How to Successfully Start a Food Production Company

The food industry is the biggest in the production sector as a whole. In general, the food industry generates more than $1.8 billion and is projected to hit more than $2.5 billion by 2025.

Food production businesses can range from multinational juggernauts, like Heinz and Cadbury, to independent factories with staff manufacturing two or three products.

Unless you want to restrict sales to just a few church fares and school fetes, a food production company is not a business you may run effectively part-time. Starting a company in this line of business involves taking on a dedicated premise and using the following the tips to succeed:

1. Research Well

Knowing the market and customers is the main commandment when venturing into the food production industry. Bygone are the days when big-scale production was enough to run food manufacturing companies. Nowadays, the customers and market dictate whether or not you will succeed.

So before starting a food production business, you must first research the market. You should also determine who your target market and competitors are.

2. Put Funds Together

All businesses need proper funding and capital to start and run operations. There are several ways to get funding for your company. You may opt to get a business loan from a bank or go for crowdfunding.

You may as well raise money from friends and family or apply for finances from different government schemes, which provide help to agro-industries.

3. Choose Suppliers

As a food production company owner, you will work with different suppliers, from C02 refill New York to furnishings, kitchen appliances, and POS systems. Before you do that, prepare a wish list, scope out a long and short-term budget, and start hunting for potential partners.

However, remember that although you wouldn’t want to cut corners when choosing quality, over-priced partners will reduce your profit margins as well as lack the capability of growing. So ensure you negotiate hard.

To get reliable suppliers, go to wholesale retailers, do a Google search, and ask for referrals from fellow business owners in the same industry.

4. Pick a Suitable Location

Deciding on the location of your food production business is important before you launch it. As always, it is advisable to find a more feasible location where you may access resources, such as electricity, manpower transportation facilities, and raw materials.

A suitable location is best derived from those factors mentioned above and the availability of raw materials. Plus, you will need to look at the perishable nature of food products as well as their duration.

5. Hire the Right Staff

Based on what kind of food production business you want to start, you might or might not require help. However, even small establishments need extra hands so as to increase production.

Who you choose to hire and how many individuals will depend on your business needs. For instance, food trucks won’t fit more workers, but large-scale restaurants will need more workers to run the floor smoothly.


Starting a new food production company from scratch can take time and effort. But if you follow these tips from the pros, you will have a better chance of succeeding.