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Food for Thought How to stay on the right legal track when starting an organic food business

By Paul and Sarah Edwards

Opinions expressed by Entrepreneur contributors are their own.

Q: I want to start a business making organic baked goodsfrom my home. Will I have any problems with legal authorities?

A: Your sense of the market is right on--organic food isone of the fastest--growing segments in the food industry. A 2004study by Synovate, commissioned by Whole Foods Market, found that27 percent of Americans are using more organic foods than they didthe year before. And baked goods, right after organic produce, arethe second-largest type of organic food purchased.

But producing and selling food for human consumption at homemeans you must surmount more legal hurdles than most homebasedbusinesses. First, like all homebased businesses, your businessneeds to be permitted by your city or county zoning. What onecommunity permits to be done in a home may be completely differentthan what's allowed in an adjacent community. If you live in acommon-interest development, chances are you're out of luck forhome baking--but to be sure, check your homeownersassociation's covenants, codes and restrictions. An exceptionfrom a prohibition in a zoning ordinance, called a variance or aconditional use permit, is easier to get than a waiver or avariance from a homeowners association.

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