Planning to start a business by selling rice? You too can start a rice dealership by registering with the Department of Trade and Industry(DTI) for a single proprietorship, the Securities and Exchange Commissions(SEC) for a partnership or a corporation, or to the Cooperative Union of the Philippines if you are a member of a cooperative. You must also secure a license from the National Food Authority(NFA), the government agency that makes sure you have calibrated weighing scales, a storage area, rice boxes, and price tags indicating the variety of rice you’re selling. You also have to produce a green signboard bearing the name of your business and the NFA control number that’s at least 450 mm in width, 750 mm in length, and containing the NFA seal and your license is renewed annually.
You need a minimum investment of php30,000 to start retailing or wholesaling rice. And since this is a staple diet of us Filipinos, buyers are already there. If you are eager to start then here are some rice dealership business tips:
- Build a good storage – Bukbok or bol weevil is a natural enemy of rice because it is 90 percent starch. They make rice powdery so make sure you manage your warehouse properly.
- First in first out policy – you should keep track of your inventory. The quality of rice will deteriorate if the storage exceeds three months.
- Choose a good location – Study the area where you intend to set up your business. Know its consumers, their buying habits and your possible competitors. This will help you decide which varieties of rice to carry.
- Deliver quality – Earn your customers trust by offering quality rice at all times.
- Carry several varieties – to attract customers, they should see many choices but usually low cost rice is the top seller in the wet market.
- Be prepared to loose – On some days you don’t make any sales, but hang on and persevere. There’s always tomorrow.
- Invest in marketing - Call companies and sometimes get them through referrals. Marketing is important to your business. There are some long-term accounts when they were gone for some reason, so make sure you tap other clients to replace them.
- Get insurance – You need cargo insurance when transporting your goods. Because sometimes there may be hijack and theft from people who climb trucks.