Starting a beef jerky business is an exciting venture that combines a passion for flavor with smart business planning. The market is a multi-billion dollar industry, fueled by steady demand from health-conscious consumers, outdoor enthusiasts, and busy families looking for a convenient snack.
This guide will take you through the practical steps of validating your concept, securing the right licenses, building supplier relationships, and acquiring equipment to help you launch a successful beef jerky business in the U.S.
Step 1: Validate your concept and map out your business plan
Define your market niche
Start by visiting local farmers' markets and specialty food shops. See what flavors are popular and note their prices. You can also use Google Trends to check consumer interest in niches like "spicy beef jerky" or "sugar-free jerky" to find an underserved market.
Analyze your competition
Look at what other jerky brands do on social media and online stores like Amazon. Read customer reviews to find what people love or complain about. A frequent oversight is to focus only on national brands, so be sure to research local makers in your area too.
Estimate your startup costs
Your initial investment will vary, but planning for it helps set a solid foundation. Renting a certified commercial kitchen, which can run $25-$75 per hour, is often a significant and variable part of the budget. This ensures you meet health code requirements from day one.
- Licensing and permits: $500 - $1,500
- Commercial equipment (dehydrator, slicer): $2,000 - $7,000
- Initial ingredients and spices: $500 - $2,000
- Packaging and labels: $300 - $1,000
Here are 4 immediate steps to take:
- Visit three local stores to research current jerky products and prices.
- Identify five direct competitors and analyze their customer reviews online.
- Contact two local commercial kitchens to inquire about their hourly rental rates.
- Create a preliminary budget spreadsheet using the cost ranges provided.
Step 2: Set up your legal structure and get licensed
You might want to consider forming a Limited Liability Company (LLC). It protects your personal assets if the business faces legal issues and offers pass-through taxation, which simplifies your tax filings. Filing for an LLC typically costs between $50 and $500 through your state's Secretary of State website.
Federal and state requirements
Because you are working with meat, your business falls under the United States Department of Agriculture (USDA). You must produce your jerky in a USDA-inspected facility. A frequent misstep is attempting to use a home kitchen, which is not permitted for wholesale or interstate sales.
In addition to federal oversight, you will need local permits. These usually include:
- Business License: Obtained from your city or county, costs vary from $50 to $400.
- Food Handler's Permit: Required for anyone handling the product. This is an online course that costs around $15-$25.
- Food Enterprise License: Issued by your local health department after an inspection.
The USDA inspection process can take several months, so it is a good idea to start your research early. Many new businesses use a USDA-inspected co-packer to manage this requirement initially.
Here are 4 immediate steps to take:
- File for your LLC with your state's Secretary of State office.
- Research two USDA-inspected co-packers or commercial kitchens in your region.
- Contact your local health department to get the application for a food enterprise license.
- Complete an online food handler's certification course for your state.
Step 3: Secure your insurance and manage risk
Your first priority is General Liability insurance, which covers accidents at your facility. A $1 million policy typically costs between $400 and $700 annually. For a food business, Product Liability insurance is just as important, protecting you if a customer claims your jerky made them sick.
This specific coverage can add another $500 to $2,000 to your yearly premium. Some new owners try to save money here, but a single contamination claim without coverage could end your business. It is a necessary cost of operation.
Other key policies to consider
Once you have liability covered, look into these additional policies based on your setup.
- Commercial Property Insurance: Protects your expensive equipment like dehydrators and slicers from theft, fire, or other damage.
- Workers' Compensation: This is legally required in most states as soon as you hire an employee. It covers their medical bills and lost wages if they get injured on the job.
- Commercial Auto Insurance: If you use a vehicle for business, like making deliveries to stores, your personal auto policy will not provide coverage.
You might want to get quotes from providers who specialize in the food industry, such as the Food Liability Insurance Program (FLIP), Hiscox, or The Hartford. A general agent may not fully grasp the unique risks of food production, potentially leaving you with gaps in your coverage.
Here are 4 immediate steps to take:
- Get a quote for a $1 million general liability policy from two different providers.
- Ask each provider to detail their product liability coverage options and costs.
- Check your state's workers' compensation requirements for small businesses.
- Review your personal auto policy to confirm whether you need a commercial one.
Step 4: Find a location and buy equipment
Find your production space
You might want to look for a commercial space between 500 and 1,500 square feet. It must be in an area zoned for commercial or light industrial use. Your local planning department can confirm the zoning for any address you consider before you commit to a lease.
When you negotiate a lease, ask for a shorter initial term, like one or two years, with an option to extend. This gives you flexibility. Also, inquire about a tenant improvement allowance to help cover the cost of any necessary kitchen modifications.
Purchase your core equipment
Once your space is secured, you can outfit your kitchen. Many new owners are surprised by the cost of commercial-grade equipment, so it helps to budget for it specifically. Using residential appliances is not an option for a commercial operation due to health codes and volume limitations.
- Commercial Dehydrator: $1,000 - $5,000
- Meat Slicer: $800 - $2,500
- Vacuum Sealer: $300 - $1,000
- Stainless Steel Prep Tables: $150 - $500 each
Source your ingredients
With your kitchen taking shape, you can build relationships with meat suppliers. Local butchers are a great start, but for better pricing, look to wholesale distributors. Expect minimum order quantities of around 50-100 pounds for wholesale beef cuts like top or bottom round.
Here are 4 immediate steps to take:
- Identify three potential commercial spaces and verify their zoning classification.
- Price out a commercial dehydrator and meat slicer from a supplier like WebstaurantStore.
- Contact a local wholesale meat distributor to ask about their pricing and minimum orders.
- Draft a list of questions to ask landlords during lease negotiations.
Step 5: Set up payment processing
When it comes to getting paid, most of your sales will require immediate payment. Whether you sell online or at a farmers' market, you need a way to accept credit cards. A frequent mistake is to overlook the total cost of payment processing, which can eat into your profits.
For a beef jerky business that needs to accept payments on-site or on-the-go, JIM offers a streamlined solution. With JIM, you can accept debit, credit and digital wallets directly through your smartphone - just tap and done. Many payment solutions charge between 2.5% and 3.5% per transaction.
At just 1.99% per transaction with no hidden costs or extra hardware needed, it's particularly useful for selling at farmers' markets or food festivals. Getting started is straightforward.
- Get Started: Download the JIM app for iOS.
- Make a Sale: Type the sales amount, hit sell, and ask your customer to tap their card or device on your phone.
- Access Funds: Your money is available right on your JIM card as soon as the sale is done - no waiting for bank transfers.
Here are 3 immediate steps to take:
- Compare the total transaction costs for two different payment solutions.
- Download the JIM app to explore its interface and features.
- Decide if you will sell primarily online or in-person to choose the right setup.
Step 6: Fund your business and manage finances
You might want to look into an SBA Microloan, which offers up to $50,000. These are well-suited for initial equipment and inventory costs. Lenders will want to see a detailed business plan, and interest rates typically range from 8% to 13%.
Plan for at least six months of working capital. This covers ongoing costs like ingredients, rent, and marketing before your sales become consistent. A safe estimate is between $5,000 and $15,000, depending on your production scale.
A frequent oversight is to under-budget for your initial meat supply. You will need more than just one batch. Plan to have enough inventory to fill early orders and provide samples to potential retailers without delay. This should be part of your working capital calculation.
Look for food-specific grants
With your business plan ready, you can explore grants. The USDA's Value-Added Producer Grant (VAPG) is a good fit for jerky businesses. These are competitive, so your application must be solid. The grant can help with marketing and processing costs.
Once you secure funding, open a separate business bank account. This keeps your personal and business finances apart, which makes tax time much simpler. It also looks more professional to suppliers and lenders.
Here are 4 immediate steps to take:
- Research two SBA Microloan lenders in your state.
- Calculate your estimated working capital for the first six months.
- Review the eligibility requirements for the USDA Value-Added Producer Grant.
- Open a dedicated business bank account for your LLC.
Step 7: Hire your team and streamline operations
Build your production team
Your first hire will likely be a Production Assistant. This role handles slicing, marinating, and packaging. Expect to pay between $15 and $20 per hour. Anyone you hire must have a Food Handler's Permit, so confirm they have one or help them get certified.
Some owners run into trouble by not creating formal job descriptions, especially when hiring friends. A clear outline of duties prevents misunderstandings and sets expectations from day one. It also helps you comply with labor laws.
Set up your daily operations
With a team member on board, you need consistent processes. Document every step of your recipes, from meat prep to final packaging. This ensures quality stays the same no matter who is working. This documentation is your operational playbook.
For scheduling, you might want to use an app like Homebase or When I Work. As you grow, aim for a revenue-per-employee ratio of $50,000 to $100,000. This is a good benchmark for efficiency in small food production businesses.
Here are 4 immediate steps to take:
- Draft a job description for a Production Assistant, including all responsibilities.
- Document the step-by-step process for your main jerky recipe.
- Review your state's labor department website for first-time employer requirements.
- Explore the features of a scheduling app like Homebase or When I Work.
Step 8: Market your jerky and find customers
Establish your brand online
You can start with a visual platform like Instagram. Post high-quality photos of your jerky and short videos of your process. Many new owners only post sales pitches. Instead, share your story and the craft behind your product to build a following.
Set up a simple online store with a platform like Shopify. For a new food e-commerce site, a conversion rate of 1-2% is a solid initial goal. This means for every 100 visitors, you get one or two sales.
Connect with customers at local events
Farmers' markets are an excellent place to start. The direct feedback is invaluable. Your goal could be to sell 50-100 bags per market day. Customer Acquisition Cost (CAC) at markets is often low. If a booth costs $100 and you gain 20 new customers, your CAC is just $5.
To boost sales at events, you might want to:
- Offer free samples to let people taste the quality.
- Create simple bundles, like "3 bags for $25," to increase order value.
- Collect email addresses in exchange for a small discount on a future purchase.
Here are 4 immediate steps to take:
- Create an Instagram account and plan your first five posts.
- Research the monthly fees for a basic Shopify plan.
- Identify two local farmers' markets and find their vendor application forms.
- Offer free samples to friends and family to practice your sales pitch.
Step 9: Price your jerky for profit
Calculate your cost of goods sold (COGS)
Your first step is to figure out exactly what it costs to make your product. This includes the price of beef, spices, marinade, packaging, and a portion of your labor. Remember that beef loses about 50-60% of its weight during dehydration, so factor that into your meat cost.
For example, if 2.5 pounds of beef at $7 per pound are needed for one pound of jerky, your meat cost alone is $17.50. Add another $2-$4 for other ingredients and packaging, and your COGS for one pound of finished jerky is around $20.
Set your pricing strategy
With your COGS calculated, you can set your price. A standard markup for specialty food products is between 100% and 200%. This means you would set your wholesale price at $40-$60 per pound, which translates to $7.50-$11.25 for a 3-ounce bag.
Look at what similar craft jerky brands charge on their websites or on Amazon. Many new owners make the mistake of setting their price too low just to compete. This approach can quickly erase your profit margin, so always start with your own costs first.
Here are 4 immediate steps to take:
- Calculate the total cost to produce one pound of your main jerky recipe.
- Research the retail prices for a 3-ounce bag from three competing brands.
- Determine your wholesale price using a 100% markup on your COGS.
- Create a spreadsheet to model your profit at different price points and bag sizes.
Step 10: Maintain quality and scale your production
Maintain consistent quality
Your jerky's quality depends on consistency. You should aim for a moisture content between 20% and 25% for the right texture and shelf life. A food moisture analyzer is a good investment for accurate testing.
Keep a log of customer feedback and returns. A return rate below 1% is a good target. If you see complaints about a specific batch, you can trace it back to your production logs and fix the issue.
Many new makers scale production without a formal food safety plan. You might want to implement a Hazard Analysis Critical Control Point (HACCP) plan. This system identifies and controls potential hazards in your process.
Plan your growth
Once you consistently sell over 200 bags per week, it is likely time to hire a part-time production assistant. This frees you up to focus on sales and marketing instead of just making the product.
When your revenue surpasses $75,000 annually, you can start to explore a larger production space or invest in automated packaging equipment. This move can double your output without a proportional increase in labor.
As your orders grow, managing inventory becomes complex. You might look into inventory management software like Katana or Fishbowl. They help track raw materials and finished goods, which prevents stockouts and waste.
Here are 4 immediate steps to take:
- Define your target moisture content and research food moisture analyzers.
- Look up the basic principles of a HACCP plan for small food producers.
- Set a weekly sales volume goal that will trigger your first hire.
- Explore the features of an inventory management system like Katana.
You have the roadmap to launch your beef jerky business. The key is balancing your unique recipe with the practical details of production and licensing. Your passion got you here, now let your careful planning guide you to success.
As you make your first sales, getting paid should be simple. JIM turns your smartphone into a card reader, helping you accept payments for a flat 1.99% fee with no extra hardware. Download JIM to be ready for your first customer.
