In India, the potato is the most favorite vegetable on demand. Alu or potato is commonly used every day in our meal, be it alu ke parathey, alu bhindi, alu fry, dam alu etc, one of them will surely be on the menu. But do you know potatoes have another most common use and that is also in all over the world? Yes as potato chips. Just think about our most common choice to satisfy our small hunger when outside, its chips only as they are cheap, palatable and crunchy. Due to this, we are going to discuss the benefits and requirements of starting a potato chips business in this article.
If you want to start a business with a good return of profit but with a minimum investment, then chips making business is one of the fastest growing and profitable business. There is a huge margin of growth in this business with very little investment and minimum starting capital. Over that, you don’t need a higher degree of qualification also. Just a bit knowledge about calculation will be enough and in today’s world who can’t keep a track of money?
Market demand for potato chips business
Just ask any grocery shop about the product which has the highest demand in snacks category. 95 % of the answer will be potato chips. There are various reasons for the high demand of potato chips in the market like: –
- It satisfies the hunger quickly. In India, with just 10 Rs of potato chips, you can eliminate the need for breakfast or evening snacks and most people when they are outside does the same.
- It’s healthy. There is no need to use harmful chemicals for producing potato chips, just potato slices edible oil and salt, sometimes some spices are used for variation in taste.
- It is easily available in every corner, from small tea stall to shopping malls; you will find potato chips everywhere.
- It’s cheap.
- It is crispy and very much palatable. You can find many children crying at the shop for chips.
These are just a few main reasons about proving that chips making business will be a smarter choice. There are many big brands of potato chips business in the market, but it doesn’t eliminate the small enterprises as the market for chips making business is huge in proportion to daily increase in the consumer count.
Let’s find out the requirements of starting a chips making business
Like mentioned earlier, potato chips business doesn’t require a huge capital for investment neither it needs a higher degree to get success. What are the important things needed, let’s find out below: –
- Research: – Every kind of business needs a proper research for a smooth processing. Find out all kind of pros and cons of the business. Discuss with retail outlets about the demand. Find out the quality measures that needs to be taken as after price, quality is the most important thing that will determine the success of your product.
- Make a business plan: – Draw a proper business plan. It will be helpful to get loans from financial institutions also. The planning should include all the steps that you will be taking for the next six month and forecast every kind of positive or negative situations and what steps to be taken. Plan accordingly to decide the investment amount and other things like hiring staffs, raw materials, equipment etc.
- Location: – Choose the location carefully as it should not be too far from where you will be buying raw materials neither from the market where you will be selling the items. You will not need a huge place to start a potato chips business.
- Complete the legal formalities: – Consult with your municipal officers or licensing department about the legal formalities required for starting chips making business
- Get the required Equipment: – You will need some equipment for your potato chips business like for washing, peeling, slicing, frying, packaging etc. So get the bet equipment to save in future maintenance costs.
- Branding: – Register your brand while completing the legal formalities. You can sell your chips to the market with your brand name in the package and it will help you to create your own customer base. The packaging also needs to be attractive.
- Pricing: – Give a standard MRP to your product. You keep it low to capture the market at the beginning but need to do the budgeting properly. Sell the item a lower rate to the retailers as they are the one who will push your product to the customers.
Most important tips for starting chips making business: – Don’t try to start huge at the beginning if you are new to the field. Start with a small investment and if required produce small amount at the beginning. As you keep capturing the market and earning a profit you can gradually grow your business.
So now you have to decide that do you have the entrepreneur inside you. Do you crave for success in business? Then it’s the best time to make up your decision to start a potato chips business.