Creating a Facility
There is a high percentage of successful food start-ups that chose to have their own facility (versus going through a contract manufacturer).   Taking over an existing facility (with updates) or building a facility means different pros and cons to the brand group.
a.)  Existing Facility:  You may want to explore looking for an existing manufacturing facility to save costs.  Re-vamping an existing building can be an ideal option.
b.)  Building a Facility:  If there is enough funding the efforts of building a facility would be ideal.  The location is very important.  Most states have financial benefits (grants, loans) relating to your choice of a location.   States such as Nevada, Utah and North Carolina are very generous in their programs.  Another important factor is relating to the distribution of the product.

What Type of Arrangement: 

  • Leasing the Space:  You may decide to do a lease if you are not sure if you are going to be in that location for a long time.
  • Buying the Space:  The location and local/regional/state benefits will help you make the decision.

From the experts comes the top ten steps on the subject: