Sample Food Processing Business Plan Template (2022)

FOOD PROCESSING BUSINESS PLAN SAMPLE

Food processing is the subjecting of raw ingredients under physical and chemical procedures that leave edible items as products.

Starting a food processing business comes easy if you align your passion with public needs.

Need to write a business plan? Download a FREE Business Plan PDF sample here.

Anyone familiar with Maslow’s hierarchy of needs would know the position held by Food; nothing happens without food. No wonder the food processing industry churned in over $53.9 billion in 2014 in Australia alone, and India expects to have realized $480 billion from the industry by 2020.

People seldom employ much effort into food preparation; they would rather pay for processed food. They often consider the volume of energy and time that would be consumed by culinary activities.

Since there is an alternative that is easily seen to be more effective in the sense that time and energy are vastly saved, likely, the idea of patronizing processed food would never lie far from the minds of members of society.

Busy schedules have made it imperative for individuals to patronize the market of processed foods. For this reason, the market of food processing is one that is undergoing constant expansion, raking in good returns for entrepreneurs trading in the niche.

Lucrative Niches in the Food Processing Industry

The list below highlights some great aspects to focus your small scale food processing business; you can also consider more than one area if you have the means to.

1) Baking Bread and Biscuits

From the wealthy to the average homes across the globe, tea and bread is a common breakfast; perhaps because of the fiber and energy content. Being at the other end manufacturing bread or cookies would mean so much good for your entrepreneurial story.

2) Making Custard Powder

Provided you have got a sufficient supply of corn, then you are in a great position to go into this aspect of food processing. Being a great source of carbohydrates, as well as a major diet given to babies, it’s a favorable market to venture into.

3) Fruit Processing

This section can be considered in two directions;

i) Juice Making: The fruits can be squeezed using specialized machines and their content extracted in liquid form. Containing all the vital flavor and nutrients of the fruit, the juice can be packaged and sold.
ii) Fruit Wafers: Some of the fruits like banana can be sliced and dried after coating them in a honey-like paste, then the resultant tasty product launched into the market; and you might want to ask which market has a phobia for a tasty diet.
iii) Making of fruit bars

4) Processed Ginger, Garlic, and Onions

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You can consider sealing dried onions; not much equipment is needed. It is another business route to turn the garlic and ginger into a paste and package them. The rush for spices has induced a boost in this market. Oil can also be extracted from ginger, and this oil has large medicinal values.

5) Processed Tomatoes

Tomato can be dried and put in a packaged form that would serve the need of users for culinary activities when the need arises. By soaking the tomato in hot water, the freshness of the ordinary tomato becomes roughly equivalent.

6) Making of Beverages and Confectioneries

Think of transforming cocoa into other useful products, think of sweeteners, and chocolates.

7) Processing Meat

There are ways of doing this. But one very popular method is to dry the meat with spices, then chopped into small pieces that fit a small can; it is traditionally called ‘Kilishi’ in Nigeria.

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8) Processing of Milk

Some parts of the country and the world are blessed with livestock and cows that are rich in the supply of milk. This is an indicator of the potentials of milk processing and manufacture. Only a few, easily affordable specialized equipment would suffice to start the technical part of the milk business.

9) Rice Processing

The eastern part of the country is rich in rice cultivation. A rice mill can therefore easily thrive if established. Once the necessary machinery is put in place, then what is left is great gains.

10) Popcorn Making

This business is a popular business that requires minimal startup funds. Just a good number of corn, and a heating device to pop the grains into the attractive white edibles.

11) Plantain and Potato Processing

It is common in markets to find plantain and potato chips. Well executed and modified processing and packaging can see you into the azure pastures of food processing.

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Steps to Starting Your Food Processing Business

Factors that are Considered when one Goes into Food Processing Business

1) Decide on the Specific Product(s)

There is a wide spectrum of foods that are categorized under ‘processed’, this is obviously seen from the above list. You would have to decide which of the niche(s) you fall in terms of. This is the first step in starting a business of processed foods.

2) A Food Processing Business Plan based on Market Research

Feasibility studies must be conducted to find out which products entice consumers more. A business plan should be made that would entail the dimensions in which you intend to run your business, what tactics you intend to employ in your manufacturing process. Then registration of the business, then its structure.

As regards the business structure, there are some basic configurations the business can assume:

a) Sole Proprietorship
b) Partnership
c) Corporation

You can also decide to go into a franchise with established food processing firms. The business plan must be as detailed as possible, and it should sufficiently include information on staffing.

3) Incorporate Insurance Plans and Business Regulations

It is a great policy to make adequate provisions for insurance in your business, this is so that in case any work-related injuries are sustained by any worker within your firm, there would be adequate aid.

4) Safety Measures to Protect your Products

It must be ensured that your products have nothing on them that can raise questions or cause any health issues to consumers. Good preservatives should be used, and the products should satisfy the conditions put by special health agencies.

5) Branding, Packing, and Labeling

Professional and registered businesses are recognized by their brands. Your products must be well packaged and clearly labeled before launched into the market. This is a food market; it’s a market in which people are skeptical as to hygiene and professionalism, they are afraid of the conditions surrounding the processing of the food they are paying for.

6) Advertisement, Promotion, and Marketing

Without these business lags behind the time. Thanks to social media now that has made it a trivial affair to boost awareness about a product; we have got Facebook, Linked In, etc.

7) Supply and Distribution

It must be ensured that there are well-formed channels by which these products can reach the average retailers and final consumers; necessary for the growth of the food processing business.

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Here is a sample business plan for starting a food processing company.

FOOD PROCESSING BUSINESS PLAN EXAMPLE

Food processing is a multi-billion dollar industry that has increasingly become attractive to investors. There are tremendous potentials for any investor willing to venture into this area of business.

If you are one of such investors, you will find this food processing business plan sample a great tool to use in writing your own plan. The success of any business starts with the plan.

EXAMPLES

  • Flour mill business plan
  • Rice processing mill business plan
  • Palm oil processing business plan
  • Soybean oil production business plan
  • Garri Processing plant business plan

But before putting together a great plan, you must understand the business you are venturing into. It is based on this knowledge that you will put in place a plan of action.

While having a plan is necessary for success, this is not enough in itself. You need to fully follow or implement these plans for your business to really grow.

  • Executive Summary

Foodie® is a licensed food processing business that will be located in Boise, Illinois. We produce a variety of health-friendly food products as well as contribute to the prosperity of the agricultural industry. By reducing food spoilage through the extension of the shelf life of agricultural products, farmers get a better deal for their farm produce.

We process a variety of products that include canned fruit, fruit sauces, ketchup, French fries, granola, energy bars, precooked foods, sausage, cured meat, milk (pasteurized, and homogenized), and BBQ sauce. Others include margarine, mayonnaise, corn syrup, rice syrup, and chocolate. These products will be processed using the most hygienic and health-friendly procedures.

  • Our Products and Services

In addition to being a food processing business, we also provide training and advisory services to our clients and smaller food processing businesses. Our processed products include chocolate, sausage, milk, BBQ sauce, canned fruit, ketchup, French fries, granola, fruit sauces, corn syrup, rice syrup, cured meat, mayonnaise, margarine, energy bars, and precooked foods.

  • Vision Statement

At Foodie® we are not in business to just make up the numbers. We are driven by a passion to establish a thriving food processing business that will compete with established brands. Within a 10-year period and with the right effort, we intend to be reckoned among the top 20 food processing brands in America. This is achievable and we are dedicated to bringing this to fruition.

  • Mission Statement

To set up a flourishing brand, we need to provide our customers with quality products. Our desire is to be known as a brand synonymous with quality. All our products will undergo the most stringent internal checks. We have a fully equipped world-class quality control department that will monitor all production procedures. This is to ensure that it passes minimum regulatory standards.

  • Financing

To finance our food processing business, we are applying for a loan facility of $2,500,000.00. This credit comes with a monthly interest rate of 3% after which the principal sum will be payable in 8 years. 60% of these funds will be used in purchasing the necessary equipment while 40% will go into running costs for a period of 4 years.

  • SWOT Analysis

An in-depth analysis of our capacity to deliver has been done. We deliberately sought to find out this aspect of our operations because we want to take off on a solid footing.

An independent business consulting firm was contracted to get the job done. The results reveal the following;

  • Strengths
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The organizational structure at Foodie® is such that guarantees stability and growth. This is because the management team is led by seasoned business people who have successfully led major companies through challenging times. They have a deep understanding of what needs to be done to guarantee success.

This is a strength we will be leveraging to guide our business to the path of profitability and growth.

  • Weakness

In being frank to ourselves, we have identified our weakness to be the small size of our operations. This limits our reach significantly and makes us less competitive when compared with major food processing companies.

However, we consider this weakness to be only temporary. We are strategizing on adopting highly effective growth strategies to eventually over these challenges.

  • Opportunities

We have tremendous opportunities before us. Some of these include increasing our production capacity. There are many more food categories we intend to add to our food processing operations. We will target those with the highest demand among consumers.

In the long term (20 years), we envision our business going into the export of our processed food products to different markets across the world.

  • Threats

Threats are commonplace for businesses. We have identified our likely threats to be stiff competition from major food processing companies.

Drought is also a threat we are likely to be faced with. Lately, major changes in climatic conditions have affected agricultural production. This can hurt our business too.

  • Sales Projection

Sales are largely driven by the intensity and impact of marketing activities. We are adopting a robust marketing strategy to drive sales.

In achieving this, we have projected our sales over a 3-year period. This has shown positive signs as summarized in the chart below;

  • First Financial Year $450,000.00
  • Second Financial Year $790,000.00
  • Third Financial Year $1,500,000.00
  • Competitive Advantage

To achieve our target, we need to have an advantage over similar businesses. A deep understanding of the food processing industry is one area we have a tremendous advantage in. We have a collection of industry veterans in our management team as well as the workforce.

Also, our marketing team is made up of some of the best minds in the industry. This gives us a huge advantage to advance our food processing business.

  • Marketing Strategies

Marketing is central to achieving our growth targets. We understand this and have committed enormous resources to put together a team of seasoned professionals who will handle all marketing activities.

We are also working closely with major companies that control the main distribution channels. These will enable our processed food products to get across to a wide consumer base.

  • Target Market

Every human needs survival food. This makes our business indispensable. Through value addition, we can increase the shelf life of food products as well as reach a wider segment of the market without fear of food spoilage.

Our target market consists of busy professionals and parents, singles, and many others who have little time to prepare food.

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There you have it! Our food processing business plan sample includes some of the most important parts that should never be ignored when writing a plan.

By finding out about your business, you can provide more detailed content to each of these sections. The main purpose is to have a plan that adequately reflects what needs to be done in growing your food processing business.

FAQs

How do you write a food plan for a business? ›

A food or restaurant business plan should include the following:
  1. Your business entity type. Are you a sole proprietorship? ...
  2. Your food business concept. ...
  3. Your marketing, logo and name. ...
  4. Your target market. ...
  5. Choose an ideal location. ...
  6. Your budget. ...
  7. Your menu and price range. ...
  8. Your staffing plans.
17 Mar 2021

What are the 4 types of business plans? ›

Business plans can be divided roughly into four distinct types. There are very short plans, or miniplans, presentation plans or decks, working plans, and what-if plans. They each require very different amounts of labor and not always with proportionately different results.

What are the steps to creating a business plan? ›

How to Write a Business Plan, Step by Step
  1. Write an executive summary.
  2. Describe your company.
  3. State your business goals.
  4. Describe your products and services.
  5. Do your market research.
  6. Outline your marketing and sales plan.
  7. Perform a business financial analysis.
  8. Make financial projections.
26 Jul 2022

What is a food service plan? ›

Food Service Plan means any contract under which the seller agrees to furnish the buyer with any food products whether or not a membership fee or similar charge is involved.

What are some common mistakes found in a business plan? ›

Seven top business plan mistakes:
  • Not making one. As an entrepreneur, surely you're more excited about doing the thing you want to do that writing a plan about it. ...
  • Being unrealistic. ...
  • Poor executive summary. ...
  • Too long. ...
  • Not backing up what you say. ...
  • Not focusing on the team, and your role as the head. ...
  • Sloppy mistakes.
20 Nov 2019

What should a good business plan contain? ›

A business plan should include seven key sections:
  • an executive summary.
  • a business description.
  • details of market strategies.
  • competitor analysis.
  • a design and development plan of your products and services.
  • information about your operations and management plan.
  • financial information, planning and factors.

What are the 5 basic elements of a business plan? ›

At their core, business plans have 5 basic pieces of information. They include a description of your business, an analysis of your competitive environment, a marketing plan, a section on HR (people requirements) and key financial information.

How do you write a one page plan for a business? ›

How do I write a one page business plan? Describe the problem your product will solve or opening you fill, what the industry is like, your target market, key facts about your business, your launch plan, how you'll market your product, the financial model, and how much funding you need.

What are the 8 steps in preparing a business plan? ›

How To Build A Strategic Business Plan – 8 Steps To Success
  • Consider Your Vision And Mission Statement. ...
  • Conduct A SWOT Analysis. ...
  • Outline Your Objectives. ...
  • Determine Staffing Needs. ...
  • Determine Your Resources. ...
  • Brainstorm Strategies. ...
  • Write Your Action Plans. ...
  • Measure Success.
14 Feb 2019

What is the best type of business plan? ›

In most cases, the best kind of business plan for a startup is a Lean Plan that, includes projected startup costs, startup steps, and milestones.

How many pages should be in a business plan? ›

If the writer has a page length expectation rough guidelines are: Ten to fifteen pages are sufficient for small, internal reports. Corporate business plans can be hundreds of pages long. Startup and expansion plans used for potential investors, vendors or other business partners can be 20 to 40 pages.

Who should prepare a business plan? ›

The person or persons responsible for implementing the plan should be heavily involved in its development. Some people hire consultants or have employees draft the plan. If you're going to be accountable for the decisions that will be based on the plan, then you need to be involved in its development.

How important is service guidelines in food service? ›

To ensure that food is prepared and served without any contamination, restaurants have to abide by specific standards, rules, and regulations to ensure the safety of their clientele.

What should we avoid in business proposal? ›

Spelling and Grammatical Errors

If your business proposal is full of grammatical and spelling errors, it will leave the prospect with a really bad impression of you and your company. Not only will it be hard to read, but it will also show the client that you are careless and you do not pay attention to detail.

What should not be included in a business plan? ›

10 Common Business Plan Mistakes
  • Unrealistic Financial Projections. ...
  • Not Defining the Target Audience. ...
  • Over-Hype. ...
  • Bad Research. ...
  • No Focus on your Competition. ...
  • Hiding Your Weaknesses. ...
  • Not Knowing your Distribution Channels. ...
  • Including Too Much Information.

How long should a business plan take to write? ›

Depending on the amount of information you have at your disposal, writing an excellent traditional business plan to completion could take several hours or even days. For a basic business plan, since you're still pretty much likely to adjust it over time, it shouldn't take more than 3 hours to write.

What's the biggest mistake you can make when preparing a business plan? ›

1. Typos and Bad Grammar. The first mistake to avoid in your business plan are typos and bad grammar. Consider the following statement/question a prominent venture capitalist once asked me: “If this entrepreneur can't even put together a well-written business plan, then how could they possibly run a successful venture? ...

What are the 3 main purposes of a business plan? ›

The 3 most important purposes of a business plan are 1) to create an effective strategy for growth, 2) to determine your future financial needs, and 3) to attract investors (including angel investors and VC funding) and lenders.

What is the most important part of a business plan? ›

Summary/Overview

A brief, but focused statement (a few sentences or paragraphs) stating why the business will be successful. This is the most important piece of a Business Plan because it brings everything together.

What is usually the first section of a business plan? ›

Executive Summary

Your executive summary should appear first in your business plan. It should summarize what you expect your business to accomplish. Since it's meant to highlight what you intend to discuss in the rest of the plan, the Small Business Administration suggests that you write this section last.

What are the 5 key factors for success when preparing a business plan? ›

As a reminder, the 5 Key Success Factors are:
  • Strategic Focus (Leadership, Management, Planning)
  • People (Personnel, Staff, Learning, Development)
  • Operations (Processes, Work)
  • Marketing (Customer Relations, Sales, Responsiveness)
  • Finances (Assets, Facilities, Equipment)
1 Apr 2015

What is a business plan template? ›

A business plan template is a document that allows you to quickly write a detailed business plan. Among other things, it includes an introduction, executive summary, company description, and marketing plan.

What is a simple single business plan? ›

SIMPLE SINGLE BUSINESS PLAN

It covers the business structure, product and service, market research marketing strategy, complete budget and financial projection for a particular length of time. Business plan shows the step to business success.

Do small businesses need a business plan? ›

It will help you to reach business milestones.

A well-thought-out business plan helps you to step back and think objectively about the key elements of your business and informs your decision making as you move forward. It is essential whether you need to secure a business loan or not.

What are some examples of planning? ›

It may sound like a simple task, but if you break it down, there are many small tasks involved: obtain keys, obtain wallet, start car, drive to store, find and obtain milk, purchase milk, etc. Planning also takes into account rules, called constraints, which control when certain tasks can or cannot happen.

Why do business plans fail? ›

The biggest reason that they fail is that the action elements are not applied, monitored regularly or refined when required. This results in lack of focus and direction. It also results in lack of energy…if actions aren't being completed then nothing can be achieved.”

What is a full business plan? ›

A business plan is a document created by a company that describes the company's goals, operations, industry standing, marketing objectives, and financial projections. The information it contains can be a helpful guide in running the company.

Which business is best for beginners? ›

The Ultimate Small Business Ideas List
  • Virtual Assistant. ...
  • Childcare. ...
  • Social Media Consultant. ...
  • Instagram Influencer. ...
  • Etsy Seller. ...
  • Dog Walking Business. ...
  • Event Planning Business. ...
  • Hairdresser.
23 Dec 2021

What is the most profitable business to start in 2022? ›

Let's get started!
  • Identifying the most profitable small businesses.
  • #1. Business Consulting.
  • #2. Real Estate Agents.
  • #3. Cleaning Services.
  • #4. Social Media Management.
  • #5. Creating Online Courses.
  • #6. Start a Small Business that Makes Candles or Soap.
  • #7. Payroll Services.

What is the most demand business today? ›

The Most In-Demand Small Business Ideas to Consider When Starting Your Business
  1. Social Media Consulting. ...
  2. Senior Care Services. ...
  3. Smart Product Development. ...
  4. Organic Beauty Products. ...
  5. Healthy Fast Food. ...
  6. Healthcare Consulting. ...
  7. Crowdfunding Consulting. ...
  8. Wheelchair Repair.

How do you write a business model? ›

A business model should answer important questions about your business and set out a strong vision for the business. The key components of a business model should include relating to your target customers, the market, organization strengths and challenges, essential elements of the product, and how it will be sold.

What makes a good business proposal? ›

The most important parts of an effective business proposal are: An attention-grabbing title page. An introduction that presents you neatly to your client. Understanding of the problem in question which shows your ability to deliver the required service or solution.

What factors will make your plan successful? ›

Successful Strategic Planning: Five Factors
  • Remember the purpose of planning. Communications plans are intended to drive action in pursuit of outcomes. ...
  • Use facts and data. ...
  • Tie your plan to specific business objectives. ...
  • Set verifiable goals. ...
  • Build in accountability.
28 Sept 2020

How do I know if my business plan is good? ›

4 Signs Your Business Plan is a Success
  • No. 1 - You can predict strong revenue months. Your business plan should determine your strong revenue months, while also finding opportunities for repeat business from customers. ...
  • No. 2 - A regular SWOT. ...
  • No. 3 - Three month goal. ...
  • No. 4 - Insights are important.

What is a business model example? ›

For instance, direct sales, franchising, advertising-based, and brick-and-mortar stores are all examples of traditional business models. There are hybrid models as well, such as businesses that combine internet retail with brick-and-mortar stores or with sporting organizations like the NBA.

How do you write a business description? ›

What to include in a business description
  1. Business name. List the official name of your business as it's registered with your state. ...
  2. Business goals. ...
  3. Target customers. ...
  4. Competitive advantages. ...
  5. Business location and opening date. ...
  6. Mission statement. ...
  7. Products or services. ...
  8. Business structure.

How do you write an executive summary for a business plan? ›

Tips for Writing the Executive Summary
  1. Write the executive summary after you have completed the entire business plan.
  2. Start the executive summary with a compelling case for why you have a great business idea. ...
  3. Keep the tone upbeat, but don't oversell. ...
  4. Write in concise language using layman's terms. ...
  5. Do not be ambiguous.

What is executive summary in business plan? ›

An executive summary is a brief overview at the beginning of your business plan. It should provide a short, concise summary of your business that captures the reader's attention and gives them an interest in learning more about it.

What are the 7 business models? ›

There are seven business models for small businesses to consider.
  • BUSINESS MODEL 1: The manufacturer. ...
  • BUSINESS MODEL 2: Bricks and clicks. ...
  • BUSINESS MODEL 3: Advertising. ...
  • BUSINESS MODEL 4: The marketplace. ...
  • BUSINESS MODEL 5: Subscription. ...
  • BUSINESS MODEL 6: Direct sales. ...
  • BUSINESS MODEL 7: On-demand.
22 Apr 2019

What does a good business model look like? ›

Other experts define a business model by specifying the main characteristics of a good one. For example, Harvard Business School's Clay Christensen suggests that a business model should consist of four elements: a customer value proposition, a profit formula, key resources, and key processes.

How do you introduce a small business example? ›

Small Business Introduction Examples
  1. Tell your unique story. Be authentic. Be consistent. Involve your customers.
  2. Be honest with your target audience. Know your value proposition. Focus on your audience.
  3. Use humour (if possible)
  4. Use clear language and avoid business jargon.
  5. Make it loveable.

How do I tell people about my business? ›

10 Surefire Ways to Get People Talking About Your Business
  1. Build trust. ...
  2. Do a great job. ...
  3. Ask for feedback. ...
  4. Request testimonials. ...
  5. Don't over-rely on social media. ...
  6. Find a high profile satisfied customer. ...
  7. Generate referrals. ...
  8. Give back.
27 May 2016

How do you introduce your company? ›

There are several ways to introduce your company online, in an introduction letter, marketing materials, and in elevator pitches. Emphasize the problem that your company's service or product solves, and explain what makes your company unique. Remember, introductions are meant to be short, so don't overdo it.

What is the most important part of business plan? ›

Summary/Overview

A brief, but focused statement (a few sentences or paragraphs) stating why the business will be successful. This is the most important piece of a Business Plan because it brings everything together.

Who should prepare the business plan? ›

A business plan is a document that is prepared by the entrepreneur, which describes all the relevant internal as well as external information that is required in starting a new business.

What should be included in a business summary? ›

In it, you may include your mission and vision statements, a brief sketch of your plans and goals, a quick look at your company and its organization, an outline of your strategy, and highlights of your financial status and needs. Your executive summary is the CliffsNotes of your business plan.

What supporting documents may be included in the business plan? ›

What Supporting Documents Should You Attach to Your Business Plan...
  • Cash flow statement.
  • Income statement.
  • Balance sheet.
  • Detailed financial projections.
  • Capital equipment list.
  • Resumes of key officers.
  • Letters of support, reference, or credibility.

What makes a good executive summary? ›

An executive summary should summarize the key points of the report. It should restate the purpose of the report, highlight the major points of the report, and describe any results, conclusions, or recommendations from the report.

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