Growing awareness of the physical value of a diet filled with produce is good news for anyone interested in starting a small business venture as a produce trader, whether you grow the fruits and vegetables yourself or not. Traders plant and harvest the produce or purchase in bulk from local farmers and make a profit selling at local markets and fairs. Even a small, backyard garden can get you started as a trader.
This document provides a template of headings for presenting any business idea. The objective is to produce a step-by-step tool that illustrates every step of the business creation process. It should be possible, by following the information, to produce a viable business.
Description of the business
Within each sub-heading are a series of questions that require detailed answers. Simply fill in your commentary beneath the headings. Note that these headings and the methodology are here, partly to be pedantic, but mostly to ensure a consistent approach across a number of unrelated businesses. It makes searching for information far easier if you know where to start.
What exactly is it that is going to be sold or done?
I am going to sell fruits and vegetables:
- Apples
- Oranges
- Papaya
- Water melon
- Plantain
- Pineapple
- Bananas
- Tomatoes
- Potatoes
- Green peppers
- Red peppers
- Onions
- Carrots
- Cabbage
- Cucumber, etc
Getting Started
Step 1
Secure a good location for your fruit and vegetable business. Whether your business will be a roadside fruit and vegetable business or be located in a permanent storefront, location is very important to the success of your business.
Step 2
Write a business plan. In order to secure financing for your business, it is imperative that you have a comprehensive, professional business plan that will persuade a loan officer that you have a viable business idea he wants to finance. A business plan also gives you and any future employees a direction and starting point from which to focus your business.
Step 3
Contact your state, county and local governments to find out what business licenses fruit and vegetable vendors need. Business licenses and requirements vary by state and community. Food-handling training and licenses and a resale tax license might be required. Contact your local health department about food handling and your state and local business licensing and regulations department to obtain licensing applications.
Step 4
Grow or buy the fruits and vegetables. Local farmers sell their crops in bulk to traders, or you can learn to grow your own and harvest them for sale. Traders usually divide bulk purchases into smaller containers and price the smaller amounts for resale. Investigate what competitors are selling produce for before settling on the right price to charge customers.
Step 5
Choose the ways to sell your produce. Buy a booth at weekly or daily farmers markets or flea markets. Post fliers and business cards on bulletin boards or as newspaper advertisements. Contact restaurants and caterers and sell fresh produce on a weekly or semi-weekly basis. Consistency is important when selling produce. Establishing a routine that clients can depend on can lead to repeat and long-term buyers. Many farmers markets and restaurant owners allow only organic or pesticide-free products to be sold by producers.
Step 6
Buy the right equipment. Produce traders usually deliver items to the customer. A large truck, produce boxes and a delivery dolly are necessary items. Delivering fresh produce to restaurants or bulk customers might require a refrigerated delivery truck. Selling through farmers markets might require the purchase of tables, display bins, scales, portable devices to accept payment and an awning or tent-like structure to protect employees and produce from the sun and elements.
Step 7
Design efficient transportation and delivery routes. Transportation costs might be a high-ticket expense for many fruit and vegetable traders. Delivering produce several times a week instead of daily might help cut back on gas, insurance and vehicle costs.
Tips
- Organic items sell for a higher price. Buy or grow organic produce and resell at local farmers markets where customers go to find fresh, organic and local produce.
- People are more likely to stop at a produce booth that is decorative and conveys the care and pride the trader takes in growing, selecting and offering his produce to the public. Use colorful tablecloths, baskets and signage when creating a booth at a local farmers or flea market.
- Inventory will vary from week to week depending on the growing season, region and weather. Learning about crops growing in your region will help you discern what type of inventory to carry and produce available at various times of the year.
- Some farmers markets request non-organic farmers and growers to identify to customers the pesticides used to grow the produce.
- Do not forget about schools, resorts, country clubs and large companies with employee cafeterias when making contacts with area businesses interested in fresh produce.
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