When starting a new company, an entrepreneur must take into consideration any laws and regulations which could apply to the type of business contemplated. One entrepreneur and her sisters initially failed to do this when they attempted to start their new business in Michigan. The three sisters envisioned opening a raw juice business, but did not take into consideration the state's laws on selling food, which caused them to rework their business plans.
State food laws require raw juice products to be made in a licensed kitchen that is not being used for other purposes. However, the three sisters had initially planned to simply make the raw juice in their homes and then sell it at local farmers’ markets. They had even raised $13,000 with a 2011 Kickstarter campaign for the new business. When they realized what the applicable laws entailed, they were forced to adjust their plans for the new business endeavor.
However, after putting in the necessary work the three sisters were eventually able to open their new raw juice store named DROUGHT in April 2012. The three sisters believe they will be successful because they have always worked well together. Additionally, their diverse skills and career backgrounds will prepare them for most unexpected challenges which usually occur in starting a new business.
This case is a prime example of how important it is to consider Michigan laws during the business planning phase of a new business. If the three sisters had not realized the implications caused by this law, they could have faced serious legal consequences. Proper business planning can help to avoid future civil lawsuits as well as fines from regulating authorities.
Source: semichiganstartup.com, " Juice Juice Revolution ," Patrick Dunn, June 28, 2013