Category Archives: strategy

What to Know When Starting a Food Processing Business

Launching a food processing company requires effective planning to locate a niche that can attract local and international customers. People who aspire to start food processing companies should devise a system aimed at creating customer satisfaction and building a good reputation. The following tips will help you know how to start food processing business.

Build a Product Idea

Making a good product idea will make it easier for you to determine where you start from. Sound knowledge of the product is necessary. You should know the features of the product, its benefits to customers, economic viability and its availability.

Do Your Homework

You need to do extra homework in form of research and planning after you define the product ideas. This way, you can know if there is a market for the product. It will also help you adjust appropriately to existing market conditions and determine how to distribute. The information you gather from the research will then assist you to make a good business plan.

Structure the Business

The business plan will help you decide whether to set up the business or not. Once you make your mind, decide on the appropriate business organization before you go for registration. There are five standard business structures, and you can choose one of them. They include sole proprietorship, partnership, corporation, cooperative and society. Once you select the most suitable structure, go ahead and register it.

Consider Insurance and Other Business Regulations

Insurance is utmost importance for food processors. They protect the business against risks such as property damage, fire and liability suits. Every entity including small food processing business should have an insurance policy. The company must also comply with government rules and policies. Get in touch with the local health officers for more insight on food regulations that apply to your community.

Consider Food Safety

Whether you operate a food business from home or in a designated property within the town, food safety should be your number one priority. The facility and equipment should have a proper design that prevents contamination of the processed food. Good hygiene in handling food should also be your top consideration.

Formulate a Manufacturing Plan

Manufacturing plan applies to both home based food business and those with designated premises. Manufacturing plan involves looking for the best location with a large number of customers and readily available materials. You can also decide to get the products parked by another company or rent a whole place to do the job yourself.

Developing the Product

You need to develop your product and make it ready and acceptable in the market. Product development comprises of processing, packaging and labeling. You have to fine tune your product even if it means modifying them to meet regulatory requirements.

Labeling and Packaging

Food packaging is an essential element when it comes to learning food processing business ideas. Good packaging protects the products from damage. They provide a place where you can write important information or advertise to the customers. Packaging also possesses the visual properties and significantly influences a person’s first impression. It’s true that some people can choose to buy the product based on how it looks. Labeling goes hand in hand with packaging. Its utmost goal is to produce something that is educational, user-friendly and enticing. The label should also market the product and meet all the requirements stipulated by food authorities. Information needed on labels include company name, expiry dates, nutritional information and total quantity.

Pricing and Marketing

Marketing involves promoting, planning and implementing the price of the product. To market the product effectively, you need to know the market very well. You have many options when it comes to pricing. The price can depend on the cost of production, competition and quality.

Distribution Strategies

You need to consider the path that your product will follow from the premises to the final consumer. Distribution can either be direct or indirect. Direct is when you sell to consumers while indirect is when the products pass through a wholesaler. You need to determine customer needs and follow up with the sales. The distribution channel will also depend on whether the products are highly perishable or not.

The tips discussed above will help you learn how to start a food processing business effectively. It’s not very difficult as some people put it. You only need confidence and willpower to get you moving.