starting a family held edible oil business
The basics of starting family held oil businessThe basic concept is that the demand for edible oil is highly dependent on the preferences of each type of consumer. Think of what type of edible oil product you want to manufacture and then sell before deciding on the scheme you want to use to start one. Would that be a plant based edible oil product such as olive oil or canola oil? Or an animal sourced one such as lard and butter?
Factors to consider when starting an edible oil businessNow that you have decided on which product you want to sell, let us take a look at what it takes to build one and actually profit from it. Say you want to set up a plant based edible oil business; you are expected to factor in these parameters:
- Source of the raw material- This means owning and managing an actual olive tree farm or sourcing from one, or owning a livestock pen vice versa.
- If you choose to own a farm, like any other farmer you should know that the profit from such a business lies in being able to properly leverage the cost and upkeep versus the actual sales of your product, which lead us to the next bullet.
- Distribution- so now you have a line of product coming out and you are hurting for a pay day. Having the right outlets to which to funnel your products is just as important as making them. Most small family held oil business often struggle at this area, often having to find niche markets instead of competing with the major ones that are either already saturated by more established players or simply out of reach due to their current scale altogether.
- Technology and know-how- finally having the right knowledge in operating this business is essential to running one. And that means knowing how to operate a refinery on top of the farm you already are managing. This means being familiar with the chemistry of the product right down to the processes needed to produce the oil. This should be your primary investment especially when your product goes inside people’s mouths.
These are just a few guidelines in starting an edible oil business. Be sure you have ticked all the boxes before tapping into the unlimited market of edible oils. It always helps to focus on making a quality product and letting the profits follow thereafter. Remember to follow value and make it you master and the market ad your consumers will take care of the rest for you.