Thinking about starting a cold storage business? Well, do not jump straight into it, you have got to have a proper business plan in your hand. But you might land on a problem here, if you do not have the rarest idea about making a business plan.
But do not get disappointed, though you are the primary personality responsible for drafting your business plan, there are a number of resources out in the world that provide help for solo entrepreneurs in drafting a great business plan.
However, if you wish to draft the business plan by yourself, then there are a couple of tips that would make your task easy.
1. Keep the Business Plan Short
You do not have to write tonnes of words, and sentences to make your business plan look amazing. The first priority for any business plan is that it should be readable. And in the busiest century, not one is going to sit and read a hundred, or a fourth page business plan.
Secondly, the business plan is something that you would carry with you throughout the growth of your business. This means, you can revive the business plan, and make necessary changes even. Pretty long business plan is most probably going to end up in a drawer to be never seen again.
2. Use Understandable Language
Not all your audiences can understand hard and scientific language. So if you would prefer that your audience understands what your business plan is all about, remember to draft it with less scientific terminologies.
3. Do Not Be Afraid
Not all business men and entrepreneurs out there have a degree in business. Nor are they experts in what they are dealing with. So, when you are starting out, writing a business plan might seem daunting, and tedious.
But you do not have to get everything perfect when you are drafting your very first business plan, because it is not something that you cannot change in near future. If you are passionate about your cold storage business, then leverage onto your business plan, and help it grow.
And lastly, there is not always a need for a complete, detailed business plan. Even a one page, simple business plan would do if you are really passionate about what you are planning to do.
How to Prepare a Cold Room Storage Business Plan
Even when you know the basic things about a cold room business, you might be thinking about what to include in your business plan. Then do not think any further, and scroll down to find it below.
1. Summary: Though most people write this at last, there is no harm if you start with the summary first. The summary is usually one or two pages long, and includes an overview of your business and plans.
2. Opportunity: Then you have this page listing the opportunities that your business will have once it is open. This section also includes details about the services that you will be providing, and about your target audiences, and market.
3. Execution: This is the most important section that deals about turning your business into a success story. This section includes marketing, and sales plan, and all about paving your way to success.
4. Team and Company: After drafting your business plan, you are definitely going to put it in front of an investor. Investors are in look out for great teams, and great ideas. In this section, give a quick description about your current team or whom you are going to hire.
5. Financial plan: No business plan is complete without a financial forecast.
6. Appendix: This space can be utilised for additional information, images, and services.
Things to Know On Starting a Cold Storage Business
What are the prerequisites that you will have to know about cold storage businesses before starting one?Well, there is nothing much. There are just some necessary information about where, when, and how you are going to open your cold storage business. And this includes five aspects. From starting your cold storage business to promoting it, requires a heavy dose of energy. So be sure to grab a box of energy drink before you start out.
Location is an important aspect when building a cold storage. You need to find a location which is either near the horticultural area, or the consumer centres. Because, you will have to equip provisions for the horticultural products to be carried into the warehouses, and you will also have to look for an additional one acre of land for establishing multi purposes commodity storage plants.
2. Licenses and Permissions
But before you purchase the land, and start building your warehouses, obtain the licenses and permissions. In the present world, you will have to take permission from even the insects that roam around the area, before building something, because there are a lot of people constantly on the outlook to create problems for others. So it is always better if you have the necessary licenses in your hand.
The permissions and licenses differ according to the location that you are choosing. Consult an authority with knowledge about these licenses before starting out, and also make sure to inquire about the upcoming tax liabilities and compliances.
Building a cold storage business requires a lot of financing. You are supposed to have at least around three to four cores for commencing the business. Mostly, you could seek potential investors at this time, or depend on help from banks for business purposes.
However, there are banks giving out loans for cold storage businesses. In addition government grants and subsidies are even available to people who are thinking of opening a cold storage business.
4. Building the Cold Storage
Once everything is sorted out, the next step would be to build the cold storage. To achieve this, consult with an experienced cold room builder. This way, the firm would help you in planning your cold storage’s construction. Again, choosing the right machineries is again important in establishing a cold storage that would run efficiently. Consult with reputed machinery suppliers to get the right machineries. Find out this article on how to select a suitable cold room that suit your needs.
To find a reputed machinery supplier, you need to check their customer feedbacks, testimonials, warranty periods and price of the machineries. Also, you can ask the suppliers to give an on-site training.
5. Promoting the Cold Storage
You will not see success if you open your cold storage, and sit around simply. The overall success of any business comes from right amount of advertisements, and promotions. You can start the awareness campaign, right after you start building the store.
The target audiences would include supermarkets, wholesalers, warehouse companies and etc. In this business your audience ranges from producers, to exporters. And this even includes cultivators, retailers, and distributors. So plot down a campaign perfect enough for all these people, and you are one step away from success.
Cold Storage Investment Cost
The initial investment, as is already known to most of you is very high. There is the cost of purchasing the land, then machineries, building the warehouses, setting everything up, and finally for the promotion. Additionally, you have to invest for electricity, water supply, and licenses. This in a nutshell, are the basic things where you will have put down your investment. If you sit, and jot down every minute detail, then your list would finally sum up to a very huge amount.
Apart from the major investments that you will have to make, there are working capital investments that you will have to look upon. This mainly includes, staff payments, utility bill payments, and more.
Is a Cold Storage Business Profitable?
The question might have popped up in your head several thousand times. Because, after making a huge investment in the business, if there is no profitability, then the whole thing would be like burning up your investment.
However, this is not the case of cold storages. Globally tonnes of fresh vegetables and fruits are wasted due to the lack of availability of cold storages. The fruits and vegetables that you see in the stores will not remain as fresh as it is, if not for the cold storages. Cold storages increase the shelf life of these commodities.
These vegetables and fruits have to be transported to different parts of the country from where they are produced. And if not for cold storages, these edible commodities would not look as pretty as it looks once it reaches your nearby supermarket.
Apart from this, cold storage plays a huge role in reducing the wastage of degradable food materials. And could in turn help in providing the cultivators with decent remunerative, and make the commodities available in the market at affordable prices. Thus, cold storages are in high demand these days, with the correct strategies, you can make a good amount of profit with the cold storages.