for quick, convenient meals are often hanging out online and exploring tips. Instagram is a superb place for these companies to advertise because enticing photos of their meals can go a long way.

Not only can you use all the free features of social media marketing platforms to show away from what you sell for your customers, but you can also try paid ads on them. Consider getting started with Google Ads first and making your way into Instagram and Facebook marketing once your budget grows.

Step five: Grow Your Meal Prep Business

You can only work so long for yourself making foods from your kitchen for the business. Soon, it’ ll be time for you to scale.  

Expand Your Employees

Hiring workers is a must when you grow your business. Regardless of whether it’ s choosing someone to take over social media marketing and customer support or even adding a few new cooks to the kitchen, your staff can get things moving quickly for customers and consider tasks off your hands.

Recruiting software program can streamline your own hiring process simply by posting jobs to job boards all around the web and controlling your applications.

Once you do get more staff to help, Meallogix can work behind the scenes to make sure everyone stays on a single page. The software’ s kitchen backend stores your quality recipes and manages ingredients, giving everyone all the necessary information to produce meals to your specifications.

Revise Your Business Model

As your business grows, you might need to modify your business model. Hyperlocal businesses might broaden to interstate meal delivery services, requiring more helping hands and more efficient food preparation, order processing, plus shipping.  

Consider reevaluating your company model quarterly, especially in the early stages of growth. Doing so can tell you if your company will be prepared to handle your customers and their needs as well as you’ ve planned for.  

Bringing in a company consultant could be a good idea at this point to ease the developing pains you might really feel from quick enlargement.  

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