How to Start a Food Staple Business

Food staples are foods and products which form the cornerstone of human diets and habits. Food staples are products that are regularly used and consumed by people across the world. Food staple businesses are integral in keeping this vital supply chain running.

Learn how to start your own Food Staple Business and whether it is the right fit for you.


Start a food staple business by following these 9 steps:

You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your food staple business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Check out our How to Start a Business page.

STEP 1: Plan your Business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

Luckily we have done a lot of this research for you.

What are the costs involved in opening a food staple business?

Depending on the level of involvement in this industry, you will likely have to raise some capital before starting. Let’s also presume that you will be operating a modest staple food shipping company with seven vehicles in your fleet. You are also operating regionally to start off.

  • Insurance, licensing, state, federal, and local fees
  • Mortgage or lease on a building
  • Office set up, including furniture, technology, and utility services
  • Leasing or buying vehicles
  • Advertising and marketing, company uniforms, signage, and a website
  • Manufacturing and processing machines and employees

What are the ongoing expenses for a food staple business?

Maintaining a fleet of delivery trucks and salaries for your employees will make up most of your ongoing costs. If you are also manufacturing or processing staple foods, the maintenance of your factory and machines will also remain a cost. Also, the price to mortgage or lease buildings and vehicles can be factored into the total costs. 

Finally, insurance, operating fees, and training and certifying employees will affect your bottom line, as well.

Who is the target market?

Grocers, retail centers, restaurants, and food vendors are your audience.

How does a food staple business make money?

Delivery of products to grocers and retailers completes your part of the loop for this complex commerce ecosystem. Revenue is generated through this and other related services.

How much can you charge customers?

Shipping and delivery costs are the majority of the costs to your customer. A staple food’s cost is often regulated and monitored on a state and federal level. Staple food companies will usually charge a fee for the brokering of the goods, as well.

How much profit can a food staple business make?

Food staple pricing is fairly regulated and standardized, so your earnings will ultimately stem from your ability to keep your overhead costs low. The type of state food you service will also determine your earnings. Overall, most state food services can expect profit margins in the 30% range.

How can you make your business more profitable?

Essential food and lifestyle products can evolve. Be aware of changing trends and capitalize on new opportunities.

Consider shipping non-essential items, as well, when you have excess payload space.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Business Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

  • Your state's business records
  • Federal and state trademark records
  • Social media platforms
  • Web domain availability.

It's very important to secure your domain name before someone else does.

Find a Domain Now

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your food staple business is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

You can start an LLC yourself and pay only the minimal state LLC costs or hire a Business Formation Service for a small additional fee.

Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

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You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.

Open a business bank account

  • This separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • It also makes accounting and tax filing easier.
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Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.

Get a business credit card

  • This helps you separate personal and business expenses by putting your business' expenses all in one place.
  • It also builds your company's credit history, which can be useful to raise money and investment later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a 3D printing design business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.

For information about local licenses and permits:

If you are developing a unique product, concept, brand, or design, it is prudent to protect your rights by registering for the appropriate trademarks and copyrights.

Learn more about trademark and copyright protection

STEP 7: Get Business Insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Learn more about General Liability Insurance.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

STEP 8: Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.

How to promote & market a food staple business

Since you’ll more than likely be selling wholesale to vendors who sell to the general public, your marketing and advertising methods may differ a bit.

  • Look for ways to connect with your vendors and buyers and keep in contact regularly. They are your business partners. Without being too overbearing, you want to remain in the minds of all your business partners, as much as possible.
  • Create a website to help generate leads and give straight-forward information about what your business offers.
  • Create a recognizable logo and put it on everything you own (e.g., trucks, vans, hats, shirts, etc.). Brand recognition is vital.
  • Know your business and show your partners as much with your business savvy. You are often your business’s best advertising.

How to keep customers coming back

Treat each customer the same, no matter how big or small. Make them all important and develop business strategies that benefit both of you. Offer incentives and deals, when applicable, as a kind of ongoing customer appreciation. As you grow and become more successful, don’t forget all the partners that helped you achieve success.

STEP 9: Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

Start A Food Staple Business In Your State

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Select your state below for an in-depth guide on completing each of these steps in your home state.

Is this Business Right For You?

Individuals with experience in commercial food services, such as sales, manufacturing, and shipping would be solid fits for this business. Also, experience in the grocery industry will be pertinent. Overall, any experience in shipping and supply and demand will come in handy.

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Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

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What happens during a typical day at a food staple business?

As the name implies, staple foods and products are in almost constant demand. Therefore, logistics for shipping and receiving are important factors for success. Checking shipping manifests and product inventory will also continually take place. Often, time will also be spent conversing with existing customers and meeting new ones.

Depending on the state food industries your business represents, you may also be spending time on conference calls and industry seminars in order to stay competitive in your field.

What are some skills and experiences that will help you build a successful food staple business?

As we mentioned above, the staple food industry is healthy and thriving, as are associated businesses. Understanding how all businesses and industries spider web together helps an entrepreneur make more educated choices and decisions.

For instance, the grocery, farming and agriculture, shipping, trade, and futures markets are tied together around these human necessities. Understanding the financials and supply and demand aspects for each entity helps you to be a stronger business owner.

What is the growth potential for a food staple business?

Staple foods will continue to be in high demand, although the trends towards some food alternatives may adjust the types of foods in greater demand. Just the same, there is ample room for entrepreneurs to enter the staple food market. Growth will continue to happen in the industry, along with consumer appetite. Still, we are in the midst of uncertain times, and competition in this industry also always exists, so be savvy and business smart when you look to expand and grow.

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Take the Next Step

Find a business mentor

One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.

Having a support network in place to turn to during tough times is a major factor of success for new business owners.

Resources to Help Women in Business

There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:

  • Funding
  • Events
  • Guides
  • Support

If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.

What are some insider tips for jump starting a food staple business?

Because this is such a densely populated market and industry, you may do best to focus on an underrepresented food or product. Some staples of other countries or cultures may need greater exposure, and your business may fill that void. Either way, find a way to stand out.

Find and form partnerships with other smaller, more independent grocers or markets. Help each other grow and form business loyalty in the process.

Keep pricing consistent and fair. Don’t expect to get rich by charging the most and squeezing your customers for your benefit. Build your business through a solid reputation.

How and when to build a team

For a staple food business, you’ll least need some delivery drivers from the start. If you are also a driver and manage the books, you can stay relatively small. As demand grows, your best option is to expand to avoid wearing yourself thin and losing contracts because of lagging service and deliveries.

Next Steps

Get more ideas with our Business Ideas Generator.

Check out our How to Start a Business page.

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