How to Start a Rice Retailing Business in the Philippines (Bigasan)
For a lot of Filipinos, there is always a need to make more money with what they have in the bank. Fortunately, you do not need to break the bank to gain a profitable venture. A simple way to make money is to establish a rice retailing business. Yes, rice is a staple commodity here in the Philippines. We can’t eat without rice in the table, and has always been a common foodstuff that people buy all the time.
Rice has many uses for Filipinos. It is used in different ways from cooking rice to making delicacies such as the bibingka or suman. If you are still doubtful that it would be a wise investment, think of it this way: there are many grocery stores and restaurants who buy rice by the bulk for daily operations.
With just an investment capital between P80,000 to P100,000 of operating capital, you don’t have to think about making a loan.
To get you started, here a couple of things you need to accomplish before you start your rice retailing business.
Acquire The Needed Requirements
Getting a National Food Authority (NFA) License
The first step in establishing your business is to acquire a NFA license. The NFA is the authority and judge in permitting you from the distribution and selling of rice. You can get your license at the nearest NFA office that has the jurisdiction in the location of the business.
An application from will be given to you by a Licensing Officer (LO), but only after paying an application fee of P100. Once the application is accomplished and returned to the LO, you need to pay a license fee, depending on the amount of capital you have. Afterwards, the cashier will give you a official receipt.
Once complete, and all the equipments and location is locked down, the facility will be inspected by an NFA inspector with a notice of inspection, your official respect, as well as a proof of compliance and a list of deficiencies, if any, in regards to the facility.
In case you are the sole proprietor of the business, you will need to register with the Department of Trade and Industry (DTI). If you have a business partner or want to establish a corporation, you will need to register with the Securities and Exchange Commissions (SEC).
Find The Best Location For Your Business
When looking for the proper site for establishing your rice retailing business, you need to think of your customers. Who are they? What is your target market? Usually, rice retailers have heavy foot-traffic as well as passed by many vehicles in the area.
Another tip is to observe people at groceries who frequently buy rice, and think how it presents an opportunity for you. Better yet, aim for those who buy their rice at “palengkes” to know what their buying behavior is to provide you an advantage.
Buy The Equipment You Need
When looking for equipment for long-term use, take note that the NFA is strict in that you need the proper stuff for selling rice. After all, this is food that is prone to being contaminated. Some basic equipment you need are the following:
Rice boxes (choose the white-colored ones)
Signboard (Aim for 45cm wide and 75cm in length)
Price tags (Tells the price per kilogram)
Weighing scaled (should be calibrated, no need to go for digital)
Along the ones listed above, you also need to know the variety, grade, and classification of the rice grain. The signboard should show your NFA control number, business name, the words “Wholesaler” or Licensed Grains Retailer”.
Know How To Store Rice Properly For Long-Term Selling
As most Filipinos know, leaving out rice in the sun will spoil it fast. The quality of your rice deteriorates usually in less than three months. Watch out for the insects that eat rice, such as the bukbok, or as they are named in English, Boll Weevils. Bukboks are attracted to the starchiness of rice, most of which it is made out of.
A quick way to prevent losing quality and maintaining the freshness of your rice is to frequently use the first-in, first-out inventory method to replace your stock.
Market Yourself To Future Customers And Suppliers
A good business is nothing without its suppliers or customers. Developing good relationships with suppliers might earn you a big discount for rice, saving you a lot of money and still profiting off your retailing business.
Make deals with the food industry such as restaurants and carenderias, by providing discounts. These ensures that they will gladly keep coming back to replenish their stocks of rice. Lastly, don’t neglect the single buyers, they are just as important as any running businesses that buy from you. A loyal customer is always a customer that will buy what you offer.