Start a profitable frozen food business| Business Plan and Project report

Are you a follower of billionaires like Elon Musk? If yes,it means that you know the value of time. So think for a while about how many people like you follow different billionaires and know the value of time. The number is too large, and it simply means that starting a business that helps people save their valuable time will be very profitable.

Ice cream

Image credits-Pixabay

In this article, we will discuss a detailed business plan about the frozen food business, which is profitable and saves food-making time for many people in this world. So a lot to know, a lot to discuss, and without wasting time,let us now begin.

Business Plan to start a frozen food business

A business plan includes everything related to business like product selection criteria, raw material requirement, customer, supplier. Machines, transportation, electricity, etc. 

But Since raw materials, customers and suppliers are different for different products and also vary with area. So consider taking the help of an expert or reading specific articles on the internet.

For example, If you are doing a business of french fries in Omaha, United States, you should search for “French Fries raw material supplier in Omaha” and so on.

Apart from the raw materials, suppliers and customers, let us discuss other important things in detail:

#1 How to select a product (Product selection criteria)

If you are competing with large companies, then you can become successful in two ways. 

  • By innovating a new product.
  • By innovating the least rated product of your competitors. 

If you are starting a frozen food business, then Mccain is going to be your biggest competitor. So first of all, go to amazon and find out the least rated item of Mccain.

After that, you have to innovate it with better taste To prefer your product over others.

On the other hand, if you will be innovating a new product, it simply means you will be an entrepreneur. So you should read my articles on “Product selection criteria in entrepreneurship” and “ How to avoid mistakes in entrepreneurship business,” which will definitely help you become a successful entrepreneur.

#2 Machines required to start a frozen food business

For processing frozen food, you need to buy machines. Generally, a complete machine set processing  5000kg/hour frozen food costs about $5,00,000 in the United States or Rs 2.75 crore in India.You can take further details about it by clicking here.

 Apart from processing frozen food, you also need a refrigerator to store it. Depending on the size, a refrigerator will cost you about $1,000-40,000 in the United States or Rs 20,000-Rs 22,00,000 in India.

#3 Transportation and other facilities

Transportation is a very tricky part of the frozen food business. You need special trucks with installed refrigerators to safely transport frozen food. Apart from that, other resources like electricity, water, sanitation, etc., are also required to manage the business.

How to advertise frozen food business

Social media is the best way to advertise any business. Make a dedicated Facebook and Instagram page in your company’s name and start promoting it through ads. You can also pay content creators to promote your business.

Area required for frozen food processing business

If you set up a frozen food processing plant similar  to that mentioned in this article, then the minimum area required would be

Approx. 18,500-21.200 sq. ft.  ( for a large scale)

To start this business at small scale area required- 

Approx.1123-2020 sq. ft. 

Investment required to start a frozen food business

For starting the frozen food business on a small scale, you need to buy a frozen food processing machine and rent some area. So, according to my estimate, you need at least $12,500 in the United States or Rs 10,00,000 in India to start a label printing business properly.

You need at least $7.00.000 or Rs 3.43 crore to start this business on a large scale.

The cost of rent is different for different areas, I am just mentioning the least amount according to my estimate.

How to arrange funds for the frozen food business?

In my previous articles, I have already explained some of the popular ways to arrange funds. So you can read the ways of arranging funds from my article on the coconut oil business.

Summary

So let us summarise the text in brief. The frozen food business has a lot of scope in the future because it saves the people’s valuable time. Before starting it, a person must prepare a proper business plan that helps them manage it properly. A business plan must include all the necessary items required to start a business like land, workers, raw materials, machines, etc.

Approximately an investment of $12,500 and $7,00,000 is required to start this business on a small and large scale, respectively. To arrange funds, a person can take help from several government schemes, take funds from investors, or take a bank loan.

Conclusion

Apart from that, if you have any other questions like “ How much should you pay to employees?” , “ How to keep employees motivated during stressful times?” or any other question, then you can ask in the comment sections. I have already answered the above questions in my earlier posts. So I will mention their link at the end if you want to learn about them in detail.

With this note, now comes the time to end this article, and as always, “ God Bless You All.”

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Frequently Asked Questions

What should be included in a proper frozen food business plan?

A business plan includes everything related to business like product selection criteria, raw material requirement, customer, supplier. Machines, transportation, electricity, etc.

What are the ways to compete with large companies?

If you are competing with large companies, then you can become successful in two ways. 1)By innovating a new product. 2)By innovating the least rated product of your competitors.

How much area is required to start a small-scale frozen food business?

An area of about 2000 square feet is required to start a frozen food business.

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