Vegetable oil refers to oil products derived from plants through a pressing process. Every year in the United States, farmers produce vegetable oils weighing over 16 billion lbs.; people use this oil in cooking, production of plastics and detergents and even apply the waste products as diesel to run engines, an idea coined by Lyle Pearl a resident of Santa Fe. For a small business prospective entrepreneur this presents a wide consumer base and she can decide on which sector to supply to or work in corporation with an large vegetable oil extraction company, such as the American Vegetable Oil.
Step 1
Conduct research on the requirements of a vegetable oil extraction business in terms of capital, market size and trends, competition and further insights on the business. For example, visit websites like IBISWorld to acquire knowledge on the economical statistics on vegetable oil extraction businesses in America. Conduct an online search on established businesses or personally visit the premises to gain insight on the establishment and operation of the business. Examples of vegetable oil extraction companies in America include, C P Vegetable Oil located in Fort Lauderdale and American Vegetable Oil in California.
Step 2
Make a business plan including the proposed location; finances, both start-up capital and operational costs; target market, for example, the food industry or manufacturing companies and the marketing strategy. Obtain the necessary funding for the business and its requirements; for example, as of the year 2011 an olive oil processing machine, which can process 350 to 600 lbs. of olive seeds, costs approximately $60,000. Consider transportation costs of the vegetables unless you own a vegetable farm, extraction costs and testing procedures before sale.
Step 3
Conduct an online search on the laws in your state regarding vegetable oil extraction for small businesses, and additionally, the environmental rules and regulations concerning industrial waste control in your locality. Acquire a license and permit from your local county's department of licenses and permits to enable you to legally operate your business; the department charges a fee for the license and permit. Register your business name with the department.
Step 4
Select the location of the extraction plant; it is advisable to locate it near the source of the raw materials; for example, a corn field or olive plantation so as to reduce transportation costs. Buy the necessary equipment for the business, such as the vegetable oil extraction machine; the cost depends on the model; for example, the price range of the D-1688, as of 2011, is $3,000 to $4,999.
Step 5
Advertise job vacancies for employees experienced in the oil extraction process through the media and select your preferred candidates. Market your business through the media or personal representatives by visiting your target group, such as restaurants and manufacturing companies to attain your clientele base.
References (6)
- Health Guidance: Uses of Vegetable Oils
- Manta: 76 Vegetable Oil Mills, Except Corn, Cottonseed, and Soybeans Companies in the U.S.
- IBISWorld: Margarine & Cooking Oil Processing in the U.S.
- Olive Oil Source; Business Plan Olive Oil Source; Business Plan
- Mixph: Starting a Virgin Coconut Oil Production
- DH Gate Factory: Vegetable Oil Extraction Machine
- How to Start a Vegetable Oil Extraction Business
About the Author
Fiona Miller is a resident of Vancouver, Canada. Her writing career began in London in 2004, working as chief editor for the International Finance Journal, an online magazine with readership across Europe. Miller holds a diploma in creative journalism and English from Concordia University, a Bachelor of Commerce in international business and an M.B.A. from the IESE Business School in Barcelona.
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