Develop a prototype. Test it out on people. Collect and incorporate feedback on:
Determine the market form you would like the product to have:
Determine the batch size you will need for commercial operation.
A good start-up size for a liquid product (dressings, etc.) is 5-10 gallons.
For solid product, consider a 15-25 pound batch.
Scale up your recipe. This is often done with the help of a contract packer or food consultant, or you can work on scale up by trying things on your own.
Take the following into consideration:
The formulation may change due to regulatory and food safety requirements.
Testing (pH, water activity, etc.) may be required for compliance with regulations.
It may take several attempts to achieve a scaled-up product comparable to the original; ingredient amounts will not change proportionately. For example, you may double the tomato sauce in a BBQ recipe but find you only need to slightly increase the amount of garlic.
Get approval for your recipe from a Process Authority. This resulting document, a Scheduled Process, will help avoid product safety and quality issues.
Determine the cost of ingredients based on your approved, scaled-up recipe.