The concept of extracting edible oil from seeds such as olives, soybeans and peanuts is increasing globally. For example, in the United States of America alone, there is an average annual production of more than 16 billion pounds. This huge production can be attributed to the growing demand for edible oils. As people’s living standards continue to improve, so does the consumption of edible oils. It is used for various purposes, such as cooking. Thus, edible oil extraction is a profitable undertaking that in most cases rewards manufacturers with profitable returns. Although it is not difficult to start an oil extraction factory, the steps below will help to further simplify the process. They are the main steps that must be followed to start a successful oil extraction factory.
The first step in starting any successful business venture lies in the ability to have sufficient knowledge about the business. Thus, the first step would be to learn more about the edible oil industry, its trends and the factors that influence it. Edible oil industry information or data can be obtained from the Internet, government agencies, or established edible oil manufacturing industries. An investor can seek the opinion and point of view of an expert in the edible oil industry to obtain a more informed opinion on market trends. In addition, this will give you the opportunity to learn more about the different firms in the market with which you will compete.
Second, create a business plan for the manufacturing company. A business plan will act as a central guide or point of reference for the business. The importance of planning is best captured in the popular cliché “not planning is planning to fail.” Without a business plan, the company created in the oil extraction factory will fail. In fact, it may not even take off. When developing the business plan, it is advisable to enlist 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 that outlines the business goals and plans to achieve these goals. In addition, the business plan will contain sections that cover the financial needs of starting the manufacturing plant. Without sufficient funds or capital, the business could stagnate along the way. Therefore, a business plan will help you understand the cost of the business (costs such as equipment costs, transportation costs, capital to operate the plant, and salary costs) and the subsequent 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 or advantage in the market.
Third, find out where you will get your raw materials from. Raw materials are the backbone of the manufacturing plant. Without the raw materials, the plant will not do it. Also, during this step, it is vital to know the type of materials that will be used for oil extraction, as edible oil can be processed from many sources. The availability of the relevant raw materials is also an important factor. Raw materials must be adequate enough for the operation of the company. A small fountain will run out quickly. Since edible oil is extracted from arable grains, the investor can decide to plant his own raw materials or buy them elsewhere.
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 in moving raw materials from the field to the factory.
Fifth, ask for relevant licensees and certification from state or federal authorities. This will allow you to run a legal and licensed edible oil extraction business. You can be arrested and charged if you run a business without a license.
Lastly, get the project financing, then buy the plant equipment, hire employees, and advertise the business.
If these steps are strictly followed, the process of starting up an oil extraction factory for edible oil will be easy and straightforward.