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 more than 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 to further simplify the process. 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. Edible oil industry information or data 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 to obtain a more informed opinion on market trends. Also, 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 ‘failing to plan is planning to fail’. Without a business plan, the oil extraction factory installation company will fail. In fact, it may not even get off the ground. 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 objectives of the business and the plans to achieve these objectives. In addition, the business plan will contain sections covering the financial needs of getting the manufacturing plant up and running. Without sufficient funds or capital, the business could stall down the road. 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 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 marketplace.
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 do it. Also, during this step, it is vital to know the type of materials that will be used for oil extraction, since 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 suitable enough for the business to function. A small source will run out quickly. Since the edible oil is extracted from arable grains, the investor can decide to grow his own raw materials or buy them from a third party.
The 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 relevant licensees and certification from state or federal authorities. This will get you running a legal and licensed edible oil extraction business. You can be arrested and charged if you run a business without a license.
Finally, get the project financed, and then buy the plant equipment, hire employees, and advertise the business.
These steps if strictly followed will make the process of starting an edible oil extraction factory easy and simple.