How to Sell at a Farmer’s Market | World Insurance Associates

Is your garden producing more than your family can keep up with? Perhaps you’ve mastered a craft that could earn you some extra cash. Farmer’s markets are a popular community pastime, and if you’ve taken a stroll through one on a Saturday morning, you may have considered joining in on the sales. However, before you jump aboard this money-making opportunity, you should understand the steps to setting up a booth. Learn how to sell at a farmer’s market.

Decide What You’re Going to Sell at the Farmer’s Market 

You may have decided what you’ll sell based on your green thumb or knack for creating homemade goods. However, some items may take a considerable amount of effort to produce, like vegetables and knitwear, so you’ll need to work out a timeline of when you’ll be ready to start selling and reserve a spot at the market ahead of time. Some farmer’s markets have rules about what you’re permitted to sell, so it’s crucial to do your research.

Make a Business Plan 

While a booth at a farmer’s market may not be as complex as launching a brick-and-mortar business, you’ll still need a plan. A few considerations you should include in your business plan are: 

• Short- and Long-Term Costs: You’ll need to factor in the fee of setting up a booth in the farmer’s market along with the time and materials you’ll need to create your product. 
• Target Audience: Which demographic would be most interested in purchasing your goods, and will you be able to find this target audience at a farmer’s market? 
• Price of Your Product: How much should you charge customers to turn a profit? Not only should you consider the costs of making and transporting the goods, but also the time you pour into creating them.  

No matter your level of investment, a business plan will help you shed light on the unknowns of selling at a farmer’s market. 

Register Your Business and Acquire the Appropriate Permits 

Before joining the farmer’s market, you’ll need to acquire a permit. Start by contacting the market’s management staff and asking what types of permits and licenses are required to sell on their premises. You should also research local regulations and determine how to register your business. For instance, if you’re selling produce or baked goods, you need to contact your state’s Division of Food Safety or Department of Agriculture. To register with a local authority, you'll likely need to fill out an application, pay a fee, and pass a facility inspection for your kitchen, garden, or work area.

Protect Your Business with the Right Insurance 

Since farmer’s market vendors make almost everything from scratch, there can be some risks associated with their booth display and product. Fortunately, there are several affordable policies to keep you covered: 

• General and Product Liability: These policies will protect you in case a customer trips over one of your displays or becomes ill when eating your food.
• Damage to Premises Rented: If you mistakenly cause a fire or other accidental damage in your rented space, this insurance can help protect you and your business.
• Inland Marine Coverage: An Inland Marine policy will cover you in case any of your equipment or products are stolen while being transported to or from the market. 

If your business eventually grows and you bring on employees, you'll need worker's compensation insurance.

Being prepared before you sell at a farmer’s market can help your new endeavor prosper. You’ll also need insurance to safeguard your new business, despite how small it may be. World Insurance Associates works to outfit businesses big and small with the right commercial insurance. If you’re gearing up to start your own business, get in touch today. 

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.