Biscuit is a part of the baking industry. Starting a biscuit business is not a bad idea. You can start a biscuit business from home as well. It is a kind of eatable that can never run short of demand. It has consumption all over the world.
The reason why people are choosing this business is the requirement of less space for operations. You can start this business single-handedly. All you need to have is the right plan, skills, and management.
If you are also passionate about baking and looking forward to having a career in the same, then this business is for you. In this article, we have covered the relevant details about How to start Biscuit Making Business.
Scope of Biscuit Business
Biscuit is a daily use item. It is consumed by the people of both rural and urban areas. The taste may vary based on different factors. The different flavors and types of biscuits can be produced depending on the target audience.
Some brands target the upper-middle class by producing premium quality and the price of the biscuits is high. While others produce normal biscuits targeting the middle-class or the lower one. Some manufacturers have their recipes, which distinguishes them from others.
The chances of a biscuit business getting failed are very few. Like you can produce any kind (as per the research) and by using right marketing strategies you can run your business smoothly. One of the most important things to be kept in mind while making biscuits is the taste and quality of the biscuit. By providing the best quality biscuits, you can easily outshine your competitors.
You can begin at a small level and then expand. Biscuit is a part of the bakery industry. So, you can expand within the industry. You can include other products like cakes, pastries, doughnuts, pancakes, cupcakes, etc from the industry and grow. Also, you can sell your products online. You also have the option of establishing an online bakery.
Also, you can make contracts with retailers (bakery and grocery) or wholesalers to sell your biscuits. The bakery industry has a big room for customizations. You can sell customized biscuits and generate revenue.
You can introduce your brand or you can produce for other brands. Several options are available, you can choose your perfect fit and flourish. You must have got an answer as to why you should go for a biscuit business. Now, go through this stepwise guide to start a biscuit business in India.
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How to start a biscuit business?
- Research-Like every other business, the biscuit business requires research too. You have to research the market and understand the tastes and requirements of customers. Also, you should compare different markets to find your target audience. Business Plan- After researching the market, make a hard-hitting business plan.
Your business plan should contain relevant details like the plan of action, marketing strategies, SWOT analysis, competitor analysis, operational strategy, process, etc. A good business plan can help you in pitching investments.
- Obtain the license- The next step is to obtain a license for the biscuit business. You cannot start any business without checking with legal requirements. The licenses and registrations that are required to start a biscuit business include registration of the firm, trade license, FSSAI license, Trade Mark, MSME/ SSI registration, registration to the pollution control board.
- Select the location- In a biscuit business, the location has a bigger say. You need to be cautious while selecting the location for your business. The ideal space required for a biscuit business is 1000 sq. ft, but do not worry, you can start this business from home as well. If you start a biscuit business from home, you have to complete the required documentation. You should consider different factors like budget, market, logistics, etc.
- Procure raw material- What will you do with the equipment, if you don’t have raw material? The major raw material required for a biscuit business includes wheat flour, essence, ghee, salt, sugar, flavors, yeast, and edible colors. Make sure you use fine-quality raw material for your biscuits. The taste gets affected by the quality of the raw material. Serve the quality to make heavy profits.
- Procure the machinery-The major equipment required to start a biscuit business includes an oven, mixers, flour sifter, spreader, storage utensils, measuring spoons, etc. The requirement of machinery varies based on the types of biscuits you want to produce. You would also require a packaging machine.
A variety of machines are available in the market. You have to choose the perfect fit after the research. It is advisable to go to a biscuit manufacturing firm and check the type of machinery you would require to start your business. Here is a list of machinery that would be required to start a biscuit business–
- Cooling Conveyor
- Cooling Tunnel
- Dough mixer
- Pressure board
- Rotary cutters
- Rotary molder
- Sheet Cutting Unit
- Slab Slicer
- Select a name and get a logo- Select the name for your biscuit business and get it registered. The name should be unique, easy, and attractive. Also, get a logo designed for your biscuit-making business. It is not necessary to get a logo. But a logo can help you in increasing brand awareness by creating brand recognition.
- Marketing Strategy- Marketing is a necessity. Imagine, you have started production, without informing anyone. Then, how are you going to sell your biscuits? Try to use unique and innovative strategies to promote your biscuit business.
The bakery industry craves innovative techniques of marketing. So, you can always go for the hit and trial method in this business, supplied by enough resources.
- Start Selling- The last step is to kickstart your business. As per your business plan, start your operations. Find your customers and sell your biscuits.
Another important point is the investment. In the next section, we will be discussing the investment required to start a biscuit business.
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Investment required to start a biscuit business.
We will be talking about the different costs that you would have to bear to start a biscuit-making company.
- Land- No one can imagine starting a business without a defined location. So, the first and the foremost cost you have to bear is the land or location or the factory where you are going to produce biscuits. You can either purchase a factory or go for rental commercial property.
- Labour- The sets of skilled and unskilled labor would be required to start a biscuit company. The unskilled labor includes cleaning staff, watchmen. While the skilled labor includes bakers, accountants. You can also start without labor if you want to begin at a small level.
- Machinery- Different types of machines are required for the biscuit business. It may vary based on the type of biscuits you want to make. But the basic equipment remains the same.
- Raw material- You would require raw material to run your business. The raw material is not a one-time investment. It is a part of the operating cost that you will bear.
- Miscellaneous expense- The miscellaneous expenses include, electricity, security, water, etc. It may also include the losses that occur during production like wastage of raw material.
- Maintenance of machinery- This is another cost you would have to bear. It is advisable to maintain the machinery instead of getting repaired.
An estimated amount required to start a biscuit business could be around INR 5 Lakhs- 10 Lakhs. So, research before spending the money and make sure that you can run this business.
Legal requirements to start a biscuit business
The different types of license and registrations required to start a biscuit business includes-
- Registration of firm- You can either begin a biscuit business as a sole proprietor or in partnership. You can also start as a company. In the case of a partnership, you have to make a contract and in the case of Limited Liability Partnership (LLP), you have to get it registered. And if you want to start as a company, you would have to get your company registered.
- Trade License– Nowadays, every business requires a trade license to conduct its daily operations. You can obtain a trade license from a local organization.
- FSSAI License– A food company or business cannot run without an FSSAI license. It checks with the standard of quality of food.
- GST registration– GST registration number is to be obtained by all types of businesses.
- Trademark– Secure brand name by trademark registration, otherwise people can use the same name and this could create confusion among customers.
- MSME/ SSI registration- Usually, small firms get their business registered here. You can apply online for this registration.
- Pollution Control Board- Register your business with the local DIC office. It is advisable to take NOC from the Pollution Control Board as per the rules.
After obtaining these licenses and registrations, you can start your biscuit business.
How to start a biscuit business from home?
You can start a biscuit business from home as well. Go through this stepwise guide to start a biscuit business from home.
- Biscuit making business plan- The first step is to prepare a business plan. Your business plan should contain the details like cost of equipment, raw materials, marketing cost, plan of action, SWOT analysis, competitor analysis, etc. Your business plan should be developed based on the research. The research must be strong and promising.
- Check legal requirements- The next step is to complete the documentation and check with other legal requirements. Also, check the tax liabilities of your business in your area.
- Procure raw material- The next step is to obtain the raw material. You can make deal with wholesalers for purchasing raw material. This can lower your operating cost.
- Procure machinery- Another important step is to procure machinery for the biscuit business. You need to spend less for a home-based business when compared to a commercial. Also, the machines you can avoid some machines, that you would require commercially.
- Learn the process- Another important step is to learn biscuit making. You can either take professional training or you can learn from YouTube. It is not difficult to make biscuits. You just need practice and that’s it. The main thing is the number of ingredients you are putting in.
Check out this flow chart and you will get a rough idea of the process-
(Making dough—Fermentation—giving shape—baking the raw biscuit—testing—packaging)
- Promoting the biscuits- Either you start from home or a normal business, you have to promote your products. A home-based business needs a stronger marketing strategy. Try to promote your products using both online and offline methods. Consider tying up with the party planners or other businesses to sell your biscuits.
- Well-planned logistics- A home-based business requires good transportation support. The raw material you require should be delivered on time. Your biscuits should reach their destination on time. The freshly prepared biscuits taste better.
This is how you can start a biscuit business from home as well. You can also start an online biscuit business. Have a look at the next section to know more about the online biscuit business.
How to start a biscuit business online?
Almost every business is shifting on the internet. Be it a clothing or footwear business, accessories, or food business. Then why you should lag? Here is how you can start an online biscuit business.
- Set your online store– First of all, set your online. Store. Develop a website that should contain the information related to your business. It should contain the details of the offers, discounts, flavors and everything your customer should know. It should accept orders online and allow the customers to track their orders.
- Features of website- Your website should be responsive and attractive. Make sure you choose promising colors and the typography should be equally beautiful. You can consider adding chatbots to have a conversation with your customers. You can consider integrating your website with social media accounts for a better reach.
- List your products properly- Your customers should know what you are selling. Describe clearly what your business is selling along with the prices of the biscuits.
- Order management system- You can install an order management system to accept the orders of your customers. This is an important feature to be embedded on a website if you are starting an online business.
- Strong delivery network- Also, you should have a strong delivery network to deliver your biscuits. The transportation facility should be first-class, as you are dealing in eatables. Also, you should get raw material on time to avoid loss.
- Customer support- An online business can win goodwill, only if you offer the best customer services. Cater to the grievances of the customer and address them. Offer the best after-sale services. A satisfied customer can get you more customers through word of mouth.
Starting an online biscuit business is beneficial. As you can run an online business with home-based as well as with the commercial business. It is profitable as you can make extra money with the store. You can receive orders even when you are sleeping. Therefore, it offers a great chance to generate revenue.
Process of making biscuits
As we said, you can produce biscuits at home as well. So, the process is not complicated. The process of making biscuits is as follows-
- Mixing– First of all, the major ingredients like flour, sugar, and fat are mixed using a dough mixer. The ingredients are to be mixed for 10-15 minutes.
- Molding- Now the mixture is put into the molder for giving a specific shape and size. The speed of the molder varies depending on the type of biscuits.
- Baking- One of the crucial steps in baking. The molded biscuits are then put into the oven for baking.
- Cooling- After baking the biscuits, they are passed through the cooling conveyor. The temperature is set to room temperature that leads to sudden cooling. The sudden cooling allows you to maintain the texture of the biscuit.
- Packaging- The last step is to pack the biscuits. The packed biscuits are put into the cartons for transportation.
Where can you sell your biscuits?
This question must have an answer in your business plan. Several other factors are connected to this single factor. Your target audience is going to decide what you should sell and how? The marketing plan also depends on the type of audience you are selecting.
The mediums of promotion should be chosen accordingly. Therefore, this is a significant question, which should find an answer, right in the beginning. This is how you can sell your biscuits-
- Sell in a coffee shop- You can enter into contracts with the local coffee shops and sell your biscuits there. You can introduce your brand to the market by offering free samples through these shops. If the customers liked your biscuits, you can enter into long-term contracts with these shops.
- Parties-You can also introduce your brand through parties or ceremonies. You can offer free samples and if it gets a positive response you can sell in the market as well.
- Breakfast Service-You can make deals with food service companies. Usually, businesses require biscuits for breakfast or to serve to their clients. You can connect with them and sell them your biscuits.
- Delivery service- In this service, you accept the orders of your customers and deliver the biscuits. You can send promotional materials like pamphlets, cards through delivery boys. It is advisable to take the orders in advance so that you can manage things easily.
- Wholesalers- You can also enter into a contract with wholesalers. You don’t have to wait for small orders to make heavy profits if you deal with wholesalers. You can sell your biscuits in bulk.
- B2B websites-You always has the option of selling your products online. Several business websites like Alibaba, Tradeindia, Indiamart, etc allows you to receive orders in bulk.
- B2C websites- You can also register your business with websites like Amazon, Snapdeal, Flipkart, where you can sell your products directly to the consumers.
- Export market- You can always enter the export market for selling your biscuits. You can send your biscuits to other countries. Popular brands like parle-g, Britannia are selling their products in other countries as well. It is mandatory to obtain an IEC code to export your biscuits.
Among friends and family- You can sell your biscuits to your friends and family members. They can sell further. This is how you can develop a chain and sell your biscuits.
How can you expand?
It is advisable to start a biscuit business at a small level. Investing a heavy amount, in the beginning, is not a sensible decision. It doesn’t mean the biscuit business does not have scope. It simply means that you have to remain safe on your side.
Once you find your business flourishing with flying colors, you can expand your business. And the best part is, you can finance the expansion from the profits you made out of your business. Check out the ways, how can you expand your biscuit business-
- Since biscuit is a part of the bakery industry. You can expand within the industry. You can produce other products like bun, cakes, pastries, pancakes. You can also sell related items like candles, knives, and decorative material.
- You can make contracts with event planners. These days people send biscuits as gift items. So, you can join hands with event planners and supply them with the biscuits.
If you have other ideas, you can execute them for sure. Biscuit business is wider than it appears. You can always grow and generate revenues from your biscuit business.
Importance of brand name
Many-a-times businesses do not consider having a logo. But having a brand logo is a great idea. It allows you to create brand awareness by creating brand recognition. When you get a logo designed, and if your brand is genuinely liked by the people, then it would become easier for them to identify your biscuits.
You can get your logo printed on the package and even on the biscuit. But if you want to produce the premium quality, it is advisable to get it printed on the package and not on the biscuit. Having the same logo on the website and other social media accounts makes it easier for your customers to identify your biscuits.
Therefore, get a brand name and logo, if you want to get distinguished. But, if you are producing for other companies, you don’t need to have a logo.
Choosing the right strategy for your biscuit business is the real task. It is advisable to use both digital and traditional marketing strategies to promote a biscuit business. The marketing strategies you choose should be effective and efficient. Usually, people start with less investment, so the marketing cost should not be high.
- Distribute pamphlets- This is one of the oldest techniques of promoting a business. You can send pamphlets, if you are running an online business, you can send pamphlets through a delivery boy. You can also distribute pamphlets in your area.
- Holdings- Another method of traditional marketing is using holdings. You can put holdings in favorable locations to promote your business. There are unique methods of promoting business. Like you can use 3D figures for the biscuits on the holding.
- Offers Samples- You can tie up with local coffee shops and bakeries and offer free samples to them. They can then offer to the customers. If the customers liked your biscuits, you can enter into long-term contracts with these businesses. You can also tie-up with event planners, as they use biscuits and cookies for gift purposes.
- Develop a website– Starting a website is a great option. Develop a website that should narrate the story of your business. It should contain the lists of your products along with the price. It should also contain the offers and discounts you are providing. Integrate your website with social media accounts.
It might not be possible for you to get in-house designers. You can always outsource this work. Now you don’t have to worry about finding the best digital marketing company to promote your business- Traffic Tail is here. We can build a website as per the needs and demand of the business as well as owners. We never hesitate to provide suggestions on marketing ideas.
- Social Media marketing– You can use social media to promote your biscuit business. You can click the pictures of your products and upload them on social media accounts. You can have a conversation with your customers and develop relations with them.
Social media marketing is not as easy as it seems to be. You need to develop a strong strategy to promote your business. As a beginner, it might not be possible for you to formulate a strategy and implement it. Traffic tail can guide you here as well.
- Online contests- You can conduct contests on social media. Also, you can conduct a survey and offer gifts on the completion of the survey.
- B2C websites- You can always register on websites like Amazon, Flipkart, Snapdeal to sell your products. These websites allow you to sell directly to customers.
- Goodwill can get customers- Try to develop rapport with the customers. Address their grievances and provide after-sale services to the customers. This would help you in building goodwill, which in turn, will bring customers to your business.
Using these strategies, you can promote your biscuit business. As we already said, the bakery industry has a big room for innovation. You can use unique and innovative strategies to promote the biscuit business.
Story of parle-g
It is profitable to start a biscuit business. Several examples like parle, Britannia can prove the credibility of the statement. We will be talking about the success story of parle. A huge business brand parle started with a team of 12 and has come a long way. It has become the largest biscuit brand in the world.
The parle started its business with a campaign “Bharat ka Apna Biscuit”. Parle has constantly worked towards increasing its market share. Its market share was 20% in 2017-18, which is a commendable achievement. Earlier, parle was dealing in a single type.
But later it made a portfolio and added different biscuits like Krackjack, 20-20, etc. Parle has achieved a lot and has not stopped. Parle has managed to offer the biscuits at the same price from 1996-2006 without compromising with quality.
They expanded by increasing their supply and earned profit. They didn’t resort to a policy of charging heavily from the customers. Also, parle deal in a variety of products. A single distributor can deal in several parle products. The fixed cost remains the same, while variable cost increases, which is favorable.
They are still working towards the growth of the company. This is the identification of the real business. Explore the ways through which you can expand your business and grow.
- Your business plan should be clear, narrative, and accurate.
- Research is the key to a successful business.
- Produce what people want and not what you want to sell.
- Use unique marketing strategies to promote your business.
- Try to provide the best after-sale services, if you are operating online.
- Consider your budget, management skills, and baking skills before starting the biscuit business.
- Choose your equipment wisely. Purchase the best quality equipment for your biscuit business.
- Maintain the quality of your biscuits. Biscuits get sold on the quality. People fall for the quality of the biscuits.
Do You Know?
- The Indian biscuit market stood at $3.9 billion in 2016 and is expected to reach $7.25 billion by 2022.
- In 2015, the cookie category managed to bag the largest share in the country’s biscuit market.
- About 50% of total biscuit production is glucose biscuits in our country.
- While sweet assorted variety like cream biscuits has a 25% share in the market.
- The tagline of the main brand of Parle is “Naam to suna hi Hoga”.
- Britannia has a 28% share in the market.
- Parle produces 400 million biscuits in a day and provides for 5 million outlets.
Starting a biscuit business is a great idea. It has a wider scope and luckily is a part of the bakery industry. And we all know that the demand for bakery products is constantly increasing. Even if you don’t want to expand within the industry, you can always grow your business in other ways. All you need to do is find the right market for your business. By 2023, the biscuit market is expected to grow by $8.2 Billion.
A biscuit business runs on quality. So, use good quality raw material to produce biscuits. Instead of cutting costs, invest in quality. It could help you in generating revenue.
You can start a biscuit business from home as well. You can start an online store as well. You can always grow using the right strategy. A good business plan can always help you in achieving your goals. Work on your business plan, choose the right strategy, produce the best quality and offer customer services. Promote your business using different traditional and digital marketing strategies.
Apart from selling into the home country, you can also export your biscuits. In short, the opportunities are available in abundance, you just need to catch the right one.
It is a profitable business if done properly. Popular brands have begun as a small companies. So, don’t hesitate, research, understand your capacity and enter into the biscuit-making company now. Remember, you are joining one of the best industries (bakery industry) by starting a biscuit business.
Frequently Asked Questions
Ques. 1 How to start a biscuit business in India?
Ans. Make a good business plan. After that select location, obtain a license and procure the required raw material, machinery and start producing.
Ques.2 List the licenses required to start a biscuit business in India.
Ans. The types of license and registration required to start a business in India include the following-
- FSSAI License
- Registration of company
- GST registration
- Trade license
- NOC from Pollution Control Board
- MSME registration
Ques. 3 List the raw material required for the biscuit business.
Ans. The major raw material required to start a biscuit business includes wheat flour, ghee or butter, yeast, edible products, sugar, salt, essence, flavors.
Ques. 4 How can I obtain investment for the biscuit business?
Ans. If you don’t have enough resources to finance your biscuit business you can start as a partnership firm. You can apply for a bank loan or pitch investor. If you want to start as a company, you can go for crowdfunding.
Ques. 5 What is the process of making biscuits?
Ans. The process of making biscuits is as follows-
Ques. 6 Can I start a biscuit business from home?
Ans. Yes, you can start a biscuit business from home. All you need to do is, maintain the kitchen as per norms and complete documentation as per the guidelines of the government.
Ques. 7 Can I start a biscuit business online?
Ans. Yes, you can start a biscuit business online. It is a great source of earning amid pandemics.
Ques. 8 Is it profitable to start a biscuit business?
Ans. Yes, starting a biscuit business is not a bad idea. You can even start this business from home and earn a lot with a small investment.
Ques. 9 List the type of machinery required for the biscuit business.
Ans. The machinery required to start biscuit business-
- Cooling Conveyor
- Cooling Tunnel
- Dough mixer
- Pressure board
- Rotary cutters
- Rotary molder
- Sheet Cutting Unit
- Slab Slicer
Ques. 10 What are the benefits of starting a biscuit business from home?
Ans. Starting a biscuit business from home is a lucrative idea. The cost for getting location, maintenance cuts if you start a business from home. Also, you can avoid some machines. But it is not convenient to run a biscuit business from home if you don’t have enough space.
Ques. 11 How can I promote my biscuit business?
Ans. You can promote your biscuit business using different online and offline marketing strategies. You can do it by spreading word of mouth. Several techniques of marketing can be used to promote the biscuit business.
Ques. 12 What are the benefits of having a logo?
Ans. It is advisable to get a trademark registration. This helps you to get distinguished among your competitors and you can prevent your brand logo or name from getting copied.