Starting a beef jerky business is not as hard as you might think.
Rather than opening a huge, expensive manufacturing plant, you can start small and simple. However, if you’re not careful, you may end up spending more money than you need to on equipment and ingredients.
Here’s a guide on the general costs when starting a beef jerky business.
| Expense Category | Estimated Cost Range |
|---|---|
| Legal Fees | $500 – $5,000+ |
| Equipment | $10,000 – $20,000 |
| Ingredients | $10 – $15 per kg of beef |
| Packaging | $0.20 – $0.30 per package |
| Marketing | $2,000 – $5,000 per year |
| Rent | $2,000 – $5,000 per month |
| Employee Wages | Varies based on number of employees and industry standards |
Legal Fees
Before starting a business, it’s important to ensure that you comply with all legal requirements. You may need to register your business with the government and obtain any necessary permits or licenses. Legal fees can range from $500 to $5,000 or more, depending on the complexity of your business structure.
Equipment
To produce beef jerky, you’ll need to invest in some specialised equipment such as:
- a dehydrator
- slicer
- vacuum sealer,
- and packaging machine.
The cost of equipment can vary depending on the quality and quantity you require, but you should expect to spend around $10,000-$20,000.
- Learn more: Equipment required for a beef jerky business
Ingredients
High-quality beef is the main ingredient in beef jerky. You should expect to spend around $10-$15 per kilogram of beef, depending on the quality and supplier.
Soy sauce and spices will make up the rest of your ingredients cost. Try and source in bulk to save costs.
Packaging
Packaging is an important aspect of a food business, and you’ll want to ensure that your beef jerky is properly packaged to maintain its freshness and quality. Packaging costs can vary depending on the type and size of packaging you choose. Expect to spend around $0.20-$0.30 per package.
Marketing
To promote your beef jerky business, you’ll need to invest in marketing and advertising. This can include creating a website, social media marketing, print advertisements, and more. Marketing costs can vary greatly, but you should budget around $2,000-$5,000 per year.
Rent
If you plan to operate from a commercial space, you’ll need to factor in rent. Rent prices vary depending on the location and size of the space you require. Expect to spend anywhere from $2,000-$5,000 per month.
Employee wages
If you plan to hire employees to help with production, packaging, and sales, you’ll need to factor in employee wages. Employee wages will depend on the number of employees and the industry standards in your area.
Overall, the total cost of setting up and running a beef jerky business in Australia can range from $50,000-$100,000 or more, depending on the size of your operation and the level of investment you make in marketing and equipment.