How to start a maize milling business?
How to start a maize milling business?
Maize is a widely planted grain food which is not only for human but also for animal feed. Maize usage is multiple but it needs different processing technology. This leads to the maize milling business. In order to meet different market demands, we use maize milling machine to peel the corn, remove the germ layer, and crush it into coarse grains or powderToday, we will talk about how to start this business.
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Because of the extensive planting and diverse uses of maize, many people see the business opportunities and are ready to invest in the maize processing industry. However, to start a maize milling business is not a trivial matter. Before starting a maize milling business, we need to do a lot of preparations. Now let's talk about it in detail.
1. Start a maize milling business need to inspect the market and sales channels.
Please do not start a business blindly. It is recommended to do market research first, determine the product and market positioning, and then make the final decision.
After inspecting the market and sales channels, you will determine what product or products to process. You should do a project analysis and product planning and have a clear market positioning, otherwise it will be very difficult to operate.
If you want to start a maize milling business, you should first inspect the market to see which maize product or products have good sales and broad market prospects, and then choose which or which corn products to make. You know, as one of the most important grains in the world, maize can be processed into many products.
2. Start a maize milling business need to raise funds and make a capital budget plan.
Preliminarily estimate the funds needed to start a factory and raise funds based on your own market research. The investment cost of a maize milling factory is not high, and it can be easily solved at about US$10,000, but the profit of the factory is very high.
Buying maize milling machines costs a few thousands of dollars. You also need to prepare a working capital so that you can maintain the normal operation of the maize milling plant and facilitate the signing of contracts with the supplier of maize. If you choose a supplier of maize, it is recommended to choose maize farmers directly. When buying corn from farmers, there is no middleman to earn the price difference, and a long-term cooperative relationship can be formed, and then through the processing of your own factory, it is finally sold at a suitable price to form a profit.
The raising of investment funds - or your own idle funds or borrowing or lending, in short, it depends on your actual situation. How much money raised directly determines the size of your maize milling business. For example, the most economic investment is to have a combined maize milling machine and install it into a small workshop. This maize milling machine can peel maize, remove germ, root and hilum then mill into different sizes of grits or powder. You have two options; you can buy maize and mill grits then sell directly to local market or supermarket. Another option is to earn money by processing for corn owners. People take their own corn and bring to your maize milling machine, you help grind and make money, this money is not big and if local market has this demand, this can be a small but long-term business. Additionally, you can buy an extra corn extruder. Feed corn grits to extruder, it can produce crispy snack food for kids or adults. If investment allows, you can set up one 1tph, 2tph or 4tph large scale maize flour/grits milling plant. This will be for industrial purpose and sell for distributing agents.
3. Start a maize milling business need
to choose a site to build a factory.
The choice of the site is very important.
First of all, we have to roughly determine the geographical location and area of the plant according to our own capital budget.
Secondly, the transportation conditions should be convenient, which is related to the sales of the products in the future.
Thirdly, the construction difficulty should be small, which can save the construction investment cost. After the project is completed and put into operation, the economic benefits are good.
In addition, it is also necessary to determine whether the selected plant site meets the standards, such as environmental protection, water and electricity, etc.
All in all, our site selection and construction of the factory should be finalized after on-the-spot investigation and full demonstration. The specific circumstances will not be repeated here.
4. Start a maize milling business need
to purchase the
maize milling
machines.
Procurement of the corresponding maize milling equipment according to the area and budget of the plant you choose.
First of all, we need to choose scientific process and high-quality maize machines. To choose machines, most critical part is to check on peeling quality. Without peeling well, further grinding will never produce high quality corn product. A reputable, safe and reliable manufacturer is very important. Shandong Kingrunda Machinery Co. Ltd is a very famous maize milling machine manufacturer in China. They have many years of maize milling machine production experience. They have been engaged in research and development and production of maize milling machine products for more than 20 years. The maize milling machine they produce is multi-purpose, peeling, sterilizing, peeling, pulverizing, grinding, grading, and cleaning, all in one machine. They produce all machines and design then customize for customers around the world.
Then, we should confirm the model and quantity of the maize milling machine we want to buy. Prices of maize milling machinery and equipment with different production capacities and processes are often very different. Even for maize milling equipment with the same processing capacity, because the configuration required by users is different, the price is also very different. Therefore, when we inquire about the price of maize milling equipment, we can accurately express our needs such as processing volume, so that maize milling machine manufacturers can provide suitable equipment and accurate quotes. And the more you buy, the cheaper the price is usually.
5. Start a maize milling business need to register with the relevant departments such as industrial and commercial taxation.
You need to go to the relevant departments such as industrial and commercial taxation for registration and filing according to local laws and regulations. This is the premise of whether your business can be carried out normally.
6. Start a maize milling business need
to recruit workers.
Recruit workers according to your production needs. Neither the equipment nor the workers should be idle, but both the equipment and the workers should be used to the greatest extent, so as to control the cost and maximize the profit.
Let's get started when the above 6 steps are ready. Maize millings have different benefits, and it mainly depends on how you manage your business. Come on! Wish you a prosperous maize milling business!
7. Start a simple maize milling business
If there is no similar business around where you live, the population is very dense. You just need to find a simple place, buy a corn milling machine, and hook up the power supply. Make a simple signboard and you can take orders and do business.
If you run a grain store, in order to improve the quality of service, help your customers process corn so that it is easier for them to go home and process corn. Will give you more business. Just buy a corn milling machine and learn how to operate it.
If you run a restaurant, you will need a lot of semi-processed corn flour every day. If you keep purchasing it, it will increase operating costs. It is better to buy a corn milling machine and process as much as you need, which can save a lot of costs.
If you are a farmer and raise a lot of poultry, livestock. These cattle, sheep, chickens and ducks will eat a lot of feed, just need a corn milling machine, learn how to operate, and a lot of feed costs will be saved.
Of course there are many scenarios, these are simple maize milling business.
Profitable CNC Business Ideas to Make Money [Read this ...
So you own your own CNC machine. Congratulations!
Now youre thinking youd like to make some money with it. Start a Machine Shop Business of some kind.
Make at least enough to pay for the machine. Or, youd like to supplement your income a bit. In the back of your mind is the notion that you could make enough that you can quit your Day Job at some point. Or worse, times are really tough and you urgently need some extra income.
I see discussions around this all the time in the various online forums I frequent. I see frustration, and some folks feeling beaten having tried and failed. Others are ecstatic. They own their own machine shop businesses that pay the bills and theyre living the dream. I know many wonder, Whats their secret, did they get lucky?
Most are somewhere in between, or havent yet jumped in for fear of failure. Ive started and grown a lot of businesses, so theres one important thing I want to pass along right now:
Its all doable IF you know howIt really is all doable if you know how. Theres just a handful of key things to know that will improve your odds of success. Unless you have a lot of experience starting businesses that are successful, now is the time to do your homework. Dont just plunge blindly ahead!
As it turns out, I have spent my entire career starting businesses large and small. Ive been in 6 different Venture Capital startups in Silicon Valley, 3 of which I founded myself. My companies have had many successful exits ranging from acquisition to even an IPO.
Ive started small companies on a shoestring too. I started CNCCookbook without any outside capital. I didnt even use much of my own capital. Today, its a thriving business that pays me more cash than I made at any of those other companies until I sold them.
Id like to pass along some of what I know about starting companies. Ill focus this for someone with a CNC machine whod like to use it to make money. Ill give you a quick video and 6 key rules to get started planning your business. Theyre the things that have helped me most, and I follow them every time I start a new business. If you go through them before you spend a dime on anything, youll be positioned a lot better to start your machine shop business.
BTW, a lot of people think writing a Business Plan is the best way to start. That comes later. Business Plans are useful, but only after youve crystallized the answers to the key questions. Without those answers, writing a Business Plan is almost impossible.
Lets get started!
3 Key Questions Before Starting a CNC BusinessI made this video for my CNC Chef column in Cutting Tool Engineering Magazine. It walks you through the very first 3 questions to answer before you do anything else about starting a CNC or Machine Shop Business. Take a few minutes to go through it:
Ill pass along some Freebies to help you with the questions in the video at the end of this article. But for now, lets go over my 6 Key Rules for Starting a CNC Business.
6 Key Rules for Starting a CNC Business#1 Dont Quit Your Day Job
I want to get this one out of the way right up front:
Dont quit your Day Job!Many starting out feel a tremendous temptation to quit their Day Job and go all in. Dont do it!
I know. I know.
The classic image of the entrepreneur includes quitting the Day Job right away. An entrepreneur is someone who risks it all to pursue their passion. We get visions of sleeping on friends couches, working out of garages, and eating ramen to save money. We think Entrepreneurship is all about sacrificing comfort, safety nets, and backup plans. This sacrifice gives us that sharp edge and total dedication thats so important when starting any business.
Right?
Wrong!
There was a big study done that followed small businesses to see what made them tick. Those that kept their Day Job until their small business was far enough along to pay the bills were 33% more likely to succeed long term than those who just quit and went whole hog.
Moonlighting will make you feel incredibly short of time. Youll think theres no way to get it done. Youll be exhausted. But theres something else too. If you Moonlight, you wont have time to implement all the crazy ideas you have up front. You will learn to focus and choose the most important thing to work on. You will learn the value of good enough, as there is not enough time for perfection. It will force you to make smart trade offs and prioritize.
The other thing is you havent learned enough yet about your business. Not having full-time available means it will take you longer. That extra time will allow you to grow into the new business and it will force you to learn more as you go.
Lastly, it will keep you from stressing out and going crazy as you watch the money run out. With a Day Job paying your bills, you can afford to take it slow, learn how to succeed, and perfect your business chops.
In short, youll learn to be a pragmatic business owner. As a result, youll be less of a danger to yourself and your business than if you were loose full-time and desperate to make it work.
Ive written a lot more about this and about what sorts of things youll be focused on before you quit the Day Job over on my entrepreneurship blog. Read more there.
#2 Learn how to market and sell.What if I threw a party and nobody came?
Thats the secret fear of every entrepreneur before they launch their business and even for a while after.
Its the hardest problem every business faces. And, it never goes away. Its a constant struggle to figure out how to do it better. How to keep getting more customers. How to pick up the pace of new business.
CNCCookbook has gotten huge for me over many years. Yet, every morning the first thing on my mind when I start the day is what I should be doing to ensure the growth continues.
If youre great at every part of the job except marketing and sales, you probably have a secret fear.
What if I cant do it? What if I cant get customers?
Heres a secret you need right now: anyone can learn to market and sell. I was a painfully Geeky Engineer without a clue for a long time. It turns out that in the digital world we live in today, thats an advantage.
When I started as an entrepreneur, I used to think of sales and marketing as being like the Madison Avenue Mad Men:
Its a compelling stereotype of marketing and sales. So cool. So aloof. So, I know how to market and you never will
But, in todays Digital World, thats all BS. In fact, it never really worked all that well. Theres an old saying in marketing, I know half my advertising doesnt work, I just dont know which half.
Whats different is that in todays world, you can know which half doesnt work and which does!
Its much closer to being a science, in other words. I learned this from the man who came up with the idea for Netflix and was its Founder and first CEO. I tell that whole story over on my entrepreneurs blog if youre interested.
But heres the thing:
If you have no proven track record selling and marketing, dont just assume you can build a great product or offer a great service and wing it.
You are very likely to fail. In fact, as CNCers, were overly well endowed with Product Skills. Were Product People. We love to talk product and we like to think product is everything.
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Newsflash: its not. You need to accept and embrace the need for marketing and sales. You need to covet those skills.
Take heart, realizing you have this weakness, youre now ready to get strong there. Its one more reason not to quit your Day Job. You realize you need to spend some time learning this marketing and selling craft well enough to launch your new product.
I can help. Get over to my entrepreneurs blog (bobwarfield.com) and sign up for the newsletter. I am writing articles all the time to teach you what you will need to know. I will be launching an online course soon that takes you from nothing to a web site with enough traffic and an list with enough names that you can launch your business. Its in development and will be available soon.
#3 Pick a fight you can win.This one is HUGE.
You have the luxury of picking a fight you can win.
You even have the luxury of testing it out to be sure you will win before you invest too much in it.
Pick a fight you can win
This concept is pure Sun Tzu from way back. In fact, one of my favorite business quotes came from a very successful Venture Capitalists daughter:
Strategy is what you do to make winning easier.
Dang. We could all use a little bit of making winning easier, am I right?
This principle is true on many levels.
Your CNC machine, whatever it is, has strengths and weaknesses. Youre not going to be competitively machining Titanium parts in large quantities on your Tormach CNC Mill. Thats not a knock on the Tormach, its just a reality you will deal with.
There is a market it can win in. There are many markets it cant. You cant put your Tormach up against an HMC on a commodity job shop run. So dont even try.
Find the market where your machine can win. Find the target market where your marketing and sales abilities can succeed. Heck, if you really want to be cooking with fire, find a market you can reach first, then decide the best machine for it.
For example, the kind of machine youd choose to machine Titanium or Tough Metals like Tungsten and Tool Steel is very different than if you were doing aluminum. For more on how much the different types and classes of machine machine cost, check our linked article.
When I decided to write CNC Software, the very first thing I considered building was CAM Software. Its the sexiest CNC Software there is. And Im really really good at writing software (LOL, if I do say so myself). Ive gone up against world leaders and beaten them.
But I knew that CAM was absolutely the most competitive hardest market there is in CNC with the possible exception of CAD. Even if I thought I might win that fight in some sense, it wasnt high likelihood. And it was going to be an epic-bet-your-business battle. Fortunately, I was old enough and experienced enough to realize that Old Age and Treachery beat Youth and Enthusiasm every time.
So I backed away from CAM and built G-Wizard instead. Can you imagine how happy I am with that decision given that there are now giant companies giving away fabulous CADCAM software for free? Hello Fusion 360, good bye little tiny CADCAM companies, we hardly knew ye.
So, pick your fights carefully. Do your homework. Knowing exactly how to do that homework is one of the topics Ill be covering in my online entrepreneurship course.
Remember one other thing toothere is always competition. And there is always room for more than one product. Focus on your customers. You need to be good enough versus the competition plus that extra bit of special only you bring to your customers.
BTW, this isnt just about beating competition. The flip side is doing the homework to make sure the market is big enough to matter for your business goals. Most of them arethe Internet is a BIG place, after all. But you need to be sure.
#4 Are You Better At Sales or Marketing (Local or Online)?This is very important to know about yourself as it will affect some of your decisions down the line.
I like to use the analogy of acting versus writing.
Marketing is writing. You are writing copy that sells. You can analyze the results, revise it, and see if the results improved. Theres time to react and it is a process of steady refinement.
Selling is acting. It happens in real time, face to face. You can analyze the results somewhat, and refine them for your next sales meeting. But not to the degree you can with writing. Were not programmable robots. Anything can happen in real time.
Im pretty good on my feet, but not as good as when I have time to think about it. I have actually been involved selling a lot of multi-million dollar software deals, and the professional sales people always begged for me to come along to help sell. But in the end, I view myself more as a marketer.
Its worth asking yourself which way youre better?
Local or Online
A related issue is the whole Local or Online thing.
Do you sell on a website? Or are you going to sell to your local geography?
Personally, I prefer the website. It lets me reach a big audience and work from a marketing perspective more than a sales perspective.
You can try to sell locally from a website. Restaurants and similar businesses do it. But it feels to me like selling CNC work locally is more of a hands on sales job. If nothing else, most local audiences are pretty small, so you need a higher likelihood of closing them to get enough business unless youre really handy getting great PR locally.
Choose your business to fit your strengths. Develop your strengths to fit your business too.
#5 Decide: Products or Job Shop [Plus the 3 Ways to Compete]This is a bit of a subset of the whole fight picking thing as well as the local/online/selling/marketing thing, but I want to cover it because it is very central in the minds of a lot of CNCers.
I meet a lot of great machinists who dont think they have a head for products, and really, probably dont think they have a head for marketing and selling either.
Often, those folks want to start a Job Shop. They feel it lets them focus on the machining and forget the product stuff.
Theres nothing wrong with choosing to be a Job Shop rather than to make your own products. But you need to be comfortable with the implications.
Youre still going to have to be good at marketing and selling your services for one thing.
And, you need to realize that unless you can pull off a fairly tricky thing, Job Shops sell a commodity that people buy largely on the basis of price.
The dean of competitive theory, Michael Porter (Harvard B-School Professor) says there are 3 ways to compete:
- You can build the best
- You can build the cheapest
- You can serve a niche that are being under served by #1 and #2
This applies to Job Shops too, but its hard to be #1 (the best). Im not sure there is a Best Job Shop in the country. Its more like there is a Best for a certain kind of part. Maybe.
More commonly you are either #2 (cheapest) or #3 (niche). I always hated being the cheapest. Its just a hard slog. You have to be really good at optimizing every last detail and sometimes youll need to make trade offs that are abhorrent to product perfectionists like me.
For those reasons, I think its a lot easier to start a small business making products for some market where you can be a big fish in a little pond than it is to be a Job Shop at a small scale. Thats the tricky thing I mentioned.
How can you succeed as a Job Shop?
Well, you are a guy in a garage, so your overhead is less than many shops. That can help you to be cheaper, but its probably not enough.
Personally, if I had to make a Job Shop succeed, Id go looking for the right niche.
Geography Niche
Start with geography. Youre not equipped as the little guy to go jump on Mfg.com or something similar and outbid nationwide players for big jobs. But, assuming youre not in some huge metropolitan area thats choked with machine shops, you might have relatively few local shops to compete with. So, youre geography can begin to define a niche. Its your pond.
That means you have to get out and find a way to reach people in your geography. The Yellow Pages are long gone, but make sure youve done everything you can to win on Google Local Search when people look for machine shops. Beyond that, figure out which doors to go knock on and then start knocking.
I know a successful Job Shop owner who sends his wife around in a van. Shes got a bunch of shiny parts in the back that the shop made. She calls on businesses that have large machinery. For example, printing presses. She walks in and asks to talk to whomever is in charge of maintenance. She lets them know, showing them the shiny parts, that the local shop would be happy to help them make a replacement part if something wears out on one of their machines.
In a similar vein, theres a fellow on the Tormach Facebook group who caters to the local farmers in his geography. Farmers have heavy machinery that breaks all the time and theyre often far from city dwelling machine shops. It costs them money when they cant run their machines, so having a rural machine shop is very helpful.
Prototype Niche
Most Job Shops want larger part runs. They optimize their processes and increase their margins.
If some garage inventor walks in with a small project, the Job Shop either turns them away or quotes them such a high price that the guy leaves anyway. Maybe youre the one willing to do those jobs.
Just make sure youre really good at making one offs. If you need to make a part 4 times because the first 3 were scrapped, this is not going to be your cup of tea.
You need to figure out how to get it right the first time every time to succeed here.
Machine Capability Niche
Maybe you own the only machine that can do a certain something in your geography. Or youre one of a very few.
Youve got the only waterjet. Youve got a VMC with bigger capacity, so youre the only one who can work on really big parts.
I know a guy that lives on an island near a harbor. Its far away from anything. He has big travel Milltronics machines and he removed the enclosures to make even more room. He put the word out to the ships that call there that he can make repair parts. Ships need big parts, and it is really expensive for them to be stuck in a harbor waiting on parts. So he does pretty well in that niche.
Material Niche
Shops can make a go by being the experts at certain materials that are hard to machine that most shops shy away from. Take Tungsten as an example. Its fairly nasty, but if you need that material, you need it. So youll pay for it. I actually did a machining guide for Tungsten if youre curious.
Front End Specialties
Ive talked to multiple companies that developed what Ill call a Front End Specialty niche. What I mean is they did a bunch of work that gives them a major advantage for a certain kind of part that has many variations. Then they only do jobs for that kind of part.
Examples are custom gaskets, custom bushings, and custom manifolds (i.e. hydraulic, air, or similar manifolds).
In each case they put together fancy customized software that makes it easy to pump out high quality g-code for any part in their niche. They have tooling, fixturing, and machinery thats ideal for their niche.
In many ways, Id put sign makers into the Front End Specialty niche too. Its possible to develop the expertise, tooling, and software to make signs quickly and easily and that can be the basis of a good business.
Theres a thin line between Front End Specialties and being a product company. Do people come to you with a part youve never made before thats in your Front End Specialty? Thats more Job Shop. Do they come to get a copy of a part you made for someone else? Thats closer to Products.
Check out the custom car badges Austin Barnett makes:
Great niche!
Find a niche to take some of the pressure off to be the cheapest. Be the only guy that can do a job and you will likely get the job.
#6 Tool Up As You Succeed. Place a Lot of Small Bets and Double Down on WinnersI use the term Tool Up advisedly, as I dont just mean literal machine shop tooling. I mean every expense and decision. Dont buy or invest until the market shows you the value of the investment.
What you want to do is place a lot of small bets and double down on the winners. Youre starting out very much in a listening and learning mode to see whats possible.
Be in that habit of:
- Place your bet (or run the Experiment if you prefer)
- Measure the results. BTW, dont place a bet unless you can measure its results.
- If the results are at all good, try to improve them further. If theyre really lousy, move on and try a new bet.
- Rinse and repeat.
That basic cycle is the essence of whats called Growth Hacking.
Eventually, youll find your power alley. Once you do, focus on it. Put all your energy there and maximize its success. You should be able to ride it a long way!
Freebies to Help You Along the JourneyIve put together a special Toolkit that will help you through your initial planning process if youre thinking about starting your own CNC Business. It includes:
- Slides from the 3 Questions Before Starting a CNC Business Video
- Worksheet to take you through those 3 questions as well as the 6 rules.
- List of articles Ive written that can help fill in the rest of the details for your New CNC Business planning process.
If youd like to get the New CNC Business Toolkit, here you go:
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