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Cold Storage Business

Cold Storage Business

by Tandava Krishna


In our country, we often see a shortage of food due to which the prices rise tremendously. This is either because we had a bad crop that year, which is quite rare, or the food got wasted because it was not stored properly. To resolve this issue, the storage businesses are rising which are subsidized by the government. There is a Dry Storage facility or Cold Storage facility. The Cold storages are the big-sized coolers, which is ordinarily used for storage purposes. Cold storages are used for storing organic products such as fruits, vegetables, processed meat, Dairy Products, Spices, Dry natural products, jaggery, Pulses, cereals, frozen food, and pharmaceuticals. Post-harvest management is a significant part of farming as all vegetables and natural products which are once produced and cultivated can’t be sold instantaneously. The amount of residual produce has to be put away for further processing. Under those conditions, cold storages turn into a vital part of post-harvest management methods. The cold storage business has a significant connection between farmers and shoppers. As a result of the quick growth of food and related enterprises, the cool storages are increasing tremendous interest.

If you are interested to start a cold storage business, here is how you can do it:

Create a Plan 

Decide what will be your reach. How will you generate the fund for the given size of your business? Make a plan for what is going to be the size of your business at first. The growth will only follow if you thrive in the market and the cold storage business needs investment, time, and ability to manage and arrange resources. There will be weeks or even months when you get no projects on other days you might have a couple in a month. One should always be ready for good and bad days.

Understand the Market

To start any business, you must know how the market works around it. Find out who can be a prospective customer in your area. What other cold storage businesses are available? Meet with experts and generate leads with them. This research will help you understand the market size, strata, variety, and help you build a vision for your cold storage business plan. This way you can be more focused and knitted to your business. 

Increase your expertise

To open a cold storage business, you need to have a lot of information about this industry. You should be an expert. Take guidance from an expert who has been in this business for a long time to know the trends, fluctuations, and risks of this business. Understand how different types of units are there and their uses and how you need to arrange resources for the business. 

Decide the size of your business

These are the basics as you’ll need to collect funds for your business according to this plan. Before you start a cold storage business, you must decide how you are going to organize your business and what will be size of it. Decide how you’ll get funds for all these.  You have to arrange labor for loading, unloading, etc. You should have a team and based on that, decide the size of the business and funds you have.

License and Permit

To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get your GST registration, and all sorts of licenses and permits are done. Make sure you are ready with all the paperwork and to take multiple rounds of government offices because opening any business in India calls for this.

Choose the right location

This business requires you to especially be cautious about the location. Your facility should be near a place which is convenient for your customers and clients. Even if you lend your property for government storage purposes make sure you locate yourself near the farms where the transportation of goods is easier. 

Buy equipment and machinery

Research about the machinery and equipment required for you to set up a cold storage business. Buy good quality machinery which lasts long. You can opt for fully automatic machines too as there is a variety of them available easily and are cost-efficient.

Understand your customers

Any business needs you to be focused on their target audience. In the cold storage business, you must make sure that your client is happy with your facility in the long run. The items that are kept in your storage should be safe and the temperature of that unit should be regulated according to your Take notes of their requirements, what kind of place they are looking for in great detail. If your customers are not satisfied with the property you have built for them, all your hard work will go in vain.  Take their reviews sincerely and ask them for what varieties they would like you to offer in the future. Focusing on the target audience is very important in this business so keep that in mind.

Understand the finance

This is amongst the first things to do. You are setting up a cold storage business and it will require a principal investment be it for setting up the facility or for procuring and arranging equipment. The Capacity of the cold storage and the number of rooms present in the cold storage matters a lot for your expenses. The kinds of items put stored, items stored are sorted into two kinds, the plus temperature type cold storages are used for vegetables/organic products/seeds and the minus temperature type of cold storages are used for frozen products. The cold storage utilized for storing frozen items needs a significantly high expense and the regular maintenance of the temperatures of the cold storage. Another operational expense incorporates electricity charges, water bills, and labor.
Along with profit, you have to look for taxes too which are levied on your services. Make sure you have done your research and avoid the chances of any tax payment delay.

Get the Manpower

You will require a group of people who are ready to work hard. Hire labor for loading and unloading, technicians who are going to operate the machine and other workers for water and electricity control, etc. Think about all the prospects where you will require human effort and get yourself enough people to run your business smoothly
Build a team you can trust!

Increase business possibility

The cold storage facilities are now required in almost all the agricultural and food-related businesses. Generate leads and look for distributors or directly contact farmers and business persons who are in food-related businesses to increase your business possibility. It is only by meeting more people and generating leads, you will be able to expand your business.

Marketing on different platforms

Be ready to do a lot of marketing. Social Media is used by almost everyone around the globe. It is almost certain that at least one person in a household must be using any social media platform. Putting up pages on Facebook and Instagram, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your cold storage business. Along with online, spending on offline methods to propagate business is necessary. Put up small hoardings for your surroundings. Since you already have an offline business and most customers who have done business with you will keep your number saved, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one-to-one messaging which has become one of the best provisions of converting prospects to customers.

Starting any business takes a good amount of planning. If you want your new business to succeed, understand the risks that come with entrepreneurship. It often takes a few years to get a business off the ground even with the best-laid business plan and advanced marketing. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. All the best!


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