The concept of extracting edible oil from seeds such as olives, soybeans and peanuts is on the rise globally. For example, in the United States of America alone, there is an average annual production of over 16 billion pounds. This huge production can be attributed to the increasing demand for edible oils. As people’s standard of living continues to improve, so does the consumption of edible oils. It is used for various purposes, such as cooking. Therefore, edible oil extraction is a profitable venture that, in most cases, rewards manufacturers with profitable profits. Although it is not difficult to start an oil extraction factory, the following steps will help simplify the process even more. They are the main steps that need to be followed to start a successful oil extraction factory.
The first step in starting any successful business venture lies in the ability to have enough knowledge about the business. Therefore, the first step would be to know more about the edible oil industry, its trends and the factors that influence it. Information or data on the edible oil industry can be obtained from the Internet, government agencies, or from established edible oil manufacturing industries. An investor can seek the opinion and point of view of an expert in the edible oil industry for a more informed opinion on market trends. In addition, this will give you the opportunity to learn more about the different companies in the market with which you will be competing.
Second, create a business plan for the manufacturing company. A business plan will act as a guide or central reference point for the business. The importance of planning is best captured in the popular cliché ‘to fail to plan is to plan to fail’. Without a business plan, the oil extraction factory installation company will fail. In fact, it may not even take off. When preparing the business plan, it is advisable to hire the services of an expert in the field. He/she will help you create a comprehensive business plan that covers all aspects of the manufacturing process. A business plan is basically a formal statement outlining the goals of the business and the plans to achieve these goals. In addition, the business plan will contain sections that cover the financial needs of starting up the manufacturing plant. Without sufficient funds or capital, the business could stall down the road. Therefore, a business plan will help you know the cost of the business (costs such as equipment costs, transportation costs, capital to run the plant, and salary costs) and the sources of capital needed to start it. A business plan will clarify the target market for the product and how to gain a competitive advantage in the market.
Third, find out where you will get your raw materials. Raw materials are the backbone of the manufacturing plant. Without the raw materials, the plant will not make it. Also, during this step, knowing the type of materials that will be used for oil extraction is vital, as edible oil can be processed from many sources. The availability of the relevant raw materials is also an important factor. The raw materials must be adequate enough for the business to function. A small supply will run out quickly. Since the edible oil is extracted from arable grains, the investor can decide to plant his own raw materials or buy them from a third party.
Location has a significant effect on the success of the manufacturing business. The plant must be located close to the source of raw materials. This will help reduce transportation costs incurred when moving raw materials from the field to the factory.
Fifth, apply for the relevant licensees and certification from state or federal authorities. This will make you run a licensed and legal edible oil extraction business. You can be arrested and charged if you run a business without a license.
Lastly, obtain financing for the project and then purchase the plant equipment, hire employees and advertise the business.
These steps, if followed strictly, will make the process of starting an edible oil extraction factory easy and simple.
