How to Start a Homemade Candy Business in Colorado

Homemade candy is a popular treat that many people are willing to purchase since they lack the skills or the time to make it for themselves. When considering how to start a homemade candy business in Colorado, it is important to educate yourself on state regulations related to businesses supplying food products to consumers, as well as the resources available to you. It may also be helpful to take a food preparation or handling course at a nearby vocational school or community college to assist you in understanding and following department of public health regulations in the preparation of food for consumers.

• 1

  Create a base list of candy recipes you will offer to customers, including all of the ingredients needed and cooking instructions. Decide if you will use your recipes as is to make small batches or modify them to make larger batches. Additionally, determine how your candies will be packaged to retain freshness and flavor while meeting legal requirements for food safety.

• 2

  Locate a commercial kitchen you can utilize. Many local restaurants, community centers or religious buildings have kitchens that will meet regulatory requirements and are willing to rent space to small food vendors as a way to help them maintain compliance with state laws. Note that the Colorado Department of Public Health & Environment will use this address for licensing purposes, so you must make sure you have a rental agreement in writing.

  Alternatively, you can construct a commercial kitchen at your home, but this process requires a variety of special permits and prior approvals and is quite costly. Additionally, not many neighborhoods in Colorado are properly zoned for food businesses or commercial kitchens.

• 3

  Write a Hazard Analysis Critical Control Point (HACCP) Plan/Food Handling Manual that defines the list of candies you will make, the procedures used to make them--including temperature controls and handling/packaging of cooled products--and how the candies will be stored or transported.

• 4

  Develop a business plan outlining your budget and pricing structure, financing options available to you if needed, where you will sell your candies (i.e., fairs, street cart or through locally owned stores), your target market and advertising strategies.

• 5

  Hire an architect or engineer to draft a scale drawing of your commercial kitchen facility that meets the requirements for the department of public health, or contact the facility owners/managers to determine if they already possess a copy of this information.

• 6

  Select a name for your business and register this name with the Colorado Secretary of State's office. Additionally, apply for a fictitious name certificate or a DBA ("doing business as") with your local county government.

• 7

  Register your business with the Colorado Department of Revenue and obtain a sales tax license. If you will have employees, you must also apply for a federal employer identification number (FEIN) with the IRS and an unemployment insurance ID with the state.

• 8

  Apply for a retail food establishment (RFE) license with the county where your business is located. You will be required to submit an application packet that contains all of the information about your business, including your state tax account number, your HACCP plan and drawings of your facility and the specifications (i.e., make and model) of the equipment you will be using.

• 9

  Prepare for the inspection by the department of public health. You can contact your local public health office for information about what a typical inspection is like and the common problems food vendors have that cause them to fail inspections to help you prepare. If there are regulatory problems when your inspection is completed, you will be notified of this and given a specific time frame in which to fix them.

  If you pass your inspection, however, you will be issued a license and can begin doing business.