The practicalities of starting a maize milling business

FEASIBILITY CONSIDERATIONS

Starting a new business isn’t only about having business ideas. It’s also about ensuring that you understand the feasibility considerations of the industry you’re entering, such as your goals or objectives, getting start-up capital in place, and determining your return on investment or profitability.

The milling of maize and production of maize meal is a rewarding business opportunity that also enables you to contribute to help secure food security.

Here are three pointers you need to consider when figuring out how to start a new business:

01. IDENTITY YOUR MAIZE MILLING BUSINESS’ GOALS

 Goals are a fundamental part of any start-up business. They determine where your business should be going and how you’ll get there. Unpack your maize milling business goals over a proposed timeline that addresses your various targets over that period.

02. SECURING START-UP CAPITAL FOR YOUR MAIZE MILLING BUSINESS

If you don’t have the capital to start your maize milling business, here are two avenues to pursue to obtain financing:

Government development funds

• Medium-term loans (three to seven years)
• Interest charged at prime plus related rates
• Requires a business plan and other motivational documents
• Application process takes at least six weeks

Financing from commercial banks

• Medium-term loans (10 years)
• Interest charged at prime plus related rates
• Requires a business plan and security in the form of assets
• Application process takes at least two weeks

03. DETERMINE PROFITABILITY WITH ROFF’S PROFIT CALCULATOR

 Will your maize milling business be profitable? Roff has developed a free online Profit Calculator tool to help you estimate and forecast your maize mill’s revenue. In order to use the profit calculator, your will need to identify factors such as the following:

1. THE COSTS ASSOCIATED WITH:

• Maize milling machines and equipment price
• Rental or levies of your facility
• Maize
• Fortification additives
• Packing (bags and machines)
• Transportation
• Power consumption and electricity
• Labour

2. THE SALES PRICE OF MAIZE MEAL AND BY-PRODUCTS

3. HOW MUCH YOU CAN SELL PER YEAR

We wish you well on your journey to becoming a maize milling entrepreneur!

DOWNLOAD ROFF'S FREE ENTREPRENEURS GUIDE TO STARTING A MILLING BUSINESS

Becoming an entrepreneur in maize milling is not without challenges, but fortunately with a partner like Roff Milling, you’re halfway there. We share some of our milling expertise in our African Entrepreneur’s Ultimate Guide to starting a Maize Milling Business – make sure you download your free copy today!

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