FEASIBILITY CONSIDERATIONS
Starting a new business isn’t only about having business ideas. It’s also about ensuring that you understand the feasibility considerations of the industry you’re entering, such as your goals or objectives, getting start-up capital in place, and determining your return on investment or profitability.
The milling of maize and production of maize meal is a rewarding business opportunity that also enables you to contribute to help secure food security.
Here are three pointers you need to consider when figuring out how to start a new business:
01. IDENTITY YOUR MAIZE MILLING BUSINESS’ GOALS
Goals are a fundamental part of any start-up business. They determine where your business should be going and how you’ll get there. Unpack your maize milling business goals over a proposed timeline that addresses your various targets over that period.
02. SECURING START-UP CAPITAL FOR YOUR MAIZE MILLING BUSINESS
If you don’t have the capital to start your maize milling business, here are two avenues to pursue to obtain financing:
Government development funds
- Medium-term loans (three to seven years)
- Interest charged at prime plus related rates
- Requires a business plan and other motivational documents
- Application process takes at least six weeks
Financing from commercial banks
- Medium-term loans (10 years)
- Interest charged at prime plus related rates
- Requires a business plan and security in the form of assets
- Application process takes at least two weeks
03. DETERMINE PROFITABILITY WITH ROFF’S PROFIT CALCULATOR
Will your maize milling business be profitable? Roff has developed a free online Profit Calculator tool to help you estimate and forecast your maize mill’s revenue. In order to use the profit calculator, your will need to identify factors such as the following:
1. THE COSTS ASSOCIATED WITH:
- Maize milling machines and equipment price
- Rental or levies of your facility
- Maize
- Fortification additives
- Packing (bags and machines)
- Transportation
- Power consumption and electricity
- Labour
2. THE SALES PRICE OF MAIZE MEAL AND BY-PRODUCTS
3. HOW MUCH YOU CAN SELL PER YEAR
We wish you well on your journey to becoming a maize milling entrepreneur!
4 comments
You lesson has further enlightened me, on how I can proceed with my business of milling which I am intending to start very shortly.
I would like to join your online training to learn more.
Kindly help me with the development of business plan based on this milling machine.
SP – 1 Maize Mill – 1 ton/hour machine
Extraction Rate: 69 up to 85%
Leadtime: 1 to 2 months
Compact
Starting from:
ZAR660,000.00 or US$44,000.00 approx.
I really enjoyed your teachings I would love to join a free online course to learn more about mill meal business
Practical consideration on starting any business especially maize milling have showed me where was the problem, factors to consider and where to start you realy opened my eyes beyond my scope