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"Flour Milling Business": How to Get Started

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As previously mentioned, most new entrepreneurs, especially the younger ones, tend to overlook agriculture as a viable business prospect. Many factors can be considered, such as the size of the land normally required, the unsophisticated perception of the industry, and many more.

However, many agricultural prospects are highly viable for small businesses, and can be a very exciting business in the long run. One such opportunity is to start a flour milling business, which can be started by a relatively low startup investment, required a fairly small space of land,and have a high-profit margin ensuring healthy profitability.

Your target market? The massive baking industry. Approach your local bakers, sandwich shop, and restaurant for your home-made flour. You can get the necessary wheat, corn, millet or cassava from local farmers, buying in bulk to save costs.

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Interested to start this business?
Here are a few things to help get you started.

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1. Startup Investment
If you plan to start at home, you can start with flour milling machines, and will only cost you below $1,000. If you don't have the required space at home, however, you will need to rent a small space. The rent cost can vary with your location, however, because a good location is not such a necessity, you can simply opt for the cheapest option available. Buying the necessary ingredients like wheat or corn will depend on your scale, but it is sufficient to start with $2,000.

2. Permits and Licenses
Depending on your locations, you might need a special zoning permit if you plan to make this a home-based business. Other permits may also be required, as different locations have different business regulations. Consult your local authorities for a better information regarding required license or permit.

If you plan to sell your flours as a pre-packaged product, you will need a license from the health department. However, this can increase your credibility as well as marketability.

3. Marketing
As mentioned, restaurant, bakery, sandwich shop, as well as local grocery will be your potential target market. Approach them with your business proposal and product sample. This industry is highly price sensitive, so make sure to research the current price condition of the market, as well as assessing your manufacturing and operational cost.

4. The Process
Many resources are available for milling process, but in general, it will consist of cleaning, separation, grading, tempering, and the grinding process itself. Make sure to do enough research to ensure the quality of your product, as well as maintaining the cost efficiency of the business.

The profit margin for this kind of commodity can be quite low, so you have to focus on production capacity while maintaining cost as low as possible without compromising quality. One of the keys to success is to negotiate the best price for raw ingredients.

Earning Potential

The average flour price is $0.5 per lbs, meaning a ton of production will earn you $1000. If you can manage to sell 5 tons a month, you can earn $5,000 each month or $60,000 annually.

As your business established, you can opt to expand for a bigger production capacity, increasing your earning potential.