The industry for the hot sauce business is projected to reach about 3.77 Billion dollars by the year 2026 .
The hot sauce industry is growing at a rate of 6.5% through to 2026. Market dominators are Tabasco peppers saucer, McCormick, and Kraft Heinz.
Hot chili sauce, chicken wings, habanero peppers, taco, roasted lamb chops, and the list goes on, these are some of the foods you can use hot sauce on.
If you are a hot sauce lover like Iam, this presents an opportunity that you can tap into to start a hot sauce business.
I am a lover of all things original and I have often said that while you are busy making that hot chili recipe in your home and feeding your family.
You might just be holding in your hands a multimillion-dollar business that is waiting to be explored.
The hot sauce industry has been around for a while.
It became much more pronounced in the 19th century when the Tabasco company decided to bottle their hot sauce and started selling it to people
I love hot sauce a lot because of the flavors it adds to my meals.
Be it for eating chicken wings, fries, or all sorts of comfort food.
I have found that it adds a layer of flavor that is hard to miss.
These days I even add it to my chappati wraps that are personally made for my family.
It is a wonderful addition to everyday meals to get those tongue burning taste that leaves you yearning for more.
We are going to be exploring how to take advantage of this skill to start a home business.
Once you already have a recipe?
The next thing you need to do is to discover how to turn your recipe into a real money-making business.
I must warn you this is going to be a long ride.
I will not miss out on any information you will need to have to be able to start a hot sauce business from home.
My objective is that you can read this post and systematically implement all you have learned to start your hot sauce business.
My perspective is for someone who wants to do this as a home business.
However, I will incorporate some knowledge for those who want to do it on a large scale.
Are you ready to learn, lets roll
Steps to starting a hot sauce business
The first step to starting a hot sauce business is having a recipe, afterall hot sauce is a product which pople want to buy.
So your starting point must be to have a recipe that people love and are willing to pay you for.
A lot of people started their hot sauce business from recipes passed down from different generations of their families or as part of a family tradition that they used even while they were kids.
One of such hot sauce businesses is the trinipeppersauce of the Findlay group.
Their hot sauce recipe was a family traditional recipe that he was used to eating when he was small.
Some of the more common recipes that are available and popular in teh market are
- Garlic pepper
- Mexican pepper sauce
- Cajun pepper sauce
- Scotch bonnet hot sauce
- Curry pepper sauce
- Peri-Peri sauce
And many others not mentioned, most of these peppers vary in flavors because of the peculiar flavor of the peppers.
If you don’t have a recipe but still want to start a hot sauce business, you can use private label manufacturers to start up quickly.
I have a list of private label companies that provide hot pepper sauce private label opportunities in my hot sauce business plan.
Having a great recipe is the key that unlocks your first step to starting your hot sauce business.
But it is not the only step because having a recipe is not the guarantee for success until people believe in your product.
Lets get to the next step.
2. Hot sauce business plan
A business plan is a document that tells you how to create your business, market it, gain customers, and scale it to grow.
You might just have that great hot sauce recipe but if you don’t figure out how to turn it into a real business, it will be just an expensive experiment.
Your hot sauce business plan should tell you who your customers are., where you can find them, what their preferences are, and how you can reach them.
Your hot sauce business plan will show you a road map on how to maket your business and also how to ensure that your business continually meets the demands of your customers.
To make things easy for you, I have created a hot sauce business plan pdf that you can use to start your hot sauce business.
The hot sauce business plan contains extra resource lists that will help you to start your business
The contents of this package are built to lead you from recipe identification to business start-up.
The package contains the following
- Recipe Types
- Business plan
- Marketing Plan
- Financial plan
- Pre-made excel business plan with P&L, Cashflow and Startup cost projections
- Operational strategy plan
- Product resource lists
- Product launch template
- Copackers list
- List of hot sauce bottles manufacturers
- List of private label manufacturers
Tap the button below to get your new launch copy
Once you have your business plan figured out, it is time to incorporate your business.
3.Get your business license
The small business administration has all the resources that you will need to know in order to start your business.
For the sake of clarity, you will need a business license that allows you to operate as a business.
Even though my preference is to be an online business owner, I know that when it comes to marketing your hot sauce business you will need to hit the streets.
People cannot taste your sauce online, so getting a business license is a crucial first step you must take.
You can register as an LLC or solopreneur, I will not advise that you register as a solopreneur for a business like this even if you’re the only one making and selling your hot sauce.
Your business could grow quickly if people love your product
Registering an LLC is the best because it allows you to separate persona liability from business liability.
It also helps make others take your business more seriously, especially if you are need investors in your business.
Once you do this, you should get your EIN, an EIN is the tax ID that entrepreneurs use for paying taxes that accrues from their business.
Once you are done with this aspect, the next aspect is to get the required food license for your business.
4.Get Food License
The FDA requires that you meet some specific requirements for you to be able to process and package food that is for sale.
You must check with your state’s local authorities to understand what those licenses and permits are and ensure that you get them.
If you are using a facility that is not your home, you may need to register with the FDA to be able to produce food there.
Other regulatory requirements may require that your hot sauce meet certain standards both in ingredients combination and also the information that is on the food packaging.
Once you have gotten your licenses in a row, you are now set to start the production of your hot sauce.
Depending on how you want to launch your product.
You may want to decide from the beginning if you want to personally produce your hot sauce from your kitchen table, or outsource it to co-packers.
I know that when you are venturing out to start your hot sauce business, you may want to start out small because you don’t want to make big mistakes.
I totally get it, you want to scale gradually, so you start by yourself.
Co-packers however become important when you can no longer manufacture from your kitchen table.
They are trained manufacturers who help small businesses to manufacture their products.
This remove’s the stress of manufacturing the product.
It also enables you the business owner to focus on marketing your business.
I have a well-researched list of co-packers you can use to start your business in my Hot sauce business plan pdf.
If you need to start by yourself, the very next thing you need to think of before you go into production is the packaging of your product.
Do you want to package your hot sauce in bottles or jars?
For example, I found that hot sauces that have a thicker consistency tend to come in jars.
For example, Jing Gao, a budding entrepreneur who just launched her hot sauce Flybyjing uses jars, while very popular ones like Tabasco use bottles.
No matter what type of container you may use, you will need to think of how to create designs that represent your brand.
The first perception that your customers will have of your brand is your packaging.
In my hot sauce business plan, I included some links to packaging and bottle manufacturers you can use to brand your product.
If you want to create labels and designs by yourself, you can conisder taking my newbie printables course.
One of the topics I covered is how to create labels and logos for your small business.
To take the course tap the button below.
6. Make samples of your product
Once your packaging is ready, it is time to make samples of your products. This is to enable you to take pictures that you can use for marketing your new product.
Your samples will also serve as the tester product that you can send to consumers to convert them to customers.
Free samples may be in smaller bottles or perhaps in sachets. While the samples for your pictures should be in the original bottles you plan to sell it in.
Once your samples are ready and good to go, it is time to take pictures of your products.
Your primary mode of selling is via an online store but we will get to the physical store sales in a bit.
If you do not have the funds to hire a professional photographer to take pictures of your sample products.
Consider using your iPhone camera and a lightbox. Purchase a Lightbox from Amazon for just about under 25 dollars.
Getting a good picture of your products is critical.
Because those pictures are probably the first impression people will have of your product before they even taste it.
If your picture is of poor quality, they may lose interest even before they have tasted your hot sauce.
Take a look at the picture below and see what yours should look like.
Siena’s sauce is a company owned by Tyla Simone Crayton 17 year old high school student, she created the recipe when she was 8 years old. It is sold in over 70 stores in the US.
Now that you have your product picture all sorted, you are now ready for the next step which is building your business website.
7.Build your business website
A business website is the shop front you need for your business.
It is the cheapest way to sell products without having to spend large amounts of money for a physical store.
A website with a shop for selling your products will save you tonnes of money plus time.
There are two ways to go about this aspect, you can choose to outsource your website building to a third party person to help you build your website so you can concentrate on creating your lovely hot sauce.
Or you can build one yourself if you choose to build your business website. I have created a course that will help you to set up your business website as quickly as possible.
In one week your business website is all set up and ready to go, that course is Shopify unbundled
Shopify Unbundled Course
Never built an ecommerce website before? Don’t worry, this course is designed to take you step by step to build your first ecommerce shop. You will not need any other video to show you what to do. All you need is covered.
It is a course that is dedicated to teaching a newbie person how to set up their first ecommerce website.
An ecommerce website is a website set up primarily to sell products
Using Shopify to build your business website is one of the best decisions you can make for your business.
Why? Because it is designed to help small business owners set up their business online.
Once your online store is all buiilt up, it is time to start your prelaucnch activities
Marketing and selling your product is the most important aspect of starting a business.
Without a market for your business, you are not in business. This is where small business people often fall on their faces.
You need to create a marketing plan and a product launch plan that will help you to get your product out where your customers need it.
When you are getting a product into the market, you need all the sales you can make in order to recoup the expenses.
Since our major way of selling your product is through your online store, there are steps that you need to take in order to successfully launch your product.
Here they are
Create your social media profiles
This includes creating specific pages for your business, the most important ones are Facebook, Instagram, Twitter, Pinterest, and Reddit.
Build your first email list
Initiate it by sending out a Facebook ad or other types of ads from your various social media profiles that drive traffic to your online business.
Aske people to sign up and receive a free sample of your hot sauce.
Be mindful of how much you give out because of shipping costs.
Do a Giveaway
Target the giveaway at getting people to perform a particular action on your social media pages.
It could be to tag a friend, comment on post or to invite a friend.
Giveaway is a great marketing lingo to help drive engagement on your social media pages and also grow your brand.
For a detailed step by step actions, you need to take in your online store to launch your product. Get my Hot sauce business plan pdf.
Now lets hit the streets
Hit the streets
While people love to see your products online, offline activities also serve as a good revenue driver and also brand awareness build-up.
- Set up a pop up stand at events
- Attend a Hot sauce event
- Create sachet samples and give it to shoppers in a mall
- Approach malls and ask them to stock your products
You can start with mom and pop shops, gas stations, and nearby shops before going to the big malls.
With the COVID19 onslaught, the restaurant business has suffered a tremendous setback.
When there is a pick-up in demand, consider approaching them to see if your products can make it into their menu.
These are all direct to consumer marketing tactics you can use to get your products out there.
Starting a hot sauce business may look daunting at first but if you consider the gains, and follow my step-by-step instructions in this article you will do well.
The first step is to have a solid business plan that helps you to create your business on paper before you begin execution.
My hot sauce business plan pdf will give you all the required prompts and ideas on how to create your hot sauce business plan.
Grab it now
Do you want to get posts like this sent to your inbox weekly?
Join our VIP List