Potato Chip Business: How to Start a Potato Chip Business

Are you interested in the food and snack industry then starting a potato chip business is a good idea? Startup capital for this business is small to medium and the model is generally a limited liability company. The delicious food snack is popular in many countries and has high demand.
Fast food is a major industry globally and involves different snacks like biscuits, meat pies, doughnuts, hot-dog and potato chips. Although the industry has major companies, small business owners are also smiling to the bank.
All a small entrepreneur needs to do is carve a niche, create a good product and use targeted marketing techniques.
The production process of potato chip making involves dried and sliced potato and frying in hot vegetable oil. The process is simple however chefs apply different spices and experiment with different potato species.
The major consumers of potato chips are urban dwellers. You can find the delicious snack as food packages and eaten at home, picnics or schools.
Places to buy chips are restaurants, hotels, fast food outfits and snack canopies.

How to start a Potato Chip Company
Research Menus
Anybody can make potato chips but finding the right ingredients makes the difference. Potato chips also need an attractive packaging for the product.
Create a good menu and select the type of potato you like. Conduct market research learn the trade, and get the right equipment.
Find a Good Location
Your business location is very important to reach customers. If you locate your business at a shopping mall your customers are the visitors to the mall.
The best locating are crowded urban areas or business districts. Another way is to have a mobile snack bus for your business. Best locations are shopping malls, stores or selling your product at supermarkets.

There are a few permits and licenses for food manufacturers. You need to find out what is obtainable in your country. There are certain health checks that are required for food vendors.
Register your business as a sole proprietorship or a limited liability company. Your product would need an identification and certification number from the relevant authorities.
Sourcing the Product
Potato is your major product and is seasonal. You can buy from wholesalers or retailers to reduce cost. If there is a farm in your area buy directly from the farmer.
You need a steady supply of potatoes, oil, spices and other condiments.
Potato Chips Making Process
The process of making delicious potato chips is generally similar in application. There are basically six steps to the process.
Select the Potatoes
Select the potatoes you want to fry and do a quick inspection. Potatoes like other root fruits are subject to diseases and infestation. Thoroughly inspect them and sort them into groups.
Wash the potatoes by running clear clean water on them. Once the washing is concluded peel and trim into chips.
Then cut and slice them into thin potato strip. Then apply spicing and fry in soy oil or ground nut oil. The final process is salting, cooling and packaging the chips.
To carve a niche make branded packages out of cardboards and imprinted your brand.  
Machinery and Equipment
The major equipment used by potato chip makers is deep fryers and knives. You also have the potato peeling machine and weighing machine.
Other equipment is spin dryers to extract moisture and the slicing machine. They use blanchers and electronic polythene bag sealers.
Potato Chips Plant
There is much machinery that carries out the process seamlessly.  The chips are fried in some plants for 6 minutes at a temperature of 180c.
 The blanching time is 7-15 minutes at a temperature of 70c. French fries are 8-10 minutes and temperatures of 180c. Blanching time of 15 minutes at 70c
There are different types of potato plants such as automated and semi-automate plant.  Semi-automobile potato chips plant caters for both small and medium sized companies. 

Co-Packaging and Private Label
To Jump start your Chip business with a co-packing contract. Seek major manufacturers and secure a non-disclosure agreement which allows you retain ownership of your product formula. You retain the rights, formula and ownership of the product.
The co-packers produce a test batch for clients while providing nutritional analysis and packaging for the export market.
Using co-packing arrangement leverages on the manufacturers equipment saving cost on logistic, implementation and multiple licenses.
The private label right uses the manufacturer’s product formula and ingredients. Major manufacturers save cost through outsourcing their non core business to small manufacturers.
To reach your potential customers do lots of marketing. Promote your product with advertisement and branding. Offer discounts, competitions and attractive prices.
Taste is everything in the potato chip making business. Try to create a unique and interesting taste, colorful packaging and effective marketing.
Potato chip business is highly competitive but very lucrative. Start small, master the trade and increase your out put and production.
Large chip producing factories need lots of funding. The best way if you want to go large is approach your bank manager for loan.


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