Interested in small cassava processing business ideas? If YES, here is how to open a cassava processing company with no money and no experience. How much does it cost to start up?
How to Start a Cassava Processing Company
Are you thinking of starting a cassava processing business? If you are looking for detailed information regarding cassava processing business, you are in the right place.
I will be sharing with you detailed information on what you need to know and do to start a cassava processing business. So, if you landed on this post because you were looking for information regarding cassava processing business, patiently read this post as it is what you need to start the business as far as cassava is being cultivated in your location.
Conduct a Research about Cassava Processing Business
The first thing you need to do is conduct a research. Cassava can be process into different products like starch, Garri, caramel and flour. Which do you want to focus on?
You need to decide on the by-product you will be processing your cassava into before you can conduct any research. Whatever you decide on, go and find out what you will need to get started.
It is very easy to do this. Go to any cassava processing business that deals on the by-product you will be focusing on and meet with any of their staff. They should have an idea of the right person to ask for information or they may know themselves. You don’t need to meet with the owner as they will be afraid that you will be their next competitor.
You can never tell as you might just meet the right person with the information you need.
Find out what you need to get started. The price for the cassava processing equipment, how many you will need, specification, number of employees or if you won’t be needing any at the startup stage, the overall cost of starting that cassava processing business including operational expenses, best location for the business etc.
Ask as many questions you will need to, to get clarity so as to know if you are ready for the journey ahead or not.
Create a Cassava Processing Business Plan
Starting a cassava processing business is just like starting any other business. You will need a business plan.
Pardon me, the business plan you will be writing here should be a well-written business plan.
This business involves huge amount of capital to start. Unless you have the capital, you should make sure your business plan meets bank standard because you will need it when you will need to request for loan from the bank.
I don’t expect you to know how to prepare a business plan. You can visit Google search engine and search for cassava processing business plan sample. You will surely find something on it.
From your research conducted, you must have gotten an idea of how much will be needed to start your cassava processing business. So, if you will be paying full cash for everything, congratulation. But, if you only have half or a quarter, this is where your business plan come to play.
Don’t have enough cash? Just go to the bank you bank with and request for a loan. You will be asked to fill an application form and if your application is considered, you will be sent for, for further discussion.
From my research and at the time of writing this post, it will cost an entrepreneur ₦5million for the overall cost of starting a cassava processing business. Do you have that amount of money?
If you do, then what you will need is then the processing equipment.
Depending on your choice of by-product you will be processing, you will need the required equipment to get your cassava processing business started.
You want to process cassava to start, flour or garri? You have done the research and you already know what is needed. Go and get the required equipment without wasting much time.
This is very important as your success to the business to a large extent lies on it. You know you will be dealing with cassavas, you will need to site your business close to the source of this food crop for easy transportation.
If your business is sited in a very far place from the farm, it will cost you more as you will need to cover much expenses. Your company must be located closed to the availability of the raw material.
This is where you will need to pump in some fraction of fund into as you are just entry into the market and people don’t know anything about your product. You will need to create awareness about your products and let consumers know why they need to buy your products and where to get them.
The only good thing about this business is that the market for cassava products is already open for any entrepreneur to sell their products in.
Cassava processing business is a very lucrative business if you have the fund and a very good marketing strategy.