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How to Start a Rice Distribution Company – Sample Business Plan Template

By: Author Tony Martins Ajaero

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Are you interested in starting a rice distribution business? Do you need a sample rice retail store business plan template? If YES, then i advice you read on. Rice is the most consumed staple food in the whole world. This shows that any rice related business anybody invests in; whether rice farming, rice hulling service, or wholesale distribution of rice will definite have a ready market for the product or services.

I will focus on rice distribution business in this article including why you need to start a distribution business and how to get started and become a big time wholesale distributor of rice. As a wholesale distributor, your duty is to serve as a distribution link from the rice farmers to the retailers. Most retailers do not have the capital required to purchase in bulk quantities from the rice farmers.

It is the wholesaler or distributor that will buy in large quantities and sell in smaller bulks to the retailers; so the service of a distributor is needed in order to get the rice to its needed locations. With the rate rice is consumed around the world, getting retailers to supply to will not be a problem at all.

4 Things You Need to Start a Rice Distribution Business

In order to start and run a smooth distributor business, you need to get the following things in place;

This should preferably be a rice farm because as the wholesale distributor, you need to buy from a source where you can get the rice in very large quantity and at the cheapest possible rate, so that you can still make profits after spending for the logistics involved in getting the rice from the supplier to the retailers.

Most times, you don’t get to sell of the whole bulk of supply you get at once to the retailers because there may be times when the market demand may be low, that is when you need a warehouse to store your rice until you are ready to ship out to retailers.

To become a wholesale distributor, you need to buy in very large quantity from the rice farmers and sell in smaller bits to the retailers; so starting a rice distribution business requires much capital. The only exception is if you have a mutual understanding and agreement with the farmers where they supply you the goods on credit sales, you sale to the retailers and pay them off as soon as you are done with the sales.

Transportation

As the distributor, you may have to be in charge of transporting the rice from the rice farm to your warehouse or delivery to customers when orders are placed. You may need to get few trucks to handle the distribution process or you can strike an agreement with a logistic company to take care of the transportation process. With these four factors in place you are now set to start your distribution business. The next subsection will be on how to start a rice distribution business.

Starting a Rice Distribution Company – Sample Business Plan Template

1. carry out feasibility study.

In as much as any rice business have an available market, you still need to conduct a feasibility study on the demand of rice in your location. You need to find out if there are retailers who are available to buy your rice produce and how fast they sell out to consumers.

This will help you have an idea of the market you have in your location; though you are not subjected to a particular location as a distributor because you should be able to distribute fast and wide within and outside your country wherever there is demand for your produce.

2. Get the Necessary License Required to Become a Distributor

You may be required to get some sort of license in order to operate as a wholesale distributor in some states. Find out the license and other legal formalities applicable to your state and get them.

3. Get Your Supply of Rice from the Rice Farmers

After you are done with your feasibility study and you are sure that there is an available market for your produce, it’s time to contact your supplier to supply the first consignment of produce for you. When you get the produce, you can choose to repack them to become your own brand. The branding may involve packing the rice in personalized sacks.

4. Promote Your Products to Retailers Around

At this stage, you are done with the licensing, supply and branding, its time to find retailers and promote your product to them. chances are that they already have other distributors they buy from, so you have to give them reason to patronize your products; some incentives you can give to retailers to make them buy from you includes:

Free Samples

Some retailers maybe afraid to order from new distributors whom they don’t know the quality of rice they have to offer; one to get around the issue is to offer a small bag of rice; lets say 2kg as sample to any retailer who feel is a potential customer.

You can also offer to give some percentage discount for any distributor that will order a certain number of bags, or that can refer other distributors to buy from you.

Free Delivery

You can offer to give retailer free delivery services to any destination of their choice, if they can order for a certain number of bags of rice from you.

Payment on Delivery

You can offer this service to retailers who are in another location to build their trust; you ship out the produce and they pay once they get to see it.

Credit Supply

When you succeed in getting few regular retailers that large customer base, you can make a deal to supply them on credit for them to pay back after sales.

5. Accounting

When the business is up and running, you need to have a good accounting system to keep track of income and expenditures. This will help you keep track of the business progress and to make amends in financial structures when necessary.

On a final note, this rice delivery business is very viable for anyone who wants to make quick turnover on his investment within the first few years.

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Home » Sample Business Plans » Wholesale & Retail

How to Write a Rice Retail Store Business Plan [Sample Template]

Are you about starting a rice retail store? If YES, here is a complete sample rice retail store business plan template & feasibility report you can use for FREE . Okay, so we have considered all the requirements for starting a rice retail store. We also took it further by analyzing and drafting a sample rice retail store marketing plan template backed up by actionable guerrilla marketing ideas for rice retail stores. So let’s proceed to the business planning section.

Why Start a Rice Retail Store?

There are businesses that someone with little schooling and no serious business background and training can start. One of such businesses is to open a rice retailing store. The major things you need to have in place to make success from this type of business is a good location, easy access to wholesale supply of quality rice and good customer service and accountability skills.

The truth is that if your rice shop is located in an area with good human and vehicular traffic, and you have quality and well – packaged rice in different sizes from different brands, you may not have to struggle to get people to visit your shop and make purchase.

So, if you have decided to open a rice retail store in your neighborhood, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running. Below is a sample rice retail store business plan template that can help you to successfully write your own with little or no hassle.

A Sample Rice Retail Store Business Plan Template

1. industry overview.

As the name of the business implies, rice retailing stores basically retail processed and bagged rice. Rice retail stores primarily purchase rice from wholesalers and retail them directly to end consumers – customers.

The Rice Retail Stores industry, just like most businesses in the retailing industry, depends on strong consumer spending to spur the demand for industry products. Over the last half a decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing.

Going forward, as the economy of the united states continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to experience growth.

The Rice Retail Stores industry is indeed a major sector of the economy of the United States of America and they generate several billion dollars annually from loads of rice retail stores scattered all around the United States of America.

The industry is responsible for the employment of well thousands of people. It is important to state that there is no rice retail store in the United States of America that has a lion share of the available market. New entrant into the industry can favorably compete for the available market.

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the rice retail stores industry also contributes.  This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / rice retailing stores industry negatively which may result in the closure of some rice retail stores.

Over and above, the rice retail store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can choose to start on a small scale in a street corner or you can choose to start on a large scale with several outlets in key cities through the United States of America and Canada.

2. Executive Summary

Mercy Lurton Rice Store®, LLC is a standard and registered rice retail store business that will be located in one of the busiest streets in Charleston – West Virginia. We have been able to lease a facility that is big enough to fit into the design of the kind of standard rice retail store that we intend launching and the facility is located in a corner piece property directly opposite the largest residential estate in Charleston – West Virginia.

Mercy Lurton Rice Store®, LLC will retail short-grain rice, medium-grain rice and long-grain rice (both in organic and non – organic form) et al from different brands from the United States and abroad. We are set to services a wide range of clientele in and around Charleston – West Virginia.

We are aware that there are several large and small chains of rice retail store outlets all around Charleston – West Virginia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors. We have an online – service option for our customers, and our outlet is well secured with various payments of options.

Mercy Lurton Rice Store®, LLC will ensure that all our customers are given first class treatment whenever they visit our rice retail store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to.

We will ensure that we get our customers involved in the selection of brands that will be on available in our store and also when making some business decisions.

Mercy Lurton Rice Store®, LLC will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Mercy Lurton Rice Store®, LLC is a family business that is owned by Mercy Lurton and her immediate family members. Mercy Lurton has a B.Sc. in Business Administration, with well over 5 years of experience in the retailing stores industry, working for some of the leading brand in the United States. Although the business is launching out with just one outlet in Charleston – West Virginia, but there is a plan to open other outlets all around major cities in the United States and Canada.

3. Our Products and Services

Mercy Lurton Rice Store®, LLC is in the rice retail stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of well packaged rice from top rice production brands in the United States and other countries of the world.

We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

  • Retailing short-grain rice, medium-grain rice and long-grain rice (both in organic and non – organic form) from different rice production brands

4. Our Mission and Vision Statement

  • Our vision is to become one of the leading brands in the rice retail stores industry in West Virginia and to establish a one stop rice retail store in Charleston – West Virginia and in other key cities in the United States of America and Canada.
  • Our mission is to establish a world – class rice retail store business that will make available a wide range of well – bagged rice from top rice production brands at affordable prices to the residence of Charleston – West Virginia and other key cities in the United States of America and Canada where we intend opening of chains of rice retail stores and franchise.

Our Business Structure

Mercy Lurton Rice Store®, LLC do not intend to start a rice retail store business like the usual mom and pop business around the street corner; our intention of starting a rice retail store business is to build a standard and one stop rice retail store outlet in Charleston – West Virginia.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.

In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer (Owner)
  • Store Manager
  • Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

  • Accountants / Cashiers
  • Sales Agents / Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Reports to the board

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
  • Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out staff induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Store Manager:

  • Responsible for managing the daily activities in the store
  • Ensures that proper records of bags of rice are kept and warehouse does not run out of products
  • Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
  • Interfaces with third – party suppliers (vendors)
  • Controls rice distribution and supply inventory
  • Supervises the workforce in the rice sales floor.
  • Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
  • Helps to ensure consistent quality of well processed rice from different manufacturers are purchased and retailed in good price that will ensure we make good profit
  • Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
  • Ensures that the organization operates within stipulated budget.
  • Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
  • Models demographic information and analyze the volumes of transactional data generated by customer purchases
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Develops, executes and evaluates new plans for expanding increase sales
  • Documents all customer contact and information
  • Represent the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Manages the organization website
  • Handles ecommerce aspect of the business
  • Responsible for installing and maintenance of computer software and hardware for the organization
  • Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
  • Manages the organization’s CCTV
  • Handles any other technological and IT related duties.

Accountant / Cashier:

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensuring compliance with taxation legislation
  • Handles all financial transactions for the organization
  • Serves as internal auditor for the organization

Client Service Executive

  • Ensures that all contacts with customers (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
  • Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
  • Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
  • makes suggestions and encourage purchase of products
  • Provides information about merchandise and delivery options
  • Bags or packages purchases made
  • Responsible for cleaning all the store facility at all times
  • Ensures that toiletries and supplies don’t run out of stock
  • Cleans both the interior and exterior of the store facility
  • Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention to start just one outlet of our rice retail store in Charleston – West Virginia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other rice retail outlets all over major towns in West Virginia and key cities in the United States and Canada.

We are quite aware that there are several rice retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Mercy Lurton Rice Store®, LLC employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Mercy Lurton Rice Store®, LLC;

Our location, the business model we will be operating on (physical store and online store), varieties of payment options, wide range of well processed and well – bagged rice from different rice production companies from within the United States and other parts of the world and our excellent customer service culture will definitely count as a strong strength for Mercy Lurton Rice Store®, LLC.

So also our management team members are people who have what it takes to grow a business from start – up to profitability with a record time.

A major weakness that may count against us is the fact that we are a new rice retail outlet and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business.

  • Opportunities:

The fact that we are going to be operating our rice retail store in one of the busiest streets in Charleston – West Virginia provides us with unlimited opportunities to sell our rice to a large number of individuals and businesses (hotels and restaurants).

We have been able to conduct thorough feasibility studies and market survey and we know what our potential customers will be looking for when they visit our rice store outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new rice retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

  • Market Trends

If you are conversant with the Rice Retail Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever changing eating habits are major growth drivers for sales in this industry.

No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Rice Retail Stores industry. So also, the rising demand for organic rice, as a result of increasing disposable income and consumer sentiment, will result in revenue growth.

Rice retail store business has been in existence for as long as human started trading goods, but one thing is certain, the rice retail store industry is still evolving. The introduction of technology and subsequently homed delivery options, online grocery cum rice retail store has indeed helped in reshaping the industry.

It is now a common phenomenon for rice retail stores and grocery outlets to leverage on technology to effectively predict consumer demand patterns and to strategically position their store to meet their needs; in essence, the use of technology helps retailers to maximize supply chain efficiencies. No doubt data collected from customers goes a long way to help rice retail stores and grocery stores serve them better.

8. Our Target Market

Possibly it will be safe to submit that the rice retail stores industry has the widest range of customers; almost everybody on planet earth consume rice; rice is indeed one of the most popular staple food in the world.

In view of that, we have positioned our rice retail store to service the residence of Charleston – West Virginia and every other location where franchise cum outlets of our rice retail stores will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail well processed and bagged rice from different rice production brands to the following groups of people and corporate organizations;

  • Restaurants

Our competitive advantage

A close study of the rice retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading rice retail stores in Charleston – West Virginia and throughout the United States and Canada.

Mercy Lurton Rice Store®, LLC is launching a standard one stop rice retail store that will indeed become the preferred choice of residence of Charleston – West Virginia and every other location where our outlets will be opened.

Our rice retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Charleston – West Virginia. We have enough parking spaces that can accommodate well over 10 cars per time.

One thing is certain; we will ensure that we have a wide range of well – processed and well bagged rice from leading rice production companies available in our store at all times. It will be difficult for customers to visit our rice store and not see the type of rice they are looking for.

One of our business goals is to make Mercy Lurton Rice Store®, LLC a one stop rice shop for both household and businesses (hotels and restaurants et al) our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category (startups rice retail stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Mercy Lurton Rice Store®, LLC is in business to retail a wide range of well – processed and well – bagged rice from different rice production brands to the residence of Charleston – West Virginia. We are in the rice retail stores industry to

10. Sales Forecast

One thing is certain when it comes to rice retail stores, if your store is well stocked with well processed and well bagged rice from different rice production brands and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the rice retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Charleston – West Virginia.

Below is the sales projection for Mercy Lurton Rice Store®, LLC it is based on the location of our business and other factors as it relates to rice retail stores start – ups in the United States;

  • First Fiscal Year-: $120,000
  • Second Fiscal Year-: $450,000
  • Third Fiscal Year-: $750,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same shoe brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Before choosing a location for Mercy Lurton Rice Store®, LLC, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Charleston – West Virginia. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

  • Open our rice store in a grand style with a party for all
  • Introduce our rice store by sending introductory letters alongside our brochure to hotels, restaurants, households and key stake holders in Charleston – West Virginia
  • Ensure that we have a wide range of rice from different brands at all times.
  • Make use of attractive hand bills to create awareness and also to give direction to our rice store
  • Position our signage / flexi banners at strategic places around Charleston – West Virginia
  • Position our greeters to welcome and direct potential customers
  • Create a loyalty plan that will enable us reward our regular customers
  • Engage on road shows within our neighborhood to create awareness for our rice store.
  • List our business and products on yellow pages’ ads (local directories)
  • Leverage on the internet to promote our business
  • Engage in direct marketing and sales
  • Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our rice store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our rice store.

Mercy Lurton Rice Store®, LLC has a long term plan of opening outlets in various locations all around West Virginia and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mercy Lurton Rice Store®, LLC;

  • Place adverts on community based newspapers, radio stations and TV stations.
  • Encourage the use of word of mouth publicity from our loyal customers
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
  • Ensure that our we position our banners and billboards in strategic positions all around Charleston – West Virginia
  • Distribute our fliers and handbills in target areas in and around our neighborhood
  • Contact corporate hotels, restaurants, households, landlord associations and schools by calling them up and informing them of Mercy Lurton Rice Store®, LLC and the products we sell
  • Advertise our rice store business in our official website and employ strategies that will help us pull traffic to the site
  • Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that give leverage to rice stores, it is normal for consumers to go to places (rice retail outlets) where they can get well – processed and well – bagged rice at cheaper price.

We know we don’t have the capacity to compete with other bigger and well – established rice retail store, but we will ensure that the prices of all the brands of rice that are available in our rice store are competitive with what is obtainable amongst rice retail stores within our level and in our location.

  • Payment Options

The payment policy adopted by Mercy Lurton Rice Store®, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mercy Lurton Rice Store®, LLC will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards / Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our rice.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a rice retail store business; it might differ in other countries due to the value of their money. These are the key areas where we will spend our start – up capital;

  • The Total Fee for Registering the Business in the Unites States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Mercy Lufton Rice Store®, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
  • The cost for hiring Business Consultant – $2,500.
  • The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for the payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
  • The cost for store remodeling (construction of racks and shelves) – $20,000.
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
  • The cost for Start-up inventory (stocking with a wide range of well – processed and well – bagged rice from different rice production brands) – $50,000
  • The cost for counter area equipment – $9,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs: $10,000
  • The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
  • The cost of launching a Website: $600
  • The cost for our opening party: $7,000
  • Miscellaneous: $10,000

We would need an estimate of $250,000 to successfully set up our rice retail store in Charleston – West Virginia. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funds / Startup Capital for Mercy Lurton Rice Store®, LLC

Mercy Lurton Rice Store®, LLC is a private registered business that is solely owned and financed by Mercy Lurton and her immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

  • Generate part of the start – up capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from my Bank

N.B: We have been able to generate about $50,000 ( Personal savings $40,000 and soft loan from family members $10,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Mercy Lurton Rice Store®, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of well – processed and well – packaged rice from different rice production brands a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mercy Lurton Rice Store®, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Leasing of facility and remodeling the store: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Compilation of our list of rice brand that will be available in our store: Completed
  • Establishing business relationship with wholesale rice suppliers: In Progress

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Starting a Profitable Rice Retailing Business: Your Ultimate Guide 

rice wholesale business plan

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting your rice retailing business at the right time is crucial for success. Factors such as market demand, competition, and the availability of capital should be taken into account. This section will guide you in identifying the optimal time to launch your business.

Market Research

Business plan and financing, supplier and inventory management, store setup and equipment, pricing and promotion, customer service and engagement, examples and tips for a successful rice retailing business, key takeaways.

Choosing the right location for your rice retailing business is essential. Factors like proximity to target customers, accessibility, competition, and infrastructure should be considered. This section will provide insights on selecting the best location to maximize your business’s potential.

Step-by-Step Guide to Launching Your Rice Retailing Business

Conduct thorough market research to identify your target customers, understand their preferences, and analyze the competition. This step will help you develop effective strategies to attract and retain customers.

Create a comprehensive business plan that outlines your objectives, marketing strategies, operational processes, and financial projections. Determine the capital required and explore various financing options available to fund your rice retailing business.

Legal Requirements and Permits

Familiarize yourself with the legal requirements and permits necessary to operate a rice retailing business in the Philippines. This step will ensure compliance with regulations and avoid potential penalties.

Establish relationships with reliable rice suppliers and negotiate favorable terms. Develop an inventory management system to ensure adequate stock levels, minimize wastage, and maintain product freshness.

Design an appealing and functional store layout that enhances the shopping experience for your customers. Acquire the necessary equipment, such as weighing scales, storage containers, and display shelves, to facilitate smooth operations.

Determine competitive and profitable pricing strategies while considering factors such as market trends , production costs, and customer expectations. Implement effective marketing and promotional activities to generate awareness and drive sales.

Deliver exceptional customer service to build loyalty and attract repeat business. Implement customer engagement strategies like loyalty programs, feedback mechanisms, and personalized experiences to enhance customer satisfaction.

Example 1: The Story of Juan’s Rice Mart Explore the inspiring journey of Juan’s Rice Mart, a successful rice retailing business that started small but grew exponentially through strategic planning , exceptional customer service, and innovative marketing techniques.

Example 2: Leveraging Technology for Business Growth Discover how rice retailers are leveraging technology solutions such as online platforms, mobile apps, and social media marketing to expand their reach, attract new customers, and streamline operations.

Tips for Success:

  • Build strong relationships with your customers and suppliers.
  • Monitor market trends and adjust your offerings accordingly.
  • Focus on product quality and consistently deliver fresh rice.
  • Embrace digital marketing strategies to reach a wider audience.
  • Continuously improve your operational processes for efficiency.
  • Starting a rice retailing business in the Philippines can be a profitable venture due to the high demand for rice.
  • Conduct thorough market research, develop a solid business plan, and secure the necessary permits and licenses.
  • Choose a strategic location, establish reliable supplier relationships, and provide excellent customer service.
  • Leverage technology and stay updated on industry trends to stay competitive.

Ready to start your rice retailing business in 2023? Follow the step-by-step guide , implement the proven tips, and unlock the potential of this lucrative industry. Begin your journey to success today!

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Sample Rice Retail Store Business Plan

Rice retailing business plan pdf sample.

Rice is one of the most popular and highly consumed food in most countries of the world. Because of this, it is always in high demand. If you are looking for a lucrative business that you can start with low capital, you can consider the rice retailing business.

This article is going to provide all the essential information you need on starting a rice retailing business.

  • Carry Out a Market Research

Don’t just assume that because rice is always in high demand, you will automatically make good sales and profits. Though it is undisputed that rice is a highly demanded food commodity but this does not mean that it sells well in every location. Many factors influence the demand for rice and how well it will sell.

While there are many places where rice is regularly eaten on a daily and there are also environments where rice is a luxury that is eaten occasionally.  This is why you need to carry out market research to determine where to locate your rice retailing business. Market research will also help you to identify and understand your potential customers and even your competitors.

So, before users start anything as regards the rice retailing business, the first thing you should do is to write a rice retailing business feasibility study report and develop comprehensive market research. Doing this will arm you with all the necessary information you need for the business. And this will help you make the right decisions and also save you from making unnecessary mistakes.

  • Learn About the Business

“What do I need to learn about starting a rice retailing business for God’s sake? Is it not to go and buy rice from wholesalers and resell?” I know those are some of the questions running through your mind.

Well, let me tell you the truth, if you don’t want to take avoidable risks that can make your business run at loss, then you need to go and learn about the business from someone who is already doing it. I mean, do you know how to distinguish a bowl of good rice from a bad one? Do you know the right place to purchase quality rice at cheap prices?

You don’t have to waste time trying to figure this out all by yourself when you can always learn how to it right.  My advice to you is that you should look for one or two highly successful rice retailers and go and learn the nitty-gritty of the business from them.

  • Find a Good Business Location

Like I mentioned earlier, it is the location of your rice retailing business that will determine whether you will sell very well or not. So, when you are finding a location for your business, make sure that location is where there is a high demand for rice. Also, make sure it is not too far from where you will be getting your rice supplies.

As soon as you get a location that is suitable for your rice retailing business, start promoting your business to people around. Intimate people about what you intend to sell so that they can become familiar with it.

  • Write a Rice Retailing Business Plan

If you want your rice retailing business to go far, then you will need a business plan for it. A business plan will not only help you preempt the future and plan for it by setting clear goals, but it will also make it easy for you to pitch investors for your business and even apply for bank loans in case the need arises.

If you want to write your business plan by yourself, there are business plan samples and templates online that users can use as a guide on how to go about it.

  • Register the Business

If you want your rice retailing business to be taken seriously, then you need to register the business. Registering your business will make it looks professional and people will not be reluctant to transact business without because they know your business has legal standing.

Also, it will make it easy for you to get contracts from corporate organizations and government agencies.

  • Start the Business

If you do not have the required capital to start a rice retailing business, the first thing you should do is to source from capital either from your friends and family members or from the bank. After you have raised capital, you can then make a bulk purchase of rice of different varieties that your customers will like either from a wholesaler or directly from a rice farm.

You should also get all the other basic things you will need like storage facilities, measuring tools, etc. If you cannot handle the business single-handedly, then you can hire a few people to work with you.

  • Promote the Business

Remember, your business cannot thrive if you are not making sales and you can’t make good sales if you don’t market your business. So, don’t sit still and assume that consumers will just start rushing to you. You need to do aggressive marketing and look for irresistible offers that will make people buy from you and become your loyal customers.

RICE RETAILING BUSINESS PLAN EXAMPLE

Here is a sample business plan for starting a rice retailer business.

A rice retail store business is a business that can be started by virtually anyone. You do not need any form of experience, good business or educational background to start and run a rice retail store.

One basic requirement for setting up a rice retail business  is the regular supply of rice and a good site for your business.

This article serves as a guide to how a rice retail store business plan sample looks like. You will need it to effectively start your rice retail store business.

Business Name: George Grey Rice Retail Store

Executive Summary

Our Products and Services

  • Vision Statement

Mission Statement

Business Structure

  • Market Analysis

Sales and Marketing Strategy

  • Financial Plan

Competitive Advantage

George Grey rice retail store is a rice retail store owned by a 45-year-old high school dropout, George Grey. It is a registered store and will be situated in downtown Los Angeles, California. We are looking to become one of the biggest rice retail stores in the United States. To make this happen, we have secured a facility that is large enough to help us achieve this.

At George Grey rice retail store, we are aware of the existing competition in the rice retail store business. As a result of the competition that exists in this business, we have carried out massive research to help us know what our customers need. With this, we will be able to give our customers exactly what they want.

We will also make sure that our customers get the best services whenever they come to purchase our goods. We intend to have a personal relationship with all our customers. This, we will achieve with the use of CRM software.

George Grey rice retail store is not in the rice retail business for fun. We are in this business to make a lot of profit.

We know that to make a lot of profit, we need to be able to please our customers. As a result of this, we will provide our customers with the best price from the most trusted rice production firms that are in the world.

The products that we will offer our clients include long-grain rice, short-grain rice, and medium grain rice.

All these will be available both in non-organic as well as organic form.

Vision Statement Our vision at George Grey rice retail store is to dominate the rice retail store industry. We have the vision to become one of the most sought after as well as successful rice retail stores in Los-Angeles California and the United States.

At George Grey rice retail store, our mission is to set-up a standard rice retail store business that will be able to meet the ever-increasing needs of our numerous potential customers. We intend to ensure that properly bagged rice and will be obtainable to our prospective customers for a price that they will easily afford.

We are also looking to grow from just having a single rice retail store in Los Angeles, California to having a chain of rice retail stores scattered across the United States.

We are looking to just set up a store that will be considered average. Our intention at George Grey rice retail store is to set up a business that will be a standard for other rice retail store business that will be set up after we get established. We know that becoming a force to reckon with in this business will not happen overnight. We are very intentional.

As a result of this, we will employ the services of only those that we are certain can function at the level we want to operate. We will ensure that our staff are qualified to work in rice retail stores and are also very customer-friendly.

Market Analysis Market Trend

The rice retail store industry is not new. However, it is constantly changing. At the moment, this industry is moving very rapidly from a manually powered industry to a technology-driven industry.

As a result of the advantages that technology has made available, home delivery, as well as online ordering, are now a major part of the rice retail store business.

We are new in the industry and we intend to get a foothold fast. To achieve this, we will carry out the following;

  • Give discounts to our first set of customers as well as our regular customers
  • We intend to have a strong online presence
  • We will also place our handbills in public places

Our Target Market

Virtually everyone feeds on rice. This makes the market for the rice retail store business a very large one. We are not the only rice retail store in Los Angeles, California. Therefore, we do not intend to offer everyone our services.

After carrying out our research, we have come up with a target market that we know will suit our business. Those in our target market include;

  • Restaurants

Financial Plan Source of Startup Capital

To get our rice retail store business started on the level that we intend, we will need $100,000. As it stands, we do not have all the money we need. We have been able to come up with 60% of the amount that is needed to set-up this business. The remaining amount will be gotten as a loan from the bank.

We are not ignorant of the high-level competition that exists in the rice retail store business. To stand out, we have chosen a location that will constantly keep us because of our customers. We are also looking to get the best rice brands from top rice packaging firms.

This is a rice retail store business plan sample. This business is owned by George Grey and will be located in downtown Los Angeles, California.

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Rice Wholesale Business

How to start a Rice Wholesale Business ?

Complete detail about starting rice wholesale business: its cost, profit and requirements:.

Rice is a staple and highly consumed food grain of our nation. Due to its high consumption and demand there are almost all states of India produce rice. India is the second-largest rice producer of the world after China. India has a gigantic market for rice utilization which makes it a high demand segment for investors. India produces many varieties of rice due to the food styles of different culture and regions. It is very important to understand the market elements and customer requirements before starting the rice wholesale business. Consequently, setting up a rice wholesale business could be a great choice for anybody looking for a steady and consistent source of income.

So for the beginners we are come with this blog where we are going to cover how to start the rice wholesale business, requirement, investment, profit, marketing, risk factors and frequently asked questions regarding rice wholesale business.

Rice Wholesale Business

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About The Rice Wholesale Business:

Rice is one of the highest consume food grains which satisfy the hunger of world’s population. The yearly rice production occurs about 535 million tons. After China, India is the second largest rice producer country combined collected 50% of world’s rice production.

More than 300 million acres of cultivated land in Asia continent is used for rice cultivation. Rice is one of the main staple used different varieties by almost all people from different regions. India produced 124 million metric tons in the financial year 2022-2023. The production is decreased 5% from last financial year, although the demand of export is always high, and it creates a vast business opportunity for the investors.

Steps to Start Rice Wholesale Business:

India is the second largest rice producing country in the world. Due to high demand and to meet the demand, people found an opportunity for the business with a good profit. If you are planning to start the rice wholesale business then you should know how to proceed. Here are few steps you can follow to get an idea-

Rice market research- Visit the local market and your target location and take the sample of the rice. Know the various types of rice available, their costs, and quality. Distinguish the varieties of rice and figure out what sorts of rice they like.

Make a business plan- A proper planning will guide you and give you a blueprint how to proceed. It includes about your business, investment, supply chain, marketing, everything regarding your business.

Manage fund- Starting a wholesale rice business requires a certain fund. You will have to buy stock, pay rental of warehouse, staff salary, and cover different costs. You can talk to the band, micro finance companies for the business loan.

Find suppliers- Before starting the business you have to search the reliable suppliers. Find the supplier who can provide you regular and good quality rice at the best price.

Build a strong network- Build a good relation with retailers, hotel and restaurant, and different organizations that might be interested on buying rice from you.

Make a proper website- Make a business website and make it in such a way that your customer can easily reach to you. There should be an option for buying rice through your site, and you will deliver the rice to the customers.

Register your business- Register your business with the local government and get all necessary licenses and certificates before starting the business. It will take some time to complete this.

Start marketing and promotion- Make a marketing plan and work accordingly. You can go with digital marketing along with traditional marketing.

Types of Rice Varieties of India:

India produces hi quality and different variety of rice. Basmati rice, Sona Masuri, and Pusa varieties are some of the popular rice varieties of India. Each state has its typical and preferred rice choices, and when you enter in this business it is essential to know all varieties of rice for a successful business. According to the food habits and weather people choose the variety. Here some of the best varieties are given below-

Rice Wholesale Business

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Conduct Market Research for Rice Wholesale Business:

Market survey is the major part of any business. If you want to make your rice wholesale business successful then conduct a detailed market research about the rice business of India. You need to search your competitors in your target location. You need to understand the local people requirement and the rice varieties they prefer to use, their prices and quality of rice. You must go to the retail shops and know the choices of local people.

You also need to know during wholesale business what extra stuffs need along with the rice wholesale business, what thing make you different from others and why the customers buy from you. These things you should know before starting the rice business.

Location for the Rice Wholesale Business:

When you are planning to start a wholesale rice business you need a cool, dry ware house. It can be approx 1000 sq. ft. This ware house should be clean and hygienic where proper care for the stocks and insects or rats could not enter. It is better to choose a location in the market area or attached to the market location.

Documents & License Required for Rice Wholesale Business:

If you want to start your rice wholesale business then you need to get the following licenses-

  • Udyog Aadhar MSME Registration
  • Factory license or trade license
  • Pollution free certificate from your state pollution control board
  • If you need required number of employees, complete the PFA and ESIC registration:
  • FSSAI License
  • GST registration certificate

Manpower Required for Rice Wholesale Business:

When your business plan is ready and you have completed half of your task of rice wholesale business, now it is the time to hire staffs for helping you in running the business. You need 4-5 workers, 1 accountant and 1 sales person at least. The workers must be hardworking, dedicated and punctual. Behind every successful business there is a team of dedicated people so hire them just before starting the business.

Investment Required to Start Rice Wholesale Business:

A rice wholesale business investment is depending on the size of the business. You can start a rice wholesale business with 1 lakh- 4 lakh initially. If you are new in this business then you should start your business with limited fund. After getting the knowledge about the market and your sale you can gradually develop your business with adequate fund.

Rice Wholesale Business

Profit Margin of the Rice Wholesale Business:

In India rice is one of the main foods and almost everyone eat rice. The rice wholesale business is very profitable and never goes down or out of demand. In terms of profitability in the rice wholesale business owners earn a good profit margin 8.5% then retailers.

Marketing for Your Rice Wholesale Business:

The marketing and promotional activities are very important part of your business. There are many platforms are available now to promote your business. Make a relevant Ecommerce website where you can sell your products to the customers. You can go with the digital marketing where your business profile will reach to your target customer in your desired location.

You can make banners or leaflets and distribute to the local market or with the local newspapers. You can directly visit hotels, restaurants, retailers and give a rice supply proposal. You can also talk about your new business to your known persons. A strong advertisement will give you a number of orders.

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Risk of Rice Wholesale Business:

When you are enter the business you have to make your mind to face all types of situation. Like any other business, rice wholesale business also has some challenges. We are not trying to discourage you, but you need to know the risk factors for betterment of your business. Here are some risk factors-

The prices of rice varieties are not same due to several reasons:-

  • The gap between the demand and supply. When the rice supply to the market is lower as compared to its demand it will affect the prices of the rice. This always happens at the peak of the rice cultivation seasons.
  • Due to inflation the rice price becomes high because it affects the commodity market.
  • You have a proper warehouse for your stocks which is well-protected from rodents, insects and moisture. If it is not good then you might face huge loss.
  • You should have enough fund to be a wholesaler and should a good network otherwise it will be little difficult to maintain the supply chain.

Conclusion:

If you have made your mind to enter the rice wholesale business then you have to make a strong business plan that includes all necessary things about the rice wholesale business in India. You have a clear vision and goal so it is necessary to survey the market and analyze things.

In this blog we have discussed the steps of starting the rice wholesale business. In this blog we have discussed the steps of starting the rice wholesale business. Rice wholesale business in India is profitable for start-up. I hope the above information have helped you for this business.

FAQ(Frequently Asked Question):

Q: What is a Rice Wholesale Business ?

Ans: A rice wholesale business involves buying rice in bulk from rice producers or distributors and selling it to retailers, restaurants, and other bulk buyers.

Q: Why Start a Rice Wholesale Business in India ?

Ans: India is one of the largest rice producers in the world, making it a lucrative market for rice wholesalers. The demand for rice is consistent due to its staple food status.

Q: What Are the Legal Requirements for Starting a Rice Wholesale Business in India ?

Ans: You’ll need to register your business, obtain the necessary licenses, and comply with food safety and quality standards. GST registration may also be required.

Q: How Do I Source Rice for My Wholesale Business ?

Ans: You can source rice directly from rice mills, farmers, or wholesale rice distributors. Building relationships with reliable suppliers is essential.

Q: What Types of Rice Should I Offer ?

Ans: Consider offering a variety of rice types like Basmati, Non-Basmati, Parboiled, and Organic, catering to diverse customer preferences.

Q: How Do I Store Rice Properly ?

Ans: Invest in proper storage facilities like warehouses with temperature and humidity control to maintain rice quality and prevent spoilage.

Q: How Can I Market My Rice Wholesale Business ?

Ans: Develop a strong online and offline presence, network with potential clients, and offer competitive prices and quality.

Q: What Are the Key Challenges in the Rice Wholesale Business ?

Ans: Challenges include price fluctuations, competition, supply chain disruptions, and maintaining quality standards.

Q: How Do I Price My Rice Products ?

Ans: Pricing should consider production costs, market demand, and competitors’ prices. Ensure your pricing strategy is sustainable.

Q: Are There Any Government Subsidies or Schemes for Rice Wholesalers ?

Ans: Investigate government schemes and subsidies that support agriculture and food processing businesses, which can benefit your rice wholesale venture.

Q: How Can I Ensure Food Safety and Quality ?

Ans: Adhere to food safety standards and certifications like FSSAI (Food Safety and Standards Authority of India) and maintain a strict quality control process.

Q: Which countries are the major importers of rice?

Ans- The major importers of rice are-

  • Saudi Arabia
  • United States of America
  • Philippines
  • United Kingdom

Q: Why you should go for the rice wholesale business?

Ans- The main reasons to go for the rice wholesale business are-

  • It is a consistent business and has demand throughout the year.
  • It has a high customer base so it is easy to sell the product.
  • There is high demand of rice products in different food industries of India and foreign.

Q: What is the cost to start the rice wholesale business in India?

Ans- You can start a rice wholesale business with 1 lakh- 4 lakh initially for a small scale business. The cost of the business is depending upon the size of the business.

Q: What is the profit margin for a rice wholesale business?

Ans- The rice wholesale business is very profitable and never goes down or out of demand. In terms of profitability in the rice wholesale business owners earn a good profit margin 8.5%.

We hope that you would have liked reading this blog post on  How to start Rice Wholesale Business in India ?  For more such informative articles, keep visiting  YMW Solution.

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Use this information strictly at your own risk. YMW Solution will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate. YMW Solution makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. 

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Rice Retailing Business Plan | Ultimate Guide In 2023

RICE RETAIL BUSINESS

Rice consumption has shown a clear increase over the years. In the last years of 2021/2022, 520 million metric tons of rice was consumed globally. Rice being the celebrity of the food and beverage industry, is one of the most famous ventures since the ancient times and is all time in demand. As rice is a staple food, the rice retailer business provides a certain security to the investor or entrepreneur. In this article we will discuss what makes the rice retailer business a good idea and what are the few nitty-gritties that are needed, including marketing strategy for rice business, and developing an informed rice retailing business plan. Along with this we will understand what are the few pointers from a sample project proposal for rice retailing that you could incorporate in your rice business plan.

The agriculture sector is a vital part of the economy and is highly emphasized by the government. It is not only in a constant demand but also in high supply which works in the benefit of an entrepreneur in the rice retailer business. Being in this venture also has additional benefits as it is relatively easy to start and requires minimal investment. Thus, generating a good net profit for the retailer.

Also Read: How To Start A Land Clearing Business? 11 Steps {Ultimate Guide}

Table of Contents

Things to keep in mind before starting the business:

  • Investment and resources : You should have enough collection of capital and resources that you need for your rice business.
  • Acquire License : You would have to generate a government approved license that legitimizes your business and allows you to run your business smoothly.
  • Gather Equipment : According to the rules of your license you would need proper equipment of a certain standard. Price tags, calibrated weights etc.
  • Storage unit : One look out in the rice industries is the issue of storage, the rice tends to spoil in three months. Along with this the rice gets eaten by insects and bugs. You would need a well-structured storage unit and invest in disinfectants. Here you can take advice from other sample project proposal for rice retailing and also from your supplier.
  • Determine your target market : You need to identify who your potential customers are. Are they households, restaurants, or small convenience stores? Knowing your target market will help you come up with a business plan and marketing strategy.
  • Look for a reliable supplier : You would need to find a supplier who can provide you with good quality rice at a reasonable price. It’s important to build a good relationship with your supplier to ensure a steady supply of rice.
  • Choose a strategic location : The rice retailing business should be located in an area where there is high foot traffic. A location near a market or a busy street is ideal.
  • Set your prices : You should set your prices competitively. Do some research on the prices of rice in your area and make sure that your prices are reasonable.
  • Promote your business : You need to get the word out about your rice retailing business. You can use flyers, social media, or even word of mouth to promote your business.

Before starting any venture, planning the above points is of key importance.

Also Read: How To Start A Custom Car Shop? {Ultimate Guide}

Here are few Steps that are needed to Develop a Concrete Rice Business Plan –

1. conduct market research and form marketing strategy for rice business –.

Conducting a Market research involves gauging of the rice market in your area. You are to understand the demand of different types of rice, the number of suppliers, the demographic of potential customers and a thorough knowledge about the competition. This is where the competition’s sample project proposal for rice retailing would come in handy and help you create a marketing strategy.

2. Create Business Objectives

Your rice business plan would need a clear set of objectives. Concise, achievable and smart objective and goals work as a guideline onto which further operations are done.

3. Target Market

The rice retailing business plan depends on identifying your target customers, including their demographics, their preferred location, monetary status and purchase habits. And finally incorporating them in marketing strategy for rice business.

4. Unique Selling Proposition (USP)

Create a strategy that sets you apart from your competitors and attracts customers. After developing a unique selling proposition showcase it in your rice business plan. In order to develop a well rounded USP you can use the competitor’s sample project proposal for rice retailing and stand apart from the crowd.

5. Pricing Strategy

One of the pointers of how you can price your rice products that leads to the most net profit is by using an already well researched pricing strategy. For example, D-Mart became a famous retail store in India by using Everyday Low Price Strategy – EDLP which worked for the Indian market and gained high profit.

6. Marketing Plan

Create a detailed advertising statement that markets and promotes your rice business to attract customers and promote customer loyalty. And make this a part of your marketing strategy for rice business.

7. Operation Plan

The rice business plan includes a step-by-step outline of daily activities that you would like to see in your business. Such as information on staff, daily changes in prices, inventory, maintenance of storage facility etc.

8. Financial Projects

Create balanced and realistic financial projects in your rice retailing business plan to assess your company’s workings. create accurate financial predictions that include predicted sales, expenses, and profits.

9. Organizing

And finally compile it all together to form a comprehensive rice business plan.

In conclusion, rice is in all time demand throughout the centuries. With right equipment, capital, license resources, and a full proof rice retailing business plan you can establish a successful venture.

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20 Tips to Start Rice Wholesales Market

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  • September 22, 2023

Rice Wholesales Market : Rice is the most consumed staple food in the world and in Nigeria it is a must eat in most families.

Rice  wholesales business is a very lucrative business to engage in.

Many wholesale rice distributors are now making millions and smiling to the bank.

There are many reasons why you should go into this business.

If you are looking for a new business to start.

Try not to become a man of success. Rather become a man of value. You can request publication of your article for publication by sending it to us via our Email below.  [email protected]  or   SMS/ WhatsApp ) or call  +2347034920650.   Click here to start business now with businesshab.com

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Rice Wholesales Market: BusinessHAB.com

1. Get the Rice Wholesales Market Reasons 

  • Rice is not a perishable food like vegetable, if water do not get to it and it is placed on wooden pallets, it will take at least 4 years for rice to get spoiled.
  • Within this period , there is no way you cannot sell your stock of rice.
  • Nigeria is Africa’s biggest economy. The population of Nigeria is 170million people and by the year 2020 it will be about 200million people.
  • Statistic shows that about 22million bags of rice is consumed every month. So there is a big and growing market for rice in Nigeria.
  • There is always a ready market in almost any locality.
  • If you go into the business as a wholesaler , you will always find many retailers around you, who will patronize you regularly.
  • Rice is an essential commodity, almost like salt and sugar.
  • No wonder even billionaire businessman Aliko Dangote is investing $1billion in integrated farming. You can hardly go wrong with this business.

2.Get the  Supplier -:

This is where your work really starts.

You need to go to the rural areas where there are local rice millers.

Look for a miller with “near modern” equipment and excellent perboiling and drying techniques.

Also look out for high level of hygiene.

You need to buy from a source where you can get the rice in very large quantity and at the cheapest possible rate.

So that you can still make profits after spending for the logistics involved in getting the rice from the supplier to the retailers.

3.Get a space

Most times, you don’t get to sell of the whole bulk of supply you get at once to the retailers.

Because there may be times when the market demand may be low.

That is when you need a space to store your rice until you are ready to ship out to retailers.

4.Get a business Capital

To become a wholesale distributor.

You need to buy in very large quantity from the rice millers and sell in smaller bits to the retailers.

So starting a rice wholesales market requires much capital.

The only exception is if you have a mutual understanding and agreement with the millers.

Where they supply you the goods on credit sales.

You sell to the retailers and pay them off as soon as you are done with the sales.

You can source for low interest loan from Bank of Industry or Bank Of Agriculture.

But don’t go to commercial banks at this stage.

Their interest rates will likely kill your business at this stage.

Rice Wholesales Market

5. be locomotive.

As the wholesaler, you may have to be in charge of transporting the rice from the rice farm to your warehouse.

Or delivery to customers when orders are placed.

You may need to get an old truck to handle the distribution process.

Or you can strike an agreement with a logistic company to take care of the transportation process.

It may be cheaper for you to get an old but strong pickup or station wagon.

6. Get the best variety

Check out the most popular variety of rice in your locality.

And decide on the ones to invest in.

7.Know the marketing Strategies

  Where you locate your rice business can be one of the most important factor.

That will lead to the quick success of your enterprise.

Look for a good shop close to or opposite to a normal conventional market.

If you are in a town, do your market survey properly.

And do not locate in an area where there are already too many wholesalers.

Unless the market in such places is still huge.

However it will be easier for you to go to a place with no or few wholesalers.

This will force all the retailers around your locality to patronize you.

So as to save on their transportation cost. Location is very vital.

8. Get the Rice Wholesales Market Activities

It’s important to understand the aspect of Rice Wholesales Market we’re discussing , considering how vast the food sector is.

So what is Rice Wholesales Market in Nigeria?

This is a type of business where you buy rice in bags and then sell it at retail to customers.

Your customers can be individuals, restaurants, hotels, schools etc.

Due to the popularity of the wholesale  business in the country.

There is still room for more entrepreneurs to invest and profit from the business.

9.Get the Business Needs

Rice Wholesales Market Can be done anywhere.

The Rice Wholesales Market is one of the businesses that can be done irrespective of the location.

No matter the location , whether in the rural or urban location people need food to survive.

It is needed on a daily basis to maintain our daily body functioning and optimum health always.

You can make profit from the business.

If you start the business , there is every chance of making a profit from the business.

However , this is in no way trying to tell you that the business is a get rich quick scheme.

But when you develop a solid business foundation.

You can be sure to grow the business from nothing to a profitable one.

Now that you’re ready, let’s dive into the step by step process required to set up Rice Wholesales Market.

10. Get a proper business operation

This is really important because without figuring out the business operation of your business.

It’s going to be difficult to operate the business effectively.

You can decide whether your mode of operation can be to be a door to door delivery.

Delivery to hotels , restaurant or find a static location for the business where you sell for individuals etc.

For most beginners , they start the business by selling from a static location then scale it up.

When you’re able to figure it out, then move to the next step.

11.Get your Rice Wholesales Marketing Business Plan

Well, this is really important as a rice wholesales business plan.

Will help you keep everything and all calculated figures on record.

Your business plan should include the following:

  • Decide on the type of product you intend to sell.
  • There are several reasons and factors to consider here.
  • But the important of them is the knowledge and demand of the product.
  • Then decide on the amount of money you need to spend on the business startup project.

However , these may vary according to the product you choose.

Some may require more startup capital than the other.

  • Then write your projected profit and future expansion of the business.

Well , we’ve outlined all the steps required to write a great   business plan  for any business of your choice.

12. Get your Rice Wholesales Market Registered 

To ensure that you have a business name.

You’ll need to register your business with the corporate affairs commission.

And also register to other relevant institution.

The reason why this is important also is when you intend to become a major supplier of rice to hotels, restaurant, food processing companies.

They’ll need you to be fully registered to ensure that you’re legit.

Then move to the next step of the process.

13. Hire people

Now your business is getting set to start.

But you’ll need to employ the staff that’ll need to help you in running the business.

But you have to write all the rules and what each worker will do when they’re employed in the business.

If you’re not going to do it immediately.

Then you need to keep that in mind as you’ll need to employ as the business grows.

14. Start selling the goods and make profits

Open for business and begin to sell your products.

Business grows as the hours , days increases.

As the number of customers grows, so will be the profit of the business.

15. Advertise the business

Advertisement can come before the last option.

Well , the advertisement is an important part your business.

To get more people to patronize your business , you’ll need to let the voice out.

You can begin the advertising by telling your friends and family.

Make some flyers and distribute to potential customers.

Visit hotels , restaurants , school and submit a foodstuff supply proposal.

Ensure you do it to several of the places involve to boost your chances of getting more than one place to supply rice

Give some time and so a follow up to see whether your proposal has been approved or not.

16. Know the Business Challenges 

Like any other business, there are some challenges of wholesale rice wholesales business in the country.

This is not in anyway trying to discourage you.

But to ensure that you’re better prepared for the business.

These are  

The prices of foodstuff may not be the same all the type due to several reasons:

  • When the rice supply to the market is lower and there is more demand for the product.
  • That will affect the prices. This scenario always happens at the peak of the farming seasons.
  • Another reason is inflation.
  • Inflation pushes the value of the naira down which can also affect prices of the commodity in the market.

17.Get your suppliers

Sometimes the middlemen are the problem. You sometimes not get what you ordered.

These can be devastating and lead you to get the product that is not of good quality.

The way around this is to ensure you find the yam market or  farmers market  to get your rice.

18 Rice Wholesales Market Business Packaging:

You may decide to package the rice with your own brand name.

Branding is a long term plan that will pay off later when you start having competitors.

The branding may involve packing the rice in personalized sacks.

Also, packaging improves the look of your product, and increases its appeal to your customers.

19.Rice Wholesales Market business Marketing:

Now you have everything set up.

You will need to quickly penetrate the market by doing some marketing.

Especially to retailers around you.

In any business, it is important that you go to market very fast.

Business is never the same every where.

So going to market quickly , still remains the best way to study your market.

You may use certain incentives to lure your initial customers , such as giving out free 1kg samples , free delivery to their market stores , etc.

Some may decide to give out credits at the initial stage, this will surely pull in customers quick.

But I don’t advocate this , unless you are willing to lose some money, to get market share.

20.Rice Wholesales Market Business Book Keeping: 

Finally, remember that it is very important for you to keep accurate records of your business from day one.

This will give help you in managing your business.

Even if you employ sales boys & girl.

It will also give you a great advantage when you want to expand your business and properly seek for finance from lending institutions.

Remember that you can now get very sound business education from online business training schools like Millionaires Academy.

Now that you’ve read the steps required to start Rice Wholesales Market in the country.

It’s really important to analyze the market.

Make some tough decision and then start making a profit from the business.

Related Tags

  • how to start wholesale rice business
  • mama gold rice distributors in nigeria
  • rice business ideas in tamil
  • rice business plan pdf
  • rice business profit india
  • rice depot in lagos
  • stallion rice distributors in nigeria
  • where to buy rice in lagos

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BusinessHAB

i love it and also am interested in it

Thanks, By leveraging assessment and our deep analytics capabilities, we deliver talent insights that enable workforce optimization. Also read on 12 Ways on How to make Good Money in High Oil Price

Please I need a supplier from the north

Vital tips for 51  Best Small Businesses Hiring Near Me  in world.

Is ok, read more on https://businesshab.com/ for more business tips. Thanks.

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Nextech Grain Processing & Engineering Solutions Pvt. Ltd.

Formerly Nextech Solutions

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A Comprehensive Guide to Starting a Successful Rice Mill Business

rice mill business

Introduction

Are you looking to enter the agricultural industry with a lucrative business idea? Look no further than starting your own rice mill. Rice is a staple food for millions of people. Worldwide and the demand for high-quality rice continues to grow. Starting a successful rice mill business can be challenging. But with the right plan and equipment, it can also be incredibly rewarding. In this full guide, we’ll take you through everything. You need to know about starting and running a profitable rice milling business. From creating a solid business plan to marketing your brand effectively. We’ve got you covered. So let’s dive in and learn how you can become an expert in the booming world of rice mills.

Rice Milling Business Plan

To start a successful rice milling business, it is crucial to have a well-planned and comprehensive business plan. A good rice milling business plan should include the market analysis, financial projections, production process, marketing strategy and management structure.

Market analysis involves researching the current demand and supply of rice in your target market. This will assist you in estimating your venture’s potential profitability. You may also find out who your rivals are and how they operate.

Financial projections are essential for securing funding from investors or loans from banks. It includes forecasting revenue, expenses and profits for at least three years based on realistic assumptions.

The production process section outlines step-by-step procedures involved in transforming paddy into polished rice ready for consumption. You should consider factors such as quality control measures to ensure that your final product meets customer expectations.

Marketing strategy identifies how you will promote your products to reach potential customers effectively. This may include advertising campaigns or partnerships with local supplier or retailers.

Designing an efficient management structure ensures smooth operations throughout all aspects of the business while minimizing costs wherever possible. Remember that having a detailed Rice Milling Business Plan is critical when it comes to starting this type of enterprise successfully!

Rice Mill Equipment

Rice mill equipment is crucial for the success of your rice milling business. It’s essential to choose the right type of machinery that suits your needs and budget.

You need to decide on the scale of your business and select equipment accordingly. Small-scale mills can function with basic machines such as a husker, polisher, destoner, and grader. However, larger mills require more advanced machinery like paddy separators, whitening machines, color sorters, and packaging machines.

Ensure that the quality of your equipment is top-notch to minimize free time due to breakdowns or repairs. Find manufacturers who stand behind their goods with warranties.

Consider the power source required for each piece of machinery based on its size and capacity. Some may require electricity while others run on diesel engines.

Proper maintenance routines are critical in keeping your rice mill equipment running efficiently throughout its lifespan. Regular cleaning and lubrication help prevent wear and tear.

In summary,Rice Mill Equipment plays an important role in ensuring that grains are properly processed before they reach consumers’ tables or kitchens.

This makes it extremely important that you invest in high-quality Rice Mill Equipment from reputable manufacturers with a solid reputation for providing reliable products at reasonable prices.

Rice Mill Feasibility Study

A feasibility study is a crucial step in starting any business, including a rice mill. It helps to determine the viability and profitability of the rice mill project before investing your time, money and resources.

The first thing you should consider when conducting a feasibility study for a rice mill business is the demand for rice in your target market. You need to research on how much rice people consume in that area, what types of rice they prefer, and if there are enough suppliers to meet the demand.

Another important aspect to consider is the cost involved in setting up your own rice mill. This includes purchasing or leasing land, buying equipment such as dehuskers and polishers, hiring laborers and technicians among other expenses. You must also factor in potential risks like natural disasters that can damage crops or machinery.

It’s also essential to analyze your competition – other existing rice mills operating within your chosen location. Determine their strengths and weaknesses so you can learn from them while developing strategies unique enough for an edge over competitors.

Lastly but not leastly , it’s vital you create financial projections based on realistic assumptions about revenue streams (such as wholesale vs retail sales), production costs (including raw materials) as well as fixed costs like rent or salaries etc. This will help gauge whether building a Rice Mill from scratch really makes sense economically speaking

How to Start a Rice Mill Business With Nextech ?

Starting a rice mill business can be daunting, but with the right partner, it can also be rewarding. That’s where Nextech comes in – as your trusted rice mill consultant and equipment supplier.

We help you define your business plan by conducting a feasibility study to determine the viability of your venture. This includes analyzing market demand and competition, identifying potential challenges and opportunities, and developing strategies for success.

Once you have a solid plan in place, we provide customized solutions to meet your specific needs. Our state-of-the-art rice milling equipment is designed for maximum efficiency, productivity and profitability. We offer everything from paddy cleaners to whitening machines to grading systems.

We also offer installation services by our expert engineers. who ensure that every component is properly installed and functioning optimally before handing over the project to you.

But our support doesn’t end there – we provide ongoing maintenance services throughout the life cycle of your machinery ensuring smooth operations at all times.

Furthermore, as a full-service provider we don’t just stop at supplying you with the best technology available. We also offer marketing plans so that once production begins there are already customers waiting for delivery of their orders!

In essence working with Nextech ensures that not only do you have access to cutting-edge, technology but also expert advice.  How best utilize it while minimizing operational costs!

Rice Mill Marketing Plan

Marketing is an essential component of any business, and the rice milling industry is no exception. Without effective marketing strategies, your rice mill business may not attract enough customers to generate revenue.

To develop a successful marketing plan for your rice mill business, you need to identify your target market and understand their needs. It would help if you also defined what makes your product unique from others in the market.

One way to reach potential customers is by creating a website that showcases your products and services. You can also use social media platforms such as Facebook, Twitter, Instagram or LinkedIn to promote your brand.

Another effective strategy is advertising through local newspapers or radio stations. Targeting specific demographics within the community where you operate. You could offer promotions like discounts on bulk purchases of rice grains or free samples as incentives for first-time buyers.

You should consider participating in trade shows and exhibitions related to agriculture or food processing industries. These events provide excellent opportunities to showcase your products directly to potential clients and network with other players in the industry.

Customer feedback can be invaluable when it comes to improving both product quality and service delivery. So don’t hesitate always asking for feedback from satisfied customers either through surveys or reviews online.

Starting a rice mill business may seem daunting at first. But with the right tools and plan in place, it can be a rewarding venture. Conducting thorough market research and creating a solid business plan are essential steps to ensuring success in this industry.

Investing in high-quality equipment and hiring experienced professionals will also help your rice mill business thrive, Moreover. By implementing effective marketing, strategies and fostering strong relationships with customers. You can pave the way for long-term success.

If you’re considering starting a rice mill business or need guidance on how to take your existing operation to the next level. Working with a reputable consultant like Nextech is highly recommended. With their expertise and support. You’ll have access to valuable resources that can enhance every aspect of your business.

Remember that patience and persistence are key when it comes to starting any new venture. With the application of these tips for success and a steadfast commitment to delivering quality products and services. Your rice mill business undoubtedly possesses the potential for remarkable achievements.

Ready To Be Rich

Business, Investments, and Personal Finance

5 Important Tips for Starting a Rice Retailing Business (Bigasan)

Updated: April 15, 2023

In the Philippines where rice is eaten every day, starting a rice retailing business or bigasan makes a lot of sense. You have consumers who buy in great numbers and food establishments who order in bulk.

Thus, becoming a rice dealer or retailer can net you good profits because of its daily demand. And with a low starting capital of about P80,000 to P120,000 — it’s also an affordable business to start as well.

To help you succeed in this business, here are five important tips you should follow.

1. Get an NFA license first.

Your first priority when starting a rice retailing business would be to secure a license from the National Food Authority (NFA). They are the ones who will tell you if you are allowed to sell and distribute rice.

The NFA license can be procured at the nearest NFA office that has jurisdiction over the location of your business. You will be given an application form from a Licensing Officer (LO) after paying an application fee of P100.

Once you’ve submitted the application form back to the LO, you will pay a license fee that depends on your capital and receive an official receipt from the cashier.

The last thing you need to do is prepare your equipment and facility to be inspected by NFA investigator and if approved, head back to the LO with your notice of inspection, official receipt and proof of compliance with deficiencies (if any).

After acquiring an NFA license, your next step is to register your business. A single proprietorship business must register with the Department of Trade and Industry (DTI), while a partnership and corporation must register with the Securities and Exchange Commissions (SEC).

Related topic: How to Register Your Business in the Philippines

rice wholesale business plan

2. Buy proper equipment

The NFA needs you to have the proper equipment for selling rice. You will need a calibrated weighing scale, white-painted rice boxes, and price tags that indicate the price of the rice per kilogram among other things.

Other requirements include the classification, variety, and grade of the rice grain whether it is NFA or otherwise.

Lastly, you will need to put up a signboard that is 45 cm wide and 75 in length that shows the business name, the NFA control number, and the words “Licensed Grains Retailer” or “Wholesaler” to complete your legal requirements for selling rice.

3. Choose a good location for your rice business.

The location you choose should have the right target market, has heavy foot and vehicle traffic. Study the habits of those who frequent buying rice in “palengkes” and groceries to gauge how you would approach the situation to your favor.

4. Invest on proper storage for your rice.

The downside of selling rice is that it can spoil easily, and its quality will deteriorate in three months. So implement a first-in, first-out inventory method to optimize the shelf life of your rice and maintain its quality.

Another thing you should take note are insects or bugs that eat rice, such as bukbok or grain weevils. Keep your storage area clean and sanitized. Ask tips from your rice supplier as well on how to prevent infestation.

5. Get to know your suppliers and prospective customers

List down all the rice suppliers you have nearby and develop good relations with them, this way you would be able to take discounts further down the road and even get referrals from them.

Having a wide variety of rice will make it easy for customers to choose to do with your business since they have a lot of options to buy from you.

While this may be easy, consider making deals with large-scale businesses such as hotels, resorts, restaurants and small-scale businesses such as carenderias. By providing discounts to businesses, they would likely be more loyal to you and maybe even refer to you if they have other clients interested in buying rice in bulk.

Contact Information for Business Licensing Authorities

Department of Trade & Industry Trade & Industry Building, 361 Senator Gil J. Puyat Avenue, Makati City, Metro Manila, Philippines 1200 Website: www.dti.gov.ph Email: [email protected] Facebook: www.facebook.com/DTI.Philippines Twitter: @DTIPhilippines MSME Assistance Hotline:(+632) 751-5096

National Food Authority Philippines North Avenue, Quezon City, Philippines Website: www.nfa.gov.ph Facebook: www.facebook.com/nfapublicaffairs Twitter: @bigas_nfa Mobile no.: 0906-436-3133

Security and Exchange Commission (Licensing Unit) G/F Secretariat Building, PICC Complex, Roxas Boulevard, Pasay City, 1307 Website: www.sec.gov.ph Email: [email protected] Fax no.: 818-7187

Do you have a rice retailing business? I’d like to hear additional tips so please share them below in the comments section. Thank you.

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20 comments

rice retailing business feasibility study. I need help for this.

Hi Mr. Villafuerte. what if it’s not a retailer? what will be the process if it is for those who wants to be a distributor? do they need to put up a store before hand or as it is a start up, can it be our house as the business location? Thank you in advance.

just have my nfa license. kindly let me know where to buy rice for me to sell? Thanks

I am planing to set up a startup rice business (500K to1M budget) in Philippines and need some guid. what is the best option retailing , whole selling or . distribution ?

thx Neminda

I want first to have seminar before I start bigasan business,who can be a speaker for this?

Which site or reference can we check for schedule of seminars about Rice Retail/Wholesale business? Thanks po

this coming harvest season, i will harvest 40 sacks of rice 50 kilos per sacks.. who wants to buy?

i need a seminar or feasibility study for start up rice retailing business. thank you

i am planning to put a bigasan business budget is 200k please give me tips and factor to consider before putting this business thank you

major rice distributor contact me if interested

I want first to have seminar before I start bigasan business, Which site or reference can we check for schedule of seminars about Rice Retail/Wholesale business? Thanks po

hie i am sriharsha manava i am planning to start a start up retailing and anything that use in our house and daily need if any one having idea can you please share with me . and i am planning for supermarket too. you can share….

I want to attend seminar for bigasan …any one who knows ?

I want to start rice retailing business but i don’t know where to start . Is there someone there can give me some advice pls. Badly needed. Thank you

Hi Sir / Ma’am, Good day! I’m planning a business as a rice retailer but also I need a seminar first .

Me tindahan po ako sarisari store pwefe po ba ako mgtinda ng bigas kht tig iisang sako lng ng tatlong klase ng bigas?

gusto ko po sana mag start ng bigasan sa aming brgy.uupa lng po ng pwesto.un nga lng po 50 k lng puhunan q ok po ba na panimulang capital un? thanks po.

HI SIr. I am planning to start rice business as a rice retailer / Wholesale business KIndly let me know.

Sir/Ma’am, Idea po sana kung saan pwede mag apply/register for rice retailing business seminar, love to be in this field po..salamat

gusto ko po magstart ng bigasan business para sa community namin . sa bahay na rin po namin ung location. gusto ko po makahanap ng supplier. ung sustainable po at reliable

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Bigasan Business 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Bigasan Business 2023: How To Start, Capital, Profit (Plus, Tips To Succeed)

Rice has been a staple of the Filipino diet since time immemorial . Therefore, opening a bigasan business or a rice retail business in the Philippines can be a profitable venture for you if the conditions are right.

As with any other food business, there are two ways to make this happen. Either start your own rice retailing business or franchise an already-established brand .

Each has pros and cons, so you should weigh your options carefully before venturing into this type of business.

Let this short article be your guide.

Table of Contents

What is a bigasan or rice retail business.

example of a bigasan business in the philippines showing different rice varieties and their prices

A bigasan is a retail store that sells a variety of rice. In the Philippines, this is typically done through a simple storefront where bags of rice are opened as a display for customers. The name of the variety of rice and the corresponding price are shown on each bag.

Customers need only tell the store’s staff what variety and how much rice they buy. The staff will then put the requested amount in a bag and weigh it before the customer. After the customer pays for it, then the transaction is complete.

There are specialized rice businesses that sell only rice, but there are also retail outlets, such as sari-sari stores , that carry rice as part of their selection of products.

Bigasan Business at a Glance

How much capital you need to start a bigasan business depends on your business model. Capital investment may start from ₱50,000 (retailer) to ₱300,000 (franchise).

2. Customers

Residences, restaurants, hotels, and other establishments that sell rice meals.

3. Competitors

Usually, just other rice businesses. The supermarkets have a different client base since rice from supermarkets is usually at least 50% more expensive.

4. Who Is It For?

People who prefer to run a simple retail store with an already established market.

5. Pros & Cons

  • Steady demand since Filipinos eat rice every day
  • It requires minimal marketing because consumers are already familiar with the product
  • Straightforward business with the potential to make a living out of it
  • Rice is vulnerable to pest attacks, especially if stored improperly
  • The quality of rice deteriorates after three months; it spoils easily
  • Challenging to be different from competitors aside from the price

How Does a Bigasan or Rice Business Make Money?

Rice businesses typically buy their rice bags from a wholesaler. They then add a markup or “patong” to the cost of the rice. After that, they decide the price per kilogram to sell the rice to their customers. Whatever they earn from selling the rice becomes the income from the rice business.

Note that having a sizable margin is challenging unless you buy in bulk. That’s why it’s typical for a rice business to have a high capital requirement.

Where Can I Find a Rice Supplier?

If you are not getting a franchise, you must find a rice supplier yourself. This could be a wholesaler, a rice mill, or a farmer. You are more likely to know the best places to get rice if you search your area. However, here’s a quick list of well-known rice suppliers in the Philippines:

  • DanJethro Grains by A&V Rice Mill – an independent rice mill in Mapandan, Pangasinan, operating since 1993.
  • Wil-Lys Cereal Trading Corporation – located in Solana, Cagayan. They sell many varieties, including export-quality rice.
  • JDL Nueva Ecija Rice Dealer – also known as Jorem Palay Buying Station, this supplier has been selling farm-fresh rice from Lupao, Nueva Ecija, for 30+ years.
  • Primavera Rice Mills – selling quality rice for 46+ years now; among the top rice suppliers for restaurants and fast-food chains in Metro Manila. They are located in Guiguinto, Bulacan .
  • RMR Rice Mill – is a popular wholesaler among rice retailers. They are located at Wakas Intercity, an agricultural bagsakan , in Bocaue, Bulacan.

If there is no viable rice supplier in your area, you may want to look for a franchise instead. Here’s a quick list of rice retail franchises you can contact:

  • GRAINSMART – has more than 800 franchise branches nationwide. Aside from rice, they also have gas and water refilling business franchise packages. Their head office is located in Quezon City, Metro Manila.

Update: Bigasanko.com has been removed from the list due to an inactive social media page.

How To Start a Bigasan Business in the Philippines: 9 Steps

1. research your market and competitors.

You can’t expect to start a bigasan or rice retail business and succeed right away. You first need to know about your area’s potential customers and competitors.

Find out the typical kinds of rice people in your area buy. How much do they pay for it? If you do start a rice business, then can you also sell it at the same or a cheaper price?

Next, you need to learn any information you can about your competitors. How many are there, and where are they located? If there are too many rice retailers, you may want to rethink starting one yourself.

2. Choose a Location Frequented by Your Target Market

Find a location where it’s convenient for your customers to buy from you. Examples would be groceries or wet markets ( “palengkes” ) where people are already conditioned to buy rice.

You also have to ensure enough space to store and display the sacks of rice in your chosen location. It’s also ideal that you can keep the rice there safely so the product will be protected from heat, pests, and even floods.

3. Choose the Right Rice Supplier

With your research in hand, you now have to find a supplier for the rice typically bought in your area.

You have the option to:

  • Find a wholesaler or rice mill that can deliver to your area
  • Become a rice business franchisee

List all available suppliers and cultivate a long-term relationship with them. This way, you can avail of discounts when buying in bulk and provide your customers with a wide variety of rice.

Your goal is to get a price to remain competitive in your area. If you can find an excellent supplier, starting a rice retail business will be much cheaper than becoming a franchisee.

However, becoming a rice business franchisee has benefits that justify the additional cost. They already have an established way of getting a rice supply, so getting started’s much easier. You can also learn how to run a successful bigasan from them.

4. Secure a License From the National Food Authority (NFA)

national food authority office in cabanatuan city

Once confident that you can successfully run a rice retail business in your chosen area, you must start with government compliance .

The law states that the National Food Authority (NFA) must approve every corn or rice business in the Philippines, whether commercial or NFA rice/corn.

If you plan to open numerous outlets, you need one license for your primary/principal store. All other outlets will be considered as branches.

To get the license, go to the NFA office that has jurisdiction over where you plan to establish the rice business in the Philippines.

Get the application form from the licensing officer (LO).

Submit the accomplished form and pay the application fee of ₱100. The license fee varies depending on your capital.

5. Ensure That You Have the Required Equipment and Facility To Start the Rice Business

An NFA personnel will personally visit your store to check for the following:

  • Calibrated weighing scale
  • Price tags (the price of the rice per kilogram)
  • White-painted rice boxes
  • Signboard (45 cm wide and 75 in long) showing your business name, NFA control number, and the words “Licensed Grains Retailer” or “Wholesaler”
  • Classification, variety, and grade of the rice grains you’re going to sell

Once approved, the NFA inspector will issue you a notice of inspection. Bring this with the official receipt and proof of compliance with deficiencies (if any) to the NFA office to get the license.

For franchisees of Grainsmart , you don’t need to file for a license because it’s already included in their packages. The downside is that you need to shell out higher capital to start the franchise business –a minimum of ₱298,000 for Grainsmart.

6. Register Your Business

Register the bigasan business with the Department of Trade and Industry (DTI) if you’ll operate it as a sole proprietorship or the  Securities and Exchange Commissions (SEC) for rice businesses run by a partnership or corporation.

You must also register with the BIR and get a business permit from your municipal or city hall. After that, your business registration is complete. Just note that you must file monthly, quarterly, and annual taxes . You also have to pay fees to your LGU quarterly or annually.

7. Set Up Your Bigasan & Store Your Rice Properly

Taking care of your rice starts from the supplier and ends only when your customers buy it. When transporting rice, separate it from other goods and make sure they’re all appropriately covered. 

Otherwise, prolonged sun exposure will cause the rice to lose moisture and shrink by up to 3%. The insufficient covering may also expose it to flying weevils ( bukbok ), especially if the transport vehicle passes by rice fields.

Once it arrives at your store, handle it with care. Don’t throw the rice bags, or the grains might break.

Keep the storage space clean and sanitized to prevent infestation of rats, molds, weevils ( bukbok ), and other pests.

Use the “first-in, first-out” inventory method to ensure that every sack of rice sold is high-quality and doesn’t exceed its shelf life. Remember, rice quality decreases significantly after three months. Any rice that spoils will dramatically impact the profitability of your rice business.

8. Promote Your Bigasan

You should know what’s essential for your customers when choosing a bigasan. Communicate that you can deliver that critical benefit.

You can be as creative as possible when promoting your bigasan locally and online. Talk to your neighbors—partner with other businesses. Join chat groups for the local community. 

There are many ways to promote a bigasan business. As long as your target customers are there, you should also promote there.

9. Be Strict With Your Inventory & Records

A common reason why a rice retail business might fail is because of poor inventory and record management. A few kilograms of lost or damaged rice can wipe out more than a day’s worth of your income.

So make sure to be very strict in taking care of your inventory. You should also record everything that goes in and out of your store. 

If you don’t know how to do your records correctly, you can use the template for the sari-sari store inventory and sales record provided here . It’s the same concept, but you only have to list down your rice’s different varieties, brands, and weights.

Tips & Warnings

  • Set aside a regular budget for the rice supply. Some dealers won’t deliver rice to retailers unless they order a minimum amount of rice from them.
  • Try to avoid selling any rice on credit, especially for residential clients. It might be unavoidable for business clients; however, deal only with reputable businesses. Bad debts can severely impact your operations.

Go back to the main article: Best Small Business Ideas in the Philippines with High Profit 

Written by Rod Michael Perez

in Business and Finance , Juander How

Last Updated June 4, 2023 09:21 PM

rice wholesale business plan

Rod Michael Perez

Rod Michael Perez is a freelance writer with over 7 years of experience in writing long-form articles, ad copy, and SEO content for local and foreign clients. He is also an aspiring startup founder and believes that the Philippines could be the next hub for startup culture. He takes care of his dog, a poodle-Shih Tzu hybrid, in his spare time.

Browse all articles written by Rod Michael Perez

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How to Start Rice Wholesale Business in India: A Step-by-Step Guide

How to Start Rice Wholesale Business in India: A Step-by-Step Guide

Are you planning to start a business in India but don’t have an idea on where to begin? Perhaps, starting a rice wholesale business in the country is a smart idea. Rice is a staple food in India, which makes it a big market for entrepreneurs who want to venture into the food industry. If you’re interested in starting a rice wholesale business in India, then you’ve come to the right place.

Starting a rice wholesale business in India can be your entry point in the food industry. India is one of the largest producers and consumers of rice in the world, making it a potentially lucrative business. However, starting a wholesale business is not a walk in the park. You need to have a defined plan, market research, and knowledge of the industry. In this article, we’ll guide you through the essentials of starting a rice wholesale business in India.

Embarking on a new business journey can be both exciting and challenging. But with careful planning and preparation, you can mitigate risks and ensure success. In this article, we will give you a step-by-step guide on how to start a rice wholesale business in India. Whether you’re a novice or an experienced entrepreneur, these tips will help you start your business venture with confidence. So, let’s get started! Importance of Market Research for Rice Wholesale Business

Starting a rice wholesale business in India can be a lucrative venture. However, like any other business, it requires thorough research and planning to succeed. One of the most crucial aspects of starting a rice wholesale business is conducting market research. It involves gathering and analyzing information about the market, competition, target audience, trends, and demand for rice, among others.

  • Market Analysis: Market research helps in analyzing the current market and identifying potential opportunities and threats. It gives an insight into the size of the market, the demand for rice, the current competition, and other factors that can impact the business. This information can be used to make informed decisions about the business, including the location, pricing, marketing strategies, and products to offer.
  • Understanding Target Audience: Identifying the target audience is essential for any business. Market research enables one to understand the behavior, needs, preferences, and buying habits of the target audience. This information can help in creating and marketing products that cater to their needs and preferences.
  • Staying Ahead of Competition: With numerous players in the rice wholesale business, it is crucial to understand the competition. Market research helps in analyzing the competitors’ strengths, weaknesses, marketing strategies, and pricing. With this information, one can create a competitive advantage by offering unique products or services and pricing it accordingly.

Furthermore, market research can help in validating the business idea, identifying potential challenges, and coming up with solutions to mitigate them. It is essential to conduct market research at all stages of the business to keep up with the changing market dynamics and adapting to the changes.

Legal Requirements for Rice Wholesale Business in India

Starting a rice wholesale business in India requires adhering to several legal requirements to avoid legal issues in the future. Here are some of the legal requirements that you should consider:

  • Registration of Business: You need to register your rice wholesale business with the Registrar of Companies (RoC) under the Companies Act 1956 or Companies Act 2013. This is necessary for obtaining a permanent Account Number (PAN) and a Tax Identification Number (TIN) for your business.
  • GST Registration: Rice wholesale is taxable under GST, and you need to obtain a GST registration number from the tax department.
  • Permits and Licenses: You need to have the necessary permits and licenses from the authorities to operate a rice wholesale business. This includes obtaining a Food Safety and Standards Authority of India (FSSAI) license, a Shop and Establishment License, a Trade License, and a Fire License.

It is essential to have the required legal documents and permits in place before starting your rice wholesale business in India to avoid legal issues in the future.

Additionally, it would be best to hire a legal professional or a chartered accountant who can guide you through the legal requirements and ensure that you are following them correctly.

Below is a table summarizing the essential legal requirements for starting a rice wholesale business in India:

By following these legal requirements, you can start and operate your rice wholesale business in India without legal issues and conflicts with authorities.

Identifying Target Market for Rice Wholesale Business

One of the most important steps in starting a rice wholesale business in India is identifying your target market. This will help you understand the kind of rice you need to stock up and the pricing strategy you need to adopt to win over your customers. Here are some tips on how to identify your target market:

  • Geography: Consider the area you plan to operate in. You may decide to focus on supplying rice to a particular town or city, or cover a larger geographic region. Understanding your market’s geography helps you to tailor your marketing and distribution strategy to meet the needs of your customers.
  • Demographics: It’s important to consider the target demographic you’re serving when starting a rice wholesale business in India. Are you supplying rice to hotels, restaurants, retailers, or individual households? Understanding the needs and preferences of different demographics will help you to choose the right varieties of rice to stock and the packaging that will appeal to your customers best.
  • Competition: Understanding your competition is also important while identifying your target market. What are their strengths and weaknesses? What unique selling proposition do you have that stands you above them? Doing so will help you to identify the gaps in the market and the underserved customer base that you can tap into.

Remember to keep your target market in mind when making all other business decisions, from selecting the location of your warehouse to the rice you’ll stock and the pricing strategy you’ll implement.

Procurement of Rice for Wholesale Business

One of the most important aspects of starting a rice wholesale business is the procurement of rice. Here are some key points to keep in mind:

  • Identify reliable suppliers: Look for suppliers who offer high-quality rice at reasonable prices. You can research online or ask for recommendations from other wholesalers.
  • Determine the types of rice you want to sell: Know the market demand and choose the types of rice that are popular in your area. Some of the most common varieties include basmati, jasmine, and long-grain rice.
  • Check the quality of rice: Always inspect the rice before purchasing to ensure that it meets the quality standards. Look for factors such as grains’ size, color, aroma, and taste.

Once you have identified the right suppliers and types of rice, it’s time to move onto the procurement process.

The table below highlights some of the important factors to consider when procuring rice for a wholesale business:

By following these steps and considering the important factors mentioned above, you can effectively procure high-quality rice for your wholesale business.

Packaging and Branding for Rice Wholesale Business

When it comes to the rice wholesale business, packaging and branding is a critical aspect that cannot be ignored. Packaging is necessary for protecting the rice from damage during transportation and storage. Branding, on the other hand, is essential for creating a powerful image and identity for your business. In this article, we will discuss the importance of packaging and branding for rice wholesale business and how to go about it.

Importance of Packaging for Rice Wholesale Business

  • Protects the Rice during Transportation and Storage: Proper packaging protects the rice from damage, dampness, and contamination during transportation and storage.
  • Provides Information: Packaging provides essential information to customers such as the expiry date, weight, and nutritional information of the rice.
  • Enhances Shelf Life: Quality packaging can keep rice fresh and increase its shelf life.
  • Makes the Product Attractive: Attractive packaging can help you catch the attention of potential customers and make your product stand out.

Importance of Branding for Rice Wholesale Business

A successful wholesale rice business must have a strong brand. Here are some reasons why branding is so important:

  • Helps Build Trust: A strong brand helps build trust with your customers. By associating your business with quality and reliability, you can build a loyal customer base.
  • Creates Identity: Branding helps create a unique identity for your business that distinguishes it from competitors.
  • Increases Brand Recognition: Branding helps increase the visibility of your business, making it easier for customers to find you.
  • Drives Customer Loyalty: A strong brand creates customer loyalty, which can lead to repeat business and referrals.

How to Package Rice for Wholesale Business

When it comes to packaging rice for a wholesale business, the main focus should be on protecting the rice, making it easy to transport and store, and providing essential information. Here are some things to consider:

  • Use Durable Packaging: Choose packaging that is durable and can withstand the rigors of transportation and storage.
  • Include Important Information: Include information such as the weight, brand name, nutritional information, and expiry date on the packaging.
  • Consider Bag Size: Choose the right bag size based on the quantity of rice you plan to sell.
  • Ensure Sealing: Ensure that the packaging is sealed correctly to keep the rice safe from dampness and contamination.

How to Brand Rice for Wholesale Business

Branding your rice for wholesale business involves creating a unique identity for your business through packaging design, business cards, website, and other marketing materials. Here are some things to consider:

By packaging your rice correctly and creating a strong brand identity, you can create a successful wholesale rice business that customers trust and rely on.

Establishing Distribution Channels for Rice Wholesale Business

Starting a wholesale rice business in India requires a well-planned strategy with an emphasis on creating distribution channels that reach your target market. Here are key factors to consider when establishing distribution channels:

  • Identify your target market: Knowing your potential customers is critical in determining the appropriate distribution channels. Create a list of wholesalers, retailers, and food distributors in your area and gather information about their preferences and needs.
  • Develop a strong network: Establish contact with wholesalers, retailers, and food distributors to create a strong network. This can help you penetrate the market and find new distribution channels for your rice wholesale business.
  • Create partnerships: Build strong partnerships with rice mills and manufacturers to ensure a consistent supply of quality rice. This can help you maintain customer satisfaction and improve your distribution channels.

Once you have identified your target market and established a strong network, it is crucial to find the right channels for selling your product. Below are some of the key distribution channels for a rice wholesale business:

  • Retailers and Hypermarkets: Retailers and hypermarkets are an excellent choice for wholesale rice businesses. With the help of strong partnerships and consistent supply of quality rice, your product can be marketed effectively.
  • Food Distributors: Food distributors are an essential part of the food industry, and they can help you reach customers that might not otherwise have access to your product. Collaborate with them to make your rice products available to a broader audience.
  • Online platforms: Online marketplaces such as Amazon and Flipkart can be very useful in reaching a larger target audience. Partnering with them can prove to be a lucrative distribution channel for your rice wholesale business.

For businesses aiming for sustainability and growth, it’s crucial to have a balanced and well-diversified distribution strategy. Creating strong relationships with your clients and customers is key to your success. Establishing a wide range of distribution channels based on your target market’s preferences will help your rice wholesale business to thrive and adapt to changing market demands.

Adopting a structured and well-planned distribution strategy for your rice wholesale business will open up new doors of opportunities and widen access to potential customers. By building strong relationships and offering quality products through various distribution channels, you can increase your sales, improve your customer reach, and set the foundation for long-term growth.

Pricing Strategies for Rice Wholesale Business

One of the most important aspects of running a successful rice wholesale business is setting the right prices for your products. In this section, we will discuss some effective pricing strategies that can help you maximize your profits and stay competitive in the market.

  • Cost-plus pricing: This is a common pricing strategy in which you calculate the total cost of producing and delivering your products and then add a markup to determine the selling price. This strategy ensures that you cover all your expenses and make a profit on every sale. However, it may not be the most competitive pricing strategy in the market.
  • Penetration pricing: This strategy involves setting a lower price than your competitors to attract more customers and gain market share. This can be a good strategy if you’re just starting your business and want to establish your brand and customer base. However, it may not be sustainable in the long run.
  • Skimming pricing: This strategy involves setting a higher price than your competitors to target customers who are willing to pay a premium for high-quality products. This strategy can work if you have a unique product or a strong brand image, but it may not be effective in a highly competitive market.

To determine the right pricing strategy for your rice wholesale business, you need to consider various factors such as your costs, competition, customer demand, and market trends. It’s also important to regularly review and adjust your prices based on changes in the market and customer demand.

Here’s an example of a cost structure for a rice wholesale business:

Based on this cost structure, you can determine your markup and selling price. For example, if you want to make a 20% profit on every sale, you would need to add a markup of $1900 (20% of $9500) to your total cost, resulting in a selling price of $11,400. However, you may need to adjust your prices based on your competition, customer demand, and other market factors.

Managing Inventory for Rice Wholesale Business

Managing inventory is a crucial component of any wholesale business, including rice. Proper inventory management will help ensure that you always have stock on hand to meet your customers’ demands without overbuying and wasting products or money. Here are eight tips to help you effectively manage inventory for your rice wholesale business:

  • Forecast Demand: Use historical sales data, seasonal trends, and customer feedback to estimate the amount of rice you need in your inventory. It’s important to account for potential fluctuations in demand so that you can adjust your inventory levels accordingly.
  • Categorize Your Rice: Group your rice products into categories to help you better track which type of rice is selling and which ones are not. This will give you a better understanding of your inventory performance and help you make informed decisions on what to reorder or discontinue.
  • Monitor Stock Levels: Keep a close eye on your inventory levels and replenish your stock before it reaches a critically low level. This will help you avoid stockouts and ensure that you always have enough rice available to meet your customers’ needs.
  • Set Reorder Points: Determine reorder points to trigger inventory replenishment. This will help you avoid common inventory problems such as overstocking or stockouts.
  • Track Expiration Dates: Rice has a shelf life, and it’s critical to track expiration dates to prevent holding onto expired products. Products that have gone bad can lead to reduced sales, lost customers and reduced profits.
  • Implement First In, First Out (FIFO) System: to ensure you sell the oldest rice in stock first. This will ensure that you don’t end up with expired stock.
  • Use inventory management software: Adopt an inventory management system to help you track inventory levels and automate processes. This will free up time, reduce the chance of errors, and improve inventory accuracy.

Effective inventory management is essential to the success of a rice wholesale business. Understanding your demand, monitoring stock levels, categorizing rice products, and tracking expirations are all critical components of inventory management. By using the tips outlined above, you can help ensure that you have the right amount of stock on hand to meet customer demand while minimizing inventory costs and waste.

Financial Planning for Rice Wholesale Business

Starting a successful rice wholesale business in India requires proper financial planning. Without a solid financial plan, it is difficult for anyone to steer the business towards success. A good understanding of the costs involved in the business can help to determine the right price for your rice and set sales targets that ensure profitability. This section covers some essential financial planning tips to consider when starting a rice wholesale business in India.

  • Estimate Your Start-up Costs: Make a list of all the costs involved in setting up your rice wholesale business, including leasing or buying a warehouse, processing equipment, transportation, and hiring employees. Factor in some additional expenses such as licenses, permits, and legal fees. It would be best if you had a clear idea of the costs before you start the business so that you can determine the capital required and decide on additional funding sources.
  • Set a Budget: Once you have estimated the costs, set a budget for your rice wholesale business. A budget should be comprehensive, covering all the aspects of your business, from day-to-day expenses to long-term investment. Stick to your budget to avoid overspending and depleting your cash flows.
  • Determine Pricing Strategy: A robust pricing strategy will help you determine the cost of the rice, set your profit margin, and determine the right price to sell it. Analyze the market and competitors, and adjust your pricing strategy accordingly. Do not compromise on quality while setting a low price as it can lead to short term gains and long term losses.

By following the above tips, you can develop a robust financial plan that can help your business to maintain financial stability and withstand market fluctuations.

Revenue Projections

Revenue projections are crucial for your rice wholesale business as they can help you make informed decisions about pricing, production, and expansion. Here are some tips to make accurate revenue projections:

  • Market Research: Conduct market research to determine the demand for rice products in your target area. Analyze market trends, competitor prices, and sales volumes.
  • Customer Analysis: Conduct customer analysis to determine the preferences of your potential customers. For example, some customers prefer organic rice, while others prefer cheaper rice.
  • Production Limitations: Be aware of the rice production limitations in India. Weather conditions, seed availability, and other factors can influence rice production, resulting in unpredictable supply and demand.

Profit and Loss Statement

A profit and loss statement is one of the most important financial statements you need to prepare for your rice wholesale business. This statement will provide insights into how much revenue the business generates and how much money is spent. Here’s what a standard profit and loss statement typically includes:

Prepare a profit and loss statement for your rice wholesale business regularly, at least quarterly. It will help you to determine if your business is profitable and identify areas that need improvement.

Expansion and Diversification Opportunities for Rice Wholesale Business

Starting a rice wholesale business can be a profitable venture in India, given the increasing demand for rice. However, to become successful, you need to look for ways to expand and diversify your operations. Here are some expansion and diversification opportunities to consider:

  • Exporting: India is one of the largest producers of rice globally, making it an attractive market for rice exporters. You can leverage this by exporting rice to other countries, either in raw or processed form. However, you need to understand the international trade policies and regulations governing rice exportation.
  • Branding and packaging: Branding and packaging can help your rice wholesale business stand out from the competition. You can create unique packaging designs that reflect your brand’s core values and appeal to your target customers. You can also label your bags with information about the rice type, nutritional value, and other relevant details to attract health-conscious customers.
  • Rice milling and processing: Investing in rice milling and processing equipment can help you diversify your business and add value to your products. Rice milling and processing involves removing the outer layers of rice, polishing, separating rice from chaff, and grading the rice. This ensures that you have high-quality rice that meets the standards of your customers.

Furthermore, here are other expansion and diversification opportunities for your rice wholesale business:

1. Investing in technology: Technology is rapidly transforming the way businesses operate in India. Therefore, adopting modern technology in your rice wholesale business can enhance efficiency and productivity. For instance, you can use software to manage your inventory, automate your sales and marketing, and communicate with customers in real-time.

2. Establishing a presence in different markets: Expanding your rice wholesale business into other regions can help increase your customer base and sales. You can consider opening new warehouses or partnering with local distributors in other cities to make your products more accessible to customers.

3. Diversifying into other food staples: Rice is not the only food staple consumed in India. You can diversify your product line by including other food staples such as pulses, wheat, maize, and others. This can help you cater to a wider range of customers and create multiple revenue streams.

4. Partnering with farmers: Partnering with farmers can be a win-win situation for both parties. You can provide farmers with seed capital, fertilizers, and training on modern farming practices. In return, the farmers can supply high-quality rice to your wholesale business at a lower cost, helping you improve your profit margins.

Expanding and diversifying your rice wholesale business can help you stay relevant in a highly competitive market and increase your revenue potential. It is essential to research and understand each opportunity before investing your time and resources into any of them.

FAQs on How to Start Rice Wholesale Business in India

Q1. What are the requirements to start a rice wholesale business in India? To start a rice wholesale business in India, you need to obtain a VAT registration, FSSAI registration, and a trade license. You also need to decide the location, inventory, and the mode of transportation for your business.

Q2. How can I find the best quality rice for my wholesale business? You can source rice from local farmers, rice mills or purchase from wholesale markets. It is advisable to research and find reliable suppliers who offer high-quality rice at an affordable price.

Q3. Can I start a rice wholesale business with a small capital? Yes, you can start a rice wholesale business with a small capital by purchasing rice in small quantities and selling at a profitable margin. However, it is important to keep in mind that the profit margins may be higher if you start with a larger capital.

Q4. How do I market my rice wholesale business? You can market your rice wholesale business through word of mouth, advertisements in local newspapers or online classifieds. You can also attend trade fairs and exhibitions to showcase your products to potential customers.

Q5. What are the challenges that I might face while operating a rice wholesale business? Some of the challenges that you might face while operating a rice wholesale business include fluctuations in prices, competition from established players, and issues related to storage, transportation, and logistics.

Q6. What are the legal formalities that I need to complete before starting my rice wholesale business? You need to obtain a VAT registration, FSSAI registration, and a trade license before starting your rice wholesale business. You also need to comply with the legal guidelines set by the government regarding food safety and quality.

Q7. How can I grow my rice wholesale business in India? To grow your rice wholesale business in India, you need to maintain the quality of your products, offer competitive pricing, and expand your customer base by reaching out to new markets and creating a niche for your brand.

Closing Thoughts: Thank You for Reading!

Starting a rice wholesale business in India can be a lucrative opportunity for aspiring entrepreneurs who have a passion for the food industry. With proper planning, research, and dedication, you can establish a successful business that can leverage the potential of this rapidly growing industry. We hope these FAQs have helped you gain insights and knowledge about starting a rice wholesale business in India. Thank you for reading, and we hope you visit us again for more informative articles!

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Wholesale Business Plan Template

Written by Dave Lavinsky

how to start a wholesale business

Wholesale Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their wholesale companies.

If you’re unfamiliar with creating a wholesale business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a wholesale business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your wholesale business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a wholesale business or grow your existing wholesale company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your wholesale business to improve your chances of success. Your wholesale business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Wholesale Businesses

With regards to funding, the main sources of funding for a wholesale business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for wholesale companies.

Finish Your Business Plan Today!

How to write a business plan for a wholesale business.

If you want to start a wholesale business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your wholesale business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of wholesale business you are running and the status. For example, are you a startup, do you have a wholesale business that you would like to grow, or are you operating a chain of wholesale businesses?

Next, provide an overview of each of the subsequent sections of your plan.

  • Give a brief overview of the wholesale industry.
  • Discuss the type of wholesale business you are operating.
  • Detail your direct competitors. Give an overview of your target customers.
  • Provide a snapshot of your marketing strategy. Identify the key members of your team.
  • Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of wholesale business you are operating and your wholesale business model.

For example, you might specialize in one of the following types of wholesale businesses:

  • Full service retail wholesale: This type of wholesale business sells its products to a reseller. This type of wholesaler may work with one reseller exclusively, or may sell products to multiple resellers.
  • Wholesale brokerage or agency: This type of wholesale business does not typically handle the goods itself, but rather operates as the middleman, negotiating the buying and selling of goods.
  • Manufacturers’ wholesale: This type of wholesale business is usually owned by a particular manufacturer and used to distribute the manufacturer’s goods.
  • Specialty wholesale: This type of wholesale business focuses on a niche or limited area of wholesale such as selling one specific product such as cars or jewelry.

In addition to explaining the type of wholesale business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include the number of customers served, the number of items sold, and reaching $X amount in revenue, etc.
  • Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the wholesale industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the wholesale industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your wholesale business plan:

  • How big is the wholesale industry (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential target market for your wholesale business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your wholesale business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of wholesale business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Wholesale Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other wholesale businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of wholesalers, sellers, and distributors. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

  • What types of customers do they serve?
  • What type of wholesale business are they?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you make it easier for customers to acquire your product or service?
  • Will you offer products or services that your competition doesn’t?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a wholesale business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of wholesale company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you sell food, clothing, cars, or a variety of products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your wholesale company. Document where your company is situated and mention how the site will impact your success. For example, is your wholesale business located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your wholesale marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

  • Advertise in local papers, radio stations and/or magazines
  • Reach out to websites
  • Distribute flyers
  • Engage in email marketing
  • Advertise on social media platforms
  • Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your wholesale business, including answering calls, scheduling shipments, processing orders, billing customers, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your wholesale business to a new city.  

Management Team

To demonstrate your wholesale business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing wholesale businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a wholesale business.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will your warehouse hold 700 cases of product at a time, and will you sell and restock your inventory every two months? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your wholesale business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a wholesale business:

  • Cost of equipment and office supplies
  • Payroll or salaries paid to staff
  • Business insurance
  • Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your wholesale location lease or a description of the technology used to perform inventory operations.  

Writing a business plan for your wholesale business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the wholesale industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful wholesale business.  

Wholesale Business Plan FAQs

What is the easiest way to complete my wholesale business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your wholesale business plan.

How Do You Start a Wholesale Business?

Starting a wholesale business is easy with these 14 steps:

  • Choose the Name for Your Wholesale Business
  • Create Your Wholesale Business Plan
  • Choose the Legal Structure for Your Wholesale Business
  • Secure Startup Funding for Wholesale Business (If Needed)
  • Secure a Location for Your Business
  • Register Your Wholesale Business with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Wholesale Business
  • Buy or Lease the Right Wholesale Business Equipment
  • Develop Your Wholesale Business Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Wholesale Business
  • Open for Business

Learn more about   how to start your own wholesale business .

Where Can I Download a Business Plan PDF?

You can access our business plan pdf download here.

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OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business planning advisors can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Business Plan Template For Small Businesses & Entrepreneurs

GRAINS & CEREALS WHOLESALE & DISTRIBUTION BUSINESS PLAN

This is a complete business plan for grains (rice, maize, millet)  agro product which can be use to apply for grants, NIRSAL microfinance bank loan, CBN and BOI or business proposal. It is complete and contains all the necessary things for you to submit a bankable business plan for your investors, banks or government to raise fund.

In order to go into grains and cereals wholesaling or retailing, you now have business plan for loan and grant.

You can check the table of content below to know what is contain in the business plan

TABLE OF CONTENT

EXECUTIVE SUMMARY

1.1 OBJECTIVES

1.2 MISSION

1.3 KEYS TO SUCCESS

1.4 BUSINESS OWNERSHIP

1.5 OUR BUSINESS STRUCTURE

2.0 HUMAN RESOURCES

2.1 MANAGEMENT TEAM

2.2 ORGANOGRAM

2.3 ROLES AND RESPONSIBILITIES

2.4 SALARY SCHEDULE

3.1 MARKET ANALYSIS SUMMARY

3.2 MARKET SEGMENTATION

3.2 STRATEGY AND IMPLEMENTATION SUMMARY

3.3 COMPETITIVE EDGE

3.4 CUSTOMERS

3.5 COMPETITION

3.6 PRICING AND DISTRIBUTION

3.7 STRATEGY AND IMPLEMENTATION

3.8 SALES FORECAST

S.W.O.T. ANALYSIS

5.1 FINANCIAL PLAN

START UP COST

5.3 CASH FLOW  PROJECTION STATEMENT

5.4 PROJECTED PROFIT OR LOSS STATEMENT

 EXECUTIVE SUMMARY

AREWA enterprise is primarily a wholesaler of various grains and agro products in Nigeria, located in Kaduna. This company is intended to provide customers with the finest quality grains for in our location The business is primarily wholesale to retailers, area restaurants and people who want to buy in large quantity.

We will purchase our grains directly from local local farmers and sole distributors. This allows us to buy from the farmers with the finest output available anywhere. WE plan to sell for countless numbers of customers who are always in need of wholesale price for most of the grain we sell in our location.

AREWA Enterprises plans to expand our storefront and sell direct to company in nearest future. In our expanded market, we will bring our commitment of quality, freshness and great prices to the public. By purchasing in large quantities we are able to pass the savings on to our customer.

The planned setting up of the business will cost  N5,000,000. This is for renting of store, buying of stock, equipments and payment of staff cost. Ibrahim Garba, owner of AREWA Enterprises, will invest N500,000 and also secure a N4,500,000 short-term loan.

Establish AREWA Enterprise as the leader in selling grain in Nigeria

Increase the number of customers buying from AREWA Enterprise by 10% over the next two years.

The mission of AREWA Enterprises is to offer customers the best grains at the cheapest price.

Superior products will promote customer loyalty.

A location that will assure walk-in traffic.

A program that will create customer loyalty.

AREWA enterprises is privately owned by Mr. XXX and managed by him. Mr. XXX leveraged her wealth of knowledge in trading agricultural produce.  Due to our dream for the business, other investors may be allowed to co-owned the business.

How To Download The Complete  Groundnut Farming  Business Plan

For you to download the complete  business plan straight to your email address,kindly Click on the>> DOWNLOAD for immediate response

You’ll pay the sum of #5000

BANK: UBA ACCOUNT NAME:  AJETUNMOBI OLANIYI A ACCOUNT NUMBER: 2089760594

Immediately after the payment, send your email address to 08133717775  through text message and you will receive the complete groundnut farming business plan once your payment is confirmed.

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DOWNLOAD POTATO CHIPS PRODUCTION BUSINESS PLAN IN NIGERIA

GROUNDNUT (PEANUT) COMPLETE BUSINESS PLAN DONWLOAD

YAM PRODUCTION BUSINESS PLAN DOWNLOAD IN NIGERIA

CATFISH FARMING BUSINESS PLAN DOWNLOAD IN NIGERIA

SHEA BUTTER PROCESSING BUSINESS PLAN IN NIGERIA (DOWNLOAD)

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Succeeding with a Rice Business In India

How to Apply for a Online Ration Card Application in Karnataka

From rice farming to retail rice selling, several opportunities are waiting to be exploited in the evergreen rice industry. This article outlines the A to Z of starting a rice business in India, don’t miss out on leveraging it. 

Rice is a staple source of food throughout Asia and hence is always in high demand. As a result, many entrepreneurs have realised the immense business potential of rice. Know more about the Succeeding with a Rice Business In India. However, like with all other businesses, there are certain things that people need to consider before they start a rice business.

Since rice is a widely consumed commodity, the government has put in place several quality checks to ensure that only hygienic and high-quality rice makes its way into the market. In this article, we’ll go over everything you need to know before starting a rice business in India. Lets discuss on how to start a business in Agriculture Sector .

Table of Contents

Rice Business Opportunities in India

Almost 70% of the world’s population consumes rice as their staple food. Every year, approximately 40,000 varieties of rice are harvested all over the world, indicating the commodity’s diverse demand. In India itself, rice is a staple that boasts of daily consumption in the south, north-eastern and eastern parts of the country. This is why starting a rice business in India is an excellent choice.

Did you know? We are the second-largest producers and consumers of rice globally. Also, India produced 7.5 million tonnes of basmati in the year 2019-20, of which 61% was exported!

India’s fertile soil, suitable weather conditions, and large quantities of arable land make it perfect for growing rice. As a result, the rice industry serves as the backbone of our agricultural sector. We are also the world’s largest exporters of rice by volume and most preferred as well. This reputation of our country is responsible for making the rice business an excellent option for budding entrepreneurs. Let us now take a look at what types of rice businesses you can start in India.

Various Types of Rice Businesses to Consider

There are several avenues you can consider when you opt to start a rice business in India. Some of the most common rice-related companies in India are engaged in the following:

  • Rice farming 
  • Rice dealership
  • Wholesale selling
  • Rice mill business
  • Retail rice selling
  • Rice Export  

To set up a rice farm, you will need a large parcel of land, a good source of water and access to labour. Additionally, you will have to be well-versed in the agricultural requirements for rice, and keep a close watch on the crop throughout the year.

This is a more capital-intensive option and one that requires a lot of research. You will also have to buy the best seeds, invest in fertilisers and look into purchasing advanced farming equipment if you wish to produce large quantities of rice.

On the other hand, rice dealerships, wholesale, resale, retail and milling does not require such laborious research or extensive capital.

Rice milling will require a considerable amount of initial capital infusion to set up an establishment and buy the equipment. After the set-up, however, you will be able to use the mill for decades without additional costs except for routine maintenance, unlike farming, where additional costs arise annually.

Dealerships and resale markets serve as intermediaries by connecting farmers to consumers, they do not require heavy capital infusion and are also very lucrative in terms of returns. All that said, choose the type of rice business depending on your interests and resources.

How to Start a Rice Business in India?

  • To start a rice business in India, you will first need to apply for and obtain a business license. Most guidelines that apply to rice dealerships remain the same when it comes to rice wholesale and retail businesses. You can consult with  Vakilsearch to gain a better idea regarding the legal requirements for your locality. The best way to ensure that your assets stay protected is to legalise the business and get it incorporated. You may choose to register your business as an OPC , an LLP,  a partnership firm or a Private limited company
  • You will then have to locate a large warehouse or storage room that is with good maintanance and hygienic. It is best to pick out a storage space that isn’t too far away from a town or city to make it easier to transport the rice to the final destination
  • Once you have the space set up, you will need to connect with farmers, wholesalers, retailers or customers to either obtain or offload your supply
  • You will also have to establish a delivery system using which you can get your products and deliver the required goods to your consumers. Delivery is an integral part of all dealerships
  • As your business grows, you might have to employ more people. You will have to buy more vehicles and hire more people. In such cases, consult Vakilsearch to make sure you comply with all the required labour laws
  • Entrepreneurs must also ensure that they implement a FIFO policy (FIFO stands for “First-In, First-Out”) to prevent any of the rice from going bad
  • Also, it is best if you offer several varieties of rice, so that you have a more diverse clientele. In this case, you will have to build a more extensive network of suppliers
  • Lastly, owners should consider getting a comprehensive insurance policy for their rice business to protect their assets.

What Do You Need to Start a Rice Distribution or Sales Company?

  • A large farm or external supplier that will serve as your primary source
  • Large warehouse to store your rice
  • Enough capital to buy large quantities of rice so that you get it at affordable rates
  • Transportation and delivery facilities, such as vans and loading and unloading staff
  • Feasibility study to understand the market and create a business plan
  • Marketing strategy to promote your products, including free samples, discounts and free delivery services
  • Good accounting system once the business starts operating to ensure you keep track of your income and expenses. 

What Licenses Do You Need to Start a Rice Business?

  • First, you need to register your company: https://www.mca.gov.in/MinistryV2/incorporation_company.html
  • Complete the Udyog Aadhaar MSME registrations if applicable,
  • Obtain a factory license or Trade license
  • Apply for the no pollution certificate from your state’s pollution control board 
  • If you have the required number of employees, complete the PFA and ESIC new registration
  • Apply and get FSSAI license
  • Complete your GST Registration process  to pay your taxes on time
  • If you wish to export your product, complete the IEC registration with the DGFT.

How Can Vakilsearch Assist You?

  • Before anything else, our experts will consult with you to determine the types of licenses and registrations that will best help you achieve your goal of establishing a rice business in India
  • Our lawyers will then help you get your documentation in order. Following which the entire registration process will be completed by our team in the quickest possible span of time
  • Our experts can also relieve you of the burden of GST and tax registrations, ensuring that your rice business is compliant in that regard
  • You can also make sure with the expert assistance in any other tasks related to Incorporation of a Company, licensing and registration, to ensure that your rice business is set up quickly and efficiently.

Read More:-

  • Business License in India
  • How to register a company/startup in India?

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How to Start a Rice Wholesale Business Successfully Guide For Beginners

close up photo of white rice grains

‍Image Source: Unsplash

‍ Rice is one of the most consumed foods in the world, and it is an important part of many people’s diets. If you are planning to get into rice wholesale, you need to understand the key concepts and steps needed to succeed in this field.

S tep 1: Create a business plan How to Start a Rice Wholesale Business Successfully

Before you jump into the rice wholesale business, it’s essential to create a solid business plan. This plan will help you define your vision for the business and identify key aspects of your business.

Here are some important points to consider in your business plan:

  • Request: Assess the demand for rice in your area, as well as the demand for additional services such as delivery.
  • Competition: Analyze the competition in your area. How can you stand out and offer something unique?
  • Objectives: Define your business goals and think about how you will handle the competition.

Depending on the competition, you may choose to specialize in selling specific brands of rice. This can help you differentiate yourself and attract customers more easily. Don’t forget to integrate delivery services to provide more convenience to your customers.

Step 2: Conduct mrough market research is essential for success in rice wholesale. You need to assess local competition and understand consumer needs and preferences.

Here are some tips for conducting effective market research:

  • Assess the competition: Identify other rice wholesale companies in your area and study their strategies.
  • Understand consumer needs: Survey local consumers to understand their rice needs and preferences.
  • Join a local rice association: Becoming a member of a local rice association can help you build business relationships and gain valuable market information.

Step 3: Find a supplier

To start your rice wholesale business, you need to find a reliable supplier. Research reputable rice brands and negotiate wholesale supply agreements.

Here are some tips for finding a rice supplier:

  • Look for trusted suppliers: Identify reputable rice suppliers and compare their prices.
  • Negotiate supply agreements: Negotiate bulk supply agreements with selected suppliers.
  • Keep an eye on prices: Wholesale rice purchase prices will have a direct impact on your profit margins. Make sure you find a balance between the quality of the rice and the purchase price.

Step 4: Prepare the capital

To buy rice in bulk, you will need capital. As a new company in the rice market, it can be difficult to get suppliers without paying in full upfront. Look for suppliers who accept down payments or set up credit agreements with them.

Here are some options for financing your rice wholesale business:

  • Bank loans: You can apply for a bank loan to finance your business.
  • Trade grants: Learn about the grants available to new agri-food businesses.
  • Use your savings: If you have personal savings, you can use them to finance your business.

Step 5: Get insurance

It is important to take out insurance for your rice wholesale business. This will protect you in case of loss or damage related to your business.

Step 6: Create a legal entity

To protect your personal assets, it is recommended that you create a legal entity for your business. You may want to consider setting up a limited liability company (LLC) or sole proprietorship.

By creating a legal entity, you protect yourself against possible lawsuits and benefit from company-specific tax advantages.

Step 7: Find a warehouse

You will need a warehouse to store your rice wholesale. Be sure to follow local standards for food storage.

Depending on your budget, you can buy or rent a warehouse. The warehouse should be large enough to store your rice inventory and should be easily accessible for deliveries.

Step 8: Develop your services

As a rice wholesaler, your services include delivering rice to customers, advising on different rice varieties, etc.

Here are some tips for developing your services:

  • Transportation: Determine how you will deliver rice to your customers. You can invest in delivery vehicles or collaborate with a logistics company.
  • Customer Tips: Provide advice to customers on different rice varieties, cooking methods, etc.
  • Customer Service: Offer excellent customer service to build customer loyalty. Listen to their needs and concerns.

Step 9: Promote your business

Even though rice is a popular product, you will need to make your business known in your area. Use social media and other marketing channels to promote your rice wholesale business.

Here are some ideas to promote your business:

  • Create social media pages: Use Facebook, Twitter, etc. to promote your business and interact with your customers.
  • Collaborate with other businesses: Partner with local restaurants, grocery stores, and other businesses to expand your customer network.

Starting a rice wholesale business can be a great business opportunity. Follow these steps to get started successfully. Don’t forget to develop a solid business plan, find reliable suppliers and develop your services to attract and retain your customers. Good luck in your rice wholesale business!

Riz

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How to Start a Bigasan / Rice Retailing Business in Philippines

We, Filipinos, are big fans of rice. We could even go so far as to say that rice is one of the most important foods in our daily diet. It’s cheap, easy to cook and eating it with some meat or fish makes a complete meal. We love it so much that most, if not all, eat rice three times a day! This is a very good point as to why setting up a bigasan or rice retailing business in our country is a very profitable venture.

In this guide, we share with you the basics, steps, and some tips on how to set up and run a successful rice retailing business. Keep on reading to learn how to get started.

Table of Contents

How to Set up a Bigasan Business / Rice Retailing Business in the Philippines

What Is a Bigasan or Rice Retail Business?

A bigasan is a type of retail store that sells various types of rice. In the Philippines, this type of store is usually carried out in a simple storefront. The name of the different varieties and their corresponding prices are displayed on the bags.

In order to complete the transaction, customers must provide the store’s staff with the requested amount of rice. The staff will then weigh it and place it in a bag for the customer to pay for.

Although there are specialized stores that only sell rice, there are also other outlets that carry rice. These include sari-sari stores.

Bigasan Business Components

Of course, a bigasan, just like any other business, requires certain components to function. These components are interrelated and cannot be separated from each other. For example, the business needs to have a product or service to sell to customers. It also needs a place where its customers can purchase these items—a storefront or online store. Here are some of which you need to familiarize yourselves with:

The amount of capital you need to start a bigasan business depends on your business model. You can begin a retail operation with as little as PHP 50,000, while franchising may require an initial investment of up to PHP 300,000.

If you’re not yet sure which business model is ideal for you, don’t worry! We’ll also touch on that as we go along.

2. Customers

Bigasan customers include residences, restaurants, hotels, and other establishments that sell rice meals.

Finding customers for this kind of business is not that hard since you’re selling a food product, and in our country, rice meals are a staple.

But if you’re wondering what a good way to reach your customers and grow your business is to approach establishments that sell rice meals and propose a partnership. As an alternative, you can also go online and use social media to reach out to potential customers.

3. Competitors

Your competitors are other rice wholesalers. Supermarkets have a different client base since they sell rice at least 50% more expensive than you do.

Again, don’t be scared about the competition. You just have to find a place where there’s a strong market, but not enough suppliers. And from there, just ensure that you deliver high-quality products at a good price, and your business should thrive.

4. Who should start a Bigasan business?

A Bigasan business can be started by anyone who wants to be their own boss, but prefers a low-maintenance retail store with an established customer base. That, in itself, is a great advantage for anyone, especially OFWs, who are looking to start a business but are not quite sure about their choice of industry. Furthermore, Bigasan is also a good business for anyone who wants to provide for their family and earn a steady income without working long hours in an office.

Pros and Cons of this Business

There’s a steady demand for rice since most Filipinos eat rice every day. As such, you’ll have to do very little marketing to get customers. Rice is also one of the cheapest food items available in the country—meaning it can generate profits that can sustain your business!

On the other hand, rice is vulnerable to pests if stored improperly, and its quality deteriorates over time. It’s also difficult for rice sellers to differentiate themselves from competitors other than by offering lower prices.

That being said, there is no perfect business, but what’s important is that you find one that meets your needs and fits in with your lifestyle.

How Does a Bigasan or Rice Business Make Money?

When a rice business purchases its bags from a wholesaler, it adds a “patong” or a “markup” to the cost of the product. After that, the business decides on the price that it will sell to its customers. The profit from selling the rice goes to the rice business.

It is typically hard to have a large margin unless you buy in bulk. This is the reason why a rice business with a high capital requirement usually has difficulty operating.

As to how much you can earn from this business, this will depend on the type of rice you sell and how much you charge for it. The price is determined by the supply and demand in your area, as well as by the quality of your product.

What You Need to Get Started with Your Bigasan Business

So you’ve already looked into the pros and cons of this business and have decided to start your own rice business. What are the things you need to have? Take note of the following:

1. Secure an NFA License

To start a rice business, you need a National Food Authority (NFA) license. The law states that every rice business must be approved by the NFA first.

But don’t worry—you can get an NFA license by filling out an application form at the NFA office in your area, paying the P100 application fee and submitting it along with other requirements like a business plan and inventory list.

The NFA will review your application and approve or deny it within 30 days.

2. Register Your Business

Next, you’ll need to register your business. There are three types of entities you can register with: sole proprietorship, partnership or a corporation.

For sole proprietorships, register with the Department of Trade and Industry (DTI).

For partnerships and corporations, register with the Securities and Exchange Commission (SEC). You can find more information at those offices or online.

3. Pick a Good Location

One of the most important factors that you need to consider when it comes to starting a rice dealer business is the location. Having a bigasan business is very important, as it will allow you to attract many people who go to the market every day. You can also start a rice business in rural areas or downstream regions.

If there’s a high demand for rice, you can start a rice dealer business in a place where there’s a lot of demand. This can be done if you’re the only one selling at a certain area or street.

4. Invest In Proper Storage For Rice

Rice spoils quickly and will deteriorate within three months. The best way to prevent it from going bad is to use the “first-in, first-out” (FIFO) method, which ensures that sacks of rice are used in order from oldest to newest.

Pests like bukbok (weevils) are rice’s worst enemy. To prevent infestation, you should always clean and sanitize your storage area.

5. Prepare Your Capital

You must have money to start a business. The question is how much capital do you need? With a bigasan business, you can adjust your budget to cover your expenses.

You can spend as much money as you want, or start small with as little as you can. For instance, you can have a bigasan store for just P60,000.

Before you start a bigasan business, it’s important that you take into account the various expenses that will be involved in running it.

6. Source the right equipment

As we mentioned, rice can spoil easily and so you need to have a space where you can keep it. This is why the National Food Authority requires that all rice traders have an equipment such as weighing scale, rice boxes and signboard (45cm wide x 75cm long).

Price tags that show the price per kilogram of each variety are also needed so customers will know how much they have to pay for each kind before they buy it.

7. Find suppliers

Next, you need to find out where to buy your rice from. You can ask around or do your research on the internet. Then, try to negotiate with each supplier so that you can get the best deals for all of them. Select the best suppliers, but don’t neglect the others; you may need them later too.

8. Identify your target market

In addition to thinking about your location, you also need to consider who your target customers are. These are the people who will be the majority of your customers, so it’s important to get this step right. You could target people who frequent palengkes or even just your neighbors or those near your barangay. Then, you just need to market to them!

9. Offer deliveries, especially during the pandemic

One of the most important factors you should consider when it comes to your bigasan business is accessibility. Since the pandemic started, most people can’t go outside to buy rice. You can provide a delivery service similar to what a water refilling station does.

This offer is only good if an individual orders a 50-kilo bag or one cavan of rice. Otherwise, it would be too expensive for you. You can also charge a flat fee for delivery.

10. To Franchise or Not

Today, there are many types of businesses that offer franchises. These include hotels, fast food restaurants and grocery stores, among others.

For new business owners, franchises are a great way to get started since they already have brand recognition, products and marketing in place.

Retail or Wholesale Rice Selling

You can start a rice dealer business if you plan on selling the product. You can register with the DTI or SEC for a single proprietorship, a corporation, or a partnership. You can also join a cooperative to start a business.

To start a rice dealer business, you must secure a license from the NFA. This government agency makes sure that you have the necessary equipment, such as a storage area and calibrated weighing scales. You also need to produce a green signboard that has your name and the control number of the NFA. It must contain a seal and your license’s renewal every year.

The minimum investment that you need to make to start a rice dealer business is about PHP30,000. Since this is a staple food for Filipinos, potential buyers are already there. There are several rice dealership business tips that you can learn.

Tips for Starting Your Bigasan Business

Here are some tips to ensure that you’re not missing anything and your bigasan business is all set to go:

1. Make sure that your space is clean and tidy. This will make customers feel comfortable and safe when buying rice from you.

2. Have a good supply of bigas in case many buyers want to buy at the same time.

3. Learn how to properly pack the rice and make sure that it is tightly sealed.

4. Choose quality bigas so that you can earn good money from your customers

5. Make sure that your prices are reasonable so that buyers can afford them

6. Be polite, courteous and friendly when talking with customers. Do not be rude or appear uninterested when a customer asks questions about the rice or your business.

7. Test the quality of the rice before selling it by cooking some and tasting it. If there are any problems with the taste, do not sell it until you have addressed them.

8. Make sure that you have enough change for your customers.

9. Have a sign that says “Bigasan for Sale” outside of your stall so that customers will know where to find you

10. Do not sell too much of the rice to one customer because this could cause problems with other buyers who want to purchase some as well.

11. While transporting rice, make sure that you use good quality rice bags.

Frequently Asked Questions

1. is bigasan business profitable.

Rice is a staple food in our country, and it is a profitable business for retailers. There are various types of rice that people can choose from, such as long grained, aromatic, white, and glutinous. These are the preferred ones for daily meals, as well as native sweets.

2. How Much Capital Is Required To Start A Rice Business In The Philippines?

For franchises and retailers, the required capital is 50,000 and 250,000, respectively. This is for people who want to sell products that have an existing market.

3. How to boost your Bigasan business?

Small discounts can be a great boost to your bigasan business as your customers will most likely refer you to their friends. Also, some suppliers will require retailers to have a certain amount of rice in order to supply them.

4. What is the first in first out method?

One of the most important factors that you should consider when it comes to keeping your rice products fresh and high-quality is using the “first-in, first-out” method.

This method ensures that the rice doesn’t go beyond its shelf life. In addition, you should regularly clean and disinfect your storage area to prevent pests from wreaking their effects.

5. How to get discounts on rice?

You can make a list of the local rice suppliers in your area and connect with them. Having a good relationship with them will allow you to receive better prices.

6. Why is it important to put a portion of the budget for rice?

Having a portion of the budget allocated for rice can help prevent problems with suppliers.

7. What do you need to register a bigasan business with?

Individuals who are sole proprietors or are operating as a corporation or partnership are required to file documents with the DTI and SEC.

8. Why is offering a wide selection important for a bigasan business?

Providing a wide variety of products and services makes it easier for customers to do business with you.

Final Thoughts

Starting a bigasan business in the Philippines is a great way to become your own boss, build a profitable business, and make a positive impact in the community. It is an affordable way to get into business that has a long history of success in the country.

As a business, you can provide a valuable service to the people of the Philippines and become an important part of their lives. With the right marketing and business strategy, a bigasan business can be a successful and profitable venture. So why wait any longer? Start your own bigasan business today and make a difference in the lives of many.

We hope this guide has helped you better understand what a bigasan is, how it works in the Philippines, and why you should consider starting your own business. If you have any questions, please don’t hesitate to comment in the section below.

READ NEXT: How to Start a Business in the Philippines: Easy Tips from DTI

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COMMENTS

  1. Starting a Rice Distribution Company

    1. Carry out Feasibility Study In as much as any rice business have an available market, you still need to conduct a feasibility study on the demand of rice in your location. You need to find out if there are retailers who are available to buy your rice produce and how fast they sell out to consumers.

  2. Rice Retail Store Business Plan [Sample Template for 2022]

    1. Industry Overview As the name of the business implies, rice retailing stores basically retail processed and bagged rice. Rice retail stores primarily purchase rice from wholesalers and retail them directly to end consumers - customers.

  3. Starting a Profitable Rice Retailing Business: Your Ultimate Guide

    Create a comprehensive business plan that outlines your objectives, marketing strategies, operational processes, and financial projections. Determine the capital required and explore various financing options available to fund your rice retailing business. Legal Requirements and Permits

  4. Sample Rice Retail Store Business Plan

    By Olaoluwa December 13, 2022 RICE RETAILING BUSINESS PLAN PDF SAMPLE Rice is one of the most popular and highly consumed food in most countries of the world. Because of this, it is always in high demand. If you are looking for a lucrative business that you can start with low capital, you can consider the rice retailing business.

  5. Complete information about starting a rice wholesale business. its cost

    About The Rice Wholesale Business: Rice is one of the highest consume food grains which satisfy the hunger of world's population. The yearly rice production occurs about 535 million tons. After China, India is the second largest rice producer country combined collected 50% of world's rice production.

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    1. Conduct Market Research and Form Marketing Strategy for Rice Business - 2. Create Business Objectives 3. Target Market 4. Unique Selling Proposition (USP) 5. Pricing Strategy 6. Marketing Plan 7. Operation Plan 8. Financial Projects 9. Organizing Things to keep in mind before starting the business:

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    11.Get your Rice Wholesales Marketing Business Plan. Well, this is really important as a rice wholesales business plan. Will help you keep everything and all calculated figures on record. Your business plan should include the following: Decide on the type of product you intend to sell. There are several reasons and factors to consider here.

  8. Ready to Be a Rice Seller? Here's How to Start a Bigasan Business

    Depending on the size of your store, the bigasan business capital is also quite affordable, ranging from ₱50,000 to ₱300,000. You can opt for bigasan business packages that allow you to set up shop quickly. For instance, rice grains retailer and wholesaler Grainsmart's packages start at ₱200,000), inclusive of supplies and equipment.

  9. A Comprehensive Guide to Starting a Successful Rice Mill Business

    A good rice milling business plan should include the market analysis, financial projections, production process, marketing strategy and management structure. Market analysis involves researching the current demand and supply of rice in your target market. This will assist you in estimating your venture's potential profitability.

  10. 5 Important Tips for Starting a Rice Retailing Business (Bigasan)

    1. Get an NFA license first. 2. Buy proper equipment 3. Choose a good location for your rice business. 4. Invest on proper storage for your rice. 5. Get to know your suppliers and prospective customers Contact Information for Business Licensing Authorities 1. Get an NFA license first.

  11. Bigasan Business 2023: How To Start, Capital, Profit (Plus, Tips To

    1. Research Your Market and Competitors 2. Choose a Location Frequented by Your Target Market 3. Choose the Right Rice Supplier 4. Secure a License From the National Food Authority (NFA) 5. Ensure That You Have the Required Equipment and Facility To Start the Rice Business 6. Register Your Business 7. Set Up Your Bigasan & Store Your Rice Properly

  12. How to Start Rice Wholesale Business in India: A Step-by-Step Guide

    May 26, 2023 by Albert Roby Are you planning to start a business in India but don't have an idea on where to begin? Perhaps, starting a rice wholesale business in the country is a smart idea. Rice is a staple food in India, which makes it a big market for entrepreneurs who want to venture into the food industry.

  13. Wholesale Business Plan Template [Updated 2024]

    A business plan provides a snapshot of your wholesale business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans. Why You Need a Business Plan

  14. Grains & Cereals Wholesale & Distribution Business Plan

    GRAINS & CEREALS WHOLESALE & DISTRIBUTION BUSINESS PLAN. heeds January 1, 2023 Business Plan. This is a complete business plan for grains (rice, maize, millet) agro product which can be use to apply for grants, NIRSAL microfinance bank loan, CBN and BOI or business proposal. It is complete and contains all the necessary things for you to submit ...

  15. Succeeding with a Rice Business In India

    14 February 2024 13,954 5 mins read From rice farming to retail rice selling, several opportunities are waiting to be exploited in the evergreen rice industry. This article outlines the A to Z of starting a rice business in India, don't miss out on leveraging it. Rice is a staple source of food throughout Asia and hence is always in high demand.

  16. How to Start a Rice Wholesale Business Successfully Guide For Beginners

    Rice is one of the most consumed foods in the world, and it is an important part of many people's diets. If you are planning to get into rice wholesale, you need to understand the key concepts and steps needed to succeed in this field. Step 1: Create a business plan How to Start a Rice Wholesale Business Successfully

  17. 283072856 Business plan sample

    TOTAL PHP 10 150. Rice Variety Price per Kilo 160 Php 43. M3 37. Premium Rice 47. Bahay 36. Tonner 40. Rent Expense - Php 3 500. Salaries Expense - Php 3 000. Start-Up Capital - Php 300 000. Holy Cross of Davao College Law Enforcement Operation and Planning with Crime Mapping pdf BSED Social Studies

  18. How to Start a Bigasan / Rice Retailing Business in Philippines

    1. Capital The amount of capital you need to start a bigasan business depends on your business model. You can begin a retail operation with as little as PHP 50,000, while franchising may require an initial investment of up to PHP 300,000. If you're not yet sure which business model is ideal for you, don't worry!

  19. Manufacturers and suppliers of wholesale baikhovi, loose leaf tea

    Our company has got considerable experience in foreign trade activity, solid business relationships with leading manufacturers from Japan, South Korea and Thailand. We also have got work experience with retail chains. Organization address: 55, Snegovaya Str., 690074, Vladivostok, Primorsky Kray, Russia; Phone: +7 (905) 525-6720; Website: http ...

  20. Find Wholesale Trade Companies in Elektrostal

    Find detailed information on Wholesale Trade companies in Elektrostal, Moscow, Russian Federation, including financial statements, sales and marketing contacts, top competitors, and firmographic insights. Dun & Bradstreet gathers Wholesale Trade business information from trusted sources to help you understand company performance, growth ...

  21. TRAID PLYUS, OOO

    See other industries within the Wholesale Trade sector: Apparel, Piece Goods, and Notions Merchant Wholesalers , Beer, Wine, and Distilled Alcoholic Beverage Merchant Wholesalers , Chemical and Allied Products Merchant Wholesalers , Drugs and Druggists' Sundries Merchant Wholesalers , Farm Product Raw Material Merchant Wholesalers , Furniture and Home Furnishing Merchant Wholesalers , Grocery ...

  22. Rosatom diversifies into energy storage with newly incorporated Renera

    In yet another diversification of its clean energy business, Russian state atomic energy corporation, Rosatom, has opened an energy storage business unit based around lithium-ion batteries. The company, which is also Russia's biggest electricity provider, has announced that it has completed the incorporation of its energy storage business development arm called Renera. A Rosatom statement […]

  23. Target launches in-house bargain brand Dealworthy

    Feb 20, 2024. Target Corp. (NYSE:TGT) announced it is launching a new low-price brand called Dealworthy. It was the second in-house brand announcement from the Minneapolis retailer last week ...