Perfumer's Corner

Now in — Flavorist's Corner

Welcome to the Flavorist's Corner!

Flavor Creation
Due to many requests!!!

Part III is being expanded, and will now include:
A guide for small business startup:
1. Different types of business entities, and pros and cons of each

2. What is a DBA, and why it's a good idea to keep your DBA name and your Business entity name different
3. Some really helpful tips on getting a Health Permit. Even a very small business can work successfully with their local Health Inspection unit.
We expect that what we have learned will help a lot of people with small businesses.

What do you need to start a small business?
First, you would need to decide on what type of business entity fits your needs best. Wikipedia has a very nice explanation of the different types of entities
http://en.wikipedia.org/wiki/Types_of_business_entity
We decided on a Limited Liability Company (LLC) type of entity, because it is simple, very easy to set up (check out LegalZoom), and does not require nearly the paperwork that setting up a corporation requires.
Your business entity name can be any name you like, and does not have to have anything to do with the name you choose to do business with. This is the name that all legal documents, permits, licenses etc etc will have.
The name you do business with is your DBA name (Doing Business As)
http://en.wikipedia.org/wiki/Doing_business_as
One good advantage to setting up a business this way, is that you can file multiple DBA’s under one Business Entity.
For example, The Perfumer’s Apprentice is our DBA that is registered to our LLC name (which is generic and boring) There is also the flexibility to file other DBA’s too, and in fact we have done just that. We have decided to set up The Flavor Apprentice as well, as this will help differentiate our perfumery business from our flavor business, and they will both be part of the LLC. If you are dealing with food items, even if you are just re-bottling things made by someone else, you will also need a Health Permit. Don't be worried, here is a good tip that will make it easy! Many cities have ’Shared Commercial Space’. You may find what you need by looking for Commercial Kitchens. In our city there are many Commercial Kitchens that are shared by multiple businesses, owned by a single owner who is responsible for the maintenance of the building. Each small company gets its own space inside the building, and since the building is usually very well known to the Health Department, getting a Health Permit to operate there is quite easy. Don't be discouraged if you don't find any listed in your city. Ask your local chefs if they know of any tips. Sometimes the best shared spaces are not the ones that are publicized! Renting a space also gives you great flexibility to change your facility as your needs change. You have the freedom to start out small, and grow gradually, keeping your costs under tight control. But you need to be aware that if you change facilities, you will receive a new Health Inspection and Permit. Every state/county has it's own rules for sanitizing/bottling/preparation etc, so you will need to do some investigating. Here in California it is required to take a "Food Safety" course, which is offered online. The Dept. of Weights and measures will be concerned with bottling techniques, and there are devices for filling bottles that run from the very simple to the more complex. As your business expands, you can look into advanced filling methods. Our own warehouse has adopted Filmatic's AB Benchtop semi-automatic filler, and frankly, we love it. Making the leap to automation makes for much more reliable, consistent filling, with professionally predictable amounts of product in each bottle. The increased speed of filling will also give your employees a greater ability to handle other tasks- remember that adding new hires is much more complicated than simply buying a machine! Here's what it looks like in action:
http://www.filamatic.com/

So the bottom line is, it is not an overwhelming task to set up and operate a company that follows established guidelines.
We hope this information is helpful, and as always, please feel free to call us if you have questions!