How to start a vegetable oil production company？
Are you interested in starting a vegetable oil production company? Do you need a sample vegetable oil production business plan template? Then below is an in-depth guide on how to start a vegetable oil production company.
Vegetable oil is the clear oil extract derived from plants (such as corn germ,soybena, groundnut,rice bran,rapeseed,cotton seed ,palm kernel,etc) through a pressing process.
People use vegetable oil for a wide range of purposes, which include cooking, and production of plastics and soaps. In fact, the waste products of vegetable oil production are now used to fuel diesel engines.
So if you are looking to start a small business, then vegetable oil production might be the best option to consider. The following are the steps involved in setting up a vegetable oil extraction business.
The steps of setting up a vegetable oil extraction business
1. Learn more about the business
You will need to conduct extensive research on what a vegetable oil production business requires in terms of capital, competition, market size and trends, and other insights on the business.
2. Craft your business plan
Having a business plan before plunging into a new business is like having a compass before setting out on a voyage; it gives you insight on everything you will need to set up and run the business successfully.
3. Decide on your source of raw materials
You have two options for obtaining the raw materials needed for vegetable oil extraction. You can either buy the plants from a supplier or have your own farm for cultivating the plants (soybean seeds, groundnuts, palm fruit, etc).
If you are planning to start small or quickly, you will want to buy the raw material from a supplier. However, the second option (that is, having your own farm) is better and more economical, but it is more expensive; and setting up the farm takes time.
4. Find a good location
The location of your business is another very important factor that can make or break it. It is best to locate it close to your source of raw materials. For example, if you will be going into palm oil production, you should locate your extraction plant close to an oil palm plantation. This will reduce transportation costs, which could be crippling at times.
5. Get the funds
If you have all the required capital to yourself, that’s fine. But if you would need funds from other sources, start approaching those sources with your business plan. If your business plan presents your business as a very promising and lucrative one, you would easily attract investors or get loans from banks or other lending institutions.
6. Get the equipment
The most important of all the equipment you will need is the extracting machine. The cost of this machine depends on the model and the tasks it can perform.
7. Hire employees
Using various media, you will need to advertise vacancies for employees in the oil extraction process, and select the best employees to work with you.
8. Market and launch your business
It is important that you market your business through a wide range of effective media. You can start by visit businesses that fall within your target group, such as restaurants and manufacturing industries. Also, you can approach retailers and entice them with attractive discounts.