How to Select the Right Feed Mill Business Location
Feeds are the single most valuable input to the swine and poultry businesses, enabling feed milling here in the Philippines to grow into a multi-billion-peso support industry. Needless to say, a feed mill business is among the most recommended ventures for aspiring entrepreneurs, especially to those who are living closely around poultry farm communities.
Because of a small capital requirement and year-round demand for feeds, the feed mill business has proven to provide good returns time and time again. The product never goes out of fashion and all you need is a well-positioned and government approved facility to get started.
Speaking of this, how would you know if the location that you have is the perfect placement for your feed mill business? Make sure to go through the following checklist.
1. Look around you
Is there a demand for feed mill in the neighborhood? This kind of business won’t work around tall buildings, busy streets, and people working in the corporate world. Give yourself an advantage by building your facility close to your potential customers—poultry farms.
2. Assess the market saturation
Apart from demand, supply is also another thing that should be highly considered. Is the location already filled with plenty of feed mill businesses? If you answered no, treat it as a green flag. This means that there is a big opportunity to fill in this market.
On the other hand, if you answered yes, you’re going to have to work harder in making sure that you are ready to compete with other feed mill businesses. What benefits can you offer the market that the other competitors don’t provide? What marketing strategies are you going to employ in order to mark your presence in the area? What sales channels are you going to utilize in reaching out to potential customers? Answers to these and more questions should be laid out before deciding to join the competition.
3. Measure the accessibility of the location
Check if the location is conveniently placed near your suppliers. Doing this can lessen unnecessary operation expenses such as freight. This is also an efficient way to speed up turnover and increase productivity. In the same way that choosing a location close to your target customers paves the way for an easier introduction to the market.
4. Align your financial plan
If you’re planning to lease or acquire a property, check if it fits your budget and works for your financial forecast. Depending on the size of your facility, how much profit do you foresee your business making? Will this be able to sustain the cost of paying the property and other expenses?
5. Check the community
Will the community benefit from your feed milling business or will it pose threats to their living? Get yourself familiarized with the local laws and policies implemented in the area. Make sure that no homes or wildlife will be at risk in putting up your facility.
To summarize, here are 5 questions that you should answer when looking for the right feed mill business location:
- Is there a demand in the area?
- Is the competition low in the area?
- Is the location accessible to suppliers and customers?
- Does the cost fit your financial plan?
- Will your business benefit the community within the area?
If you answered yes to all of these, congratulations—you found the perfect location for your business! For further guidance and one-on-one consultation, feel free to reach us out today.