Start An Oat Miling Business - Business Ideas

Pat Walls

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Updated: September 16th, 2022

Start An Oat Miling Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Oats are grains from the Avena Sativa plant, and they are consumed by humans in oatmeal or rolled oats and can be processed into animal feed.

Experts in the food industry say oat consumption has increased over the past decade.

Increasing demand for oats can be attributed to consumers realizing that oats contain a high level of soluble fiber and an excellent lipid profile. As the percentage of oat consumers grows, starting an oat milling plant can be a great business venture.

Start an oat milling business in an oat-producing region. Remember that your oat mill's profitability largely depends on its capacity and size. Moreover, you must ensure high-quality end products to attract and retain clients.

Starting an oat miling business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell , or selling online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size

$70.2B

starting costs

$18.9K

gross margin

43%

time to build

270 days

Startup Costs

	Min Startup Costs	Max Startup Costs
Equipment & Supply Expenses	$66	$1,200
Retail Business Expenses	$1,250	$11,650
Inventory Expenses	$350	$14,750
Advertising & Marketing Costs	$75	$9,636
Software Expenses	$0	$425
Website Costs	$13	$215
Total Startup Costs	$1,754	$37,876

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Successful Businesses

Business	URL	Rank
Shopify	myshopify.com	28
General Mills: A U.S.-based food company. We serve the world by making food people love, providing quality brands in more than 100 countries on six continents.	generalmills.com	62,312
Bob's Red Mill	bobsredmill.com	67,596
OATLY!	oatly.com	83,764
Quaker Oats	quakeroats.com	139,429
Bobo's	eatbobos.com	219,134
Pleasant Hill Grain	pleasanthillgrain.com	341,407
guideboat	guideboat.com	518,684
Home	viterra.com	1,639,305
Hodgson Mill	hodgsonmill.com	1,899,169
Montana Milling, Inc.	montanamilling.com	3,484,048

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Pros & Cons

Pros	Description
Rewarding work	Starting a oat miling business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Meaningful business connections	You never know who you will meet as a oat miling business. This could be the start of an incredible business opportunity!
Daily physical activity	Oat Miling Business's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.
Amazing perks and discounts	Working in the oat miling business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.
You are your own boss!	With starting an oat miling business, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Local Community	One of the best parts of starting an oat miling business is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

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Cons	Description
Crowded Space	Competition is high when it comes to your oat miling business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Finding The Right Supplier	Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Low margins	The gross margins for your oat miling business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.
High employee turnover	In the oat miling business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.
Taxes	As a oat miling business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

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Marketing Ideas

1

Direct Sales

Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.
For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Learn more about direct sales ➜
2

Word of mouth

Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.
Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.
According to Nielsen, 92% of people trust recommendations from friends and family.
Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

Learn more about word of mouth ➜
3

Social Media Advertising

Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.
According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.
Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

Learn more about social media advertising ➜

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Key Stats

Startup Costs

Successful Businesses

28

62,312

67,596

83,764

139,429

219,134

341,407

518,684

1,639,305

1,899,169

3,484,048

Pros & Cons

Marketing Ideas

Direct Sales

Word of mouth

Social Media Advertising