Tips for Success in a Cassava Chips Business: Tips and Its Revenue

Admin BFI
6 April 2023
Tips for Success in a Cassava Chips Business: Tips and Its Revenue

The cassava chips business is a business in the F&B sector that can be run with minimal capital. Not only that, this business is very possible to run from home, especially for housewives, students, or anyone who needs additional income.

So, before starting a cassava chip business, it's a good idea to first learn various things related to this business. Come on, scroll the article until it's finished, okay?


1. Why Cassava Chips Business?

1.1. Can Be Run with Minimal Capital

The cassava chips business is classified as a home-based business that allows it to be run with minimal capital. Therefore, this business is very suitable for beginner businessmen who are new to the realm of business.

1.2. It's Not Difficult to Make

Cassava chips are a type of snack that is not difficult to make. In fact, you can use your own equipment to make it, so that the budget spent on business capital can be cheaper.

1.3. Broad Target Market

One of the things you need to consider before choosing to pursue a business is to consider the existing target market. Is the market you are going to target very likely to be reached by new players and how much demand is there?

Cassava chips are one of the food businesses in the F&B sector with a broad target market and are able to reach various groups such as school children, students, employees, and so on.

So, you don't need to worry that the business you are running will have difficulty getting customers. Most importantly, make sure you are able to innovate and think creatively so that your cassava chip business can compete in a healthy manner with competitors.

1.4. Easy To Sell

Another advantage of selling cassava chips is the ease of selling them. You can sell this one snack offline and online. You can also run sales strategies that can complement your sales, such as selling with a pre-order system, reseller, drop shipper, and even opening an affiliate system if you plan to pursue this business on a large scale.

1.5. Raw Materials are Easy to Obtain

Cassava is a type of tuber that is easy to get. You can get it from traditional markets and supermarkets. Most importantly, make sure you equip yourself with sufficient knowledge regarding the proper and correct processing of cassava chips so that the end result in you get can be maximized and make it easier for you to sell them.

2. Cassava Chips Business Risks

In the business of business risk is something that is very reasonable. By recognizing what risks exist, we are able to anticipate various bad things that might happen and find alternative ways. The following is a series of risks that may arise in the cassava chips business.

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Image Source: Freepik/tyasindayanti

2.1. Fairly Tight Business Competition

The process of making cassava chips is quite easy. You can easily find the raw materials used anywhere. In addition, this type of chip has many fans from all walks of life.

No doubt, the competition in this business is quite tight. This can be seen directly from the many sellers of cassava chips that you can meet on the streets. Even so, you can still conquer this risk by analyzing business opportunities and a series of other strategies, including determining the Unique Selling Point (USP) that you have.

2.2. Raw Material Risk

Second, there is the risk of raw materials where the raw materials you use may be scarce or experience a decrease in quality due to seasonal factors and so on. This of course can affect the selling price of the product you have.

2.3. Changes in Consumer Taste

In doing business, consumer tastes are one of the determining benchmarks for success. We can know the fulfillment of consumer desires from the tastes that are currently busy in society. Existing changes can certainly require business actors to adjust to consumer desires.

If as a businessman your cassava chips business fails to keep up with the latest trends and understand what is needed by your target market, it is not impossible that your business will collapse or go out of business in the near future.

Therefore, there is the need to always innovate and adapt to the times. Make sure to be flexible with all changes. One example is by selling cassava chips of various flavors.

3. 7 Ways to Start a Cassava Chips Business

Interested in starting a cassava chips business? Check out 7 ways to start this one snack business!

3.1. Prepare Business Capital

The first way to start a cassava chips business is to prepare business capital. We certainly already know that a business cannot run without capital. This is because capital is used to support operations and fulfill other important aspects.

One easy way you can get venture capital is by applying for a venture capital loan with BPKB Motor Collateral. There are many benefits that you can get, such as applications that are quickly processed and a maximum tenure of up to 24 months.

3.2. Choose Quality Cassava

The second way that you need to pay attention to when starting a cassava chip business is to choose quality cassava raw materials. The quality of the cassava you use can affect the taste and crispness of the chips you make.

Tips for Choosing Quality Cassava:

Quoted from wowbabel, here's how to choose cassava that you need to pay attention to.

  • Cassava Skin Reddish Color
  • The Stem is Fat
  • White Tubers
  • Avoid cassava with brown spots or holes

3.3. Packaging and Labeling

Packaging and labeling are points that you shouldn't ignore. Because both of them can affect the quality of the product you make and the smoothness of the marketing process.

3.4. Determine the Selling Price

Next is to determine the selling price of the cassava chips that you make. Setting prices is one of the crucial things in business operations. The reason is, the selling price you set can affect what you will get later.

If the price you set is too low, then this can affect the amount of profit you get or even lose. Conversely, if you set a price that is too high, it will make it difficult for your product to sell because consumers cannot afford it and compare it to competitors.

There are several things that can determine the selling price of your cassava chip business products, such as raw materials, operational costs, and the level of market competition.

3.5. Selling in Strategic Places

Location can affect the number of buyers who come and have a direct impact on the profit you get. Choose a place that is easily accessible and close to your target consumers. To minimize unwanted things, you can make sure that the business you have has a trading business license and a business location permit.

3.6. Choose the Right Marketing Strategy

Apart from location, raw materials, flavors, and packaging, marketing strategies can affect your success in selling cassava chips. You can choose a marketing strategy according to the business model that you are running.

For example, for an offline selling strategy, you can use word of mouth. Meanwhile, to sell online, you can choose an endorsement and apply attractive promos such as buy 1 get 1 and so on.

3.7. Take advantage of social media and marketplaces to sell

Social media is a wetland where you can reach more buyers from various regions. Don't miss it, you can also take advantage of the presence of marketplaces such as Tokopedia and Shopee to facilitate the transaction process safely and efficiently.

4. Capital Estimation and Business Profits of Cassava Chips

How? Are you getting here more interested in starting this one business? If so, let's take a peek at the estimated capital in the following table.

Estimation of Cassava Chips Business Capital
No. Item Quantity Price Per Quantity Total
1. Cassava Cutting Machine 1 Rp 550.000 Rp 550.000
2. Plastic Press Machine 1 Rp 180.000 Rp 180.000
3. Other Cooking Tools 1 Rp 500.000 Rp 500.000
5. Cassava 5 Kg Rp 5.500 Rp 27.500
6. Cooking oil 20 Liter Rp 17.0000 Rp 340.000
7. Gas 3KG 4 Rp 30.000 Rp 120.000
8. Cassava Chips Sprinkle Seasoning 100gr 10 Rp 4.000 Rp 40.000
Total Rp 1.757.500

Next, let's calculate the estimated profit from the cassava chips business. The trick is to calculate the unit price of the product and then multiply it by the existing profits for each product, then multiply it for 30 days.

25 Products X Rp 10.000 X 30 = Rp 7.500.000 (Gross Profit Per Month)

Meanwhile, to calculate net profit, the method is to calculate gross profit minus business capital and operational costs.

Rp 7.500.000 - Rp 1.757.500 = Rp 5.742.500

So, the estimated profit that you can get for a full month with an average daily sale of Rp. 10,000 of cassava chips is Rp. 5,742,500. Not bad, right? BFI friends, these calculations are not absolute. The results you get may differ from the existing simulation. It all depends on the price of raw materials, operational costs, and other factors.

5. Easy Solution to Get Business Capital

Have the plan to develop or start a business? BFI Finance is ready to help you to obtain business capital with a variety of loan options that can be tailored to your needs.

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