Do you reside in a region where cashew nuts are in abundance and you want to make money out of this abundance? Are you interested in starting a cashew nut export business but you don’t know how to go about it? Do you need a sample cashew nut export business plan template? If you answered YES to any of the questions above, then I advice you read on.
Lately, I have been receiving a lot of calls with respect to exporting. So I have decided to give more focus on exporting and issues surrounding it. Now let’s get back to the business of the day.
Cashew is a juicy fruit that bears a kidney-shaped nut, which is edible only when roasted. The demand for this fruit is huge in virtually all parts of the world, but majority of the world’s cashew comes from Africa. Interestingly many people who consume roasted cashew nuts do not know where they are grown or that they grow on trees.
The huge global demand for cashew nuts has led to increased rates of cashew production in Africa and other cashew-producing parts of the world as well as increased exportation to various parts of the world. However, the annual global demand for the commodity far exceeds the supply, which means there is enough room for new players in the cashew nut exportation business.
If you have been looking to start an export business related to agriculture, then starting a cashew nut export business might be your best option. If this idea sounds good to you—and you would like to take a plunge, then I advice you follow these guidelines for starting a successful cashew nut export business.
Starting a Cashew Nut Export Company – Sample Business Plan Template
Table of Content
1. Conduct market research
When you are just plunging into a business that you know nothing about, you need to research extensively to understand how things work. This is always the first step I recommend for export beginners. A good way to start your research is to contact a seasoned cashew nut exporter to make inquiries about the business. You will need to find out:
- The required startup costs
- How to find local sellers (suppliers)
- How to find buyers in foreign countries
- How to identify high quality cashew nuts
- How to process and package your nuts for shipping
- How to choose a shipping company and agent, and so on.
Equipping yourself adequately with relevant information about the business will help you plan your business well and avoid all the pitfalls associated with starting and running the business.
2. Determine your target market
A crucial part of starting any export business is figuring out where the export commodities are going—and the cashew nut export business is no exception. It is important you decide which countries you will be exporting cashew nuts to.
When you are just starting out, it is recommended that you stick with just one country that has a good market for the commodity. As your business grows with time, you can consider targeting more countries. It goes without saying that your ideal export destinations are those countries where there is little or no production of cashew nuts, but the demand is high.
3. Find local sellers
You need to find local cashew nut sellers from whom you will buy the commodity. That is, these local sellers will be your suppliers. Be sure to have more than one supplier, so you can turn to others should one of them run out of the commodity.
You must also bear in mind that the success of your business hinges largely on the quality of cashew nuts you sell to exporters, so ensure that your chosen suppliers have a reputation for high quality cashew nuts. High quality cashew nuts may cost a bit higher than the low quality ones. However, paying the extra costs for high quality cashew nuts will help your business build a good reputation and win more buyers easily in the long term.
4. Find a shipping company or agent
Since you will ship your cashew nuts to the desired export destination, you will need the services of a shipping company. Find out the best shipping companies in your country from other cashew nut exporters. A good shipping company will deliver your goods to the buyer in a timely and effective manner.
So, the quality of service delivered by your shipping company can also affect the reputation of your business—which means you should choose your shipping company carefully. You may find it more convenient corresponding with a shipping agent or freight broker. Also in this case, it is important that you choose an individual with years of experience and a reputation of credibility.
5. Find and pitch potential buyers
To get your business going, you need to find potential buyers in your chosen export destinations. Search the web for information about businesses in that country that buy cashew nuts. You can also search Online business directories listing businesses in that country.
Another way to find potential buyers in your country of choice is to visit the embassy office of that country to make inquiries about businesses who might be interested in buying cashew nuts.
Once you have a list of potential buyers, you should craft compelling proposal letters and send to them via the medium you deem the most appropriate. If they are interested in your proposal, most buyers will make a trial order to test for your credibility. Once you give a good account with the trial order, then you will get bigger orders from them.