How to start a spice business?

The profitability of a spice business relies on the margins that exist after you have purchased bulk spices, rebottled or mixed them, and then sold them to the public. It is important to note that if you are planning on rebottling, or mixing your own spice combinations, there may be local regulations regarding facilities.

It is possible that your local board of health requires that you use a complying kitchen that meets cleanliness and storage standards. It is not necessary to lease a commercial kitchen if this is the case. Many small business owners in need of a complying kitchen opt to utilize kitchens in churches, schools, or restaurants when those kitchens are otherwise out of use.

Finally, always consider the cost of shipping with regard to your spice business. Costs added to bulk spices that you are receiving combined with outgoing shipping costs related to your repackaged products can be substantial. Remember that gross profit margins for a spice business average approximately 40% which is perhaps smaller than small businesses outside of the food industry.