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How to Sell Food From home [ How to Start a small food business from home] 10 Steps - YouTube
Channel: Marketing Food Online
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all right so maybe you're thinking to
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yourself can i sell food from home
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can i create an actual food business
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from my own kitchen at home
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i'm going to show you how to start a
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home-based food business
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and give you 10 steps to give you a
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great foundation to be profitable
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and successful in the new year 2021
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we're gonna get to it right now
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all right so it is damien and this is
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marketing food online youtube's premier
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food
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entrepreneur channel we have over 900
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videos to help you get a food business
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food product or even that amazing food
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truck that you've always wanted to get
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up and running
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to help you out so now we are going to
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dive into a question which i've been
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asked frequently lately because so many
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of you
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actually are either finding yourself at
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home maybe even potentially out of work
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but looking for additional income
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sources
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but you love to cook you love to bake
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can you start a food business from home
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and the answer is yes you can
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now with the actual exemption i believe
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in the only state that doesn't allow it
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from home is new jersey
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and i'm going to double check that but
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i'm pretty sure that that is actually
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the only one that i've ever come across
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that doesn't have
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what's known as cottage food law and
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that is actually laws that allow you to
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sell food products
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from home and they give you a certain
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area to sell them and a certain amount
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and all that
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so i'm going to actually dive into all
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of that and explain how that works and
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even give you a tip
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on how to find out your specific state
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now
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really quick side note on our channel
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here we have nearly half of the states
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in the united states we have already
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created videos for
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you can go to the top top of the search
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bar type in your state and put in the
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words cottage food
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and then your state name and we have a
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ton of videos for texas california
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florida and georgia and so on so let me
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dive into this and give you some tips on
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how this works
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and let you know what you can and can't
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make so number one
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the most important step is the legality
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of your business the business legalities
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these are something you got to do right
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off the bat
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you need to find out number one what you
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can make in your state
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as far as what is going to be required
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for the licensing and permits
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now understand this the state can create
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cottage food laws but
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it trickles down to the local cities and
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counties those local municipalities
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where you live
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they may have additional rules
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regulations they may allow you to do
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certain things or
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even omit certain things and say look
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you can't necessarily do that in our
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county
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or you can't do that in our city so you
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need to find out not just your state
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cottage food laws but what your city is
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so
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for instance if you lived in atlanta
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georgia okay the state of georgia has
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cottage food laws of course
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now the city of atlanta though may have
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some additional
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regulations some limitations or even
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permits and licensing
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now many of the states believe it or not
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this is very unusual
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but many states actually don't require
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you to incorporate as a business
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but i'm going to give you a tip and this
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is for protecting yourself
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i highly recommend whether your state
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requires it or not
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you really need to incorporate yourself
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as a business to separate the potential
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liability
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okay when i started my food business um
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my wife and i actually had a bakery
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of course um slightly different of
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course than the cottage food law
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but we definitely incorporated as an llc
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and you could create an llc actually for
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a home-based business
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i've actually got a link down below for
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inc file and swift files
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these are actually online websites that
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allow you to create
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your business entity in literally like
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less than 10 minutes or so maybe in 15
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minutes
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and you're done and you can do it in any
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state but check out those websites
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because they
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also have fantastic deals and pricing
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for you to create an llc
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and to make sure that you're protected
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under that limited liability so
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the business legalities my advice is if
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your state says hey you don't
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necessarily need it
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definitely do this okay this is
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something that is very very good for
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your
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liability factor it's going to limit
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what you as a person personally would be
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liable for
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as an llc of course your business is is
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the only entity that they can go after
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if somebody gets sick
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if somebody eats food that's not cooked
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properly or baked properly and someone
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has an allergic reaction
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they can cause potential illnesses in
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situations that would be very bad for
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you financially so
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should you incorporate yes please do
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yourself the favor of doing that i try
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to tell my clients that all the time as
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well
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it's always the best route to go so now
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what kind of permits
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and licenses damian would you need for a
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home business well it varies by state
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but in general
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some states require a food handlers card
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like a class that you can actually take
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to get that actual permit or the little
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card that allows you to do that
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some states do not need that some have
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local
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city and county permits and licenses
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that have nothing to do with the state
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licensing
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so you definitely want to look into what
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is required and again you can simply
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google that
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and if you are in a city if it happens
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to be miami florida let's say
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you can type in a home-based food
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business miami florida
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permits or you could basically
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substitute whatever city that you're in
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easy way to locate exactly what you'll
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need but it's in your particular city
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so number two where to sell now
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some states don't allow you to sell
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online
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some states actually do now when some
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states do allow you to sell online
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most of the time you have to sell within
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the state though normally you cannot
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sell something and ship it outside uh
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interstate sales as it's known outside
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of your city
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and state limits i mean so you want to
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definitely make sure
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and see if you can do that online
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because some i've actually had a lot of
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questions in regards to this and
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comments about people starting at home
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and they're telling me hey damian you
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know we actually have a website up and
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running
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our state allows us to have an online
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website to take orders and i think
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that's great
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i hope that more states follow suit and
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they do that
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now locally it would be like farmers
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markets local events
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outdoor events now with obviously
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everything that's going on currently
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there's a handful of events that have
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either taper down or minimize the amount
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of people who could sell
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but i'm going to tell you something i
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have a very good gut feeling on
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in 2021 you're going to see a lot more
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outside
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events not vents that are obviously that
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are more aerated
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that have the six foot distancing and so
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on so i would highly recommend
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you don't give hope on the idea to give
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up hope that you can't do this in the
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coming year
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there's going to be a lot more events
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that are going to be outside and they're
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going to need food vendors
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and that's where you guys can come in
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because farmers markets festivals fairs
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different outdoor events music festivals
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they're going to begin to happen again
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maybe a lot smaller than used to but
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they're going to still need food vendors
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and that's where your opportunity lies
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number three
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what types of food can you sell so what
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types of food can you sell that is a
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great question and that is obviously
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probably
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the most important question because
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everybody's wondering well can i start
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cooking
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food you know like chickens and ribs and
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meats and proteins and fish
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absolutely not unfortunately under
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california is the only state that
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actually has a law that allows you to
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almost create a restaurant in a sense
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on the state level but many of the
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counties and cities in california
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haven't yet
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adopted the law allowing you to do it
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within the city limits
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that's one of the one of the tricks that
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have to unfortunately unfold
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is that those cities and counties have
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to allow that to happen within their
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city and county
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the state can put it on the books but
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unless it's
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adopted and taken on in those little
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cities and counties
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it's something that won't be allowed but
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that doesn't limit what you can make
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anywhere from baked goods to a lot of
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times even salsas
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hot sauces you can do snacks popcorns
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chocolate pretzels chocolate cookies any
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type of cookie you can imagine
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bundt cookies bundt cakes trail mixes
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these are products that are considered
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non-potentially hazardous
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okay so potentially hazardous items are
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items that have to be kept at a certain
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temperature
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or they have a certain time frame that
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they have to be consumed
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most states don't allow you to make
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those types of food products but
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the list is gigantic in most every state
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and all of them are pretty similar as
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far as what you can make
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and you can still make a heck of a a
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side business out of this okay
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number four restrictions and limitations
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so
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many of the restrictions and limitations
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are actually entailed to who can be in
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the kitchen at the time of food
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preparation
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obviously pets are not allowed smoking's
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not allowed if you're preparing food for
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your family they ask that you do that
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separately
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so if you're creating a food product for
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your food business try to do that at a
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separate time frame than actually
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cooking breakfast for your kids while
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you're trying to make cookies to sell
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locally
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they try to prohibit that as well okay
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some of the other limitations are the
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types of equipment
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you can't use commercial equipment or
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large mixers things that are normally
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found in commercial kitchens
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are normally not allowed to be in a home
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setting and used
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for home products so number five step
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five is insurance
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now this is something that again it's in
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many states it's not required
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i highly highly recommend that you have
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food business insurance and yes you can
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actually get
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a food business policy for your home
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based food business
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um i recommend that and believe it or
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not your auto policy
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if you don't have a commercial auto
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insurance policy which you may obviously
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not because you haven't started your
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business yet
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check into getting an auto insurance
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quote for your vehicle
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that would actually allow you to use it
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for your business so
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if you go around town and you're
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collecting you're getting ingredients
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maybe packaging or whatever it is
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locally
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and you're using your vehicle there are
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potential tax benefits to that
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and make sure that if you can get
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yourself an actual commercial lice a
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commercial insurance policy
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for your vehicle and your auto insurance
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you can actually write that off as a
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business expense
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now the tax benefits and all that that's
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a whole other video and i'll dive into
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that in another video but there are by
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the way some huge tax benefits to doing
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this to having a business like this at
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home
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number six step six is labeling and logo
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okay so if you don't have a logo and i
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highly recommend you really dive into
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this and get creative
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you don't have to be the designer of it
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you can check out fiverr.com
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as i mentioned a handful of my other
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videos i've actually used fiverr now
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probably about 30 plus times i think
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maybe
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a little bit over 30 times now for a
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variety of services for my food business
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and you can get it done very
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inexpensively so if you wanted to check
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out actually fiverr
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i'll put another link down below in the
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description section below this
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uh in the comments section and you can
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definitely click on that and see
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what you can get done we have a lot of
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resources on marketingfoodonline.com
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on our website for services that you can
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get done for anywhere from 15 20 even 30
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bucks or even less
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to help you get up and running but
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highly recommend that when you create
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your label
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and you put all of the information
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that's required make sure you have a
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really cool logo something that's
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you can create your brand from keep in
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mind that this is a small home-based
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food business
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your brand is just starting and you can
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build on that
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and continue to use this and build a
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brand once you get into a commercial
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setting
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number seven packaging think of how
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you're going to package your particular
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products as i mentioned in the
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introduction the opening
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there's a variety of things so if you're
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doing chocolates well then you need to
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look at some type of really fancy
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box for the chocolates you want to make
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the presentation stand out you want to
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look professional
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and be taken as people to consider you
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as a professional
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food business buy your packaging it says
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a lot about
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your product and a lot about your
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business so look into the packaging
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if it's a bag don't make it just a
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simple bag create a really colorful
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beautiful logo on the front you got a
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great label on the front
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and then all of that necessary
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information on the back such as
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ingredients
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allergen listings and so on that stuff
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can go on the back but you want to
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really get it i attention
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eye grabbing packaging for your product
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so don't underestimate the power of
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having a really cool packaging when you
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start
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now you can down the road always change
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and always evolve and that's okay
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there's nothing wrong with that
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so number eight how are you going to
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market and promote it well
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believe it or not whether or not your
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state allows you to sell products
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through your website
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i highly recommend you create a website
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and again
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just to put another plugin for fiverr
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because they help me out with a couple
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of my websites
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check out down below you can actually
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get somebody to develop a website for
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you
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don't be afraid or or seem afraid of
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that idea
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the concept of creating a website
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because you may not have any type of
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technical skills
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you can actually get one made for you
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but even though you're not selling on
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the website the reason why i tell you
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this is
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create the website when you start your
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home-based food business as your
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business
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grows and becomes a commercial business
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you're going to have a completely done
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viable ready to go ecommerce website
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okay and you can actually easily
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transition that website into something
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that
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can sell products once you get to that
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level so that's why i always tell my
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clients when i do my consulting too
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start your website as soon as possible
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okay
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next up step nine keep all of your
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receipts and expenditures now now like i
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mentioned before
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check into your auto insurance policy if
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you can change that into a commercial
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policy or upgrade that and let them know
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you're using that
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keep understand and know all of the
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different monthly payments for that
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any receipts that you use for
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ingredients receipts for packaging
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if you create a website with shopify or
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if you create a website with weebly or
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godaddy or wix
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you want to make sure that all these
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hosting domains that you have out there
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every month you're paying for that
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use that also to keep the receipts for
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that because that is part of your
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business expense
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so all of these expenses that add up are
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actually going to be hugely beneficial
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for your home based food business great
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platforms to create websites on really
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quick would be wix
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shopify weebly and you're looking at
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like a 20 to 30
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a month or 35 a month fee and those fees
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can add up definitely
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very quick step 10
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just start okay and i know you may be
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thinking oh i saved and waited all the
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way to another step 10 to hear that
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yes don't delay and don't procrastinate
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just get started now are you going to
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have all the answers up front
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no are you going to know everything what
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to do no i didn't
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12 years ago i just kind of i just
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determined i was going to start a
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business and i was going to make it work
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and it was going to succeed
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period did i have all the answers
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absolutely not i have still learning 12
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years later
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there's a lot still to learn so be open
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to learning and be open to not knowing
[847]
everything because that
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doesn't need to be the fear that
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prohibits you
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from actually creating your business or
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getting it up and running
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so those are the top 10 steps to create
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a home-based food business and make it
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profitable and succeed
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in 2021 if you're looking for a side
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business and you are home a lot because
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i know many of you are you definitely
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want to look into this
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so if this was helpful as always give me
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a big thumbs up if you have questions
[871]
let me know down below and we'll see you
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guys on our next
[873]
video thanks for watching marketing food
[876]
online and if
[877]
you are looking to create your own food
[880]
truck start a home-based food business
[882]
under the cottage food law
[884]
franchise a food operation start a
[886]
packaged food business
[889]
private label your own food product sell
[892]
on amazon
[893]
get your own online store or sell food
[896]
online
[896]
remember to subscribe and check out
[898]
these videos for more resources
[900]
take care
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