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Food Production: Is This A Business You Can Start On A Shoestring Budget?

By Business Desk

Thursday, September 1, 2016.

Let's face it. There are thousands of business ideas that one could pursue when starting a new venture. Perhaps one of the most profitable ones is food production. It's one of those niches that is seemingly recession-proof. After all; everyone needs to eat something, regardless of the economic climate!

The thing is, starting a food production business is no mean feat. Some people assume that you can set up such an enterprise with almost no investment. The reality is that you need money to launch any new startup. Even if it's one you happen to run from your home.

Despite that fact, it is possible to start a new food production business on a shoestring budget. How? Let me share with you some actionable steps you can take for success:

Image Source: Wikimedia Commons

Look for a niche market

One of the worst things you can do is start in an already saturated market. Believe it or not, the reason isn't because of stiff competition. It's down to startup costs. You would have to make products on an industrial scale to compete with the main players on an even keel.

Instead, you should look to launching in a niche market. For example, new type of gluten-free products that aren't available right now. Or even low-cost ones (gluten-free food is still annoyingly expensive).

Market research is an essential element to launching a successful startup. Now is the time to find out where you could make the most profit with the least investment.

Lease small premises that offer future expansion

One of the biggest costs for any manufacturing startup is the premises. The same is true for the food production industry. What you should do is lease a small building or factory. The key here is to find a place where future expansion is possible. For instance, you could lease a unit in an industrial park or estate.

Use cutting-edge equipment

When you're producing food, you want to do so in an efficient and productive manner. The way to do that is by using state of the art equipment. For example, you could use a cable conveyor instead of an older proprietary system. And you can even use robots to help with things like packaging.

Sure, such equipment doesn't come cheap. But, compared to hiring staff, you'll cover your costs quicker. That's because you can sell higher volumes of products at a faster rate.

Don't keep the profits to yourself

It might be tempting to start a food production business in your garden shed or kitchen. But, you'll never achieve the real potential of your ideas. What's more, you're unlikely to get noticed by big-name retailers like supermarkets.

To achieve big goals, you need capital investment. The way to get that money is by inviting some people to start the company with you. The idea is they invest money in return for a fixed return. How you negotiate the deals is up to you. What that also means is you don't have to put up a lot of money to launch your new company.

Remember that some investors also have contacts in the food industry. Such associations are often more valuable than monetary investment!


Can you start a food production business with a small capital? The answer is yes! However, if you want big profits, you'll need investors. Otherwise, a fully equipped room at your home is a good start for tight budgets.

Food Production: Is This A Business You Can Start On A Shoestring Budget?

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