Everything nature provides is for the betterment of humans; they were created to serve and sustain man, especially agricultural produce. One of the lucrative aspects of agriculture is the processing.
This is the transformation of raw agricultural produce into finished goods. In it, there are more opportunities and prospects.
A raw agricultural produce has the potential to produce more than one item after transformation, virtually all. A good example is coconut.
Coconut, as a plant, has several by products when processed; one of which is the coconut oil. Coconut oil is a good substitute to other vegetable oils.
Coconut oil contains necessary nutrients for human nourishment; it is natural and untainted with high economic value. As compared to other oil crops, coconut oil is cheaper with relatively higher value, in terms of palatability and nutritional benefits. It is as good as gold.
Medically, it is highly recommended; it boosts immune system and prevents heart diseases. This oil is what people need to survive well; capitalizing on this opportunity is a no-regret journey. People want to live healthy and are ready to consume it when certified unadulterated.
Starting a coconut oil production business is not too exorbitant. It requires astute procedures and pragmatic actions plans.
Follow the procedures below and get your feet wet in the coconut oil production industry.
- Develop a tractable and defined business plan: After the conception of a business idea, naturally, an action plan should follow. That indicates seriousness and believe in that idea. Truly, coconut oil production is a very lucrative business; but your action justifies this fact. If your actions are realistic, the business becomes lucrative but when they are vague, you will share a bitter story of the business.
- Your business plan is your business template; it is the imaginary view of how your business would look like after its establishment. It should contain how you want to penetrate the market, your proposed consumers, your price viability and likely challenges you tend to face and how to successfully tackle them.
- Your business model is designed and described therein; the future of your business should be predicted in the business plan. All these are what your business plan should buttress and treat diligently.
- Register your business: This is very imperative for any serious entrepreneur. Registration of business brings some form of seriousness and formality in the business itself. It credits your business image and maximizes your opportunities.
- Registering your business gives you the full right to explore and legal backing.
- This is very important and must be taken seriously.
- Register your business before any financial commitment on the business plan.
- Procure all necessary training and equipment: In any business, basic and in-depth knowledge about the business need to be acquired. You need to garner all necessary information and lessons about the business, learn how to manipulate resources to increase yield and adjust to current economic situation.
- You should go for intensive training about the business before delving into it; this will expose you to the pros and cons of the business. Learn before you earn, this will make your business thrive better.
Also, all necessary equipment have to be procured to ensure smooth running of the business; do not use crude tools for your production, it greatly reduces the efficiency of production. Knowledge and equipment are two primary investments that keep a business growing, do not ignore them. Invest prudently and timely, you will later enjoy the dividend.
- Outsource your raw materials: The only raw material in this business is the coconut fruit. Coconut oil is an organic oil that needs no preservatives or additives; you need a reliable source of coconut fruits. Farmers around the coastal areas plant more coconut; you can buy directly from the farmers at cheaper price as compared to other sources.
- Get and keep the contact of the farmers, ensure you keep a cordial relationship with them.
- Do not be parsimonious and frugal in your transactions. Buy at reasonable and pocket friendly price; this makes the farmers loyal and ready to supply always. However, as your business grows, it is advisable to procure your own land and plant coconut on large scale. It becomes yours forever and eliminates the cost of purchasing the fruits. This is better than outsourcing your raw materials.
- Processing: After all the above steps are done successfully, processing follows. Processing is the main business; it can make or mar other steps in the business.
- The method of processing determines the quality of the end product; ensure you use the best and most economical method to increase your yield and enhance the quality of your oil.
- The basic process involved in the production of coconut oil are; cracking the matured coconut fruits, scrapping out the edible portion of the fruit, mince and blend it completely to form a paste. With the aid of a sieve, separate the fibre from the milky water. Place the water in a separate container and leave for about 24 hours.
- After this period, you will observe that the oil has settled at the bottom of the container. Carefully scrap out the impurities and you have your coconut oil, natural and unadulterated.
However, producing on a large scale requires more sophisticated equipment to carry out all these processes at a faster and more efficient way. Also, the amount of oil produced is greatly determined by the quantity of coconut fruits used in the processing. This is the basic idea of coconut oil production.
- Packaging: After successful processing, with the quality of the oil rightly preserved, what follows is packaging. This is where you make sales; packaging is what makes your product stay ahead of its pack, it is what beacons at consumers’ attention and curiosity. The impression of your product from afar is very important; even when you have a good quality coconut oil, if the packaging is poor, your product would never reach its market potential. Give your product a vibrant appearance embodied with nice graphics work; make it different from what people are familiar with, change your own to control the market.
- Marketing: This is the final stage of your production; your coconut oil has to reach its end consumer, but how?
There are different ways and manner you can market your coconut oil. Internet is the most prominent platform; with good use of the internet, you can get wider publicity and more buyers from different corners of the world. This depends on your versatility with the use of internet. Put the pictures of your coconut oil on different social media platforms with good description about it; you will make good sales.
Aside from the internet, door to door awareness also goes a long way in outsourcing market for any product. Your neighbours must benefit from the coconut oil before it goes to the outer world. They attest to the efficacy of your products.
Coconut oil production is a very lucrative business when carried out with great tenacity and determination. Also, do not try to adulterate your oil, once a consumer complains, your product is on its way to moribund. Be real and veracious always, this keeps your business floating and profitable.