Food Business
Cooking up a small food business? 3 tips to get a head start.

Cooking up a small food business? 3 tips to get a head start.

According to statistics, 9 out of 10 start-ups fall by the wayside.

This figure may paint a grim picture, but rather than getting discouraged, budding entrepreneurs should take heart, because 1 start-up out of every 10 does manage to tick all the right boxes, and that start-up can be you.

Here are 3 tips to make you micro/ small- small scale food business work:

What qualifies as a micro/small-scale business?

A mess service: A home-made ladoo business, or even a food packaging and reselling outlet can fall under the category of a small business.

Small-scale Business: Capital investment in machinery less than 5 crores ( manufacturing sector) and up to 2 crores (for  service industry)

Micro Enterprise: If your investment in machinery is up to 25 lakhs (manufacturing sector) and up to 10 lakhs (service sector).

Tip 1: Get your licenses right before anything else.

Before you get your business in place, it is essential to get your licenses in order. Miss this step, and fines or penalties could be staring you in the face.

For any business, however small, FSSAI registration and the Shop Act registration are compulsory. Manufacturers, distributors, retail traders and stockists also need to get licenses if their business turnover exceeds 12 lakhs.


Tip 2: Funding is more accessible than most people think.

The big F word in the start-up scene – funding – is not out of reach anymore – especially if your business is commercially viable, enjoys a continuous stream of revenue and you can raise up to 25% of the margin demand by the bank. And even if that margin is beyond your scope, organisations like deAsra connect you to banks and financial institutions who can give your business some amount of runway.

Tip 3: Finally, don’t give up too soon, and don’t pass up expert help.

Any food business generally takes a year to pick up pace, and that’s if the quality is top-notch and the right marketing strategies and SOPs are followed to a T. What’s the advice of deAsra mentors to budding entrepreneurs? ‘Don’t give up on your business too soon, but more importantly, don’t hesitate to ask for expert help. Help can move you forward, fast.’

deAsra partners with mentors, business experts and other complementary organisations and financial institutions to help entrepreneurs build a successful food business from the ground-up. Need help with your food business? Give us a call at +91 8669985599 / +91 8669975599.

Talk to a deAsra mentor Today

To know how we helped other food businesses take off, read our impact stories here. Here’s our all inclusive guide to starting a food business. Also, take a look at some of our food manufacturing business ideas.

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