One of the business ideas coming into the mind of smart entrepreneurs today is starting a beef jerky business. Jerky snacks today are popular among both the young and the old. It has formed a tasty treat they will all love to grab. You can leverage this trend to start a business that will bring good money for you every month.
But starting a beef jerky business goes far beyond just getting a dehydrator and start turning raw chunks of beef into yummy jerky. It is one thing to make nutritious, yummy jerky for your friends and family, and another thing to sell to the public. In this post, we have highlighted all that you will need to start and successfully run a beef jerky business.
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Tips for Starting a Beef Jerky Business
Let’s learn about “How To Start A Beef Jerky Business” in detail:
#1: Know the Legal Requirement for Starting Such a Business
The beef jerky industry is regulated by the U.S Department of Agriculture’s Food Safety and Inspection Service (USDA-FSIS). On the other hand, the FDA regulates animal drugs and feed ingredients. Different states also have their individual inspection programs.
So, if you are starting a beef jerky business, you need to know which of these regulatory bodies you need to meet. For instance, if you will be getting meats from your own farm, you will need to comply with the rules and regulations of USDA, FDA, FSIS, and other state agencies. You will want to avoid having those red tapes made around your business when you start gaining popularity, so it’s important you run your business in compliance with the law.
#2: Choose a Business Model
The type of model you set for your business will depend largely on your budget. You can either choose to run a USDA-approved facility to produce beef jerky snacks or go with an already existing factory to produce them. You can also choose to run it from a local commissary kitchen or just take the stress off you by buying a franchise.
However, you should know that you cannot start a beef jerky business from a home kitchen. The law doesn’t support selling homemade meat or poultry products. So you may need to use a commercial kitchen or work with local restaurants.
#3: Write a Business Plan
Once you know what the law requires of you to start a beef jerky business in your area and already know what model it will take, the next thing is to write a comprehensive business plan for the business. Your business plan should highlight your mission statement, unique selling proposition, and marketing strategy. It should define your target audience, competition analysis, price point, and many more.
Your business plan should also state what business entity you are choosing for your business – whether you will be operating as a sole proprietor or run as a limited liability company (LLC). It should state how much startup capital you need for the business as well as the equipment types.
#4: Raise the Needed Startup Capital
Starting a beef jerky business does not come cheap – you need a reasonable amount of money to kick off the business. You will need to acquire a standard production facility and get some equipment and supplies. All of these can be expensive, so you need to find a reliable source of finance before starting the business. This is even more necessary if you will be starting on a large scale.
There is a couple of options available to you when it comes to financing your business. However, you will need a really good financial plan to get money from many of the sources. A well-written and comprehensive business plan will help you obtain loans from the bank and help convince investors to invest in your business.
Here are some ways to raise money for a beef jerky business:
- Money from personal savings
- Raising soft loans from family and friends
- Obtaining a loan from your bank
- Raising money from investors and business partners
#5: Choose a Suitable Location
A good location will have a lot to contribute to the success of your business. Look for a central location that will easily connect you with your target audience while also easily accessible to farmers and wholesale distributors that will be supplying you. First conduct a feasibility study to ensure the location you are choosing is actually in demand for a beef jerky business.
To help you choose the best location for your meat production business, here are some factors to consider:
- The demand for jerky snacks in the area
- The demography of the area
- Accessibility
- The purchasing power of the residents
- Competition around the area
- Local laws and regulation
- Traffic and security in the area
#6: Source Your Product
Without a doubt, the central focus of your business is selling jerky, so you need to find a way to get that. There are two routes you can take with this. You can either make it yourself or buy wholesale and sell retail. However, before you choose any of these options, make sure you research to know what is involved in each.
If you will be making it yourself, you will need to master concocting a winning recipe and invest in the right equipment and tools to make your products. Considering how hard it might be starting from scratch, you can consider getting a licensed local meat processor and let him make the jerky while you sell them under your own brand name.
#7: Purchase the Necessary Equipment and Supplies
You can run a beef jerky business without having the right equipment and tools. Some basic equipment you should be eyeing is a dehydrator or smoker, a commercial oven, and a temperature probe to ensure your meat is well cooked before dehydrating. You will also need cold storage to preserve your meat and ensure they stay fresh.
Some other tools you will need to buy are slicers to prep meat and a scale to measure portions. Your packaging is also important so you will need to invest in good packaging bags or containers.
#8: Get the Right Insurance
Some basic insurance you will need for the business includes general insurance, liability insurance, health/medical insurance, workers compensation, business owner’s policy group insurance, etc.
#9: Set Reasonable Pricing
Selling your jerkies at reasonable prices will not only make you make more customers but will also allow you to make good gains from the business. One way to know what price to set for your products is to research the price your competitors are offering. Keep your price competitive – not too low or too high than what is being offered in the market.
However, when setting pricing for your product, make sure you consider the cost of producing such a product.
#10: Brand and Market Your Business
Being successful with your beef jerky business means knowing how to market your product. Even if you produce the best beef jerky in town, if you don’t know how to market it to the people, you will soon be frustrated out of the business. So, create a good brand for the business and start marketing to the right people.
Choose farmers’ markets and health food stores to supply your wares. Create a website where people can order, and also promote the business using social media. All these will quickly skyrocket sales and help the business grow at a good pace.