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"Sugar Processing Business": How To Get Started

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Sugar has always been and always will be one of the most vital commodities all over the globe. With human populations always increasing with each passing year, so does the demand increases, and in some countries, the demand already exceeds the available supply.

Although growing sugar cane will require a vast amount of land space and thus will require a huge amount of start-up capital, there is an alternative business opportunity to enter the massive industry: the sugar processing.

A small scale sugar processing plant can be started as a home business. And contrary to popular belief, will the startup capital will be manageable, as well as the necessary skill and experience.

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Interested to start this business? Here are a few tips to help get you started:

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1. Startup Investment
Although as stated, this can be started as a home-based business, you might need to rent a space to increase production capacity sooner or later. The rent cost will vary depending on your location, but make sure to set aside six months of your rent cost as your initial capital. You will also need to invest in equipment such as sugar cane crusher, filtering machine, boiler, mixer, dryer, weighing tools, and other necessary equipment and tools such as packaging tools. You can start this business with around $30,000-$40,000 including rent cost.

2. License and Permit
Depending on your location, a zoning permit as well as other permits might be necessary before you can engage in the business. Consult your local authorities to get a better information regarding the required license and permit for your business.

Investing in a liability insurance might also be required by law. But even when it's not the case, insurance can protect your business from further liability.

3. Marketing
You can sell your own sugar in the local market and supermarkets, as well as supplying to established sugar manufacturers. As a common commodity, finding a sales channel shouldn't be a challenge. However, pricing strategy might be an issue with the tightness of competition.

4. Cost Maintenance
Maintaining your cost to ensure a healthy profit will be essential for this business. Always base your decision-making process on the focus of efficiency.

If you can keep your cost low, you can set a lower selling price than your competition, which will be a great value for this kind of commodity.

Increasing production capacity, when done right, can lower your overall operational costs, and might be an interesting option to consider. However, you should balance expansion with a healthy labor cost and other expenses.

Earning Potential

Producing 100 kg of sugar a day can net you a $23,400 annual earning. As your production capacity grows, so does your earning.

As mentioned, maintaining cost and efficiency will be the key to success in this business.