Cottage Industry Small Business Library

Welcome to Cottagestead’s resource hub for turning your homesteading skills into a thriving, home-based business.

There’s something deeply satisfying about transforming what you grow, make, or create into something that supports your household. Whether you’re selling soap at the farmer’s market, shipping herbal teas across the country, or teaching workshops from your kitchen table, the cottage industry is homesteading in action, turning traditional skills into modern livelihoods.

At Cottagestead, we believe that building a small business from home isn’t just about extra income. It’s about sovereignty. It’s about creating work that aligns with your values, fits your life, and contributes something meaningful to your community. And it’s about proving that “small” doesn’t mean insignificant; it means intentional.

But let’s be honest: the business side of the cottage industry can feel overwhelming. There’s licensing, labeling laws, cottage food regulations, pricing, marketing, taxes, and the list goes on; there’s a lot to navigate.

That’s why we’ve built this library. We want to help you move from “I wonder if I could do this” to “Here’s how I’m going to do it.”

In these pages, you’ll find entrepreneurial guidance to help you every step of the way. From understanding your state’s cottage food laws, pricing your products, building a brand that reflects your values, and finding your customers, whether that’s at a local market or online. We’ll explore it all. The basics, the marketing essentials, and the mindset shifts that help creative makers become confident business owners.

You don’t need a business degree or a commercial kitchen to start. You need inspiration and the courage to begin.

What Is a Cottage Business?

A cottage business is any small-scale enterprise operated from home, typically producing handmade or artisanal goods. The term comes from the pre-industrial era when families made products in their cottages to sell locally.

Today, cottage businesses include baked goods, jams and preserves, candles, soap, herbal products, sewn items, knitted goods, pottery, woodworking, and specialty foods like fermented vegetables or honey. Many states have specific “cottage food laws” governing home-produced food sales.

What unites cottage businesses isn’t the product, it’s the scale and spirit: small-batch, handcrafted, home-based, and rooted in traditional skills. It’s entrepreneurship on human terms.

The Opportunity: Why Now Is the Time

The numbers tell a compelling story about the growing power of small, home-based, and women-owned businesses:

  • Women now start nearly half of all new businesses in America. In 2024, women founded 49% of new businesses, a 69% increase from 2019, when women started just 29%. This is the highest rate recorded in the past five years, and the trend shows no signs of slowing. (Gusto 2025 New Business Formation Report)
  • Cottage food producers are overwhelmingly women, often rural, and value flexibility above all. A first-of-its-kind study by the Institute for Justice found that cottage food business owners are predominantly female, more likely to live in rural areas, and report that their businesses provide financial support, creative fulfillment, and the freedom to be their own boss. (Institute for Justice, “Flour Power” Report)
  • The U.S. handmade goods market is worth over $268 billion, and growing nearly 10% annually. The handmade and artisan economy continues to expand as consumers seek unique, locally made products over mass-produced alternatives. (Seen Markets, 2025)

Understanding Cottage Food Laws

Many in the cottage industry start with food products. Cottage food laws allow home-based food producers to sell certain foods made in their home kitchens without the expense of a commercial kitchen. But the specifics vary dramatically by state:

  • 32 states never require an inspection to open a homemade food business, while 25 states don’t license, permit, or register home-based food enterprises at all.
  • 26 states impose annual revenue caps, ranging from $3,000 (Virginia, for example, for pickled foods) to $250,000 (Florida and Wyoming). Among states with caps, half are at or under $50,000.
  • 15 states ban mail delivery of cottage food products, limiting online sales potential.
  • 26 states now allow the sale of homemade pickles and acidified foods, and 19 states permit home-fermented foods like sauerkraut and kimchi.

The regulatory landscape is evolving. Since Wyoming passed the first Food Freedom Act in 2015, more states have expanded what home cooks can legally sell, including, in some states, refrigerated baked goods and even meat dishes.

Source: Institute for Justice, Food Freedom

Your first step: Research your state’s specific cottage food law before investing in supplies or marketing. Your state’s Department of Agriculture website is usually the best starting point.

Selling at Farmers Markets

Farmers markets remain a vital entry point for cottage industry entrepreneurs, and a cornerstone of local food economies.

Why farmers markets:

  • The USDA recorded 8,771 farmers markets operating across the United States as of 2019, up from just 1,755 in 1994.
  • Farmers markets generate an estimated $2.4 billion in annual sales nationwide.
  • In Pennsylvania alone, farmers markets contribute an estimated $100 million in direct economic activity over the six-month market season.
  • Over 48% of market-goers say farmers markets positively impact local economies by supporting small-scale farmers and artisans.

Beyond food, many markets welcome artisans selling handmade goods, soaps, candles, textiles, pottery, and more. Markets provide a low-barrier way to test products, build a customer base, and learn what sells.

Sources: USDA Economic Research Service; Penn State Extension; Inflow Inventory Survey

The Power of Women-Owned Businesses

If you’re a woman considering starting a cottage business, you’re part of a powerful and growing movement.

Key statistics:

  • 14.5 million women-owned businesses exist in the U.S. as of 2024, comprising 39.2% of all U.S. firms.
  • Women-owned businesses generate approximately $2.7 trillion in annual revenue and employ over 12 million workers.
  • From 2019 to 2023, women-owned businesses’ growth rate outpaced men’s by 94.3% for the number of firms.
  • 70% of new female business owners cite flexibility as their primary motivation for starting a business.
  • Nearly 70% of women entrepreneurs describe themselves as happy in their business journey.

Women entrepreneurs have a 20% higher likelihood than men to establish businesses rooted in their passions, which is exactly what cottage industry is all about.

Sources: Wells Fargo 2024 Impact of Women-Owned Businesses Report; Guidant Financial 2025 Women in Business Trends; Gusto 2025

Getting Started: Your Cottage Industry Checklist

Ready to turn your skills into a small business? Here’s where to begin:

1. Know your product.
What do you make well? What do people ask to buy from you? Start with the skills you know by heart.

2. Research your state’s laws.
Understand cottage food regulations, licensing requirements, and any restrictions on what you can sell and where.

3. Calculate your costs.
Include ingredients, packaging, labels, market fees, and your time. Price for profit, not just to cover expenses.

4. Start small and local.
Test at a farmers market, craft fair, or through friends and neighbors before investing in a website or large inventory.

5. Build your brand.
Your story matters. Customers want to know who makes their products and why.

6. Keep records from day one.
Track income, expenses, and inventory. Good records make tax time easier and help you understand what’s working.

Resources to Explore

Legal & Regulatory:

Business Planning:

Selling & Marketing:

At Cottagestead, we believe that the cottage industry is more than a side hustle, it’s a return to the self-reliant, community-centered way of life that homesteading has always been about. Your hands, your kitchen, your craft: these are the foundations of something real.

Browse the articles as they grow, and let’s build your dream together, for you and your family, your craft, and your future.