Do you want to start a soybean processing company from scratch? Or you need a sample soybean processing business plan template? If YES, then i advice you read on. Food processing is one of the hottest business opportunities in Africa and in developing countries in the rest of the world. These countries spend several millions of dollars annually on importation of food products, even though the same foods can be produced locally.
In many developing countries, soybean processing plants are usually very few and their combined production capacity isn’t in any way close to meeting the overwhelming demand for the soybean milk, tofu, yoghurt, and other products. In addition, the poverty rates in these countries are so high, only few entrepreneurs can afford the cost of starting a soybean processing plant. These explain why there are still very few plants in those countries, despite the huge demand for the end products.
However, with the required startup capital and adequate information, you can start a soybean processing company in any country where there is huge demand for soybean products. This huge demand coupled with low competition and high entry barriers are the factors that indicate the profitability of this business.
Have you been looking to start your own business? Does the idea of starting a soybean processing plant sound like a great one to you? And do you have the required startup capital? Then read on to learn the basics of soybean processing as well as how to start your own soybean processing company.
First, what is soybean?
Soybean is a legume bean plant that originated from East Asia but is now found in many parts of the world. The plant is a significant and cheap source of protein and is the raw material for many prepackaged food products. In fact, soybeans produce significantly more protein per acre than most other uses of land.
What are soybean products?
Soybean is processed to produce a number of food products that are generally in huge demand. These include soymilk, soy yoghurt, tofu, soybean oil, soy flour, soy sauce, fermented bean paste, textured vegetable protein, natto, tempeh, and many others. Of these products, soymilk, tofu, soybean oil are the most popular and most sought-after. Now, here are the steps involved in starting a soybean processing company:
Starting a Soybean Processing Company – Sample Business Plan Template
1. Create a business plan
Writing a business plan is your first step towards starting a successful soybean processing company. If you don’t write a business plan before taking a plunge, you may end up leaving the market soon after launch due to certain challenges. However, a business plan prepares your mind for these challenges and helps your soybean processing business succeed in the long term.
Your soybean oil processing business plan will include details about your business such as the mission statement, business overview, products and services, required startup and operations costs, management summary, market analysis and competition, marketing strategies, and so on.
Writing a business plan involves a lot research and hard work. But this input is worth it, consider how vital the business plan is to your business. Aside serving a guide on how to start your business successfully and grow it afterwards, a business plan will also come in handy should you need to obtain additional funding from third parties, such as investors and lenders.
2. Obtain necessary licenses and permits
In virtually all countries of the world, you can start a business requires obtaining some licenses and permits. These licensing requirements vary by state and country. You need to contact the appropriate local agencies to find out the licensing requirements for new businesses in your state or country. You will also need to register the name of your business. This confers credibility and confirms government’s recognition of your business.
3. Find a good location
The success of your soybean processing plan hinges largely on the location you choose. The best location for your plant is one with an abundant supply of water, electric power, and other utilities that you need for effective operations. Your locations should also be as close as possible to your sources of raw materials–especially soybean.
4. Purchase and install necessary equipments
Soybean processing involves the use of equipments such as mixers, boilers, filters, grinders, and machines that combine these parts into one unit. Ensure that your equipments are of high quality, as this will save you huge maintenance costs in the long term. Also, ensure that machines are well installed, as improper installation can affect their function.
5. Find suppliers for raw materials
Since raw soybean is the lifeblood of your soybean processing business, you need to ensure constant supply of soybeans to your plant. This requires having as many as possible suppliers, such as soybean farmers or distributors.
6. Hire employees and start operations
You will need a few unskilled workers at your soybean processing plant. Ensure that they are well trained on the proper use of machines and equipments, as improper handling can cause low production capacity.