Fri. Jun 24th, 2022

How to Start a Business of Potato Powder Production – Potato Processing Business Ideas

Potato powder production is best established where there is good availability the tubers. Startup is low cost and affords good business opportunity for entrepreneurs. Project estimates are cost of project, returns, break even, annual capacity, plant and machinery.

Things to consider in potato powder production

Things to consider before setting up the enterprise are plant and machinery. Others are building requirements, design and permit, utilities like water and electricity.

Hire skilled labor, purchase raw material and understand the capitalization. Other parameters in the business plan are labor requirements, factory site, equipment, finance, transportation, company registration. More are projected balance sheet, income, expenditure operational costs and working capital.

Startup considerations

  1. plant and machinery
  2. building requirements
  3. design and permit
  4. Utilities like water and electricity.
  5. Hire skilled labor
  6. purchase raw material
  7. capitalization
  8. business plan
  9. labor requirements
  10. factory site
  11. equipment
  12. transportation
  13. company registration

Potato Powder Business Plan

An entrepreneur interested in starting a potato powder production business needs to write a business plan. Then carry out a feasibility study to understand the industry requirements.

One of the critical elements in the business is finding a cheap source of quality potatoes for the business. The plan should cover comprehensive analysis of the business, market size and present market position. Study the competition, organize statistics, conduct forecasts, expected future demands and SWOT analysis.

Business Plan

  1. Cheap source of quality raw materials
  2. Comprehensive analysis
  3. Market size
  4. Present market position
  5. Site Selection
  6. Plant and Machinery
  7. Labor
  8. Study the competition
  9. Organize statistics
  10. Conduct forecasts
  11. Expected future demands
  12. SWOT analysis
  13. Total capital investment
  14. Rate of Return
  15. Break-Even Analysis
  16. Profitability Analysis


To secure bank loans the entrepreneur needs to estimate the total capital investment. Financials are pre-operational expenses, cost of plant and machinery. Others include contingencies, building cost, land, pre-operative expenses. More are cost of raw material, profitability analysis, break-even analysis, fixed assets and preliminary expenses.

We have administrative expenses, repairs, maintenance, working capital, consumables, fuel, labor costs, power, sales, marketing and packaging costs. Present the business plan and comprehensive data to the bank authorities for loan application. Make sure the loan is long termed, low interest loans.


  • Pre-operational expenses
  • Cost of plant and machinery
  • Contingencies
  • Building cost
  • Land
  • Pre-operative expenses
  • Cost of raw material
  • Fixed assets
  • Preliminary expenses
  • Administrative expenses
  • Repairs
  • Maintenance
  • Working capital
  • Consumables
  • Fuel, labor costs
  • Power
  • Marketing
  • Packaging costs

Working capital

Working capital covers consumables, laboratory, and cost of chemicals. Others are packaging material and raw materials needed each month.

Fixed assists and machinery

Machinery are indigenous or locally fabricated or imported machinery. Other equipment are those used in the laboratory and miscellaneous activities. Fixed assets are technical, contingency, fixtures pre-operative and furniture.


Overhead per month covers distribution, sales expenses, royalty charges. Others are fuel, water and electrical power consumption.

How to grow potatoes

Company registration

Register the business as a limited liability company then get insurance. Follow health and safety rules, get product identification number. Others are insurance cover and tax identification number.


The powder has many culinary applications in home and commercial food outlets. It is used as a thickening agent in soups, added to snacks, dals and processed food products. Customer base includes restaurants, fast food outlets, online catering services, food delivery services, hotels.

potatoe chips production


Potato powder production operators target the international market. Although there is high indigenous market the product is made for export. Top markets for the product are European, America and Asia.

By Femi

webmaster with passion for good content

One thought on “Start Potato Powder Production Business”
  1. Hi, I would like to start potato powder manufacturing unit in Hyderabad. Can you please help me with 1) procuring best and sophisticated machinery and it’s cost
    2) obtaining various license
    3) Total project cost and profitability
    4) Risks and preventionsee
    Thank you

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