Island Economics

San Juan Islands-specific considerations for this business:

• •Tourists want local food products — island-made sauces are perfect souvenirs
• •Limited competition — few local sauce producers on the islands
• •Shelf-stable products ship well — can sell beyond the island
• •Commercial kitchen access is limited — may need to produce off-island or use co-packer
• •Local ingredients (berries, herbs, honey) create unique, authentic products

The $500 Experiment

Test this idea before investing heavily:

Getting Started

1. 1
   Perfect 1-2 recipes before trying to build a product line

   • •Better to be known for one amazing sauce than five average ones
   • •Focused production means simpler inventory and batch cooking
   • •Each product needs separate testing, labeling, and shelf-life documentation
2. 2
   Understand labeling and food safety requirements before your first sale

   • •Commercial food products have strict labeling laws — nutrition facts, allergens, net weight
   • •Shelf-stable products may need pH testing and process validation
   • •Getting it wrong means recalls, fines, or worse
3. 3
   Start at farmers markets to get direct feedback before pursuing wholesale

   • •Face-to-face sales tell you what customers love and what they skip
   • •Market customers provide immediate, honest feedback
   • •Lower risk than producing inventory for store shelves

Where the Money Goes

Expected startup and operating expenses:

Don't Cheap Out On

Areas where quality investment pays off:

Smart Places to Save

Areas where cost-cutting makes sense:

• •Start with farmers markets before investing in retail packaging — test with simple labels first
• •Buy bottles and jars in bulk — significant per-unit savings at 100+ quantity
• •Use local seasonal ingredients when available — fresher, cheaper, better story
• •Consider co-packing once volume justifies it — they handle kitchen, equipment, and compliance
• •List on a local marketplace for free — test demand before building a website
• •Share booth space at markets — split fees with complementary food producers

Cash Flow Considerations

Financial timing and planning notes:

• •Ingredient and packaging costs tie up cash before sales
• •Shelf-stable products can be made in batches — less time pressure than perishables
• •Wholesale accounts typically pay net-30 — slower cash flow than direct sales
• •Holiday season and summer tourist season are peak — plan production accordingly

Risk Reducers

Strategies to reduce risk and increase odds of success:

• •Start at farmers markets — low commitment, direct feedback
• •Test with small batches before scaling production
• •Get proper food safety testing before your first sale
• •Consider co-packing to avoid commercial kitchen investment
• •Keep your day job — sauce production can be done on weekends
• •Shelf-stable products have longer selling window than fresh food

Island Economics

San Juan Islands-specific considerations for this business:

• •Tourists want local food products — island-made sauces are perfect souvenirs
• •Limited competition — few local sauce producers on the islands
• •Shelf-stable products ship well — can sell beyond the island
• •Commercial kitchen access is limited — may need to produce off-island or use co-packer
• •Local ingredients (berries, herbs, honey) create unique, authentic products

The $500 Experiment

Test this idea before investing heavily:

Getting Started

1. 1
   Perfect 1-2 recipes before trying to build a product line

   • •Better to be known for one amazing sauce than five average ones
   • •Focused production means simpler inventory and batch cooking
   • •Each product needs separate testing, labeling, and shelf-life documentation
2. 2
   Understand labeling and food safety requirements before your first sale

   • •Commercial food products have strict labeling laws — nutrition facts, allergens, net weight
   • •Shelf-stable products may need pH testing and process validation
   • •Getting it wrong means recalls, fines, or worse
3. 3
   Start at farmers markets to get direct feedback before pursuing wholesale

   • •Face-to-face sales tell you what customers love and what they skip
   • •Market customers provide immediate, honest feedback
   • •Lower risk than producing inventory for store shelves

Where the Money Goes

Expected startup and operating expenses:

Don't Cheap Out On

Areas where quality investment pays off:

Smart Places to Save

Areas where cost-cutting makes sense:

• •Start with farmers markets before investing in retail packaging — test with simple labels first
• •Buy bottles and jars in bulk — significant per-unit savings at 100+ quantity
• •Use local seasonal ingredients when available — fresher, cheaper, better story
• •Consider co-packing once volume justifies it — they handle kitchen, equipment, and compliance
• •List on a local marketplace for free — test demand before building a website
• •Share booth space at markets — split fees with complementary food producers

Cash Flow Considerations

Financial timing and planning notes:

• •Ingredient and packaging costs tie up cash before sales
• •Shelf-stable products can be made in batches — less time pressure than perishables
• •Wholesale accounts typically pay net-30 — slower cash flow than direct sales
• •Holiday season and summer tourist season are peak — plan production accordingly

Risk Reducers

Strategies to reduce risk and increase odds of success:

• •Start at farmers markets — low commitment, direct feedback
• •Test with small batches before scaling production
• •Get proper food safety testing before your first sale
• •Consider co-packing to avoid commercial kitchen investment
• •Keep your day job — sauce production can be done on weekends
• •Shelf-stable products have longer selling window than fresh food