How to Start a Frozen Food Business

Frozen food is big business however the size of the enterprise depends on your business plan. Small scale frozen food business requires moderate funding.

The majority of the funds are for equipment such as freezers, lease payment and sourcing products. There are a vast majority of products to sell as frozen food such as livestock, consumables and seafood.

Other frozen food candidates are fruit juice, salads, and pizza. To start the business you need to choose the products you want to sell.

There are three categories of frozen food business. You have the frozen food distributors, frozen food producers and frozen food retailers. Once you have chosen a niche market you need to write a business plan, secure funding and purchase the right equipment.

How to Start a Frozen Food Business

Types of Frozen Food

Here is a list of different types of frozen food to consider. The food covers livestock, raw products and products that depreciate without freezing. Some common frozen foods are vegetables and animal products.

Beef

Chicken

Fish

Salads

Fruit juice

Dairy products

Seafood

Fish

Packaged meals

Carry out a Feasibility Study

Before you start make sure you write a business plan and carry out a feasibility study. You need to know the type of frozen food popular in your community.

The plan provides a business structure, mission and vision statement. It covers stocking, financing the business, marketing strategy and budgeting. You also factor type of equipment, labor costs and growth potential.

Frozen Food Producers

If you plan to produce and freeze your own food you need to cover certain provisions. Frozen food production is highly regulated and competitive.

 Farm food is required by law to provide information on source of produce, production and freezing method. The ingredients should be clearly stated and brand name certified.

Conditions of production are very important because they need to pass health and safety laws. The producer needs to purchase processing equipment, packaging equipment and own large freezers.

Frozen Food Delivery

Those interested in the delivery aspect need adequate transportation. You need refrigerated delivery truck, and cold rooms for storage.

 Other methods are through dispatch riders or open stores. You need to find different customers for your delivery business.

 Try supermarkets, grocery stores, food vendors, restaurants and hotels. Other viable customers are private individuals and caterers. There a full range of products to deliver so stock only popular fast moving products.
How to Open a Frozen Yogurt Store

Frozen Food Retailers

Frozen food retailers operate open stores to cater for individual shoppers. The outfits are usually small and fitted with weighing implements, packaging bags and freezers.

Fresh frozen food retailers stock food items such as fish, poultry, seafood and beef. Frozen food retailers need to study their competitors and follow customer preferences.

Financing the Frozen Food Business

Frozen food manufacturers need huge capital while distributors require moderate sums. Small retailers on the other hand can start the enterprise with as little as $3000.

Distributors need funds to buy deliver trucks and freezer warehousing. Manufacturer’s funds are tied to fixed assists such as equipment, storage facility and transportation. They also need money to purchase raw materials.

 All three sectors require leased property or shop space. You can apply for bank loans and tender a comprehensive business plan.

You also need fixed collateral and a guarantor. Other ways to raise funds is through target savings, sale of startup equity or finding a core investor.

You can try partnership agreements or seek funds through agricultural cooperative societies.

Food License

You need a food distribution license and other permits. Apply for a trade license and follow health department regulations.

 You are required to have a personal income tax number including insurance cover. Register your food processing or delivery service as a limited liability company. The frozen food retailer could use sole proprietorship registration.

Marketing

The section you operate determines your marketing strategy. Frozen food producers need wholesalers to move their products along. While retailers sell directly to individuals.

 Producers need attractive packaging, lots of promotions and franchisees. The retail store can use printed material such as posters, flyers, signboards and banners to attract patronage.

Build a Website

No matter which category you operate owning a website is important. The website should be search engine optimized and targeted to your local community.

Use Facebook advertisement and Google Adwords. Showcase your products through imagery, description and pricing. You can include a shopping cart to take online orders.

Conclusion

Please never operate a food business without the correct permits and licensing. To reduce costs try leasing equipment and property instead of outright purchase.

Focus on high quality unique products to compete favorably with established frozen food outlets