The frozen food business is becoming one of the best option if you’re thinking of investing your money in the food industry. Although, there are some people that demand straight from the farm or the fresh catch of the day produce, they also cannot deny the importance of freezing food. Freezing food is one method of preserving the foods integrity, freshness and safety for human consumption. Plus most perishable goods need to be preserved in a way to retain their freshness from the source or point of origin to the supplier, retailer, customer and to your table. You don’t want a rancid meat or fish served to you right? And it minimizes food wastage. Now, since some things have been cleared and laid out on the table, let’s discuss on how you as an entrepreneur can start your own frozen food business.
Starting a frozen food business is not that hard and can be built with just the right capital and overhead cost. However, putting up the business will need a lot of planning and consideration to make the business successful. This article will help you customize your business according to your needs. Let’s begin.
- Develop a business plan. Every type of business needs to have a solid business plan. This is the time that you do a thorough feasibility study about your frozen food business. You know that there will be competition and there are businesses that are already established a foothold on the frozen food market that will go for you after you start. The new business must survive and thrive. If you’re unsure about your plans, you can consult a professional for advice. Ask someone that knows the in and outs of the business and you can plot you plan from there.
- Know your capital. This is very important. You need to know what part of the business your capital is allotted. The scale of your business should be within your startup capital. Your initial cash flow should be within your limits because you don’t want to be in debt when you cannot go out of. For equipments, you can go for a loan or go for equipment leasing which can give more mileage. Yu can use some of the capital on marketing your businesses and buying the needed stocks for your business.
- Choose your products. There are many food items that are sold frozen. You can start with poultry, meat and seafoods because they are always in demand. It’s always better to start with items that are in demand because it will prevent spoilage and return of investment will be quick.
- Choose the best location. There are businesses that thrive in certain locations due to a high level of consumption or product purchase. You need to research on the location where you want to start your business. Know how the environment is working so that you can predict the turnover of the business within a year to two years. Most businesses do not make huge profits during the first two years because they need to cover the initial investments made during start up. If the return of investment is going up after two years , then you’re on the right track.
- Know your customers. You need to know your potential customers. The customers are also great gauges on what products to sell. Once you have satisfied your customers with your frozen products and the service you provided, they would-be loyal customer as long as your business is open.
- Storage systems. Get the best storage system that you can afford and within your capital. You don’t need to go for industrial sized freezers if you’re just starting. Go for the right size that will fit your storage space, your budget and your customer’s need. Start small and you can expand later.
- Choose your delivery method. You can sell your frozen products online or freezer trucks. Yu can find a retailer, grocery or health food store that can carry and sell your products. This will also solidify your reputation because a third party establishment carrying your product is an indirect marketing for your business.
- Get The necessary license. Every business needs licenses and authorization from the local government or agency that handles businesses in certain areas. Getting these documents will make it easier for your business to operate.
These are just basic guide if you’re starting your own frozen food technology business. Focus on selling one or two products I the beginning and provide the highest level of customer service. If possible, create a website because it will to your professionalism and brand familiarity. This will also allow potential customers to be familiar with your business.