Do you live in one of the countries where rice is widely consumed? Are you looking for profitable business to do? Are you interested in starting a rice milling business? Do you need a rice milling business plan? If you answered YES to any of the questions above,please read this article and the steps discuss will help you put your rice milling business plan into reality.
What is rice milling?
Rice milling is a step in the post production of rice that involves the removal of husk and bran layers, which produce white rice that can be edible free of impurities. The rice paddy comprises of about 20% of husk and 11% bran layers, which leaves you with about 69% edible white rice free from impurities.
The process of starting a rice milling business
1.Acquire the required knowledge
Before you start a rice milling business, it is important that you need to have a good knowledge of the rice milling business and you should find any rice mill around you and have a feel of the processes involved in rice milling. Apart from the general entrepreneurial skills that you will need to operate the business, you need to acquire other skills that may be specifically related to rice mill business. You may not get this kind of skills from schools. The best way to acquire the skills is to work directly with somebody who is successful in rice mill business. You should also find out the costs of starting the business as well the costs of running the business after launch. Find out the equipment and manpower required. Find out about the pitfalls and challenges that new entrants into the business will most likely face. And find out how to avoid the pitfalls and overcome the challenges.
2.Write a rice milling business plan
By now, you should have known a lot about rice mill and the things you need to run the business. It’s now the stage where you need to put everything into a business plan.
Developing a business plan for your rice milling business is very important, as it will guide you through the process of starting the business successfully and running it effectively afterwards. Your business plan will also come in handy when you approach investors or lenders to fund your business.
Your business plan will detail your business’s goals and objectives, required startup and running costs, projected earnings over the first few years, required staff, your target market and a thorough analysis of that market, the competition, your marketing strategy and unique selling point, and your exit strategy. The rice milling business plan is what will keep you on track when you want to deviate from the business goals. It also is another document that you can use to attract investors.
3.Obtain the necessary licenses and permits
In virtually all parts of the world, obtaining licenses and business permits is a requirement for starting any business. However, the required licenses and permits vary between states and countries.
So I advice that you visit the appropriate agency in your state or country to inquire about the licenses and permits you will need to obtain before you can start your rice milling business. Better yet, visit the agency’s website or contact a seasoned attorney to find out.
Since you know the money you need to for capital and recurrent expenditure, then you can begin sourcing for the money that you can use to finance the rice farming business.It is not a business you can do with just a few hundred dollars. If you cannot raise the amount needed alone, you can ask family and friends, look for investors or loan to finance the business. Using your business plan, it becomes easier to convince investors to build the business.They may also want to be part of your business by investing into it. However, involving relations in business has to be done with utmost care so that relationship will not be adversely affected. When dealing with relations, it is better to document the terms and agreements about whatever money they are giving to you. Other ways of sourcing funds include bringing in of additional partner, funds from venture capitalist, government grants and loans from banks etc. One mistake you should not make is using short term funds for long term projects. What you want to do with the money you will raise will influence the type of capital you should source. For example, taking a bank overdraft to buy equipment is totally a mismatch of funds. This will definitely put much pressure on you and this may lead to the collapse of the business.
5.Find a good location
Choice of location has a big role to plan in the success of a rice mill business. Essentially, a rice mill business should be located very close to where rice is grown. You need a place that is easily accessible to farmers. They should be able to transport the rice produce to your place without much trouble. You need a large space where the farmers can drop their harvests. Also, you need storage place where the milled rice can be kept. The layout of the rice mill should allow free movement of people and should be very ventilated.
6.Buy the equipment
Your major investment will be land and equipment. If you have the money, it is better to go for modern rice milling machine. New machine is also better than used machine. If you buy used machine, you may soon discover that you are spending chunk of your income on repairs. Some vendors have maintenance agreement with their customers. You can take advantage of this. Regardless of the availability of power supply, it is safer to make provision for generator which you can use to power your equipment in case of power failure.
In the rice milling business, you’ll have to get some equipment in other to carry on the process of rice milling successfully.
Some of the modern rice milling machines are:
· Rice cleaning machine
· Rice de-stoner machine
· Paddy husker machine
· Rice color sorter
· Paddy separator machine
· Rice whitener machine
· Rice polishing machine
· Grading machine
· Grain dryer
· Measure and packing machine
· Rice milling detection machine
· Lighting equipment
Most of the equipment are durable and stands the test of time.
Some of the equipment can be fabricated. The fabricated one will be less expensive compared to the real one.
Note that you’ll need to be sure that the fabricated machine will do the work it was meant to be else, you’ll only waste your money.
7.Install the equipment
By now your rice milling machines have arrived. It’s time to start installing them. The services of an expert will be required in other for the installation to be successful.
Most often the company that sells the machines will always have an expert that will do the work for you. You’ll only need to ask them.
8.Hire employees and start operations
It’s time to hire people who will help in running the business. In rice milling business one important factor to consider when hiring people is their experience. Each person you hired can be given a defined role that will ensure the process of rice mill works in an effective way.
This will ease the stress going through the process of training before kicking the work.
It’s important to hire both technicians and administrators. The technicians are responsible for operating and maintenance of the machines. While the administrators do the paperwork on a daily basis.