Rarely do you come across someone who dislikes chocolates, isn’t it? It is one product that has a universal demand in every country. There are multiple varieties of chocolates, some of which include plain milk, fruit, and nut, dark, mint, non-sweetened, honey-based, and fruit-based ones, among various others. The chocolate business can yield profits in any part of the world if you make them with quality ingredients and create a niche for yourself with a unique selling proposition. You can also find chocolates in a range of sizes and packaging which are suited to different occasions. From bite-sized chocolates to large tin boxes, you can find their presence in almost every commercial outlet. The diversity of India and its various communities have brought about a festive celebration almost every single day of the year across the nation. In addition to that, you have special occasions and festivals where chocolates, as well as traditional Indian sweets, are always in great demand. In the year 2020, the chocolate industry in India was valued at ₹190 crores. This is enough to inspire anyone to set foot in this industry which is known to create sweet memories for all. Let us move into the finer aspects of this business.
Did you know?
That one in every five Indians across the country eats chocolate every single day.
Various Ideas on How to Start a Chocolate Business
You have to be extremely focussed on the format of the chocolates you wish to create and their target audience. You will have to be very sure about the nature of your business, whether you plan to start a homemade chocolate business or are keen to set up a small scale unit. Given below are some of the primary factors you will have to take into consideration that will help you smoothly start the chocolate business.
Also Read: 200+ Small Scale Business Ideas with Low Investment
Market Research
There are numerous chocolate business opportunities, but you will have to conduct a good amount of research to get an idea about them. You will have to get an acute sense of the competitors, their brands, the flavours associated with the different categories, as well as the quality and pricing of their products. Intensive research of the commercial outlets in the neighbourhood and the town or city you reside in will also be useful. This will give you an idea of whether there are other homemade chocolate suppliers and their offerings as well.
Premises
It is always wise to start your business where the competition is not severe. If you are one of the few chocolate providers, and the response to your products is good, you stand to make good profits faster. Too much competition can slow down the pace of profits unless your products are really a class apart.
Monetary Requirements
If you have saved for investing in such a business and are confident of making it a success, you can start with your savings which could range anywhere between ₹4 - ₹6 lakhs. However, this amount can vary and is dependent upon the scale of business operations, i.e., home-made (small scale commercial business) or a large manufacturing unit. If you have a well-charted plan, you can expect to make a profit ranging between ₹30 thousand to almost ₹1 lakh and a little more in the chocolate-making business.
Categories of Products
Your chocolate business plan should include the range of categories you intend to manufacture. Some of these details include:
- The format of the chocolates: size and shape
- Packaging: Regular or vibrant packaging or both – occasion-specific
- Range of flavours: This could range from 1 to even 10, depending upon the skills you have. If you are a skilled professional who has completed a course in this or you have many chocolate business ideas, you could even come up with a unique and original flavour.
- Unique offerings: You could offer special categories like birthday chocolates, wedding chocolates, tier-chocolates as well as chocolate syrups.
Targeted Clientele
At the start, you could focus on selected outlets like:
- Commercial outlets in the neighbourhood or city
- Small-time convenience shops
- Commercial outlets which are specialised in selling confectionery.
Once you receive a positive response, you could include:
- Stores in shopping malls
- Big and small supermarkets
Different Types of Food Ingredients and Raw Material Requirements
Some of the indispensable materials that go into the chocolate-making business are:
- Cocoa
- Various dairy-based products
- Artificial flavours which are permissible in the making of chocolates
- Various sweeteners
Requirement of Apparatus and Kits
Every business is conducted with a certain set of equipment depending on the nature of the business. The chocolate business also requires specific requirements, some of which are as follows:
- Equipment like weighing scales for weighing
- Cutting apparatus
- Chocolate-melting gear
- Spinning equipment
- Equipment for tempering, spinning as well as panning the contents
- Moulds
- Refrigerators
- Materials for packing
Permissions and Licences
- Registration of the business, GST, IEC, Health trade as well as Trademark
- Licences will include – Trade, FSSAI
- If exports are a part of your business plan, you will require an importer-exporter code (IEC) as well.
Employees – Skilled and Unskilled Personnel
You will require:
- Skilled labour who are familiar with the business. They will be involved in marketing and delivering to the various outlets you forge an alliance with to store your products.
- Unskilled labour Some training will have to be given to these individuals who will be helpful in loading your products, packaging, and maintaining the hygiene of the equipment and premises.
Also Read: Get your Home Made Business started
Marketing and Promotions
The digital world has made it imperative for almost every business to have a good website and, if possible, a mobile application. Your website should detail the uniqueness of your chocolates, the flavours, sizes, prices, and stores where they are available. You can have a special section where customers can place their orders, a section for feedback as well as reviews. Creative images, along with a short description of the product, will help visitors understand each product better. You can start a monthly mailer informing customers about new flavours, and special discounts, especially during festivals.
Conclusion
This article explains, in very simple words, the feasibility of setting up a homemade chocolate business. An individual who is knowledgeable about the product and has the ability to come up with something interesting can enter the chocolate-making business with ease.
Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.
