small cold storage business plan

Buying Guide

How To Start a Cold Storage Business – Complete Guide

Next What Business Research Team

January 19, 2024

Do you want to start a cold storage business? Find here a detailed cold storage business plan sample checklist for your ready reference including cost, investment, machinery, profitability, and subsidy information.

If you are looking for a one-time investment business, then starting cold storage is just perfect for you. Generally, in this business, the initial investment is higher compared to other small businesses. However, this type of business ensures a constant return on a long-term basis.

Cold storage is a profitable business both in developing and developed countries. You will find two different types of cold storage according to the storage facility. One is specific for one product (for example potato) and another is multipurpose. However, multi-purpose cold storage ensures better returns and profitability overall.

What is a Cold Storage Business?

A cold storage business is a specialized enterprise dedicated to providing temperature-controlled storage facilities for a variety of perishable goods. The primary objective is to create an environment that preserves the freshness and quality of items that are sensitive to temperature, such as fruits, vegetables, dairy products, pharmaceuticals, and more.

Key Components of a Cold Storage Business

A) temperature-controlled warehousing.

The cornerstone of a cold storage business is the provision of warehouses equipped with advanced temperature control systems. These facilities are meticulously designed to maintain specific temperature ranges suited to the requirements of different products.

b) Logistics and Distribution

Cold storage businesses often integrate logistics and distribution services. This involves the efficient transportation of temperature-sensitive goods from producers to the storage facility and, subsequently, to various points in the supply chain.

c) Monitoring and Security Systems

State-of-the-art monitoring systems are essential to ensure that the designated temperatures are consistently maintained. Security measures, including surveillance and access controls, are implemented to safeguard the stored goods.

d) Customized Storage Solutions

The flexibility to cater to diverse products is a hallmark of a successful cold storage business. This includes offering customizable storage solutions to accommodate the unique requirements of different industries.

e) Technology Integration

Embracing technological advancements is crucial. Cold storage businesses leverage cutting-edge technologies such as IoT (Internet of Things) for real-time monitoring, automated systems for inventory management, and energy-efficient solutions to reduce operational costs.

f) Compliance with Regulations

Adherence to local and international regulations governing the storage and transportation of temperature-sensitive goods is paramount. This involves maintaining stringent quality control measures to meet industry standards.

g) Collaboration with Stakeholders

Collaborative partnerships with producers, distributors, and retailers form the backbone of a cold storage business. Establishing a robust network ensures a seamless flow of goods through the supply chain.

h) Energy Efficiency Measures

Given the energy-intensive nature of maintaining low temperatures, cold storage businesses implement energy-efficient practices. This includes utilizing eco-friendly refrigeration systems and exploring sustainable energy sources.

i) Risk Management Strategies

Due to the nature of the goods being stored, effective risk management strategies are imperative. This involves having contingency plans for power outages, equipment failures, and other potential disruptions.

Is Cold Storage a Profitable Business in India?

As per this report , in 2022, the size of the cold chain industry in India was around 16 million U.S. dollars, and it is forecast to reach 36 million dollars in 2027. In 2021, pharmaceutical products took up more than two-thirds of the cold chain storage in India.

The Indian government provides various incentives and subsidies to promote cold storage infrastructure. Profitability Impact: Entrepreneurs can leverage these benefits to enhance their financial viability, making it an attractive proposition.

The frozen food market in India is witnessing a surge, expected to reach USD 1.3 billion by 2024. Besides, cold storages have an important role in reducing the wastage of perishable commodities. In addition, it helps in providing remunerative prices to the growers and to make available farm products to the consumers at competitive and affordable prices. Additionally, changing lifestyles and demand for processed or packaged food are creating the need for cold storage solutions globally.

India is a significant exporter of agricultural produce, with a focus on improving cold chain logistics. Cold storage facilitates the export of quality agricultural products, tapping into global markets and driving revenue.

Benefits of a Cold Storage

Cold storage facilities have become the backbone of various industries, offering a myriad of benefits that span from preserving freshness to enhancing global trade. Let’s delve into the key advantages that make cold storage an invaluable asset:

⇒ Preservation of Freshness

Cold storage maintains low temperatures, slowing down the natural decay of perishable items. This ensures that fruits, vegetables, dairy products, and other sensitive goods retain their freshness for an extended period.

⇒ Prevention of Spoilage

By controlling temperature and humidity, cold storage inhibits the growth of microorganisms that lead to spoilage. This prevention is instrumental in reducing food wastage and ensuring that products reach consumers in optimal condition.

⇒ Extended Shelf Life

The controlled environment provided by cold storage significantly extends the shelf life of products. This is particularly critical for items with a short natural lifespan, allowing businesses to manage inventory effectively.

⇒ Market Accessibility

Cold storage facilities enable producers to store surplus goods during peak seasons and release them strategically to meet market demands throughout the year. This flexibility is essential for sustaining a consistent supply chain.

⇒ Supply Chain Efficiency

Cold storage is a linchpin in the supply chain, especially in agriculture and food processing. It facilitates the storage of bulk produce, ensuring a steady and reliable flow of goods from producers to distributors and, ultimately, to consumers.

⇒ Global Trade Facilitation

In the realm of international trade, cold storage is indispensable. It allows for the transportation and storage of goods that require specific temperature conditions, fostering the seamless movement of products across borders.

⇒ Quality Retention

Sensitive products like pharmaceuticals, chemicals, and vaccines require precise temperature control to maintain their efficacy. Cold storage ensures that these items retain their quality, contributing to public health and safety.

⇒ Diversification of Products

Cold storage empowers businesses to diversify their product offerings. Whether it’s a variety of dairy products or an array of flowers, the ability to store different goods in optimal conditions enhances market competitiveness.

⇒ Reduced Post-Harvest Losses

Agricultural economies benefit significantly from cold storage as it mitigates post-harvest losses. Surplus produce can be stored temporarily, preventing it from perishing before it reaches the market.

⇒ Adaptation to Climate Variability

Cold storage acts as a buffer against unpredictable weather conditions, allowing farmers and distributors to adapt to climate variations. This adaptability is crucial for maintaining a stable supply chain.

12 Steps to Start a Cold Storage Business

1. market research.

Before diving in, conduct thorough market research . Identify the demand for cold storage services in your target location and assess the competition.

2. Create A Business Plan

Starting a cold storage business demands strategic planning and careful implementation. Therefore, crafting a business plan or project report is the most important aspect of starting this business. According to your investment capacity, you will need to decide the business size.

Additionally, you must have financial planning with a projected ROI and payback period. A business plan helps you in numerous ways. It helps in commencing the business properly, getting finance, and ensuring smooth operations.

3. Obtain The Permissions & Licenses

Understand and comply with the legal and regulatory requirements for establishing and operating a cold storage facility. It depends on the specific location where you are starting the business. You need to obtain the necessary licenses and permits from local authorities.

4. Secure A Location

Location plays an important role in this business. Choose a strategic location that is easily accessible and has good connectivity. Proximity to agricultural regions and major transportation routes is advantageous. Additionally, you will need to procure approximately one acre of land for a multi-purpose/multi-commodity cold storage plant of 5000 MT capacity.

5. Cost of Starting a Cold Storage Business

The initial investment is very high in this business. Generally, the investment includes acquiring the land, building construction, obtaining permissions and licensing, and arranging utilities like water, electricity, etc. Additionally, you will need to invest a major startup capital in procuring the cooling machinery. Generally, modern and updated machinery ensures better performance and long-term sustainability.

Apart from the above-mentioned fixed costs, you will need to consider the working capital expenses also. The major considerations are staffing, utility bill payment, and promotional expenses.

The cost and investment will largely depend on the scale of the cold storage unit. However, according to experts, the estimated project cost for setting up 5000 MT Cold Storage may be in the range of Rs. 3 Crore – 4 Crores in Indian Rupees. The cost of land is an additional investment you need to make.

6. Arrange Finance

Cold storage is a capital-intensive business. You must have an investment capacity of 3 to 4 Corers for commencing this business. Generally, you can set up this business with financial help from banks . In addition, check if there are any subsidies or Govt. grants available for this business.

7. Cold Storage Business Subsidy

In India, the National Horticulture Board provides subsidies for cold storage businesses for entrepreneurs. You will need to apply online. There you will need to fill up an online IPA (In-Principle Approval) application Form. Before applying, carefully read and understand the Operational Guidelines of the relevant scheme.

8. Setting Up Your Cold Storage Facility

Infrastructure: Invest in quality infrastructure with modern refrigeration systems. Ensure that your facility is equipped to handle a variety of products with different temperature requirements.
Storage Capacity: Determine the scale of your cold storage facility based on market demand. Adequate storage capacity allows you to cater to a larger client base.
Safety Measures: Implement stringent safety measures to protect stored goods and maintain optimal storage conditions. This includes fire safety systems, security measures, and backup power sources.

Also Read: Best Agriculture Business Ideas with Low Investment

9. Procuring Equipment and Technology

Refrigeration Units: Invest in energy-efficient refrigeration units that can maintain varied temperature ranges for different products. Regular maintenance is crucial to prevent breakdowns.
Warehouse Management System (WMS): Implement a robust WMS to track inventory, manage stock rotation, and monitor temperature controls. A well-integrated system enhances operational efficiency.
Cold Storage Software: Utilize specialized software for cold storage management. This software helps in monitoring temperatures, managing orders, and ensuring compliance with industry standards.
Inventory Management: Implement a systematic inventory management system to track product movement, expiry dates, and stock levels. This helps in preventing wastage and ensures timely deliveries.
Quality Control: Establish stringent quality control measures to maintain the integrity of stored products. Regular inspections and adherence to hygiene standards are essential.

10. Fix Pricing

Establish competitive yet profitable pricing for your cold storage services. Consider factors like storage duration, volume, and additional services offered.

11. Staffing

Hire skilled personnel with experience in cold storage operations. Provide training on safety protocols, equipment handling, and hygiene practices.

12. Promote Your Cold Storage Business

Build strong relationships with local farmers, food manufacturers, and distributors. Networking is crucial for securing contracts and establishing your presence in the market. Create a professional website highlighting your services, facilities, and contact information. Utilize digital marketing strategies to reach potential clients.

Explore partnerships with businesses in the supply chain, such as logistics providers and wholesalers. Collaborative efforts can lead to mutually beneficial relationships.

Frequently Asked Questions

What is the primary purpose of a cold storage business in india.

Cold storage businesses play a crucial role in preserving perishable goods, particularly agricultural produce, by maintaining low temperatures. This helps extend the shelf life of products and minimizes post-harvest losses.

How can one secure funding for initiating a cold storage venture?

Entrepreneurs can explore various avenues for funding, including bank loans, government subsidies, and private investments. Government schemes specifically designed for cold storage infrastructure can provide valuable financial assistance.

Are there specific regulatory requirements for establishing a cold storage unit?

Yes, there are regulatory standards and guidelines set by authorities such as the Food Safety and Standards Authority of India ( FSSAI ) and the Ministry of Food Processing Industries. Compliance with these standards is essential for obtaining necessary licenses.

What are the critical considerations for choosing a suitable location for a cold storage facility?

Proximity to agricultural hubs, transportation networks, and markets is crucial. Additionally, accessibility to a stable power supply, water availability, and compliance with environmental regulations are important factors to assess.

How can technology be integrated for operational efficiency in a cold storage business?

Implementing technologies such as temperature monitoring systems, RFID tracking, and automated inventory management can enhance operational efficiency. These technologies not only ensure precise control over storage conditions but also streamline logistical processes.

Are there specific types of products that can be stored in a cold storage unit?

Cold storage facilities cater to a diverse range of products, including fruits, vegetables, dairy products, pharmaceuticals, and more. The versatility of cold storage allows for the preservation of various perishable items.

What are the key challenges faced by entrepreneurs in the cold storage business?

Challenges may include high initial investment costs, operational energy expenses, and the need for stringent quality control. Entrepreneurs should carefully address these challenges to ensure the long-term sustainability of their cold storage venture.

How can one stay updated on advancements in cold storage technologies?

Keeping abreast of industry publications, participating in relevant conferences, and engaging with industry associations can help entrepreneurs stay informed about the latest technologies and best practices in cold storage.

Is there government support available for cold storage businesses in India?

Yes, the Indian government offers various incentives, subsidies, and schemes to encourage the development of cold storage infrastructure. Entrepreneurs can explore these opportunities to reduce financial burdens.

What is the expected return on investment (ROI) for a cold storage business?

The ROI for a cold storage business can vary based on factors such as scale, location, and operational efficiency. Conducting a detailed feasibility study and financial analysis is essential for projecting realistic ROI expectations.

The Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium-scale businesses.

Cold Storage Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Cold Room & Frozen Foods

Are you about starting a cold storage company? If YES, here’s a complete sample cold storage business plan template & feasibility report you can use for FREE to get started .

Okay, so we have considered all the requirements for starting a cold storage company . We have analyzed and drafted a sample cold storage marketing plan backed up by actionable guerrilla marketing ideas for cold storage companies. So let’s proceed to the business planning section.

Why Start a Cold Storage Business?

If you live in the united states and are interested in owning a business portfolio in any industry and you have not made up your mind on what kind of business to engage in, then you should consider starting your own cold storage unit business.

Although, you can also start a cold storage business in London or some cities in Canada and Europe, but the United States of America still remains the only country where this type of business is indeed a big industry.

What you need to do before venturing in into cold storage business is to carry out a survey to know if such business is needed in the area you intend establishing it, and how many people will be willing to pay to store their stuff for a short period.

No smart business man or women would want to invest his or her money into a business venture that they aren’t sure will fetch them money.

Also, you will need to have reasons why you want to be in the line of business you have chosen. That means there has to be a real connection between you and the people whose problems you want to solve. This could be categorized as the vision of the business as you will see in the sample business plan as you forge ahead.

You can write your own business plan by fixing in the appropriate details of your business after you have gone through the sample cold storage business plan template below.

A Sample Cold Storage Business Plan Template

1. industry overview.

Cold storage business is classified under the refrigerated storage industry and operators in this industry include establishments that operate refrigerated warehousing and storage facilities. Temperature-controlled services include blast freezing and tempering.

Establishments that primarily store furs for trade are included in this industry. These furs are used as raw materials for the manufacturing of garments and personal accessories such as bags and shoes.

In the United States, over the past five years to 2018, the Refrigerated Storage industry has benefited from consumer spending levels and growing trade activity, which have increased the volume of goods being shipped. Additionally, although some downstream companies decided to manage their own warehouse facilities instead of outsourcing these functions to industry operators, this trend has not substantially hindered industry performance.

Over the five years to 2023, industry performance will likely be bolstered by continued growth in the total value of US trade activity, as well as continued improvements in the level of domestic consumer spending. The Refrigerated Storage industry is indeed a large industry and pretty much thriving in developed countries such as United States of America, Canada, United Kingdom, Germany, Australia and Italy et al.

Statistics has it that in the United States of America alone, there are about 2,203 licensed and registered cold storage cum refrigerated storage facilities responsible for employing about 55,663 employees and the industry rakes in a whooping sum of $6 billion annually with an annual growth rate projected at 5.4 percent between 2013 and 2018.

Americold Logistics LLC, Lineage Logistics and Preferred Freezer Services are the market leaders in this industry; they can boast of having the lion market share in the industry.

Businesses in the Refrigerated Storage industry provide a variety of warehousing and transportation services to retailers, manufacturers, wholesalers and other relevant customers. A recent report published by IBISWorld shows that the storage of goods is expected to generate 70.6 percent of industry revenue in 2018.

Generally, wholesalers, retailers, importers and exporters outsource the storage operations of their supply chain to specialized third-party refrigerated storage operators, either on an as-needed basis or by contract.

These storage services can differ substantially in terms of the duration and temperature required, ranging from the short-term storage of fresh produce in tepid conditions to the sub-zero storage of ice cream and other frozen products for extended periods of time.

The entry barriers for new operators in this industry can vary significantly by state and city. Overall, barriers are moderate, but are increasing across the United States. Costs to purchase or lease of land or facility vary across regions and are a major barrier to entry.

These expenses can be more manageable, though, in well-established, highly populated cities, whereas land costs can be significantly lower in smaller cities and suburban regions. There are several regulatory requirements that must be met by companies in the cold storage business. The most difficult of these generally relates to zoning and land development conditions.

Over and above, a cold storage business in the United States of America can be started by anybody as long as you have the startup capital to acquire a property and then design the property to fit into the purpose you want to use it for.

2. Executive Summary

Sub ZERO® Cold Storage Company, LLC is a licensed refrigerated storage facility that will be located in a commercial hub in Dallas – Texas. Our basic aim of setting up the business is to make available refrigerated warehousing and storage facilities for our clients who are resided in Dallas and neighboring cities.

We have been able to secure a standard facility in a central and easy to locate location in Dallas. Our cold storage facility is of international standard. We conducted a thorough research and feasibility studies and we were able to come to the conclusion that Dallas community is the right place to start our cold storage facility.

At Sub ZERO® Cold Storage Company, our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will offer trusted cold storage services to all to our clients and also ensure that we work hard to meet and surpass our clients’ expectations whenever they make use of our facilities.

Sub ZERO® Cold Storage Company, will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position the business to become one of the leading brands in cold storage business in the whole of Dallas – Texas, and also to be amongst the top 20 cold storage companies in the United States of America within the first 10 years of operation.

Sub ZERO® Cold Storage Company is owned by Gerald Moses and Thomas Mickey his business partner. The business will be managed by both of them since they have adequate working experience to manage such business. Gerald Moses has over 10 years’ experience working at various capacities in the refrigerated storage industry in the United States of America.

3. Our Products and Services

We are in the cold storage business to provide safe short – term refrigerated storage for residents of Dallas – Texas which is why we have been able to put up a facility that can help us achieve this goal. These are the amenities and services that will be made available to our clients;

Storage of goods that needed to be refrigerated
Leasing or rental of mini refrigerated storage truck units
Providing blast freezing services
Providing tempering services
Operating modified atmosphere cold storage facility (private and public)
Other related cold storage services

4. Our Mission and Vision Statement

Our Vision of starting Sub ZERO® Cold Storage Company, LLC is to build a brand that will become one of the top choices for residents and businesses in the whole of Dallas – Texas.
Our mission for establishing Sub ZERO® Cold Storage Company, LLC is to build a standard and well – secured cold storage facility that can favorably compete in the industry.

Our Business Structure

Sub ZERO® Cold Storage Company, LLC is in business to become the leading cold storage facility in the whole of Dallas – Texas and we are fully aware that it will take the right facility, management and structure to achieve our goal.

Our business will not be built only for the purpose of giving our customers value for their money, but also we will ensure that we make our work environment highly conducive for our employees. We will provide them with facilities that will help them stay motivated and deliver on their various tasks.

In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;

Chief Executive Officer

Facility Manager

Admin and HR Manager

Marketing and Sales Executive

Customer Care Executive / Front Desk Officer

Refrigerated Truck Drivers

Security Guards

5. Job Roles and Responsibilities

Chief Executive Office:

Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results and developing incentives
Responsible for fixing prices and signing business deals
Responsible for providing direction for the business
Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
Responsible for signing checks and documents on behalf of the company
Evaluates the success of the organization
Accountable for handling leasing or rental of mini refrigerated storage truck units
Handles goods that need to be refrigerated
Provides blast freezing services
Provides tempering services
Operates modified atmosphere cold storage facility (private and public)
Handles other facility operations such as repairs and renovations et al
Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
Carries out induction for new team members
Responsible for training, evaluation and assessment of employees
Responsible for arranging travel, meetings and appointments
Oversees the smooth running of the daily office activities.
Writes winning proposal documents, negotiate fees and rates in line with company policy
Responsible for handling business research, marker surveys and feasibility studies for clients
Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
Develops, executes and evaluates new plans for expanding sales
Documents all customer contacts and information
Represents the company in strategic meetings
Helps to increase sales and growth for the company
Responsible for preparing financial reports, budgets, and financial statements for the organization
Provides managements with financial analyses, development budgets, and accounting reports
Responsible for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Responsible for developing and managing financial systems and policies
Responsible for administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Client Service Executive/Front Desk Officer

Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s services
Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
Receives parcels/documents for the company
Distribute mails in the organization
Handles any other duties as assigned by the line manager
Delivers customer’s orders promptly
Runs errand for the organization
Handles any other duty as assigned by the sales and marketing executive and manager

Security Officers

Ensures that the facility is secured at all time
Controls traffic and organize parking
Patrols around the building on a 24 hours’ basis
Submits security reports on a weekly basis
Any other duty as assigned by the facility manager.

6. SWOT Analysis

Sub ZERO® Cold Storage Company engaged the services of a professional in the area of business consulting and structuring to assist the firm in building a well – structured cold storage business that can favorably compete in the highly competitive refrigerator storage industry.

We hired the services of Dr. Pius Cesar, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Sub ZERO® Cold Storage Company, LLC, Dallas – Texas.

One of the obvious strengths that will definitely stand as a plus for Sub ZERO® Cold Storage Company is the fact that our facility is centrally located in a commercial hub area in Dallas – Texas; our location and high level of security is in fact our major strength.

We equally have a team that can give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent services. Lastly our service package is one of the best that anybody living in Dallas – Texas can get; it is cheap and affordable.

We critically looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing and well established cold storage facilities when it comes to acquiring large facilities in choice areas.

Opportunities:

We are centrally located in one of the busiest areas in Dallas – Texas and we are open to all the available opportunities that the city has to offer. We will be open 24 hours in a day during weekends (Fridays to Sundays) and from 6:00 am to 12 midnights from Mondays to Thursdays giving us the advantage to leverage on any available opportunity.

Some of the threats that are likely going to confront Sub ZERO® Cold Storage Company are unfavorable government policies , demographic/social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our cold storage facility is located.

7. MARKET ANALYSIS

Market Trends

The trend in the industry is such that if a cold storage facility is positioned in a place where people can easily access without much stress, there is the likelihood that the facility will enjoy high patronage. Many companies have begun operating their distribution and storage functions internally.

So also, the industry will be supported by increasing demand from downstream markets. The industry performance will likely be bolstered by continued growth in the total value of US trade activity. The owners of cold storage facilities are always looking for ways to increase their market share; they go as far as signing deals with merchants, importers and businessmen and women who needed temporal refrigeration of their goods.

It is a common trend that as cold storage facility grows (fully occupied throughout the year), it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.

8. Our Target Market

The target market for cold storage facilities cuts across people of different walks of life and businesses. The fact that people would need a secured place to keep their goods refrigerated for a short period of time makes the cold storage business a thriving and growing business. These are the category of people that we intend marketing our cold storage facility to;

Merchants, Importers and manufacturers
Restaurants and hotels
Ice cream productions businesses

Our competitive advantage

The refrigerated storage industry is indeed a profitable and highly competitive industry. Clients will only make use of your cold storage facility if they know that your facility is reliable, highly secured and spacious enough to contain whatever goods they want to store.

Our competitive advantage is that ZERO® Cold Storage Company is that we can boast of optimum capacity utilization, we will leverage on automation to reduce operational costs, particularly those associated with labor and of course, our output will be sold under contract – incorporate long-term sales contracts.

Plus, our facility is centrally located in a densely populated area in Dallas – Texas; our location and high level of security is in fact our major strength. We equally have a team that can give our clients value for their money; a team that are trained and equipped to pay attention to details and to deliver excellent services.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.

9. SALES AND MARKETING STRATEGY

Sources of Income

ZERO® Cold Storage Company, LLC is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to attract clients on a regular basis and to ensure that our facilities are fully occupied at any given time. ZERO® Cold Storage Company, LLC will generate income by offering the following amenities and services;

Storage of goods that needs to be refrigerated

10. Sales Forecast

It would be hard to create a sales forecast with a newly opened business because the statistics that will be provided will be on a short term basis. Experts say that usually a business should be in operation for at least one year before they can generate the statistics that will help in accurate forecasting.

We expect to attain 65 percent occupancy of our cold storage facility within our first year of operation and then in subsequent years we will grow to full occupancy (between 80 and 100 percent occupancy). Below are the sales projection for ZERO® Cold Storage Company, it is based on the location of our facility and the services and amenities that we will be offering to our clients;

First Fiscal Year: $200,000
Second Fiscal Year: $450,000
Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same services as we do within 4.5 miles’ radius.

Marketing Strategy and Sales Strategy

Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and our market share.

As part of our sales and marketing strategies, we will pay attention to the promotion of our cold storage facility so as to attract people to rent or lease our facility. Part of the marketing and sales strategies that we will adopt are;

Advertise our cold storage facility on community based newspapers, local TV and radio stations
Promote our cold storage facility online via our official website and all available social media platforms
Introduce our cold storage facility by sending introductory letters alongside our brochure to businesses, sports clubs, schools, corporate organizations, hotels, restaurants, households and key stakeholders in Dallas – Texas
Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
Delivering consistent customer experiences to all our clients; making our first impression count positively to those renting or leasing our cold storage for the first time
Make use of attractive handbills to create awareness and also to give direction to our cold storage facility
Adopt direct mailing coupon marketing approach
Position our signage / flexi banners at strategic places in and around Dallas – Texas
Create a loyalty plan that will enable us reward our loyal clients especially those that refers their family members and friends to us
Engage in roadshows within our neighborhood to create awareness for our cold storage facility.

11. Publicity and Advertising Strategy

We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.

We are set to become the number one choice for clients in the whole of Dallas – Texas which is why we have made provisions for effective publicity and advertisement of our cold storage facility. Below are the platforms we intend to leverage on to promote and advertise ZERO® Cold Storage Company, LLC;

Place adverts on both print and electronic media platforms
Sponsor relevant community based events
Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
Install our billboards in strategic locations all around Dallas – Texas
Engage in roadshows from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas in Dallas
List ZERO® Cold Storage Company, LLC in local directories / yellow pages
Advertise our cold room facility in our official website and employ strategies that will help us pull traffic to the site.
Ensure that all our staff members wear our branded shirts and all our vehicles are branded with our corporate logo

12. Our Pricing Strategy

Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more and we don’t intend to charge less than what our competitors are charging.

Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they use our facility for a longer period. The prices of our services will be same as what is obtainable in the United States’ open market.

Payment Options

The payment policy adopted by ZERO® Cold Storage Company, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that ZERO® Cold Storage Company, LLC will make available to her clients;

Payment via bank transfer
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. This is what it would cost us to set up ZERO® Cold Storage Company, LLC in the United of America; These are the key areas where we will spend our start – up capital on;

The Total Fee for Registering the Business in Texas – $750.
Legal expenses for obtaining licenses and permits – $1,500.
Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
The cost for hiring Business Consultant – $5,000.
Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
The cost of accounting software, CRM software and Payroll Software – $3,000
The cost for leasing facility for the cold storage facility – $500,000.
The cost for facility remodeling – $50,000.
Phone and utility deposits – $3,500
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
The cost for start-up inventory – $15,000
The cost for acquiring security locks, CCTV and other security wares – $20,000
The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, tables and chairs et al) – $4,000.
The cost for the purchase of cooling van – $40,000
The cost of Launching a website – $600
Miscellaneous – $15,000

We would need an estimate of $550,000 to successfully launch a standard cold storage facility in Dallas – Texas. It is important to state that the testing and evaluating expenses would be high because of the large amount of needed to secure a large facility in a good location.

Generating Startup Capital for ZERO® Cold Storage Company, LLC

ZERO® Cold Storage Company will be owned and managed by Gerald Moses and his friend and business partner Thomas Mickey. They decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of his stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $35,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. One of our major goals of starting ZERO® Cold Storage Company is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.

ZERO® Cold Storage Company, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

Business Name Availability Check: Completed
Business Registration: Completed
Opening of Corporate Bank Accounts: Completed
Securing Point of Sales (POS) Machines: Completed
Opening Mobile Money Accounts: Completed
Opening Online Payment Platforms: Completed
Application and Obtaining Tax Payer’s ID: In Progress
Application for business license and permit: Completed
Purchase of Insurance for the Business: Completed
Acquiring facility and remodeling the facility to fit into our cold storage facility and warehouse: In Progress
Conducting Feasibility Studies: Completed
Generating capital from family members: Completed
Applications for Loan from the bank: In Progress
Writing of Business Plan: Completed
Drafting of Employee’s Handbook: Completed
Drafting of Contract Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: In Progress
Recruitment of employees: In Progress
Purchase of the needed office appliances and security gadgets and software: In progress
Creating Official Website for the Company: Completed
Creating Awareness for the business both online and in the neighborhood: In Progress
Health and Safety and Fire Safety Arrangement (License): Secured
Purchase of cooling vans: Completed

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A Sample Cold Storage Business Plan Template

In recent times, new technologies have made it possible to move fresh, perishable foods from one side of the world to the other without altering their freshness. There are also cold storage and refrigerated warehousing that make cold chain logistics a premium service in this age.

When looking to start a cold storage business , first find out the industries in your area that require your services and the best approach to cater to these needs. Once you find a viable demand in your area that has not been filled, you can put together a concise business plan to ensure you understand the tasks ahead. Ensure to seek advice from people who are in the same business and get ideas on how to implement your strategies.

Steps on How to Write a Cold Storage Business Plan

Executive summary.

Prime Care Storage (PCS) is a cold storage facility catering to the storage needs of healthcare and pharmaceutical companies in Philadelphia, Pennsylvania. At PCS, we will help our clients store things at various temperatures. According to research, most healthcare and pharmaceutical facilities in Philadelphia have limited space, or only have one temperature level in the storage area.

Meanwhile, a good number of vaccines and medicine need to be kept at different temperatures. At Prime Care Storage, we can meet those varied requirements, while also helping our clients reduce product waste, especially since medicines or vaccines become spoiled at certain temperatures.

Company Profile

A. our products and services.

It is not always advisable to store medical and healthcare products under room temperature conditions. At PCS, our cold storage leverages high-tech flame-retardant insulation materials that follow modern design norms and is energy-saving and environmentally friendly. The medicine cold storage types we intend to offer include;

Vaccine Storage: At 0℃~8℃, effective to store vaccines, medicines, etc.
Medicine Storage: At 2℃~8℃, used to store medicine, biological products, etc.
Blood Storage: At 5℃~1℃, used to store blood, pharmaceutical and biological products, etc.
Low-temperature-maintaining Storage: At -20℃~-30℃ can be used to store blood plasma, biological materials, vaccines, reagents, etc.
Ultra-low-temperature-maintaining Storage: At -30℃~-80℃, used to store placenta, semen, stem cells, blood plasma, bone marrow, biological samples, etc.

b. Nature of the Business

Indeed, there are many uses of cold storage in the pharmaceutical and medicine industry, and we believe a good number of healthcare facilities in Philadelphia will trust PCS with their medicines and vaccines. At PCS, we will provide cold storage and other services, including 3PL and the ability to distribute to wholesalers from our facility.

c. The Industry

Prime Care Storage will be part of the pharmaceutical segment of the United States Cold Storage Industry.

d. Mission Statement

Our mission at PCS is to provide healthcare and pharmaceutical facilities with the right technology to preserve the function of their products. We are committed to providing exceptional cold storage services. With an experienced workforce, we understand the precise art of moving and storing temperature-controlled medical products.

e. Vision Statement

Our vision is to become the prime choice for healthcare facilities when it comes to product storage and delivery. Storing vital products at the right temperature will allow our clients to focus on other essential things, such as innovation and quality control. Taking this responsibility from their hands will free them to do the work they should.

f. Tagline or Slogan

Prime Care Storage – Your Ever Reliable Storage Partner!

g. Legal Structure of the Business

Note that Prime Care Storage will be registered as an LLC with the State of Pennsylvania. We believe this business structure is suitable for our medicine cold storage business since it offers the following advantages;

Protect the personal assets of our owners, stakeholder, and employees
Offer tax choices that benefit our bottom line
Gives us the platform to grow our business
Ensure we gain credibility with customers

h. Organizational Structure

Chief Executive Officer
Facility Manager
Admin and HR Manager
Marketing and Sales Executive
Front Desk Officer
Refrigerated Truck Drivers
Security Guards

i. Ownership/Shareholder Structure and Board Members

Michael Smith (Chief Executive Officer/Owner) 49 Percent Shares
Diamond Minton (Facility Manager) 21 Percent Shares
Josephine Smith (Marketing and Sales Executive) 17 Percent Shares
Greg Lawson (Accountant) 13 Percent Shares

SWOT Analysis

A. strength.

Philadelphia boasts of a mature healthcare industry with an adequate manufacturing base and capacity to produce and supply quality drugs.
The sheet material of our medicine cold storage uses modern high-tech flame-retardant insulation materials which have excellent airtightness.
Our medicine cold storage is energy-saving and environmentally friendly.
Outside waterproofing.
Inside vapor proofing.
Air distribution.
Adequate humidification.
Properly designed controls for precisely maintaining the storage atmosphere.

b. Weakness

The city has a very small internal market.
There seems to be a lack of innovation within the city’s healthcare industry

c. Opportunities

Philadelphia has established itself as a hub for biomedical and pharmaceutical firms
The city’s robust medical network includes the University of Pennsylvania’s largest teaching hospital, the Children’s Hospital of Philadelphia, and the Thomas Jefferson University Hospital.
The city’s regulatory framework is good and embraces the mutual recognition agreement.
The city has an encouraging legal, political, social climate and attractive low corporation tax, which embraces the tax imputation system.
Sound financial services are available

i. How Big is the Industry?

According to reports, the US Cold Storage Market size was valued at $15.26 billion in 2023; however, it is expected to attain a valuation of $19.69 billion by the end of 2026, growing at an annual compound rate of 3.7% between 2022 and 2026.

ii. Is the Industry Growing or Declining?

The pharmaceutical segment of the US Cold Storage Market is expected to witness exponential growth from 2019 to 2025. According to experts, pharmaceutical and biotechnology supply chains are liable to certain risks associated with product adulteration during transport. Aside from that, strict federal regulations, standards, and guidelines will also boost growth in this segment.

iii. What are the Future Trends in the Industry

The general cold storage industry is without doubt a very demanding logistics segment. Coupled with recent additional challenges like increases in the sensitivity, quality standards, volume of goods, and additional regulations, more and more is being expected from this industry.

According to experts, the industry is expected to put up with serving the global market, driving out costs, becoming more strategic, and addressing capacity and resource constraints, all still catering to the precise needs of the sector’s most vital cargo—primarily food and pharmaceutical products.

To succeed in this segment, businesses must steadily upgrade technology to guarantee efficiency, integrity, and safety. They will have to invest in both back-end IT infrastructure and front-end devices to always have and report key shipment data in real-time

1v. Are There Existing Niches in the Industry?

International pharmaceutical distributors
Temperature-controlled shipping and freight services
Biobanking services
Passive thermal protection services
Pharma supply chain companies
Pharmaceutical freezers
Insulated packaging concepts

v. Can You Sell a Franchise of your Business in the Future?

No. At Prime Care Storage, our business plan is to start up our first pharmaceutical cold storage facility in Philadelphia, Pennsylvania, before opening more company-owned facilities in strategic locations across the country.

Competition from developing cold storage businesses
R&D infrastructure and investment are under-developed.
Fluctuation or unexpected increase in electricity tariff

i. Who are the Major Competitors?

Interstate Warehousing, Inc.
United States Cold Storage
Americold Logistics
Bennett International Transport, Inc.
Diversified Transfer & Storage
Aphena Pharma Solutions
Daybreak Express, Inc.
Yusen Logistics, Co. Ltd
AIT Worldwide Logistics

ii. Is There a Franchise for Cold Storage Business?

No. There are currently no franchises offering pharmaceutical cold storage opportunities in the United States, mainly because this is still a new and growing segment of the cold storage industry.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Cold Storage Business?

Yes, regulations and zoning laws in the United States are known to vary from state to state. Therefore, it is necessary to consult your state’s public health department or medical board to find out if you are expected to be licensed to offer the sort of storage services you’re interested in.

Marketing Plan

A. who is your target audience.

i. Age range

At PCS our medical cold storage services provide rental options for healthcare businesses to ensure the safety of their products.

ii. Level of Educational

The services we offer at PCS are essential for doctor’s offices, hospitals, and medical centers across the city of Philadelphia.

iii. Income Level

The income level of healthcare facilities is barely released; when done, the presentation is haphazard and hard to navigate, much like health care itself.

iv. Ethnicity

At PCS, there will be no restriction on the ethnicity of our clients. We will be catering to the storage needs of healthcare and pharmaceutical companies in Philadelphia.

v. Language

Our services and products will be accessible to everyone, irrespective of language and accent. By leveraging Google Translator software, our website will also be accessible to foreigners and non-English speaking clients.

vi. Geographical Location

In recent years, Philadelphia has become a hub for biomedical and pharmaceutical firms and has also grown into a premier destination for healthcare professionals. Note that the city’s robust medical network includes the University of Pennsylvania’s largest teaching hospital, the Children’s Hospital of Philadelphia, and the Thomas Jefferson University Hospital.

vii. Lifestyle

The cold storage services we offer are essential for the following clients:

General Practitioners
Veterinarians
Medical Clinics

b. Advertising and Promotion Strategies

Optimized web design for cold storage facilities
Collaborate with hospitals and other medical-related businesses
Leverage couponing to entice first-time customers to make initial contact with the brand
Buy a mailing list and perform a direct mail campaign.
Hire a marketing firm

i. Traditional Marketing Strategies

At PCS, we understand that the success of our business will depend on our marketing and advertising campaigns. In the initial as well as later stages of our business, we intend to hire a marketing firm to help market Prime Care Storage.

ii. Digital Marketing Strategies

Pay-per-click (PPC) ads
Social media marketing
Email marketing
Search engine optimization (SEO)

iii. Social Media Marketing Plan

Provide Incentives For Instagram Word-Of-Mouth
Provide Group Deals
Use Twitter hashtags
Post Content That Will Entice Our Target Customer
Use Facebook as a Key Communication Tool
Use Twitter As An Information Source About Our Services

c. Pricing Strategy

At PCS, we will ensure our clients enjoy the dividends of fewer charges and more benefits, therefore we intend to adopt the Market Penetration Pricing Strategy, and as we grow, switch to the Geographic pricing strategy. Have it in mind that our price range will be affordable for all the segments. At PCS, we will offer the following;

Attractive prices for all segments
Prices will be set according to the competitor’s price strategy
Prices will be affordable.

Sales and Distribution Plan

A. sales channels.

At PCS, we plan to grow our cold storage facility’s position in the customer’s mind as well as in the market. Leveraging differentiation, Prime Care Storage will be positioned as the most convenient and value-added pharmaceutical cold storage facility for healthcare facilities in the area. We will always strive to make available more products and services to our customers and ensure we become a reliable storage partner.

b. Inventory Strategy

Our plan at PCS is to adopt a properly designed inventory strategy that will address all products based on class and group. Also, note that this strategy will take into account the layout and design of our cold storage to ensure the efficiency of operation and the maintenance of good Health & Safety of every product in our care.

c. Payment Options for Customers

At Prime Care Storage, we intend to make available the following payment options to our clients;

Payment via bank transfer
Payment via credit cards
Payment via online bank transfer
Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

No. There are no return policies at Prime Care Storage. However, we guarantee that the temperature in our cold room will be fully adjustable, and it is controlled to prevent products from dehumidifying. Have it in mind that temperature controllers and monitoring systems are all mounted in our cold storage units.

e. Customer Support Strategy

Note that our cold storage units at PCS will be equipped with two units to ensure that when the electrical unit stops working owing to a breakdown, the operation of the standby unit will not affect products inside the warehouse. Have it in mind that the control system leverages a fully intelligent microcomputer with automatic detection.

To serve our clients effectively, there is a high-precision sensor recorder (with alarm device) that has an SMS alarm function that monitors and records the temperature and humidity in the storage area, and also can meet long-term monitoring requirements. If it detects that the temperature has attained the set upper or lower limit, the device will light and sound the alarm.

Operational Plan

Easy to access location
In-house, experienced experts
Innovation and creativity
Moderate price point
Comfortable, customer-focused environment

a. What Happens During a Typical Day at a Cold Storage Business?

Most often, cold storage businesses are owned and managed by a team. In this line of business, advertising available spaces is a daily task. Potential clients are given a comprehensive tour of the facility. All applications will have to be collected and processed with background and credit checks.

Also note that security deposits, key deposits, collection of rental payments, and monthly accounting records will have to be handled on time and accurately. It also falls on the owner or group to ensure that the facility is kept clean and constantly supervised to prevent vandalism and theft.

Also note that rent for any storage space that is past due will have to be collected, and if there is any issue with the rental payments, the necessary legal processes will have to be initiated to remedy the issue. Note that this may involve turning the account over to collectors, filing court papers, or giving eviction notices, but you will have to consult the local laws and rental contract agreement.

b. Production Process

At present, there are no production plans and processes in place at Prime Care Storage.

c. Service Procedure

We offer high-quality cold storage units that provide reliable refrigeration for medical products
Our staff is knowledgeable about how our services
We offer affordable pricing
A seamless and headache-free communication system
Our convenient hours of operation mean that someone is available when you need them

d. The Supply Chain

At Prime Care Storage, we intend to partner with Kendall Cold Chain System to sustain a very viable supply chain and ensure we always provide top-class services to our clients. Kendall Cold Chain System Co., Ltd. Is headquartered in Shanghai, China and specializes in the design, installation, and maintenance of cold storage rooms, refrigeration systems, and commercial refrigeration equipment.

Note that the medicine cold storage designed and installed by Kendall has numerous advantages such as quick-freezing, fast fresh-keeping refrigeration, energy-saving, etc. and also leverages the most advanced low-noise evaporative fans to guarantee that the lowest energy consumption of the main unit achieves the highest efficiency.

e. Sources of Income

Rent or lease of medicine cold storage units
Leasing or rental of mini refrigerated storage truck units
Other related cold storage services

Financial Plan

A. amount needed to start your cold storage business.

After extensive research, we need around $550,000 to successfully start Prime Care Storage in Philadelphia.

b. What are the Costs Involved?

Setting up a business name: $150 – $200
Licenses and permits: $200 – $300
Insurance: $1000 – $30,000
Business cards and brochures: $200 – $300
Website setup: $1,000 – $3,000
Location security deposit: $0 – $5,000
Facility remodeling and equipment: $25,000 – $470,000
Equipment: $15,000 – $200,000
Labor and Utilities: $500 – $150,000

c. Do You Need to Build a Facility?

Our plan at Prime Care Storage is to start operations from a rented facility in an easy-to-access location in Philadelphia. We also understand that the components of our medicine cold storage facility will be strictly regulated by U.S. Agencies such as the FDA and USDA.

We also concur that these agencies’ regulations will have an influence on rules we put up in our facilities to guarantee safe operation and maintenance. We expect to invest around $273,000 in renting and remodeling our facility, and also in acquiring standard packing industry equipment.

d. What are the Ongoing Expenses for Running a Cold Storage Business?

At PCS, our basic expenses will include;

Maintenance of our facility and machines
Cost of mortgage or lease buildings
Training and certifying employees

e. What is the Average Salary of your Staff?

Chief Executive Officer: $72,800
Facility Manager: $59,000
Admin and HR Manager: $48,970
Marketing and Sales Executive: $52,340
Accountant: $50,720
Front Desk Officer: $43,210
Refrigerated Truck Drivers: $40,220
Security Guards: $34,180

f. How Do You Get Funding to Start a Cold Storage Business

Funds from personal savings and sale of personal stocks and properties
Funds from investors and business partners
Sell shares to investors
Seeking business loans from banks
Business grants and seed funding from the government, donor organizations, and angel investors
Obtain soft loans from family members and friends.

Financial Projection

A. how much should you charge for your service.

In this line of business, what you charge will most often depend on the size of the storage unit, the type of product stored in the storage unit, and the cost of storing the item per day. However, always ensure that what you charge replicates the time and resources you put into storing the product.

b. Sales Forecast

First Fiscal Year (FY1): $400,000
Second Fiscal Year (FY2): $920,000
Third Fiscal Year (FY3): $1.4 million

c. Estimated Profit You Will Make a Year?

At PCS, we expect to make;

First Fiscal Year (FY1): $180,000 (45% of revenue generated)
Second Fiscal Year (FY2): $368,000 (40% of revenue generated)
Third Fiscal Year (FY3): $770,000 (55% of revenue generated)

d. Profit Margin of a Cold Storage Business

According to reports, a storage facility generates a typical profit margin of 41%.

Growth Plan

A. how do you intend to grow and expand .

Just as it was noted above, our business plan at Prime Care Storage is to startup our first pharmaceutical cold storage facility in Philadelphia, Pennsylvania, before going on to open more company-owned facilities in other strategic locations across the country.

b. Where do you intend to expand to and why?

Being a business that targets healthcare facilities, we will always expand to cities we believe have the most hospitals, medical centers, clinics, physicians, and surgeons per capita. Truth be told, all cities are not created equal, so we intend to expand to these US cities;

Honolulu, Hawaii
Baltimore, MD
Pittsburgh, Pennsylvania
Louis, Missouri
Plano, Texas
Lexington, Kentucky
Orlando, Florida
San Jose, California

At PCS, our exit plan will involve handing the business down to the children of our founding members. We strongly believe that this business exit plan is suitable for us as it wouldn’t need extensive interference or involvement of external parties and it is also one of the easiest and most direct options when done right.

💡 Introduction To Starting A Cold Storage Business

Is starting a cold storage business right for you.

There are many factors to consider when starting a cold storage business.

We put together the main pros and cons for you here:

Pros of starting a cold storage business

• Rewarding work

Starting a cold storage 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 cold storage business. This could be the start of an incredible business opportunity!

• Daily physical activity

Cold Storage 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 cold storage 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 a cold storage 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 a cold storage 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.

• Higher likelihood of getting referrals

This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.

• Location is everything!

When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!

• Face to face interaction

If you are the type of individual that thrives on human interaction, then this is the business for you! With a cold storage business, you will be hands-on with customers and or employees every day.

• Simple business model

A cold storage business has the advantage of a simple business model, which makes launching and building the business more seamless.

• You get to do something you truly love

With starting a cold storage business, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

• Easy to Learn The Business

When starting your cold storage business, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.

• Never a dull moment

With starting a cold storage business, there is truly never a dull moment. Your job offers a lot of variety and allows you to meet interesting people from all walks of life.

Cons of starting a cold storage business

• Crowded Space

Competition is high when it comes to your cold storage 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 cold storage business are typically around 34%, which can make it more challenging to incur new expenses and maintain profitability.

• High employee turnover

In the cold storage 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.

As a cold storage 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.

• High overhead expenses

With starting a cold storage business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

• You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

• Time commitment

With starting a cold storage business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

• You might struggle financially (at first)!

If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.

• More of a challenge to run your business from home!

Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a cold storage business, you are more likely to run your business out of your office or storefront space.

Big Players

Cold Storage Online (117K Alexa Ranking)
Maintenance mode (161K Alexa Ranking)
Americold (397K Alexa Ranking)
AGRO Merchants Group (1.19M Alexa Ranking)
USCS (1.48M Alexa Ranking)

Small Players

Kandel Transport Inc. (9.96M Alexa Ranking)
Vision Cold Storage Warehouse Waynesboro, PA (8.95M Alexa Ranking)
Home (8.62M Alexa Ranking)
National Cold Storage-Located in Kansas City (8.27M Alexa Ranking)
mhstorage (7.09M Alexa Ranking)

Search Interest

Let's take a look at the search trends for cold storage over the last year:

How To Name Your Cold Storage Business

It's important to find a catchy name for your cold storage business so that you can stand out in your space.

Here are some general tips to consider when naming your cold storage business

Avoid hard to spell names: you want something easy to remember and easy to spell for your customers
Conduct a search to see if others in the space have the same name
Try not to pick a name that limits growth opportunities for your business (ie. if you decide to expand into other product lines)
As soon as you have an idea (or ideas) of a few names that you love, register the domain name(s) as soon as possible!

Why is naming your cold storage business so important?

The name of your business will forever play a role in:

Your customers first impression
Your businesses identity
The power behind the type of customer your brand attracts
If you're memorable or not

It's important to verify that the domain name is available for your cold storage business.

You can search domain availability here:

Find a domain starting at $0.88

Although .com names are the most common and easiest to remember, there are other options if your .com domain name is not available. Depending on your audience, it may not matter as much as you think.

It's also important to thoroughly check if social media handles are available.

As soon as you resonate with a name (or names), secure the domain and SM handles as soon as possible to ensure they don't get taken.

Here's some inspiration for naming your cold storage business:

Sufficient Space check availability
Sharp check availability
Safe Space check availability
Arctic Frigid check availability
Non Torrential Collective check availability
Additional Disk check availability
UnusualCold check availability
The Common check availability
GreatestCold check availability
The Unusual check availability
Regional Seasonal check availability
The Semi check availability
Swaraj Storage check availability
The Mild Gelid check availability
Northern Saison Collective check availability
Sudden Wintry check availability
Occasional Seasonal check availability
ProlongedCold check availability
Bitter check availability
NorthernSeasonal check availability
The Eternal check availability
Wintry Spot check availability
The Seasonal check availability
Stable Stockpile check availability
SiteStorage check availability
The Giant Quarterly check availability
The Compact Storing check availability
Wintry Arctic check availability
The Fierce Shivering check availability
Site Store check availability
Cold Store Pro check availability
Clammy Common Cold check availability
Monsoon Pro check availability
The Based check availability
Stable check availability
Icy Place check availability
Clammy Cough check availability
The Limited Depot check availability
The Prolonged check availability
Penetrating Frosty Pro check availability
Damp Cool Pro check availability
Monsoon Group check availability
Icy Unheated Trading Co check availability
Memory Pro check availability
The Northern Torrential check availability
Icy Collective check availability
Unheated Group check availability
Entrepot Co check availability
Unreachable Seasonal check availability
Season Co check availability
FierceCold check availability
Ephemeral Collective check availability
Common Cutting check availability
Safe Storing check availability
Baby carriage Storage check availability
IcyCold check availability
Northern Quarterly Spot check availability
Subsequent Stockpile check availability
The Safe check availability
Site Stockpile check availability
Seasonal check availability
Cool Memory Board check availability
Chilling Cough check availability
Magnetic check availability
Giant Occasional Place check availability
Safe check availability
Temperature check availability
Giant Cycles Spot check availability
Longterm Memory Board Collective check availability
The Convenient Storehouse check availability
Freelance Group check availability
The Moderate check availability
The Physical Depot check availability
Store Place check availability
Infeasible Seasonal check availability
Giant Casual Trading Co check availability
Icy Frigid Spot check availability
Lauren Storage check availability
Giant Season check availability
The Severe Gelid check availability
ThermalStorage check availability
Secure check availability
Chorus Storage check availability
The Excessive check availability
Controlled Store check availability
Permanent Memory Place check availability
Secure Storing check availability
Secure Shelf check availability
Non check availability

How To Create A Slogan For Your Cold Storage Business:

Slogans are a critical piece of your marketing and advertising strategy.

The role of your slogan is to help your customer understand the benefits of your product/service - so it's important to find a catchy and effective slogan name.

Often times, your slogan can even be more important than the name of your brand.

Here are 6 tips for creating a catchy slogan for your cold storage business:

1. Keep it short, simple and avoid difficult words

A great rule of thumb is that your slogan should be under 10 words. This will make it easy for your customer to understand and remember.

2. Tell what you do and focus on what makes you different

There are a few different ways you can incorporate what makes your business special in your slogan:

Explain the target customer you are catering your services towards
What problem do you solve?
How do you make other people, clients, or your employer look good?
Do you make people more successful? How?

3. Be consistent

Chances are, if you're coming up with a slogan, you may already have your business name, logo, mission, branding etc.

It's important to create a slogan that is consistent with all of the above.

4. Ensure the longevity of your slogan

Times are changing quickly, and so are businesses.

When coming up with your slogan, you may want to consider creating something that is timeless and won't just fade with new trends.

5. Consider your audience

When finding a catchy slogan name, you'll want to make sure that this resonates across your entire audience.

It's possible that your slogan could make complete sense to your audience in Europe, but may not resonate with your US audience.

6. Get feedback!

This is one of the easiest ways to know if your slogan will be perceived well, and a step that a lot of brands drop the ball on.

Ask friends, family, strangers, and most importantly, those that are considered to be in your target market.

Here's some inspiration for coming up with a slogan for your cold storage business:

I'm Lovin' Seasonal.
Range Of The Saison
You'll Wonder Where The Yellow Went, When You Brush Your Teeth With Cold.
Seasonals With Step
The Future's Bright. The Future's Cold.
Giant And Highest
Post Parkies Are What We Do
We're With The Cold.
You Too Can Have A Seasonal Like Mine.
Cold Keeps Them Coming Back
And On The Eighth Day, God Created Seasonal.
Cold Built To Perfection.
Cold For President.
Budee Budee, That's All Storage.
Term And Underarm
Work Hard, Shelving Harder
Commit Of The Monsoon
Cold, Couldn't Ask For More.
Common Unlovings Are What We Do
For Mash, Get Cold.
Storages With Education
The Magic Of Storage.
Bitter Chillies Are What We Do
From Short To Overnight
Permanent And Surrogate
Refrigerant Is What We Do
The Wonder Has A Name: Cold.
Jesus Loves Seasonal.
From Large To Trivial
The Cold People.
Seat Of The Store
Giant And Trying
Migrational Is What We Do
Insensate Is What We Do
Storage... Get Your Storage Here.
Giant Seasonal, Satisfaction Guaranteed
Frost Is What We Do
That's Handy, Harry! Stick It In The Storage.
Safe Stockpilings Are What We Do
Aim Of The Icy
A Leaner, Meaner Cold
Too Orangey For Cold.
Northern Tropicals Are What We Do
The President Buys Storage.
Storage? You Bet.
Storage - Go For The Game.
Makes You Feel Cold Again.
Storages With Sense
Arctic Is What We Do
Cold Is All Jacked Up.
Gonna Be A While? Grab A Cold.
Only A Fool Breaks The Cold.
All The Cold That's Fit To Print.
Think Cold.

The Brick & Mortar Business Model

When deciding whether or not to start a cold storage business, it's important to first decide what type of business model you want (brick and mortar, eCommerce, or both)!

Here are a few things to keep in mind when considering a Brick & Mortar store:

If you do plan to open a physical store, it's important that you find a spot in a high-traffic area. This is a great way to gain exposure for your business and also get new customers.

It's also important to consider the higher costs associated with operating a physical store (ie - employees, rent, utilities, etc) and the long days/hours associated with running a store.

The main benefit, however, is that customers love being able to see products in person. It's important to recognize that although some people enjoy shopping online, there will always be the shopper persona that likes to touch, feel, and see the product they're buying.

Learn more about starting a cold storage business :

Where to start?

-> How much does it cost to start a cold storage business? -> Pros and cons of a cold storage business

Need inspiration?

-> Other cold storage business success stories -> Examples of established cold storage business -> Marketing ideas for a cold storage business

Other resources

🎬 How To Start A Cold Storage Business

How Much Does It Cost To Start A Cold Storage Business

If you are planning to start a cold storage business, the costs are relatively low. This, of course, depends on if you decide to start the business with lean expenses or bringing in a large team and spending more money.

We’ve outlined two common scenarios for “pre-opening” costs of starting a cold storage business and outline the costs you should expect for each:

The estimated minimum starting cost = $12
The estimated maximum starting cost = $37,876

Raising Money For Your Cold Storage Business

Here are the most common ways to raise money for your cold storage business:

Bootstrapping

You may not need funding for your cold storage business.

In fact, many entrepreneurs take this approach when starting their own business, whether they have a little amount of cash or a substantial amount to get started.

So what exactly does the term "bootstrapping" mean?

This method essentially refers to self-funding your business without external help or capital and reinvesting your earnings back into the business**

Bootstrapping means building your company from the ground up with your own, or your loved ones, personal savings and reinvesting all earnings back into the business

Here are some tips to consider when bootstrapping your business :

Use your savings as your capital - one of the best ways to bootstrap your business is to collect your savings and use them as startup capital. This will also help you avoid using your personal or business credit cards when getting started.
Determine exactly how much capital you need and how much capital you have to get your business off the ground. Generally, when bootstrapping your business, you may want to consider starting a business that involves less startup capital.
Consider starting a business that will generate immediate returns so you can put money back into the business
Be as lean as possible - this refers to cutting down expenses as much as possible, such as payroll, fancy software tools, unnecessary travel, renting an office, etc
Consider outsourcing instead of hiring - in the beginning, you may not need to hire someone permanently to help run your business. It tends to be much less expensive to outsource work to a freelancer and hire someone permanently down the road!

Want to learn more about bootstrapping your business? Check out this article

VC funding is a traditional and long process, but an effective way to raise money for your business.

The term "VC funding" refers to venture capital firms investing in businesses in exchange for equity.

The VC's (venture capitalists) are an individual or small group investing in your business and typically require substantial ownership of the business, with the hope of seeing a return on their investment.

VC's are typically the best approach for businesses with high startup costs - where it would be very difficult to raise the money on your own or through a loan.

When deciding whether to take this approach, it's important that you have a few things in place first, and know what you're getting yourself into:

Determine if your business is ready

Having an idea is not enough to get VC funding.

Typically, VC's will check to make sure you have these things in place prior to closing any deal:

An MVP (Minimal Viable Product)
A founding team with all proper documents in place (articles of organization, business formation)
A validated idea with actual customers buying your product/service

Get everything in place and build a pitch deck

A VC individual or firm will be expecting a fine-tuned presentation that gives an overview of your business.

Here's what you should consider including in your pitch deck:

Management team, their previous experience + current roles in the business
Market challenge and solution
Company financials - including a P&L statement, cash flow statement, and projections
Company progress
Investment amount - how much do you need and why?

Research the right VC to fund your business

Research the types of VC investors out there and what niche they focus on.

Then, put together a list of target VC's you want to approach and your strategy around setting up meetings.

Be sure you have everything in place (as discussed above) before setting up any meeting!

Make sure the terms and expectations are right for your business

Committing to VC funding is a big deal and a decision that should not be made lightly.

Although the money and experience from VC's can help your business quickly grow, you are also giving away a stake in the company, and the money comes with strings attached.

Be sure you do your due diligence in finding the right investor - one that truly believes in the growth and success of your business.

What Skills Do I Need To Succeed In Starting A Cold Storage Business?

As a cold storage business, there are several essential skills and characteristics that are important to identify prior to starting your business.

Let’s look at these skills in more detail so you can identify what you need to succeed in your day-to-day business operations:

Business Savvy Skills

When starting a cold storage business, there are a few fundamental business skills you will want to learn in order to be successful:

Leadership and training skills: A great team starts with YOU. Make sure you have all company policies and training procedures in place prior to hiring your team
Decisive and self-confident: Over the course of your career, you will need decisions that could impact your business significantly. It's important you are able to think clearly and rationally about these decisions.
Ability to understand the financials : You don't need to be an accountant, but it is important that you are able to clearly understand and define metrics such as expenses, revenue, profit, margins, COGS, etc.
Strategic Thinking : Setting clear goals and benchmarks, identifying opportunities, risks. Ability to effectively communicate these insights to your team.

These are a few of many business savvy skills you should have (or work on) when starting a cold storage business.

For a full list, check out this article here .

Self Motivation Skills

Self motivation and discipline skills are critical in order to become successful in this field.

It's likely that you will find yourself starting and running your cold storage business from home, which could mean there are more distractions for you.

Here are the basic skills needed for self motivation & discipline:

Becoming a self starter: It's important that you are capable of independently completing a task without the help or direction of anyone else
Listening and following directions : When you are given direction by others, it's critical that you are able to follow directions and ask the right questions in order to get your job done
Taking the initiative in problem solving: Instead of taking the easy route, you'll need to learn to troubleshoot issues on your own as much as possible.

Customer Service Skills

Friendly communication with customers and the ability to address service issues is a critical part of the job.

Here are some customer service skills you may want to consider prior to starting a cold storage business:

Professionalism: The way you act, present yourself, and respond to situations all leave an impression on your customer. It's important to stay professional at all times when handling customer requests or issues.
Problem-solving: When issues arise, it's important that you are able to think quick on your feet and address the situation with a calm and clear solution
Friendly-manner: This is an obvious one, but customers truly appreciate someone that can respond in a quick, efficient, and friendly manner.
Proficient in writing: These skills include the ability to write well-crafted emails, service tickets, and any other programs used by the business (ie. chat functions, SMS texting)

Advice For Starting A Cold Storage Business

We've interviewed thousands of successful founders at Starter Story and asked what advice they would give to entrepreneurs who are just getting started.

Here's the best advice we discovered for starting a cold storage business:

Write a Business Plan

Writing a business plan from the start is critical for the success of your cold storage business.

Because this allows you to roadmap exactly what you do, what your overall structure will look like, and where you want to be in the future.

For many entrepreneurs, writing out the business plan helps validate their idea and decide whether or not they should move forward with starting the business.

You may want to consider expanding upon these sections in your business plan:

Executive Summary : Brief outline of your product, the market, and growth opportunities
Overviews and Objectives : Overview of your business, target customers, and what you need to run your business
Products and Services : Specifics on the products and services your business will provide
Market Opportunities : Analysis of customer demographics, buyer habits and if your product is in demand
Marketing : Outline of your marketing plan and how you plan to differentiate yourself from other customers
Competitive analysis : Analysis of your competition and the strengths and weaknesses therein
Operations : Hierarchal structure of the company and what it will take to run the business on the day-to-day
Leadership Team : Detailing roles and responsibilities of each manager based on their specific skill-set
Financial Analysis Understanding of all expenses, operating budgets, and projections for the future.

Learn more about how to write a business plan here

Determine Which Business Bank Account You Need

There are hundreds of banks out there, and it can be overwhelming to find one that's right for your business.

Here are some factors you may want to consider:

Location - Is your bank close enough that you can easily make deposits or get cash?
Low Fees - Make sure to understand any and all fees associated with setting up and maintaining your bank account. Ask for a list - banks usually try to keep this hidden and in the fine print.
Online Banking Services - Make sure you can easily navigate through your online portal and you have easy access to everything you need.
Line of Credit - What do your options look like (even if you don't need this now, you may need this down the road).
Every bank has something that differentiates them from the rest, so make sure whatever that is applied to your needs and values.

Check out this list of the 13 Best Banks for Small Business in 2020 and what makes them so unique.

Setting Up Your Cold Storage Business (Formation and Legal)

When it comes to setting up your business, you may find yourself in a place where you have to make some financial and legal decisions.

The first thing you'll want to decide on is whether you want to be an LLC, S-Corp, or C-Corp.

These three options are found to be the most common when starting a small business, and all serve to protect your personal assets and also provide you with certain tax benefits.

LLC : All income and expenses from the business are reported on the LLC personal income tax return.
S corp : Owners pay themselves salaries + receive dividends from profits.
C Corp : C Corps are separately taxable entities that file a corporate tax return (Form 1120). No income tax is paid at the corporate level and any tax due is paid at the owners individual expense.

Depending on where you're conducting business, you'll also want to consider securing the proper permits, licenses and liability insurance.

Learn more about securing the right permits and licenses ➜

Need to start an LLC? Create an LLC in minutes with ZenBusiness .

How Do I Pay Myself As A Small Business Owner?

Most entrepreneurs start a business to do something they love- but at the end of the day, you still have bills to pay (maybe now more than ever).

But it's important to strike the right balance - if you pay yourself too much, you could be putting your business at risk.

There are two common ways to pay yourself as a business owner:

1. Owner's Draw

Many entrepreneurs pay themselves through an owner's draw. This means that you are technically sean as "self-employed" through the eyes of the IRS and are not paid through regular wages.

At the point that you collect money from the draw, taxes typically are not taken out - so make sure you are prepared to pay these taxes once you file your individual return.

As an owner who takes a draw, you can legally take out as much as you want from your equity.

This type of compensation is suited for Sole props, LLCs, and partnerships. If you’re an S corp, you can pay yourself through both a salary and draw if you choose.

If you decide to pay yourself a salary, you will receive a set and recurring amount. This will be taxed by the federal government and the state you reside in.

The reality is that it can be really complicated to set your own salary, so we have some tips for you to consider:

Take out a reasonable amount that allows you to live comfortably but also sets your business up for success
Consider the number of hours you are working weekly + the type of duties you are performing.
Set your salary based on your industry-standard, location, and profits (or projected profits)
Look at your P&L statement : Deduct your own pay from that amount. This is important so you can first tackle important business expenses, and then pay yourself from the amount leftover.
Pick a payroll schedule (and stick to it)! In the US, it's most common to pay yourself and employees twice a month.

To learn more about how to pay yourself and what is a reasonable amount, check out this article .

How To Price Your Cold Storage

One of the most challenging aspects to starting a cold storage business is determining how much to charge for your cold storage.

When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.

Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.

On the other hand, when businesses over-price , this tends to be just as damaging to the business.

When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.

Here are some factors to consider when pricing your product:

Understand your customer

It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:

Customer demographic: Age, gender, location, etc.
Buying habits of your customer: What they buy + when they buy
Level of price sensitivity with your customer

All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.

Understand your costs

When pricing your cold storage, it's critical that you first identify all of your costs and consequently mark up your cold storage so you can factor in a profit.

The actual cost of your cold storage may include things like:

The actual cost to make the product (ie. raw materials, supplies, manufacturer).
Shipping + overhead fees
Operating costs to run your business

You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.

Create revenue goals

When determining the price of your cold storage, you'll want to create goals for revenue + how much profit you want your cold storage business to make.

This process is simpler than you may think:

Think about your breakeven cost (by completing the above step).
Create a revenue goal based on your break-even cost
Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
Divide your revenue goal by the number of items you plan to sell

This figure will help determine your estimated price per product in order to meet your revenue goals.

Evaluate your competition

The last piece in determining how to price your cold storage is by simply looking at your competition.

The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your cold storage fits best in the marketplace.

All of these factors play an equal part in pricing your cold storage, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.

Understanding Your Costs

Example from Ishan, founder of Ugly Duckling

First objective: profitability

Our profitability is OK at this point but definitely not where it should be yet. To this day I have not paid myself a regular salary yet...and it’s been 4 years!

The problem is not the cost of goods which are well under 20% of sales, which is good by any standard. The problem is fulfillment costs. In 2018 we transitioned from our first fulfillment company to a much bigger company. We did this because we wanted to provide faster shipment speeds and a better quality of packaging. In hindsight, we chose a company which would have been more suitable for a larger company with bigger volumes. We ended up being tied in with some pretty large minimum monthly payments. So currently fulfillment costs are currently around 45% of sales...way too high.

We are now looking to transit to another fulfillment center. Our target is to get our fulfillment costs down to around 30% of sales which I believe from what I have researched, is possible.

Just to be clear, when I say fulfillment that includes transportation costs also - FedEx, USPS, etc. Not just storage, picking, and packing. I am pretty sure that it is possible to get fulfillment costs down even lower, and I suspect that some large pro sellers on amazon.com work with around 20-25% of sales.

So our target P+L for 2020 looks something like this:

Cost of goods, including inbound freight and clearance - around 22% of sales.
Fulfillment - around 30% of sales.
Digital Advertising & Promotion - around 15% of sales.
Other marketing and office costs, including salary costs - around 10% of sales.
That would leave us around 23% of sales - enough to pay me a liveable salary and for the company to make a profit and finance future growth.

That's the first objective for 2020: to right-size the P+L so that we are profitable at our current sales level

Gross Margin Calculator: How to Calculate The Gross Margin For Your Cold Storage

Our calculator is designed to be simple and easy to use.

The goal is to help you set realistic expectations and understand what is considered a healthy gross margin for your cold storage business.

Calculate your gross margin and profit margin here .

What Type Of Clients Will Buy Your Cold Storage

It's important to first establish who you will be selling to, whether it's to businesses or consumers.

Typically, in this industry, products are sold to B2B markets (business-to-business).

Let's take a look at what this means for your cold storage business:

B2B (or business to business) is a transaction where your cold storage business sell's your product or service to other businesses to help them grow.

Business-to business industries typically includes SaaS products, B2B marketing firms, and other business supply companies.

Unlike B2C markets, the audience is not a consumer at all, but instead a business - so it's important to understand how to best market your product/services to that target audience.

With B2B, driving leads means understanding another company's business processes and creating a business strategy that will help their operation scale and grow.

Here are some tips to consider:

Your main focus when selling to other businesses is showing value to their business and overall return on investment
Focus on building relationships , rather than extending your brand awareness through social networks.
Marketing approach should include things like attending conventions , conferences, and optimizing your online presence (SEO, email outreach, etc)
Understand that the sales process may mean more effort educating your client, so it's important that you have a well-trained sales team that is knowledgable about the product

Design A Prototype

Turning your idea into a reality can feel like a daunting task - but it's critical that you have an idea of what your product will look like (even if it's just a sketch) prior to finding a manufacturer.

Here are some common ways you can design your prototype:

Draw Your Initial Design on Paper
Form pieces of fabric together
Consider Taking A Generic Product And Putting Your Own Brand On It
Try Making the Product Yourself
Consider Building A Prototype With A 3D Printer

To learn more about how to design and prototype a product, check out our latest guide here .

How To Find A Supplier For Your Cold Storage Business

Here are the steps to consider when finding a supplier/manufacturer:

Know your design

One very critical step to finding the right supplier is having an initial idea of what your design/product will look like.

Sketching is one of the most simple ways to get started in the design phase.

What's great about sketching is that you can practically do this anytime, anywhere - even on the back of a napkin.

To get started, all you need to do is pick up a pen and paper and start drawing - or if you are working on a virtual/software product this can be a diagram that outlines the user interface or experience.

Decide your supplier type

You'll want to identify the type of supplier you are looking for.

Here are some questions you may want to ask yourself prior to searching for a supplier

Are you looking for a manufacturer to produce your product idea ?
Do you want to find a supplier that can simply purchase existing products for you ?
Do you want a drop-shipper to supply and fulfill orders?
Do you want a domestic supplier or an overseas supplier? Read more about the pros and cons of each here

Where to start your search

Once you have an understanding of what type of manufacturer/supplier will be best to bring your idea to life, there are several areas you can start your search:

Domestic Suppliers

Overseas Suppliers

Manufacturing Your Product In House

It's also very common to manufacture your cold storage on your own - either from your home or in a commercial space.

In order to get the product right, you may want to consider experimenting with different designs and recipes until you find the perfect one.

Some founders choose to manufacture their product in-house so that they can control quality, manage costs, and easily handle production/logistics.

Down the road, you can always choose to outsource your cold storage.

Leslie Eisen, founder of AlmondClear discusses how to manufacture products in house

If you want to start a line of unique products, then you have two basic options: you can make them yourself, or you can find a manufacturer to work with that creates custom formulations for their clients.

I knew that I was trying to build a larger-scale business and that the home-made model wasn’t right for me, so I had to find the right manufacturing partner. It took a lot of research, phone calls, and emails before I found the laboratory that met my needs.

I wanted to create unique products (as opposed to private label), so I worked with the manufacturer’s chemist who specializes in skin care formulations. This process takes some time!

First, you have to tell the chemist what kind of product you’re looking for , the ingredients that you want to include or leave out, and what you want the final product to look like/feel like/smell like, etc.

Then, the manufacturer sends you the first sample , you try it out or give it to others to try, and then provide feedback for revisions. In my case, the first two products came together fairly easily because I only needed to make small changes to stock formulations.

There are many, many rules and regulations around cosmetics and skin care products. If you want to sell products that contain FDA regulated ingredients then you have to register and get a permit.

My products aren’t FDA regulated, so I didn’t have to go through this step, but I did have to be aware of the many guidelines and standards around labeling and safety warnings. Some people hire a lawyer to help them through this process, but my manufacturer was able to guide me through the regulatory process.

The entire process, from researching labs to work with to having the first finished products shipped out to me, took around six months.

Purchasing Inventory For Your Cold Storage Business

When first starting out, it's important to start small with your overhead to get a gauge for what people want.

Just remember - if you order a line of items that don't sell, it's nearly impossible to recoup the money lost.

Buying the right inventory takes research and planning in order to get it right.

Identify your target audience : Identify the age, gender, annual income that you will be selling to. This is a defining factor in ordering the right inventory that will sell.
Research your competition : Conduct market research and identify the different types of styles, price points, and materials being used. This will help you see what's trending and ways that you can improve/stay ahead of the competition.
Create an inventory wishlist : Identify what you need for the launch of your business and create a budget that you will stay within. Remember, it's okay to start small.
Find a supplier Make sure to first compare prices and analyze different options.
Delivery timing : Schedule the inventory delivery to match with seasonality and trending buying seasons

Pro-tip: It's easy to become biased based on your own fashion preferences on what types of shoes/apparel to purchase. This is where a lot of fashion businesses go wrong. It's important to base purchase decisions on current buyer behavior, trends in the market, and specific to your niche.

Erin Hooley, founder of Bailey's Blossoms tells us how poor inventory projections led her to lose over $2M

When we first launched Peyton Bre we did so in a social or direct sales model.

Through poor inventory projections we were forced to change models but only after losing $2 million dollars.

It was a devastating time for us and one we were not sure we could survive.

I have since become very intentional about the way that we project our inventory needs and we continue to refine that quarterly and even monthly. We have created a KPI for the cost of goods sold to help us hold ourselves accountable.

Ultimately, the better we manage our inventory the less we have need to discount and the healthier our profit margin becomes.

This is, of course, a very high-level overview of the importance of inventory control.

To see the full breakdown on how to manage inventory, check out my guide over on my blog. .

🚀 How To Launch Your Cold Storage Business

Build A Website

Building a website is imperative when launching your business, and with the right tools in place, this can be a simple task to check off the list (without having to hire someone).

Pick a domain name that's easy to remember and easy to type
Choose a Web Hosting Plan (ie. Shopify, Squarespace)
Make sure you choose the right theme and design
Implement the proper page structure (ie. about page, contact page, pricing etc)

To learn more about how to build a stellar website with little stress, we give you all the details on this step-by-step guide .

Once you have chosen the domain, web hosting, and platform, it's time to get started with the design phase.

Themes are a great way to produce the fundamental style and identity of your website - this includes everything from your font design to your blog post styles.

One of the best ways to get started is to simply explore the various themes (free or paid depending on what you're looking for) and test them on your site.

If web-design really isn't in the cards for you, you may want to consider outsourcing a web designer to help bring your vision and brand to life.

Launch Strategies For Your Cold Storage Business

There are various different ways you can launch your cold storage business successfully.

Here are a few different strategies to get customers excited about your cold storage business.

Build hype with a landing page : you can effectively do this through waiting lists, discounts, countdown timer etc
Create a teaser video : even just a 30 second video is a great way to exposure for your cold storage business, and possibly even go viral
Reach out to influencers : The right influencer for your product has the ability to reach your audience with just one post, and because of their loyal following, this could lead to a big return for you.
Get Press : Whether you plan a PR stunt or get exposure through a popular news outlet, this is a great way to attract initial customers
Launch on popular sites : A great way to get buzz about your cold storage business is to submit your launch to popular startup sites.

Here are a few popular sites to launch on:

ProductHunt
Hacker News

Learn more about how to launch your business successfully ➜ here

Make Sure You Get The Package Design Right

The way you package your cold storage business is often the first impression your customer has - so it's important to get it right.

You may want to ask yourself these questions:

If my product is on a shelf next to hundreds of other similar products:

Will my cold storage business stand out?
Will the branding/packaging create a connection with my customer, and hence, lead them to buy?

There are hundreds of tools you can use to help with packaging and design:

Canva - Allows non-designers to create beautiful Instagram/Pinterest posts, flyers, business cards, etc.
Stickermule - High quality custom stickers you can include on or in your packaging.
Noissue - Custom tissue paper and compostable mailers
Rollo Label Printer - A great tool to print all shipping labels at home

Sheets & Giggles explains the motive behind their "Premium Unboxing Experience"

I had a particular vision for our packaging centered around one goal: because we were a DTC company and wouldn’t do physical retail in year 1, we needed to focus entirely on an incredible unboxing experience that made the product feel as premium as possible.

Outside: a white box, nice wax coating, logo front and center with no other copy, easy to open, nice and sturdy.

Inside: make people smile from the get-go, have a social call-to-action, include free extra surprises (a knapsack that wraps the sheets and an eye mask), put funny copy all over the place, and add a donation bag that people could use to donate their now-defunct cotton sheets (sheets & blankets are the #2-most-requested item at shelters behind socks).

Get Press Coverage For Your Cold Storage Business

The more buzz around your brand - the more the phones ring, the more traffic to your website, and the more customers as a result.

Here are a few ways you can get press for your business:

Press releases:

Press releases are a great way to share big announcements or news, but in order to get any traction, you'll need to find a way to make your press release stand out amongst others.

Try to convey a story that really matters, not just to you, but to the reporter and to their audience.

Here are some things to consider when submitting a press release:

Craft a catchy subject (keep it short and sweet).
Acknowledge the journalist's past work and interests - this is key!
Include the main point of the story in the first paragraph, heck, even the first sentence. Reporters want to hear the juice first and foremost.
Focus on the facts and try to limit the amount of jargon used.
Pitch yourself! Help them put a face to the story.
Make sure your topic is newsworthy. If it's not, find a way to!
Try not to include any attachments of your release!

Email is one of the most effective and preferred way to send your press release, so as long as you keep your pitch brief, interesting and personalized (no cold emails), you should stand a chance!

Get Press Using HARO

HARO, otherwise known as "Help a Reporter Out" is an outlet for journalists to source upcoming stories and opportunities for media coverage.

The best part is, HARO is free to use! There are, of course, premium versions you can purchase, but the free version is still an accessible way to get press.

Once you set up an account, HARO essentially will email you based on stories (that are relevant to you) that need to be covered where you will then have a chance to essentially "bid on the story."

Here are some tips when crafting your pitch:

Discuss your experience and expertise in the space. Make sure it's obvious why you're relevant to this story.
Answer the question in 3-4 sentences. Try and be as direct as possible
Offer to provide the reporter with more information and make sure to give them your contact info

Plan a Publicity Stunt

Planning a publicity stunt is an effective and quick way to raise awareness for your brand and gain some traction from the press.

If you're looking to plan a stunt, the objective should be to be bold and create something memorable

However, being bold has a fine line - it's important that you consider the timing of your stunt to ensure you don't come off insensitive or unethical. For example, timing may not be in your favor if you plan something during the general election, or in most recent cases, a global pandemic.

In order to measure the success of your stunt, it's important that you first determine your end goal, for example:

Is the stunt aimed to raise money for your business or a particular organization?
Is the stunt aimed to drive more traffic to your website?
Is the stunt aimed to get more followers and engagement on Instagram?

Here are a few tips for creating a great publicity stunt:

Research to ensure that there haven't been similar stunts done in the past by other businesses - this could easily turn off journalists and your audience.
Make sure you can explain the stunt in one headline - this will help grab the media's attention. In other words, simplify!
The stunt should be related to the product you are promoting. Even if the stunt is a success in terms of viewers, but it doesn't tie back to your original goal, then it's not useful.
Keep the stunt visual with videos/images.
Leverage the internet and social media platforms for your stunt by sharing your message across a variety of audiences. This will help with word of mouth and the overall success of your event.

To learn other strategies on how to get press, check out our full guide here .

🌱 How To Grow Your Cold Storage Business

Consider Selling On Amazon

In addition to selling your products directly on your site, you may want to consider selling on Amazon to reach a wider audience and attract new customers.

Here are some pros and cons of selling on amazon:

Easy and seamless process to get your product listed on Amazon
There are roughly 100 million thoroughly committed prime customers, so you're bound to tap into new business
Can help grow your business exponentially and reach new audiences
You may encounter some "copycats" and counterfeit products
Amazon owns the relationship with the customer (you lose control over product reviews + customer service)
If you already have a low-markup, amazon may not wrth your while and you could end up losing money
Commissions and listing fees are high - it's easy to lose control of your offering

Follow these instructions to get your product listed on Amazon or check out the video below on how to get started:

Cory Stout, founder of Woodies ($250K/mo) provides us with specifics on how to rank better on amazon:

Our main product is walnut wood sunglasses that I sell for $25 on Amazon and Woodies.com.

I dedicated myself to becoming an Amazon expert. I listened to all the podcasts and read all the blog posts I could find. Shoutout EcomCrew I took the basic fundamentals that are out there and I added a couple of my own twists.

Amazon brings me, 100 brand new customers, every day for very little acquisition cost. If I tried that on my own, it would take a TON of work and it wouldn’t be nearly as effective as Amazon, so I took the easy road on this one.

Here's an article I wrote on how to rank better on amazon (30+ Tips):

5/5: ESSENTIAL

Beautiful images (minimum 5 images) especially lifestyle images I use UpgradedImages.com for product photography (hey Ken!)
Keywords in your title (but it still needs to sound human)
Competitive price (contributes to high conversion rate)
NOT having 1-star reviews
DON'T STOCKOUT: it's such a killer and if you DO stockout, definitely DON'T raise your price right before you do, if anything LOWER your price for the last 10-20 units before you stockout, each ASIN has a 'memory' for when you do get back in stock so that will help you regain ranking quickly
DON'T VIOLATE AMAZON TOS: just don't
Perform QC on your stock before you send it in (I sent in a wrong box once and I had to 'remove' over 3,000 pieces so I could sift through them and remove the 150 contaminated pieces 0/7 would not recommend

4/5: Pretty Friggin Important

Minimum 10 5-star reviews (do this before you do anything below this)
Well optimized PPC campaigns (could do a whole post on this, keep ACOS under 40%) here's a screenshot of some of my campaigns I use a combination of manual campaigns with exact phrases and high bids...and auto campaigns with a broad range of products and very low bids
Turning on FeedbackGenius for auto review requests (it's not as good as it used to be, but it's still worth it)
Get a trademark and get Brand Registry, this protects you from hijackers and other unscrupulous sellers
Quick response to customer messages (under 12 hours) here are my stats my mom does all my customer service "Employee of the Year" status
Drive outside traffic (amazon loves outside traffic because they don't have to spend so much to acquire customers) Facebook, Instagram, and Google Adwords are the usual suspects
Use ocean shipping to save mucho $$$ on unit costs (use flexport)

Improve your SEO

SEO is not just about driving traffic to your site, it's about driving the RIGHT traffic to your site , and ultimately, converting leads into customers.

One of the most important aspects of SEO is understanding what your customers are searching for, otherwise known as "keyword research."

Here are some tools that can help you choose the right keywords for your cold storage business.

Google Ads Keyword Planner invaluable for discovering search trends.
Google Search Console is very helpful once your website is up as it shows you what words/phrases are generating traffic.
Ahrefs and SEMRush are paid tools that allow you to look at results of your competitor's website.

Publish Great Content

Finding keywords is an important piece of the puzzle, but Google also ranks your site based on the actual content you produce, as this is what your customers are reading and engaging with.

There are various different "forms" of content that you may want to consider diversifying on your sites, such as blog posts, articles, studies, and videos.

So let's discuss what google considers "good content:"

Length - This will vary depending on the page, however, generally having a sufficient amount of content helps search engines recognize that your site is a good source for a specific topic
Engagement - The longer people stay on your website to read your content, the higher Google will rank your website. It's important to have informative and "thick" content that keeps people reading
Avoid Duplicating Content - Google will recognize this and may consider your content to have low value
Ensure pages load quickly - This will also help with engagement and time spent on your website
Shareability - Create content that people want to share, and is easy for them to share, especially to their social media accounts (ie. "click to tweet" is a great example of this).

Another element of creating good content is creating consistent content.

If (and hopefully you are) publishing content frequently, it's important to stick to a schedule - this helps build brand trust and easy user experience with your customers.

Planning out your content with a content calendar is key to staying consistent.

Here are a few great content calendar tools that can help you:

If you prefer to keep it simple, your average spreadsheet is just as useful!

Backlinks are an important piece to SEO, as they allow for other websites to link to your content.

Search engines recognize that other sites are essentially "verifying" your content and essentially rank you higher because of this.

Of course, some links are more valuable than others and can affect your site in different ways.

For example, if a highly valuable and credible site like the New York Times links to a page on your website, this could be remarkable from an SEO perspective.

Aside from organically getting mentioned from other sites, there are other ways that you can increase and earn backlinks:

Create infographics with relevant data that people want to share
Promote your content on different sites/look into "guest blogging"
Contact influencers/journalists/bloggers and ask them to mention you!
Write testimonials for other sites in exchange for a backlink
Leverage existing business relationships

Learn more about the fundamentals of SEO ➜ here and check out Neil Patel's 3 Powerful SEO Tips below

Build A Blog

One of the most effective ways to build brand awareness and grow your business is through consistently blogging.

We've outlined some useful tips for you to consider when creating content:

Consistency and Quantity

Quality is important, but it should be the standard for any content you publish.

What’s more important is consistency and quantity.

Consistency is as simple as committing to publishing and sharing a certain number of posts per week. For me, that’s three per week right now.

This kind of commitment is key, because one day, a random post will blow up, and you will have never expected it.

Oversaturation

The easiest mind trap is to think "I’m posting too much", and “I need to give my readers/audience/this platform a break”.

This is nonsense.

There is no such thing as oversaturation. Well, there is, but it is just someone else’s opinion.

For every person that tells you you are posting too much, there is another person that wants even more of your content.

You should ignore people’s opinions on how much you post.

Patience & Persistence

Keep posting, keep trying, and keep putting out good content on the regular. Your time will come, and when it does, it will change everything.

The only thing you have control over is your content.

You can’t control how people will react to it. You can’t control pageviews, likes, or shares.

So the only metric you should focus on is how much content you can put out in a week, month, etc.

Where to share your blog content

Mailing List

I know it sounds obvious, but the best places to share your content is on your mailing list. It is guaranteed traffic and it is a great way to get rapid feedback from your most loyal readers.

Send newsletters often. I have done once a week since starting, and I’m moving to twice a week soon.

Work on increasing your mailing list as well. Look into ways to increase your conversion rate to your mailing list. I added a flyout popup thing to my site and now I’m collecting ~30 emails per day.

An email newsletter is one of the most powerful assets you can have and it is worth its weight in gold.

Reddit is one of my favorite places to promote content.

It is a very scary place because you will often get banned or heckled, but it can really pay off.

Create social media accounts for your blog, the main ones I use:

Twitter Facebook Instagram LinkedIn

Set up Buffer and share all of your blog posts to all of your accounts. All of these little shares really do add up.

Automate this as much as possible. I automated all of my social media for Starter Story.

Facebook Groups

When I started out, I put together a spreadsheet of relevant Facebook groups for my niche, and I would post to these groups whenever I had a big story I wanted to share.

Grow Your Email List

The more engaged list of emails, the more engaged customers, which ultimately leads to more sales.

One of the best ways to start growing your list is by providing your customer with something free (or discounted) in return.

This could also be anything from:

Fascinating case study
Video series
Free week of the product
Discount on the product

Learn more about how to grow your email list and improve email marketing ➜ here .

Dylan Jacob, founder of Brumate states their email collection tactic that is proven to work:

We use Spin-a-Sale for this (you spin a wheel for a discount code in exchange for subscribing to our email list). This has been the best email-collecting tool we have found because the customer truly feels like they won a prize rather than just a coupon code.

Even if a customer doesn’t convert right away, if we have their email we have a 19% chance of converting them into a future customer whether that is through future promotions, new releases, or simply just sending an email at the right time for a purchase to finally make sense for them.

We also have a return customer rate of over 14%, so one out of every 6 people we convert will end up buying from us again with an average order value of over $60.00.

Add an exit-intent popup to your online store

A great way to double, or even triple, your email opt-in rate and to grow your list is to add an exit-intent popup to your site, and offering a discount or content upgrade for subscribers.

Here's an example of what that might look like:

One thing that I spent years NOT doing, that I now kick myself about, is adding an "exit intent pop-up" to our site, which lets people enter a sweepstakes to win a Xero Shoes gift certificate.

That one idea has added over 100,000 subscribers to our email list, which is one of our most effective marketing channels.

Improve Your Email Marketing

Different types of emails

Here are the most common types of email campaigns you can send to your customers and their benefits:

Welcome emails - the perfect way to provide information from the start with a clear CTA. Make sure to tell your customer everything they need to know about your product or service.
Newsletters - a great way to give customers updates or send out your latest content
Product launch emails - the quickest (and easiest) way to increase sales is by selling to current customers. Make sure they're the first on the list to know about your new product
Promotional emails - promote discounts, deals coupons etc. Try and make this feel exclusive and for a limited time only
Abandoned cart emails - give your customers a reason to complete their purchase!

Here's a great resource for finding curated email designs, for all types of email campaigns!

Abandonded Cart Flow

The abandoned cart workflow is one of the most effective strategies for turning your lead into a customer, and a powerful tool to have if you're an e-commerce business.

Think about all the times that you went on a shopping frenzy only to add items to your cart and then either forget or realize nows not the right time to pull the trigger.

Then, minutes later you receive an email saying "Hurry up! Your cart is waiting - and we want to provide you with 20% off your order."

Maybe that's the special touch (and discount) you needed to pull that trigger.

Implementing this workflow can automatically trigger this for your business every time a customer abandons their cart.

Here's a great example of an abandoned cart email from Brooklinen :

Things they do well:

Showcase 5-star reviews from other customers
Offer a small discount + free shipping
Great design + clear call to actions!

Experiment With Pay Per Click Ads (PPC)

Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.

Consider connecting the ad to your corresponding landing page so that the audience receives the necessary information after clicking on the ad.
Conversion Tracking: When running PPC campaigns, be sure to run the ads with conversion tracking.
Focus on quality keywords, even if there are few as this will save you time and money. When assessing the performance of a keyword, it's important to track the expense, conversion, and cost per conversion, as well as the ROI.

PPC advertising can be a very important lead generator as long as it's done properly. Your PPC campaign is intended to drive traffic to your website and help the business scale.

Additionally, if the campaign is not having the desired results, you can make the necessary changes immediately to improve them.

Ryan Schortmann, founder of Display Pros talks about their investment in PPC Ads:

My name is Ryan Schortmann and I’m the founder of Display Pros. We are a custom trade show display booth company offering easy to use portable display “kits” for small and medium businesses wanting to get into the trade show game.

It did not take long to come to the realization that to compete at any reasonable level, we were going to need to take the plunge and invest in Pay Per Click ads and display.

From experience, I know that it is important to give Google’s hivemind some time to settle in before each campaign starts seeing consistent results (this is largely dependent on budget).

A certain amount of PPC budget must be viewed as a “marketing research” expense and then you can look at the analytics data and make informed decisions on where to refine, tweak or plain scrap an idea.

Google Shopping was an entirely new concept for me. You can’t assign keywords to products so at first, I was asking myself “How the hell do you refine these?”. Then I found some good reading material and courses and learned of some advanced methods that the pros are using. It turns out you can utilize negative keyword lists combined with the priority setting on each shopping campaign to “shape” the keywords that are coming in and how much you are spending on them.

To learn more about PPC Ads and Google Shopping, check out this video to learn everything you need to know!

Social Media Advertising

Social Media Advertising is one of the leading ways to get the word out when it comes to cold storage business.

There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

Let's talk about a few of the main platforms and what makes them unique:

Facebook Advertising - more than 2 billion monthly users. Facebook is the best for lead generation + capturing email addresses for e-commerce businesses.
Instagram Advertising - approximately 500 million monthly users and has a higher audience engagement rate than any other platform. Instagram ads are best for linking to a product page or landing page and reaches the 18-29 age group most effectively.
Twitter Advertising - Small businesses typically use twitter ads to drive brand awareness, but the platform is meant more for organic engagement (and is not as heavily used for paid advertising)
Pinterest Advertising - 175 million monthly users and most effectively reaches the female audience. Pinterest is great for promoting products without "promoted". The promoted pins have a way of blending right in.
LinkedIn Advertising - 227 million monthly users and is geared towards the B2B market and generates the highest quality leads. Great platform for recruiters, high-end products and services that will help businesses

It's important to first define your goal/objective so that you don't waste time and money into the wrong platform:

Here are some different questions to ask yourself as it relates to your goals:

Do I want to simply drive brand awareness?
Do I want to drive users to my website to gather information?
Do I want to increase sales and get my customer to take action?

From there, choose the platform that targets your audience best and start experimenting!

Learn more about social media advertising ➜ here .

Founder Andy Hayes talks about mastering FB ads and the pixel:

The biggest bang for your buck will likely be mastering Facebook and it’s platform - which we all know is pay for play, so you’ll have to come up with a small amount of budget to start for marketing.

We’ve spent countless hours (and paid numerous coaches) before we cracked the code that works for us on Facebook, but it is working really well for us now.

Some of the most important things to know when it comes to FB Ads:

Start with retargeting (that’s showing ads to people who already know you but did not purchase). Master this - and start building information on your Facebook Pixel - before you do anything else
Once you have that down, try working with the 1% “Lookalike” audience to prospect for new customers. This may take awhile because your pixel audience is small, so try layering on interests - 1% Lookalike and your largest competitor, for example. Don’t use interest-only targeting until you master this.
Great photography and videography is key, as is smart copy. Research what’s out there in your industry and constantly test - what works for one company may not work for other people.
Make sure you have good offers. For example, we have a $5 trial for our subscription, which converts affordably - if we promoted our subscription with the standard $30 front charge, it wouldn’t be as cost-effective.

🏃🏼‍♀️ How To Run Your Cold Storage Business

How To Retain Customers For Your Cold Storage Business

Retaining customers is one of the most effective ways to grow your cold storage business.

Oftentimes, it's easy to find yourself focusing on generating new customers, vs retaining your current ones.

Look at it this way - you are 60-70% more likely to sell a new product to an existing customer than you are a new customer.

That's not to say that finding new customers and revenue streams is not important, however, the easiest (and most inexpensive) source of new revenue is right there in front of you.

Here are some ways you can retain customers for your cold storage business:

Responding to comments on social media
Send discounts (or freebies) to loyal customers
Provide valuable content, for free
Write a hand written thank you note
Provide awesome customer service and build relationships with customers

To find out more tips and tricks on retaining customers, check out this article ➜ here

Diversify Your Product Line

Adding new products to your business is a great way to expand into new markets and grow your business.

It's important to note that adding new products and diversifying may not be in the cards for you right this moment, and that's okay. You can always consider it down the road.

Here are some reasons you may want to considering adding/diversifying your product

Meeting the needs of your customers
Establish yourself as a top provider in your industry and stay ahead of the game with competition
Resistance to downturns/trends fading
Create new revenue streams

Provide Great Customer Service

Providing exceptional care and creating relationships with clients is a great way to build your reputation and retain customers.

Whether you are an online business or a physical business, it's highly important to communicate with customers and make them feel like they are the priority.

Just remember: customer service represents your brand, values, vision and YOU as a person.

Authenticity

As a brand, you want to deliver an experience that authentic, honest and transparent.

Don't make the mistake of giving your audience less credit than they deserve.

Be Authentic

If you go around chasing every trend and only focused on yourself and money, you’re going to lose very quickly.

There have been many times where we have been tempted to do this but stayed true.

Sure we sacrificed sales, but we kept our integrity, played the long game and people saw and appreciated that, and really began emotionally investing in the brand.

Build a Referral Program

Word of mouth is one of the best ways to get the word out about your business and acquire new customers. Especially when you are starting out, it’s important to build a solid referral program to encourage existing customers to help you find new ones.

A great way to do that is by offering a reward (ie. credit on your service or cash) to customers that refer you to their friends and family.

A fantastic referral program will help with clout, credibility, and establishing yourself in the space.

Word of Mouth

The most tried and true way to grow a cold storage business is through word of mouth - some entrepreneurs would say it's more important than all social media.

Why you should focus on word of mouth:

Consumers trust word of mouth above all other forms of marketing
92% of consumers believe recommendations from friends and family over all forms of advertising
64% of marketing executives indicated that they believe it is the most effective form of marketing

Learn more about word of mouth in our guide: 30 Ways Founders Grow Their Business ➜

How To Crush The Sales Process For Your Cold Storage Business

You may find yourself in a spot where you're ready to hire a few (or many) salespeople to support the sales conversion process.

Regardless if you have one or thirty salespeople, it's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

Mike Korba, co-founder of User.Com walks us through the entire sales process and which teams are responsible for what:

User.com Sales Process

Each user and account is qualified with a specialist. For business leads, they are handled by the sales team, and if they are qualified we give them a demo, more than often at the end of their fourteen-day trial. If they’re happy they’ll add a payment, and get an account manager, so a customer support and success team who will help implement the solution and to use the technology.

Sometimes, users will convert naturally on their own, after using the freemium product and finding it to be something that they will find beneficial.

After they convert, we help with onboarding , give them some personalized tips for their specific business or industry to grow plus all kinds of support, for whatever they need - something we take huge pride in.

The team is right now more than 30 people, with more than half working on the IT and product side, and the rest are in three teams: Support, Marketing, and Sales who all work together very closely.

We put together the best resources on the internet to help you start your cold storage business.

Web Resources

Cold Storage Business Project Plan - Cost, Investment
Cold Storage व्यवसाय कैसे शुरू करें?
How To Start Cold Storage Business

Case Studies

42 Trending Cold Storage Businesses [2024] 1 of 5
24 Pros & Cons Of Starting A Cold Storage Business (2024) 2 of 5
How Much Does It Cost To Start A Cold Storage Business? (In 2024) 3 of 5
5 Cold Storage Business Success Stories [2024] 4 of 5
58 Marketing Ideas For A Cold Storage Business (2024) 5 of 5

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How to Expand or Start a Cold Storage Business?

08 January 2024
2024-01-08 00:00:00

Table of Contents

Cold storage is a facility where business owners in the food and beverage industry preserve fruits and vegetables for a long duration. Cold storage is a one-time investment option requiring a substantial initial investment. However, the returns are high, and it has good growth potential over time. Apart from fruits and vegetables, food items like tobacco, beer, meat, poultry, fish products, etc, also need cold storage.

If you plan to establish a cold storage business in India, you can arrange the initial capital with a Business Loan. Here is a guide to starting and growing a cold storage facility in India.

Why are Cold Storage Businesses Required?

Food wastage is a major global issue. Since India is primarily an agriculture-based economy, food wastage becomes more prevalent. That is why cold storage is necessary to extend the products' shelf lives, maintain their quality after harvesting, and provide fresh food products year-round.

A cold storage business minimises perishable waste and preserves produce. Therefore, cold storage is crucial to address food waste and enhance profitability. It helps extend the product's shelf life, avoid gluten, and reduce marketing and transportation time during high production periods without compromising the food quality.

Apart from these, cold storage also offers financial benefits to farmers, making their products more accessible to consumers in fresh states at competitive rates. As the demand for packaged foods increases, the need for cold storage facilities has grown globally.

To Avail Unsecured business loans

Benefits of cold storage business.

Starting a cold storage business in India offers multiple benefits, including the following:

Minimises food waste
Provides a decent remuneration to farmers
Stores vaccines and medicines
Makes off-season produce available at reasonable rates
Makes packaged and processed foods accessible to customers in fresh condition

Also Read: How to Start a Business from Scratch in Simple Steps

Types of Cold Storages

A cold storage facility can be of two types: one for agricultural products like fruits, vegetables, meat, dairy, etc., and another for off-season goods like seeds, chillies, potatoes, etc.

Investment Cost of Cold Storage

Since keeping the products at low temperatures needs a lot of space, machinery, and equipment, the cold storage investment cost is usually higher than most other small-scale businesses. You might require investing in various areas, including space, land, permissions, water, electricity, etc.

Furthermore, the cold storage cost includes significant capital in machinery purchases. The business requires the latest machinery to ensure optimum cooling performance while facilitating long-term sustainability. Besides, you must stay prepared for other monthly costs like utility bills, staff salaries, marketing expenses, etc.

Before submitting a Business Loan application, evaluate the expenses you need to cover and decide upon an adequate loan amount sufficient to cover your needs. Then, check your Business Loan eligibility and prepare the necessary application documents.

Also Read: How To Start A Startup In India In 5 Steps in 2023

Steps to Expand or Start Your Own Cold Storage Business in India

Do you want to know how to start a cold storage business? Here is a stepwise guide you can follow:

Finalising Location

The first thing you must decide when starting a cold storage business is the location. As a general rule of thumb, you must choose a rural or urban location near your customer base, such as markets, malls, and other shopping areas where you need to deliver the products. It minimises your transportation costs and food wastage on the way.

Selection of Equipment

Machinery and insulating panels consume most of the cold storage cost. Motors, chillers, and evaporative condensers make up a cold storage unit. The walls of cold storage rooms are made of polyurethane insulation panels. An ideal cold storage unit requires the following:

Also Read: How to Start Your Own Trading Business in India

Cleaning and Maintenance

Since cold storage units store food products, you need to maintain optimum hygienic conditions in them. That is why regular cleaning and maintenance of the equipment are extremely important. You must regularly check the machinery's temperatures, humidity levels, containers, trays, and bins that need time and money.

Promotion and Target Audience

The success of a cold storage business largely depends on your marketing strategy and its effective implementation. At various stages of the business, you must promote efficiently to your target audience, including traders, wholesalers, promoters, retailers, warehouse owners, supermarkets, etc. You may also promote your business to distributors and exporters to increase the demand.

Also Read: How to Start an Online Business from Home in 8 Steps

Arranging Funds

Since a cold storage investment plan requires significant capital, you must arrange the required funds from a Business Loan rather than exhausting your savings. The cost requirement largely depends on the facility’s size, number of chambers or rooms, types of products to store, etc. A Business Loan can provide the required capital to cover various expenses when planning to start or grow the cold storage business. Compare the different loan offers available in the market and finalise one that best suits your cold storage cost requirements.

How Business Loans Can Help You to Expand or Start a Cold Storage Business

A Business Loan helps start or expand a cold storage business in the following ways:

Excess to ample funds to cover various expenses
Competitive interest rates to keep the loan cost affordable
Flexible repayment terms that make EMIs more manageable
Easy loan process due to simple eligibility criteria, minimal documentation requirements, and 100% digital loan procedure
Instant approval and quick disbursal

Also Read: How to Start a Food Business From Home in 2024

Steps to Apply for a Business Loan for Cold Storage Business

The Business Loan application procedure involves the following immediate steps:

Click ‘Apply Now’ to fill out an application form.
Enter a few business-related details.
Scan and upload the necessary documents.
Wait for verification and approval.
Review and accept the loan offer.
Get disbursal directly into your bank account in a few hours.

Due to the high demand for cold storage facilities in India, a cold storage business can be an extremely profitable business to start. Since it has great growth potential, you can make the initial cold storage investment using a Business Loan and increase returns with optimum loan usage. Apply for a Business Loan of up to ₹ 40 Lakh at Hero FinCorp and get the required funding at competitive interest rates.

Also Read: How to Start Your Own Clothing Brand in 7 Steps

Frequently Asked Questions

1. How profitable is a cold storage business?

Cold storage is highly profitable due to high demand and great growth potential.

2. Is cold storage in demand?

Since India delivers lots of fresh produce every season, they need cold storage facilities to prolong shelf life and stay fresh for long.

3. How much land is required for cold storage?

You will need around one acre of land for a cold storage unit of 5000 MT capacity.

4. How can a business loan benefit my cold storage business?

A Business Loan can benefit your cold storage business by providing the required funds at the right time without any branch visits or physical documentation.

5. How much funding can I apply for to start my cold storage business?

You can apply for a Business Loan of up to ₹ 40 Lakh to start and expand your cold storage business.

Disclaimer: The information in this content is for informational purposes only. Readers should verify independently, consult experts, and research before making decisions. Details about loans, terms, and rates may change; check with Hero FinCorp for the latest information. Individual circumstances may vary, and decisions should be based on personal considerations. The creators are not liable for consequences from using the information.

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What is Cold Storage Business – A Layman’s Guide to Get into Cold storage Warehousing Business

In recent years the demand and supply for various products such as fruits, vegetables medicines etc., have drastically increased and this has created an opportunity for the storage and logistics business sector. Especially, the cold storage business has gained a lot of popularity in recent times. If you are also interested in starting a cold storage or looking to use cold storage for your business, then you should definitely take a look at time article

What is a Cold Storage?

A cold storage is an insulated structure where the temperatures are maintained at lower levels such that products that are known to easily perish such as vegetables, fruits, seeds, medicines, and vaccines can withstand for a longer period of time. Storing products in cold storage helps protect the shelf life so that the products can be ready to use even after longer durations.

What is Cold Storage Business and How Does it Work?

Unlike the normal warehouses that you see, a cold storage business comprises a wide variety of storage solutions that enable one to store, pack and transport temperature-sensitive perishable products. This includes large cold storage warehouses, freezer trucks, industrial cool rooms, walk-in cold store, and refrigerated containers. Cold storage business runs by, leasing out a certain amount of space or providing cold chain logistics support to other businesses that require space to store their temperature-sensitive products

Who requires a Cold Storage Warehouse?

A cold storage is an important requirement for various businesses such as Food and Beverage Industry, Pharmaceutical and Biologicals Industry, Fruits and vegetables supply businesses , meat and poultry business, and chemical and hazardous materials, etc., Most of the products that are produced under these categories are known to perish quickly if they are not maintained under a controlled temperature. Hence these businesses usually have an inbuilt cold storage warehouse or lease out third-party cold storage solutions

How Profitable is Starting a Cold Storage Business?

Starting a cold storage business is definitively a lucrative one. Unlike other warehouse leasing businesses, a cold storage business involves use of high-end infrastructure, skilled workers, stringent safety measures, and many more., Due to such things leasing a cold storage or even renting just a pallet can cost around $30 – $ 150 per month. Making it a source of sustainable income for the cold storage warehouse owner

To put it in simply, a cold storage warehouse offers 20-25% more return on income when compared to running a normal warehouse

Moreover, if cold storage is located within the vicinity of large metropolitan cities the rates of leasing such warehouse can be very high

Analyzing the Market Potential of Cold Storage Warehouse

In recent years, the demand for cold storage warehouse has drastically increased. According to a report the cold storage warehouse industry in U.S has experienced a 43% increase in capacity since 2000.

Not just United States, the demand for cold storage has significantly increased in several developing countries too such as India, China, Brazil, and Vietnam

According to a recent report, the global cold storage market is expected to reach USD 427.6 Billion by 2030

What’s more?

There has been a steady increase in big investors turning up to the cold storage business. for example, according to Wall Street Journal, Lineage Logistics, a global leader in the temperature-controlled industry raised $1.9 billion in fundraising to expand its market potential

According to Colliers report, cold storage has recently emerged as one of the lucrative asset classes in Hong Kong. Due to pandemic COVID-19, Hong Kong has seen a 49% increase in the demand for imported frozen food over the last three years.

Why is Cold Storage Business gaining popularity these days?

There are 5 main reasons cold storages are constantly increasing now a days. Here are top 5 reasons

1. Increased consumption of frozen food

Although, frozen foods are not new; their demand has significantly increased in several developing nations like India, China, Vietnam, and Brazil as well as many African countries. With an increase in the consumption of frozen food; the demand for cold storage warehouses as well as other cold storage supply units had increased

2. Population Growth

Growing population means there are more people to feed and to do that food production had to be increased. This means, that any government should not only focus on simply producing food but also try to increase the storage capacity such that it is self-sustained and balances its economy

3. Globalization and e-Commerce Growth

The 21st century is experiencing an enormous globalization. This has created an opportunity for several e-commerce companies to come up with new ideas, especially in the FMCG industry. Due to this there is a steep increase in demand for groceries, ready-to-cook foods, frozen foods, cosmetics nutraceuticals etc., which essentially require cold storage services

4. Urbanization

With globalization, several nations are now opening up trade routes and also welcoming new businesses to establish. This is creating an enormous job opportunity in cities, attracting people from the countryside, and small towns to live in cities – due to this lifestyle habits are changing where the customer has to definitely spend on an item at least once a day that requires cold storage. For example, milk packets, curd, yogurt, soft drinks and beverages, etc.,

5. Demand for Medicines

Several life-saving drugs and vaccines require cold storage to ensure they are safely stored and ready to be sold to the consumer. Moreover, there has been an increase in several diseases due to life style changes and environmental changes; which had created an opportunity to produce several healthcare products and medicines that are imported and exported globally at a staggering rate. This is also another factor due to which cold storage demands are increasing

So, How Does a Cold Storage Functions?

Cold storage is an insulated space designed to maintain a specific temperature for the storage of food, medicines, and chemicals. These temperatures are controlled in an optimum level by using HVAC systems– Heat ventilation air conditioning systems

To understand the functioning of a typical cold storage, you need to know about some basic components that are used to run the cold storage such as…

Also called a coolant or refrigerant is one of the important things in cold storage. Usually, coolant will be in liquid form (mostly anhydrous ammonia). This coolant circulates continuously via tubes, pipes and other components to maintain the optimum temperature in the cold storage

A compressor is a mechanical component that helps to keep the coolant running throughout the system. It does this by compressing the coolant to high pressure and temperature and pumping it into the condenser

The Condenser

A condenser basically cools down the heated coolant by dissipating the heat into the atmosphere by using water spray, fans, and tubes. This leads to changing the state of the coolant from gas to liquid which then flows into the receiver.

The receiver helps in storing the high-pressure liquid coolant condensate that is received from the condenser. This component helps in controlling the pressure of the whole system as well as providing a buffer when more cool air is required

When a load is increased or if the temperature needs to cool down more, the receiver releases the refrigerant into expansion value which controls the pressure, and temperature and also releases the coolant to the separator

This equipment works basically on the principle of centrifugal force. The refrigerant is spun at a high speed, leading to the separation of oil and coolant due to the difference in density. The oil is then collected at the casing of the separator and is returned to back to the compressor. Whereas the coolant continues to flow through the tubes

Like the other components evaporator plays a crucial role in the cooling system. It is also called with other names like freezer and chiller . Here the chilled coolant is flown through series of tubes; simultaneously warm air is circulated through the fins; Due to this contact a cooling environment is created, with the help of fans this cool air is circulated through the cold room

What are different Types of Cold Storages

There are four major types of cold storage according to their usage and functionality.

Frozen Cold Storage
Refrigerated Cold storage
Fresh Produce Cold storage
Blast Freezers and Chillers
Air conditioners

Let’s discuss each one of them

Frozen Cold Storage ( -16℃ to -26℃)

These are the highest-grade cold storage that is used to store frozen items that are to be stored at very low temperatures. This includes packaged chicken, peas, sugared fruits, beef, veal, lamb, turkey and fish.

The concept of frozen cold storage are the items are maintained at the lowest temperature to ensure they can be stored for longer periods of time without losing their quality

Not just food items, ultra-cold freezers are very important for storing biologics samples especially, Vaccines are stored in this type of cold storage to ensure their effectiveness and safety is not compromised

These types of cold storage uses air blast freezing technique to ensure the products are rapidly cooled in a short span

Refrigerated Cold Storage (-1℃ to -4℃)

These are cold storage units similar to ultra freezers but with much lesser temperature capacity. Refrigerated cold storage is mainly used to store concentrated fruit juices, buffers used in manufacturing medicines, fresh meats, poultry, and seafood. These freezers are mainly preferred if the stored items need to be used as soon as possible

Fresh Produce Cold Storage ( 0℃ to 8℃)

This type of cold storage is commonly used to store fruits, vegetables, and Milk products. This type of storage doesn’t freeze the products. Instead, they maintain a temperature that can retard the activity of microorganisms

Cold storage units used to store potato’s, chilies and common food grains are mostly stored under this storage temperature

Blast Freezers (-10℃ to -120℃)

The most advanced and costliest equipment for cold storage are blast freezers these are special freezers that can reduce the temperature of the product to extremely low within hours. A blast freezer typically needs to reduce a temperature of +70℃ to -18℃ not more than 240 minutes. These types of freezers are highly used in the life sciences sector.

Air Conditioners (10℃ to 25℃)

These are the most economical freezers used in supermarkets, stores, and shops. They basically do not freeze the product, instead, they just pass a cool breeze to the surroundings. For example, fruits such as bananas, citrus, cucumber, onions and squash are stored and transported under these conditions

Cold Storage Business Plan – Investment, Profit Margin and Resources

Let us look into the business plan to start a cold storage business which covers all the important aspects from Investment to Profit Margin

In general, the business plan for a cold storage is little complicated to understand. Hence, we are trying to put it in simple words without going into too much details. So you can get a basic idea on the topic first

Investment requirement for cold storage

Although cold storage business is usually regarded as high investment business; You still have several ways where you can run this business economically

For example, you can start a small chain of refrigerated trucks logistics business and act as a logistics partner for transporting the products. For this type of business, you need an investment of $100,000 to $200,000

Or, you can work as a supplier for renting mobile cold freezers which are used to store ice cream, fresh produce to supermarkets or stores. For this type of business, you need a capital of $50,000 to $100,000

On other hand, the cost of starting a large cold storage warehouse is something that requires lot of research and groundwork due to the scale of the construction plan, design, equipment, and services it can offer.

For example, a cold storage facility of 15,000 to 25,000 cubic meters needs an investment of Approx $500,000 to $2,500,000 (50 Lakhs to 1.5 Crore) These types of cold storage warehouses are usually very large in size and has high storage capacity and infrastructure

Here are some major factors that influence the investment of cold storage business

Location of the Business

Location plays an important role in the cold storage business, if your business is located within the city, you have a high chance to deliver and run the business quickly and has better chance to acquire new customers

If you are looking to establish a large cold storage warehouse facility especially like storing fruits and vegetables then, you may have to look for a location in countryside where high agricultural activity is observed

If your business is closely associated with shipping industry then you must look for a location near to shipyard so that you can, transport the products easily to the shipping containers

Type of Product Stored

The cold storage business is highly dependent on the products that you store. For example, cold storage that stores vaccines, lifesaving drugs, and blood samples is generally costlier when compared to other types of cold storage such as plants, fruits, vegetables, and dairy products

Basically, your investment goes up if you are storing a product that needs utmost care and is extremely prone to minor fluctuations in temperature (such as Vaccines)

Size of the Cold Storage Facility

Cold storages are available in different sizes, and one must know that size of the cold storage plays a crucial role in deciding the investment as well as calculating the price for leasing.

The calculation of cold storages capacity usually comprises two important things

Calculate the Actual space of the cold storage
Weight of the items stored per cubic meter.

Calculation of storage capacity of cold room = Internal volume of cold storage room X Volume utilization factor X Product unit weight

A customer who is looking for a cold storage space usually go through this calculation to get the final price for leasing a space

Different Types of Cold Storage Facilities

Here are different types of cold storage facilities popular throughout the globe

Cold storage containers

Most of the cold storage containers are available in three sizes 10ft , 20ft and 40ft. This type of container are mostly used for cargo shipments and refrigerated storage trailers

Cold storage room

They basically look like a single room encapsulated in an insulation material. They are available in different sizes. These are also commonly called as Walk-in coolers or walk-in chiller

20 X 10 X 10 FT
10 x 10 x 10 FT
6 X 6 X 8 FT

Most of the cold storage rooms have a capacity of 500 Kg to 2 Ton capacity with a 2 – 3 phase power supply and mobile cooling system.

These are common choices for the pharmaceutical industry and supermarket stores

Controlled Atmosphere Cold Store

These are typical large cold storage facilities that you see in countryside, towns or urban outskirts. They are mostly used for storing fruits and vegetables. These are also commonly called chillers.

In CA storage, items are not frozen. Instead, the food items are maintained at a controlled temperature such that they can be stored for long term usage.

Foods such as Chilies, Apples, pears, Kiwis, and processed foods extensively use controlled atmosphere storage units. Moreover, these are highly expensive storage units that require a lot of investment, manpower, logistics operation, and security measures

Frozen Cold Storage Facility

This type of storage facility stores the items at ultra-low temperatures and requires a high amount of energy. They are best used for storing vaccines, pharmaceutical drugs, and Seafood.

A frozen cold storage facility usually stores the items at temperatures ranging from -15℃ to -25℃. At this temperature, any molecular level activity inside the cells is seized and completely slowed down. This ensures the products remain intact without loss of quality

Services Being Offered

The investment of cold storage business highly depends upon the services being offered. A cold storage is capable of offering different services that can increase its value and business. Here are few services that can be offered

Packing and Labelling services
Inventory management for the customer
Direct shipping and receiving

Resources Required for Cold Storage

A full-fledged Cold storage ware houses requires several resources to operate such as

Electricity

Refrigerated warehouses require a high amount of electricity to run the unit efficiently. When compared to normal warehouses, cold storage warehouses consume high amount of electricity. The electricity consumption ranges 40 to 60 Kw-hours per square foot per year. Out of which 70% is utilized by the refrigeration system. Hence one must make sure to set aside budget for power consumption while starting a cold storage facility

In order to maintain the temperature and keep the heat at bay, Cold storage requires a high amount of water. On average a large-sized cold storage can consume around 50,000 to 60,000 gallons per day or even more

Due to such large consumption the cold storage company needs to obtain special permits from governments to utilize the high amounts of water

Inventory Management

Any warehouse to lead a sustainable business needs to have a proper inventory management system in place. It basically helps the warehouse track the space utilization, and movement of products and forecast the supply and demand

There are multiple methods to manage inventory such as using inventory management software tools and adapting to ASRS . Keeping a track of your logistics movement by using a TMS tool

A significant number of workers as well as Technicians are necessary to operate the cold storage efficiently. On average at least 10 – 15 workers are necessary to operate a medium-large scale cold storage facility

Here’s a breakdown of employees basing on their tasks

2 No’s – To Handle office work, computer knowledge, and can operate the Inventory software.

3 No’s – Janitorial services

3 No’s – Forklift operators

2 No’s – Technicians who can operate and troubleshoot cold storage machinery

Cold Storage Grade Equipment

Not all equipment is suitable for use in cold storage facilities. As the equipment within cold storage is continuously subjected to cold temperatures, they are prone to malfunction. Hence one must ensure equipments used in the facility meets the standards

For example, Toyota has forklifts for cold storge facility which are specially engineered to operate in cold and wet environments

On the other hand, it is common to have a barcode reader or hand-held mobile computer used in cold storage facilities in such cases you should look for a freezer grade hand held mobile computer

Profit Margin in Cold Storage Business – What You Need to Know?

The profit margin in Cold storage business depends on factors such as type of product stored, seasonal demand, storage facility services and market demand.

Usually cold storage business is considered as high investment business due to the number of resources required to start this business. Especially, if we consider large cold storage facilities they require huge amounts of land, workers, logistics services, machinery, water, and power supply. In addition to this, it must undergo a number of government regulations which take time for approval and investment

Construction of a cold storage facility cost 2X than a normal warehouse On average it costs upto $250 to $400 per sq. ft. So, a large Cold storage facility of around 50,000 sqft can cost around $1 to $2 Million

Moreover, the operating costs such as electricity, shipping, and packing considerably cost thousands of dollars every month

So the staggering investment may take at least 3-4 years to get the total ROI

However, the demand and market conditions for the cold storage business are constantly increasing in every part of the world. So, investment should not often look like a burden.

Moreover, there are several methods in the industry to increase the profitability of cold storage. One of them is, that instead of leasing out the entire cold storage to a single customer, the space will be divided into multiple smaller areas and will be leased at a higher price. Plus, the cold storage owner controls the inflow of multiple owners by hiring workers who do the inventory stocking for multiple customers. So the owner also charges for stocking and retrieval on each pallet or box

So How much does a Cold storage cost for storing Goods

The cost for storing the goods also impacts the profitability of cold storage. There are different ways a 3PL warehouse charge such as Pallet storage fees or cost per Square foot.

Most of the 3PLs often charge storage per pallet and is done mostly on monthly bases. However, some companies prefer to calculate daily or weekly basis too

Here’s a typical cost structure for pallet storage pricing

Pallet Pricing – $20 – $25 Pallet Per month
Handling charges for receiving or shipping per pallet – $10 – $20
Value added services – $ 5 – $ 10

On an average a 3PL cold storage warehouse can charge approximately $40 – $60 per pallet per month. Moreover, the prices can vary depending on the region, availability, services, and the product being stored

Safety Measures to be Implemented in Cold Storage Facility

One must ensure the cold storage facility follows safety guidelines for its workers as well as the facility. Here are quick tips to ensure safety standards are in place.

Ensure the facility follows OSHA’s guidelines.
Ensure the workers are equipped with PPE.
Ensure fire safety equipment is monitored periodically.
Ensure all the refrigeration equipment are monitored periodically.
Keep safety sign boards.
Always have a contingency plan
Ensure Medical support is within reach in case of emergency

The cold storage business is a highly evolving business. There are a lot of opportunities and ideas one can leverage to make profits in this business. On the other hand, it is also a business that requires high investment.

Although a high investment doesn’t mean you will be successful at this business. It requires a thorough market research and a strong mindset to get into this business.

Today every nation requires the need of cold storage to make sure it has enough capacity to store food and medicines. Not only that, several FMCG industries are looking for 3PL Cold storage warehouses to store their products and help in reaching large customers.

1 thought on “What is Cold Storage Business – A Layman’s Guide to Get into Cold storage Warehousing Business”

My brother recently invested in a pharmaceutical company in Melbourne, so he needs a cool room constructed for the medical equipment and supplies that need stable temperatures to preserve their quality. I appreciate you informing us that a controlled atmosphere cold store does not freeze their items but instead keeps them at a controlled temperature so that they can be stored for long-term usage. I’ll keep this in mind while I look for a contractor in Melbourne to hire for cool room designs soon.

How Much Does it Cost to Start a Cold Storage Business

In this article, we will delve into the world of cold storage and explore the various business and startup costs associated with this industry.

Get worry-free services and support to launch your business starting at $0 plus state fees.

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Detailed startup costs for a cold storage business:.

Initiating a cold storage business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $885000 for launching such an business. Please note, not all of these costs may be necessary to start up your cold storage business.

Please note that the startup costs provided in this article are estimates and may vary depending on various factors such as location, size of the business, and equipment choices. It is important to conduct thorough research and consult with professionals before making any financial decisions. The author and publisher of this article are not responsible for any financial losses or damages incurred as a result of following the information provided.

Factors Contributing to Cold Storage Startup Costs:

Starting a cold storage business can be a lucrative venture, but it requires a significant amount of capital. Several factors contribute to the startup costs of a cold storage business:

Facility costs: The largest expense for a cold storage business is the facility. The cost of purchasing or leasing a building, renovating it to meet industry standards, and installing the necessary equipment can be significant.
Equipment costs: Cold storage facilities require specialized equipment such as refrigeration units, shelving, and pallet jacks. The cost of purchasing or leasing this equipment can add up quickly.
Inventory costs: To start a cold storage business, you need to have inventory to store. Purchasing inventory can be costly, especially if you are starting with a large quantity of goods.
Utilities: Cold storage facilities require a significant amount of energy to maintain the appropriate temperature. The cost of utilities can be high, especially in areas with high electricity rates.
Permits and licenses: Cold storage businesses require permits and licenses to operate. These costs can vary depending on the location and type of business.
Insurance: Insurance is necessary to protect your business from liability and property damage. The cost of insurance can vary depending on the size and scope of your business.

Seven Methods to Reduce Your Cold Storage Startup Costs:

Cold storage startups are becoming increasingly popular due to the growing demand for temperature-controlled storage solutions. However, starting a cold storage business can be expensive, especially when it comes to purchasing equipment and building facilities. Fortunately, there are several ways to reduce your cold storage startup costs without compromising on quality. Here are seven methods to consider:

Lease or rent equipment instead of buying
Utilize existing facilities instead of building new ones
Partner with other businesses to share costs
Optimize your storage space to maximize efficiency
Invest in energy-efficient equipment to reduce utility costs
Consider alternative financing options such as grants or loans
Outsource non-core functions such as marketing or accounting

How to Improve Your Cold Storage Profit Margins?

As a cold storage business owner, it's important to constantly look for ways to improve your profit margins. With increasing competition and rising costs, it's crucial to implement strategies that can help you increase revenue and reduce expenses. Here are some tips to help you improve your cold storage profit margins:

Optimize your inventory management: Efficient inventory management can help you reduce waste and improve your bottom line. Make sure you have a system in place that allows you to track your inventory levels and monitor your stock rotation.
Invest in energy-efficient equipment: Energy costs can be a significant expense for cold storage businesses. Investing in energy-efficient equipment can help you reduce your energy bills and improve your profit margins.
Offer value-added services: Consider offering value-added services such as packaging, labeling, and transportation to your customers. These services can help you increase your revenue and differentiate yourself from your competitors.
Implement cost-saving measures: Look for ways to reduce your operating costs without compromising on quality. For example, you can negotiate better deals with your suppliers, streamline your processes, and reduce your labor costs.
Focus on customer retention: It's more cost-effective to retain existing customers than to acquire new ones. Make sure you're providing excellent customer service and building strong relationships with your customers.

By implementing these strategies, you can improve your cold storage profit margins and ensure the long-term success of your business.

More Cold Storage Business Resources:

How to Start a Profitable Cold Storage Business [11 Steps]

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

Cold Storage Business Plan: Requirements, Profits & Subsidy

July 23, 2023
Articles , Business Loan , Working Capital Loan

Effective cold storage is crucial in meeting the significant demand for preserving vegetables and other food products in the country. Poor storage practices have resulted in significant wastage of fresh produce. Investing in cold storage solutions not only helps to reduce waste but also presents a lucrative opportunity to maintain the freshness and quality of vegetables, thereby enhancing profitability.

The cold storage business is a profitable venture where the initial investment is on the higher side. The return is also higher and long-lasting than in other businesses.

Cold storage facilities can be specified into two categories. Food products that need freezing storage like fruits and vegetables, poultry and seafood products, meat products, and other packaged food, including cigarettes and beer.

Why is a cold storage unit required?

Food waste is a global issue, with fruits and vegetables being a major contributor. In countries with high production rates, food wastage is even more prevalent. In such countries, cold storage is essential to extend the shelf life of processed or packaged foods, maintain quality during post-harvest processing, and provide fresh fruits year-round. By minimizing perishable waste and preserving produce, cold storage plays a crucial role in enhancing profitability while simultaneously addressing food waste.

Scope for the Cold Storage Business industry in India

As the demand for processed foods increases and dietary habits evolve, the need for cold storage facilities is also growing rapidly. This demand has been further intensified by the significant investments and growth in the e-commerce sector, which requires efficient storage and delivery of perishable goods. Fortunately, advancements in modern technology, such as automatic temperature control systems and energy-efficient equipment, have resulted in improved efficiency and reduced operational expenses.

With its potential to prevent food waste and ensure food security, the cold storage sector has become a critical component in boosting India’s economy. By embracing this sector, India can unlock new opportunities for economic growth and development.

Suggested Read : Best 25+ Loan Apps for Low Credit Score

Investment cost of cold storage

The initial cold storage business investment is comparatively higher than the other businesses whether we are talking about vegetable cold storage project cost or in general. The investment is generally in acquiring the land, construction of cold storage facilities and permits for the required utilities, including electricity, water etc. You must spend significant sums on buying a cooling machine. Modernised cooling machinery ensures longer-term stability and higher quality. Apart from fixed costs, investment costs include some expenses like operating costs.

Guidelines on Cold Storage Business in India

In India, a cold storage company requires a detailed plan of operation before it starts. This business plan should contain every detail concerning cold storage, products and services that will be used, along with employee information such as your name and address. The locations of cold storage units are very important in operation. Storage facilities are recommended close to retail outlets and producers’ farms.

How to Start Your Own Cold Storage Business in India?

If you are working on a cold storage business plan, you must develop a comprehensive business strategy. The business plan should detail all relevant information on the products and services used for cold storage plants and the staff, such as your full name and address.

Basic criteria for an ideal cold storage plant:

Important guidelines/points for cold storage business plan:.

Property that needs to be used as a cold storage facility must be turned into non-agricultural land.
You can not construct the facility unless you have a letter of consent from the local government.
Labour is only permitted for 12 hours per day in cold storage facilities.
A road must link the region, and there has to be enough drainage.
There should be a site elevation.
Testing is necessary to determine the soil’s ability and its load-bearing strength.
As a precaution, the pressure and vacuum of the refrigeration system must be tested.
Cold storage facilities must be equipped with alarms and fire extinguishers, among other things.
A water-softening plant must be built if soft water is not available.
You must also have insurance for the cold storage facility.

Eligibility Criteria for Cold Storage Business Loan

The following conditions must be met to qualify for this loan:

Banks investigate the track record of the promoters of such firms, which might include: an individual, a group of individuals, a cooperative, a business, a private concern, and a partnership.
If the building is already in use, it needs to be operational and the cold storage business profit should be there for the previous three years. The rules have to be adhered to when keeping the accounting.
The bank must get the feasibility report for evaluation for all new projects making sure you can manage the total investment.

Steps to Apply for a Commercial Loan for Cold Storage Business

How to crack a loan deal from renowned lenders in India to meet urgent financial requirements? Follow three easy steps:

Step 1: First you need to submit a project report, and then the bank representative will discuss that report with you, to better understand your business plan.

Step 2: Now provide all the details such as names, mobile numbers, residential and email addresses, annual revenue and profits, and any other pertinent data related to your business. After the necessary document submission and scrutiny, your loan application will be processed.

Step 3: Once approved, the bank may confidently accept this loan. The bank will deposit the amount into your specified bank account after approval of your repayment capability.

Top Banks Offering Loans for Cold Storage Business

Business loans are offered by these top financial institutions to help you meet your urgent credit requirements.

Loans and subsidies for cold storage business in India

Establishing a cold storage business requires a significant capital investment. Typically, an initial investment of approximately 3 to 4 crores is necessary. While the investment required is substantial, it is possible to secure financing from a bank to fund the development of a cold storage business.

The National Horticulture Board of India finances cold storage chains for entrepreneurs. Building specialised cold storage with a capacity of 2,000 tons will require around 2 crores and have an amortisation period of six to seven years.

Types of Cold storages machinery

Cold storage equipment can be purchased in industrial coolrooms, combi refrigerators, and modular room refrigerators.

How to build a cold storage facility?

Following is the procedure for Starting a Cold Store Business

1. Finalizing Location

The location of the cold storage facility should be near agricultural or consumer centres covering various market segments. For instance, A cold storage facility with a 5000 metric tonnes capacity requires an acre of land for a multi-commodity or multi-storage unit.

2. Selection of the Right Equipment

In the summer, when it is hot, equipment must be carefully picked to manage heavy loads and power disruptions. Numerous factors must be considered when choosing the equipment used for cold storage. These factors include the age of the equipment, fan, light, and product load, in addition to the ceiling, wall, and floor.

3. Maintenance

Cold storage facility cleaning and maintenance are equally important. It is important to often check the cooling machine, including the temperature, humidity, and preserved items. Trays, containers, and storage bins must be serviced and cleaned promptly.

4. Promotion of product and target Audience

A cold storage company’s performance depends on its ability to execute advertising and promotional campaigns and use effective marketing strategies. In the early and later stages, an entrepreneur should concentrate on all market segments, including traders, promoters, wholesalers, marketers, warehouse companies, retail markets, and supermarkets in urban and rural areas.

5. Arranging Funds

Raising finance is one of the most onerous challenges since the cold storage sector requires a pretty sizable investment and avoids cash crunch situations. Because one may face urgent financial requirements or to pay for other expenditures, savings are not a practical source of finance for the entire investment in the cold storage firm.

How much capital do you need to invest in the cold storage business?

The cost to set up cold storage space requires a minimum investment of 30-40 lakh. The better the technology, the higher you make the best cold storage available! Always set your financial budget and know all the facts before investing in cold storage businesses.

The investment costs include acquisitions for land, construction permits and licensing of utilities like water and electricity. Additionally, you’d need a large investment to buy cooling machines and erect proper infrastructure.

Generally, modern machines guarantee better performance and long-term durability. With these fixed charges, you will also have to consider working capital expenses. Overall consideration for staff, utility billing fees, and promotional expenses exists.

OneNDF is committed to providing you with the best debt financing options in terms of a Term Loan or any working capital facility and all sorts of business-related information.

Cold Storage Business Plan FAQs

Is cold storage a profitable business.

Yes, Cold storage is a profitable industry. The Indian government annually introduces additional subsidies and policies for its promotion.

Is cold storage a good investment?

Cold storage means storing vegetables and fruits for longer durations without spoiling. While this company’s initial investment is significantly higher than other businesses, the return on investments is also higher for longer tenures.

How much money is required to establish a cold storage unit?

Cold storage businesses are capital-intensive operations. The minimum initial investment required is around 30 to 40 lakh.

What will be the investment for 1000 mt of cold storage?

For your company to get 1,000 tonnes, the cold storage cost is a little under 2,75,00,000 INR.

How much land is required for 5000 mt cold storage?

5000 MT godowns = 3 Compartments. Space between compartments: 135′-9″x70′ = 9502.20 sq. ft. The total area is 879.85 sq2 (41.23 m x 21.34 m).

How much land is required for 3000 mt cold storage?

A 3000 mt cold storage will require 2 acres of land.

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Conger Industries Inc. - Wisconsin's Material Handling Experts

We help businesses move material at peak efficiency with the right equipment & solutions

Updated April 29, 2024

Cold Storage Warehouses: The Ultimate Guide

This is your ultimate guide to cold storage warehouses.

In it, you’ll learn:

What cold storage warehousing is

Who uses cold storage warehousing

How cold storage works

The types of cold storage warehouses (with examples)

How to choose a cold storage warehouse

Tips for working safely in cold storage warehouses

Let’s dive in!

Table of Contents

What Is Cold Storage Warehousing?

Cold storage warehousing involves the storing of perishable or other sensitive goods like food, medicines, and artwork at a specific temperature range to maintain their integrity, shelf-life, and quality.

Who Needs Cold Storage?

Any product or item that can degrade easily or lose its integrity when subjected to temperature fluctuations needs cold storage.

Crates of produce stored in a refrigerated space

Chilling or freezing these sensitive goods helps slow their physical and chemical changes, which preserve their purity while inhibiting biological decay.

The ultimate goal of cold storage warehousing is to allow the movement of these products to end-users while maintaining the highest quality.

Specific Products That Require Cold Storage

Foods like fresh produce, meat and seafood, dairy, processed foods, and frozen foods

Nutritional supplements like perishable nutrient products

Botanicals such as flowers and plants

Bio-pharmaceuticals like medicines, vaccines, blood samples, IVs, and certain dental materials

Books and artwork like historical documents, paintings, and film canisters

Craft goods like candles (as they can lose their shape or color or melt if kept in high heat)

Cosmetics such as lipstick and cologne

Chemicals like reagents and disinfectants (these require cold storage to slow down their chemical reactions)

Organic textiles including fur, wool, and hides

Specialized products like aircraft components

Specific Industries That Use Cold Storage

Restaurants and food outlets

Supermarkets and food service firms

Importers and exporters

Frozen food producers

Agricultural producers

Pharmaceuticals and healthcare institutions

How Big Is the Cold Storage Industry?

Cold storage is a key player in the industrial real estate sector.

Here are some key facts about its size in the United States:

Cold storage accounted for 3.6 billion cubic feet of all warehouse space in 2017

The market size of cold storage facilities was valued at $30.26 billion in 2021

California, Washington, and Florida are the 3 states with the highest cold storage volume

Why Is Cold Storage Becoming So Popular?

The cold storage market is expected to expand at a compound growth rate (CAGR) rate of 9.2% between 2022 and 2030.

But what’s causing the increase in popularity?

Here are 3 key factors:

1. Changing Consumer Preferences

Many consumers’ eating habits are changing.

For instance, more folks are avoiding processed, canned, and packaged foods and instead consuming freshly prepared kitted meals.

Pre-packaged foods in a refrigerated grocery store display case

More consumers are buying kitted meals, driving up demand for cold storage

And these pre-prepared meals require careful temperature control for preservation – hence the need for more cold storage.

2. Population Growth

By 2026, projections show that 20 million more people will be living in the U.S.

And more people means more mouths to feed, more medicine to supply, and more goods demanded.

Thus, there’s more need for cold storage facilities to accommodate these demands.

3. Increased Spending

There’s been a general increase in consumer spending due in part to the rise of E-commerce .

A person holding a credit card while typing on their laptop

This includes spending on refrigerated products like food, pharmaceuticals, and cosmetics.

Of course, the more of these items that are sold, the greater the need for cold storage

How Do Cold Storage Warehouses Work?

Cold storage warehouses maintain cooler temperatures through a combination of insulation and HVAC cooling systems.

Insulation serves the same purpose for cold storage warehouses as it does for houses: It helps limit the transfer of heat between the inside and the outside.

On the other hand, cooling systems for cold storage warehouses are a bit more complex.

But the basic idea is that they use a combination of coolant, pipes, radiators, and fans to absorb and remove heat and replace it with cooler air.

You can watch the following video or to the sections below to read more about how a basic cold storage warehouse cooling system works:

The Main Cold Storage Cooling System Components

The coolant.

If you think of a cold storage warehouse cooling system as a mechanical human body, the coolant (also called a “refrigerant”) is like the blood.

That’s because it’s made of liquid (typically anhydrous ammonia) and circulates throughout the system via a series of tubes, pipes, and components – much like blood does through veins, arteries, and organs.

The Compressor

This is the main component in a cold room cooling system.

If the coolant is the “blood,” the compressor is similar to the “heart” in that it helps move the coolant.

It does so by raising the coolant pressure and temperature through compression and then pumps the heated refrigerant into the condenser.

The Condenser

The condenser removes heat from the refrigerant and disperses it into the atmosphere using tubes, fans, and/or water spray.

In the process, the refrigerant changes state from a gas to a liquid and then flows into the receiver.

The Receiver

The receiver stores the high-pressure liquid coolant condensate it gets from the condenser.

Through this, the receiver allows the whole system to maintain pressure while also providing a buffer for handling increased loads, such as when more cool air is needed.

When needed, the receiver releases the refrigerant into an expansion valve.

The expansion valve helps regulate the pressure, temperature, and amount of refrigerant released into the next component – the separator.

The Separator

The separator receives and accumulates refrigerant from the receiver.

Pumps outside the separator pull the refrigerant into another expansion valve, where the flow rate is adjusted before it enters the evaporator.

Pumps connected to piping in an industrial facility

The pumps also help adjust the load placed on the evaporator, which is determined by the cooling needs in the warehouse.

The Evaporator

The evaporator is what brings cold air into the space being cooled and causes the temperature to drop.

It does this by passing the cold refrigerant through a series of tubes while a fan blows air from the space across the tubes.

A 2D illustration of the refrigeration/cooling process

The cold refrigerant in the tubes absorbs the heat, and the air leaves the evaporator cold – thus chilling the room and the goods.

Once the coolant does its cooling job in the evaporator, the refrigerant makes its way back to the first component (the compressor) and the whole cooling process starts over again.

How Cold Is a Chilled Warehouse?

Cold storage warehouse temperatures are broad but normally range from -30° to 70° F.

Warehouses that handle frozen goods can be as cold as -122.8° F (for ultra-low temperature pharmaceutical warehouses).

But the most common freezer temperature range is between -10 and -20° F.

What Is the Difference Between Cold Storage, Climate-Controlled, and Temperature-Controlled Warehouses?

Cold storage is a type of temperature-controlled warehouse that restricts temperatures to a certain specific range but does not control humidity

Climate-controlled warehouses restrict both temperature and humidity levels to certain specific ranges

How Many Types of Cold Storage Are There?

There are 2 main types of cold storage:

Refrigerated cold storage
Frozen cold storage

Here’s a summary of each one’s characteristics:

Refrigerated cold storage facilities (sometimes called “ refrigerated warehouses “) are designed for preserving the integrity and shelf life of products that don’t need to be frozen.

A Costco produce refrigeration storage unit

They are typically kept between 33° and 55° F and store products such as fruits and vegetables.

On the other hand, frozen cold storage facilities help preserve the integrity and safety of items that must be frozen.

A freezer storage room containing palletized meat products

Temperatures in these freezer storage facilities can be up to 32° F, making them ideal for storing products like meat, fish, and produce.

5 Cold Storage Warehouse Examples

Although there are 2 main types of cold storage warehouses, there’s still a lot of variation among them.

So let’s go over a few common cold storage warehouse examples.

1. Private Cold Storage

The defining characteristic of private cold storage warehouses is that they’re owned by the same enterprise that uses or produces the goods stored in the facility.

A cold storage room containing carts and racks with hanging meat products

In practice, they’re commonly found connected to the main manufacturing facility and receive the just-made via conveyor .

Once inside the cold storage facility, the products are held until they’re ready to be sent to retailers or directly to the end-users.

Of all types of cold storage warehouses, private ones are less common.

This is largely because of the expensive nature of building and running them, which involves complex design and engineering plus compliance with many regulations.

As a result, they’re reserved for large companies like Nestle and Kraft.

While more expensive, the main benefit of owning a private cold storage warehouse is the greater control and flexibility it provides over products and how they’re handled.

This can help producers maintain quality, find areas to reduce costs, and ultimately improve customer satisfaction by ensuring a superior product.

2. Public Cold Storage

Public cold storage is a type of cold storage warehouse that’s usually owned and operated by 3rd-party logistics (3PL) companies.

Unlike private cold storage warehouses, public ones receive, store, and ship goods on behalf of client companies.

For example, a fresh flower distributor might pay a 3PL cold storage facility to receive their products, hold them in storage until orders are received, then load them onto delivery trucks.

Fresh flowers held in a small refrigerated storage room

In addition to basic warehousing storage, many public cold storage facilities also offer a variety of value-added services.

This can include things like assembling or kitting, placing inserts in packages, or providing expanded quality control.

Public cold storage is the most common type of cold storage warehouse in the United States.

And the reason for its popularity is that owning and running a cold storage facility is a massive, expensive, and complex undertaking.

Furthermore, handling logistics isn’t every company’s strong suit.

Thus, those that recognize this also realize the value of partnering with a logistics specialist whose strong suit it is.

That way, each company can focus on other, more pressing concerns like product development, marketing, and sales.

3. Refrigerated Containers

A refrigerated container is the most basic and inexpensive cold storage option for storing small quantities of temperature-sensitive products.

They are essentially shipping containers equipped with diesel-electric or grid-electric cooling units that can maintain temperatures between -30° and 70° F.

Refrigerated containers are the simplest, most flexible type of cold storage

Also highly customizable, refrigerated containers can be outfitted with features like different floor types, indoor lighting, and remote temperature monitoring.

Furthermore, because of their relatively small size (most are between 10 and 40 feet long), they are highly mobile.

For example, they can be placed inside a warehouse, outside, or at dock level, as well as on a trailer chassis – whatever setup is needed to accommodate the user’s specific needs.

4. Blast Freezers

Also called “blast chillers,” “shock freezers,” or “flash freezers,” these are very cold freezers used to rapidly chill products before placing them in longer-term storage.

Blast freezers are often used at the intermediate stage between production and storage.

For example, they’re useful when warm goods like bakery items straight from a production line oven need to be chilled quickly before moving to a longer-term cold storage facility.

How does it work?

Blower fans are used to force chilled air over products, which can result in bringing the temperature down from 160° to 41° F in about 90 minutes .

This helps preserve the attributes like nutrients, texture, flavor, and shelf life while also reducing bacterial growth.

Moreover, it helps reduce the strain on conventional cold storage cooling systems, which are less efficient when trying to lower the temperature of very warm goods.

5. Ultra-Low Temperature Cold Storage

Ultra-low temperature (ULT) cold storage is designed for storing sensitive biological and research specimens at temperatures ranging from -4° to -122.8° F.

COVID-19 vaccine vials stored in a cold storage container

ULTs gained exposure during the COVID-19 pandemic as it became known that they were required for safely storing the vaccines.

Besides vaccines, they are used for storing items like medicines and blood and tissue samples.

Compared to other types of cold storage on this list, ultra-low temperature cold storage accounts for a much smaller portion of the entire cold storage industry.

Furthermore, ULTs tend to be smaller physically than conventional cold storage – usually 20,000 to 60,000 square feet versus 150,000 to 400,000 square feet for the latter.

They also function with the utmost precision to preserve highly-sensitive materials.

That includes using liquid nitrogen or carbon dioxide backup cooling systems if the primary cooling system fails.

In addition, many ULT facilities are equipped with robust monitoring systems like alarms, data logging, and remote temperature control to safeguard against system failures.

How to Choose a Cold Storage Warehouse

There are over 600 cold storage warehouses in the United States to choose from.

This makes it challenging to decide which is best for you.

So, let’s discuss the biggest factors in choosing a cold storage warehouse.

What Is the Distance from Your Production and Customer Bases?

Location is critical when choosing a cold storage facility.

That means you should consider the warehouse’s proximity to both your production areas and your end-user base.

A digital map showing the route between a starting point and destination

Ideally, the best cold storage facility is close to the production site and within reach of the drop-off or distribution points.

This creates fewer and shorter temperature deviations and helps reduce fuel consumption and carbon footprints.

Does It Have Easy Access to Roads, Railways, and Airports?

In other words, how close is the warehouse to the modes of transportation you use to move your products?

An illustration showing a delivery van, semi-truck, container ship, and airplane

Most cold goods are moved on refrigerated tractor-trailers (reefer trailers), which means the warehouse should be close to major highways.

But if you move your goods via rail lines or air, the warehouse should be close to those transportation facilities.

Preferably, there will be a short distance between the two to reduce delays, fuel consumption, and other associated costs.

What Is the Storage Capacity?

Many cold goods have strict schedules and cannot sustain any form of delay in storage or transportation.

So you’ll want to ensure your chosen cold storage facility can handle incoming goods.

That ultimately means they can cope despite upticks in consumer demand, seasonal production, and holiday crunches.

Do They Have Reliable Energy Sources?

Cold storage facilities primarily depend on electricity because it’s easily accessible, clean, fairly economical, and environmentally friendly.

But electricity can be unreliable .

Stormy skies with a electricity pole broken and hanging over

And in the case of a power outage, this can translate to major financial losses – particularly for cold storage facilities where products are liable to spoil.

So before you settle on a facility, ask what kind of temperature control systems they have in place.

Also, see if they have backup power systems in place in case the electrical grid goes down.

What Are Their Monitoring Abilities?

Consider how the facility provider monitors the goods and their supporting technology.

This is very important considering the kind of high investment that goes into cold goods.

Some critical questions to ask are:

How do they monitor the temperatures of their goods?

Is the monitoring in real-time?

How are they alerted to problems?

What kind of security and surveillance capabilities do they have?

Is there remote monitoring?

Is there on-site 24/7 security tech and personnel?

How Robust Are Their Inventory Control Systems?

Big cold storage facilities that handle large inventories should have robust inventory control systems in place to keep track of everything.

A warehouse worker tapping on a tablet showing inventory levels, shipping times, and order picking times

To ensure that’s the case with any facility you’re interested in working with, ask questions like:

How sophisticated is their inventory management software?

How much visibility does it provide?

Do they use automated systems to keep accurate inventory counts?

Can they integrate with your inventory software systems?

For example, do you need to integrate your enterprise resource planning software (ERP) with their warehouse management software (WMS)?

This can allow expanded visibility into the movements of products and prevent cross-contamination between products.

That way, both you and the warehouse operator know where each product is and can dedicate the resources when and where they’re needed to further process the products.

What Is Their Track Record and Reputation?

Two important things to consider about any warehouse – cold storage or otherwise – are their shipment and turnaround times.

A semi-truck and trailer backed into a loading dock

For instance, how often do the facility’s shipments arrive on time?

The closer to 100%, the better because making shipments on time is critical for any cold storage facility.

You should also find out how quickly they load and unload trucks or rail cars and how often drivers are held up waiting to be unloaded or loaded.

After all, efficient cold storage facilities have minimal turnaround times for trucks or rail cars both arriving and leaving the facility.

What Are Their Credentials?

When choosing a facility, part of due diligence is knowing the brand and its credibility.

And that includes the warehouse’s compliance with industry standards and government regulations.

You can do that by asking questions like:

How long have they been in operation?

Do they have an established track record with customer success stories?

Do they have food safety certifications from credible associations, such as Hazard Analysis Critical Control Point (HACCP) or the Food Safety Modernization Act (FSMA)?

What are their Food Safety Audit (FSA) scores? If storing pharmaceuticals, do they follow General Manufacturing Processes (GMP)?

Are they members of professional associations, like the American Frozen Food Institute (AFFI) or the National Association State Department of Agriculture (NASDA)?

These credentials show that they’ve met industry standards and government regulations for the safe and effective handling of sensitive goods.

Do They Offer Any Value-Added Services?

Many businesses are opting for turnkey warehousing solutions so they don’t have to bother with the hassle of actually handling and distributing their products.

Two warehouse workers packing items in a cardboard box

If your business is one of them, you’ll want to consider what services a cold storage warehouse offers before you agree to contract with them.

For instance, do you need palletizing, kitting, labeling, shrinking, or wrapping and does the facility offer them?

And if so, what are the costs?

How Much Is a Cold Storage Warehouse?

The costs of building and retrofitting a cold storage warehouse.

The cost per square foot for cold storage construction runs between $250 to $350.

This is about 3-times the cost ($80 to $100) of a conventional warehouse.

Thus, it’s not unusual for cold storage warehouses to cost tens of millions of dollars to build.

The exterior of a cold storage warehouse

Why does it cost so much?

The cost hinges on several factors, including the building’s design and construction, internal equipment, software, labor costs, and maintenance.

For example, something as simple as high-speed, auto-closing doors (used to control air transfer between cold and ambient areas) can cost up to $25,000 apiece.

Moreover, converting a conventional ambient warehouse into a cold storage warehouse is often as costly as building a brand new cold storage facility.

This is why so many companies opt to outsource their cold storage needs to public (3PL) warehouses.

The Cost of Storing Goods in a Cold Storage Warehouse

When it comes to the cost of actually storing goods, public cold storage warehouses or 3PLs often charge fixed or variable prices by the pallet.

While warehouses storage costs can vary widely, an example rate structure may be:

$20 to receive and ship a single pallet

$10 per month to store a single pallet

$1 to $10+ for value-added services, such as picking, shrink wrapping, or labeling

What Are the Challenges of Working in Cold Storage?

Working in a cold storage warehouse brings with it some difficulties that may not exist in conventional warehouses.

Let’s discuss some of the key ones.

Different Handling Requirements for a Large Variety of Goods

Depending on the products being stored, there may be many regulations that the warehouse must handle to ensure product safety and integrity.

A worker wearing winter gloves and a winter jacket writing on a clipboard

This makes running a cold storage warehouse much more complicated than ordinary warehouses that handle less sensitive items.

Public cold storage warehouses especially have more problems since they often handle various items with different requirements.

For example, the same facility may handle everything from produce and ice cream to flowers and cosmetics.

Making the Best Use of Storage Space

Maximizing storage density is as much a problem for cold storage warehouses as it is for conventional warehouses.

The question is: How can you store as many products as possible in your existing space?

Pallet racking inside of a cold storage warehouse

One method is to expand the warehouse horizontally (i.e., increasing the square footage).

But this is often prohibitively expensive.

A more economical option is to expand vertically , allowing more goods to be stored in the same footprint.

Still, making the best use of space among different SKUs and turnover can be a difficult task for many cold storage warehouses.

Operational Disruptions

Any delays or disruptions to operations can be catastrophic for items that require cold storage since it can result in massive product losses.

A gauge with a needle that's in the "spoilage" temperature zone

These operational disruptions can include:

A forklift truck breaking down

A missed shipment

Delays in loading or unloading semi-trailers or rail cars

Manufacturing equipment malfunctions

Refrigeration equipment breaking down

This makes it necessary to have contingency plans in place.

For example, a warehouse may keep spare forklift parts on hand so they can be rapidly deployed to fix a lift truck if it breaks down.

Other ways to guard against operational disruptions include keeping up on planned maintenance or implementing a preventative maintenance plan for equipment.

It can even include establishing and maintaining good relationships with logistics companies to quickly overcome any transportation delays or disruptions.

High Labor Costs

Every warehouse operator (or business with employees for that matter) knows that labor is expensive.

In fact, it can account for up to 70% of the total costs of warehouse operations.

And the ongoing labor shortage only makes things more difficult and expensive.

3 warehouse workers wearing face masks lined up looking in the same direction

Plus, high turnover rates mean that warehouses are also spending money on training costs that they never gain back if a worker quits shortly after training.

On top of that, finding and retaining employees willing to work in cold temperatures for long periods makes labor even more expensive and difficult to source.

High Utility Costs

Cold storage warehouses have higher energy costs than ambient storage.

The average refrigerated warehouse uses 24.9 kilowatt-hours (kWh) per square foot each year, which is 4-times higher than conventional warehouses consume.

A electrical tower with electrical wires that are artificially charged

One reason for the higher energy costs is that many cold storage warehouses are more than 20 years old and built with less energy-efficient materials than modern facilities.

Another reason is because of the equipment involved, such as the cooling system, automatic doors, monitoring systems, and fire safety systems.

Each of these can draw lots of power, resulting in higher utility bills.

One more reason is the challenge of maintaining consistent temperatures.

This occurs especially when there’s lots of movement in and out of the warehouse – such as at the entry/exit points – and results in high energy consumption.

Moreover, cold storage warehouses consume lots of water – in some cases, 60,000 to 100,000 gallons per day.

And given that this water may also need to be treated and sanitized, this all adds to the operational costs of a cold storage warehouse.

Hard on People

Some people wonder, “what happens if you work in a freezer?”

Two workers dressed in winter clothes and standing in a receiving dock inside a warehouse

The human responds to cold in 2 ways:

It redirects blood flow from the extremities (hands and feet) to the core to warm the organs
It attempts to keep itself warm by increasing the heart rate through shivering

These body responses can cause a person to experience difficulties and complications, including:

General discomfort

Loss of concentration

Fatigue due to energy losses from the body attempting to warm itself

A loss in dexterity and difficulty manipulating objects

Hypothermia, if the body’s temperature drops below 95° F

Frostbite, which is the freezing of the skin or underlying tissues

Trench foot, which is damage to foot tissues caused by immersion in cold water

Moreover, these issues increase when a person is improperly dressed, wet, exhausted, or has pre-existing health conditions, and poor physical conditioning.

Other risks associated with working in cold storage include:

Slips, trips, and falls from the accumulation of frozen fluids caused by condensation

Impact injuries from equipment losing traction on slick surfaces

Poisoning from exposure to fumes from equipment fuel or the ammonia used in refrigerants

Hard on Equipment

Using equipment in cold storage that isn’t properly guarded against the conditions can cause premature wear and failure.

For example, Toyota lift trucks can handle temperatures as low as 32° F without any modification.

A Toyota electric forklift handling a pallet of ice in a cold storage warehouse

But temperatures below that can result in problems.

Specifically, the transition from cold to ambient temperatures can cause condensation on the sensitive electronic components and wiring.

This can lead to rust, which can be extremely expensive to repair.

Also, batteries – whether for lift trucks or handheld scanning equipment – don’t usually perform well in the cold.

They tend to suffer from frozen electrolytes, lost capacity, and higher energy requirements for charging.

Icons showing that batteries lose capacity as the temperature drops

For example, every 15° to 20° F drop in temperature below 80° F can result in a battery losing 10% of its capacity.

This means an electric forklift operating in a -20° F warehouse can lose half of its battery capacity, resulting in much shorter run times and impaired productivity.

5 Tips for Working Safely in Cold Storage

There’s a lot that comes with working safely in a cold storage facility.

Here are some of the key tips for doing so.

1. Follow OSHA’s Guidelines

OSHA is a great place to look for guidance on workplace safety issues because they’re the workplace safety watchdog.

Although OSHA doesn’t provide specific rules for working in the cold, they do nevertheless suggest several ways to protect workers in these environments, including:

Train workers to recognize the signs of cold stress and provide first aid

Provide engineering controls such as heaters that workers can use to warm up

Provide breaks and refreshments like warm beverages

Encourage proper dress, such as gloves, insulated and waterproof boots, a hat and hood, and knit masks to cover the face and mouth

Incrementally acclimate new or returning workers to the cold to increase their cold tolerance gradually

2. Wear Proper Clothing

Wearing proper clothing for cold conditions should involve dressing in layers and ensuring the face, head, hands, and feet are adequately protected.

Layering Best Practices

Your clothing should be at least 3 layers thick and composed of loose-fitting articles that provide an air barrier, wick body moisture, and prevent excessive sweating.

Specifically, cold-weather clothing should be layered as follows:

The innermost layer should be made of wool, silk, or another synthetic material suited for wicking moisture away from the body
The middle layer should be wool or synthetic to provide insulation when wet
The outer layer should be a breathable material that resists airflow while preventing overheating

Proper Footwear

Wear boots that are designed for cold weather and allow the feet to breathe.

The boots should be waterproof or resistant and have an anti-slip sole.

Wear socks that are non-moisture-absorbing (that means no cotton), like polypropylene.

Also, they shouldn’t be too tight-fitting to reduce foot circulation.

Proper Hats and Gloves

Wear headwear and/or face masks like knitted hats or balaclavas to prevent heat loss from the head.

Gloves should be thermal while also enabling enough dexterity for using equipment like hand scanners and forklift controls.

You can also add hand warmers for a little heat-boosting action.

3. Implement Automated Solutions

The more that automated equipment can take on tasks that require being in the cold, the less human workers need to.

A worker wearning winter gloves and a winter coat writing on a clipboard next to a conveyor

And that helps reduce the risk of injury and illness that comes with the cold, while also boosting productivity (since machines can work faster than humans).

For example, automatic guided vehicles (AGVs) can autonomously transport or pick/place items in a cold storage facility.

Other automated technology solutions, such as RFID scanners, voice picking, and AS/RS systems , can also help reduce employee exposure while improving productivity.

4. Take Frequent Breaks

A 10-minute break every hour is one rule of thumb to give the body resting time.

Workers can use this time to stay hydrated and fortified with nutritious foods to offset the body’s extra work to maintain itself in cold temperatures.

For example, drinking warm, sweetened fluids can help employees cope with the cold.

5. Use Cold Storage-Rated Equipment

Cold storage-rated equipment has specially-guarded components that protect the electrical system from damage due to condensation.

For instance, cold storage forklifts have features such as stainless steel, fully-sealed components, cold weather oil, anti-slip platforms, and heated batteries.

A stainless steel Toyota electric walkie pallet truck

You can also equip forklifts with enclosed cabs and heaters to protect workers in cold conditions.

Other cold storage equipment tips include:

Use equipment with oversized buttons that allow manipulation by gloved hands

Use larger batteries or assign multiple batteries to a piece of equipment to help offset cold-related performance issues

Switch to lithium-ion (Li-ion) batteries for better cold performance, less maintenance, and faster charging

That’s it: Your complete guide to cold storage warehouses.

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Cold Storage Subsidy, Loan, and Business Plan

Table of contents, scope for cold storage in india, need for cold storage, is cold storage a profitable business in india, functions of cold storage, classification of cold storage in india, how to build a cold storage unit, cold storage business plan, loans and subsidy for cold storage business in india, top banks offering cold storage loans, the cost of the cold storage refrigeration system, what is mt in cold storage, what is the temperature of cold storage, why fruits are kept in cold storage, what is the importance of cold storage, what type of food is stored in cold storage, which gas is used in cold storage.

Introduction to c old storage business in India, the cost of building, license, and subsidy

Are you about starting a cold storage business? If yes, here’s a complete guide to building the cold storage business along with subsidy and loans available.

The Cold storage industry is important and essential. The temperature level is maintained low with the help of precision instruments. Cold storage is used to preserve vegetables and fruits. Once they are kept in the Cold storage, and they do not get spoiled even after many months. Cold storage is necessary for extending the shelf life. It is, therefore, necessary that Cold storages are to be constructed in main producing as well as consuming centers. Cold storage construction design and build services need expertise in the intricacies of these very specialized facilities. To help reduce energy consumption and improve facility efficiencies Cold storage freezers should be properly designed and built, and they must integrate the most energy-efficient systems available. In this article we also discussed below topics;

How do you build a cold storage room
How many types of cold storage are there
How does cold storage work
Steps to start a cold storage business
Subsidy for the cold storage business
How cold storage business works in India

A step by step guide to cold storage business subsidy and setup

Cold storage is a one-time investment business, wherein the initial investment required is on the higher side. Though, the returns are higher and are on a long-term basis, as compared to other small businesses. The Cold storage facility is categorized mainly in two types, the first is used for single products and the other is for multiple products. Food items that require Cold storage include fruits and vegetables, poultry and fish products, meat products, and products such as tobacco and beer.

A basic problem that all small and even medium-size farmers face in preserving produce and distributing is a lack of Cold storage facilities in their locality. Though, owing and maintaining cold storage is not within reach of most farmers in India. High Cold storage investment is therefore ruled out for marginal farmers because farm sizes are too small to justify any big investment; it is simply not economical.

The Cold storage business in India is still a long way away in India and not even main production centers enjoy the benefits of Cold storage . The Cold storage business in India has been for a long time neglected and shunned because of the high costs involved and lack of proper infrastructure, but attitude is fast-changing and more businesses are finding it profitable to Cold storage units set up that help farmer to preserve their produce for longer durations. If you are looking for a profitable rural-based agriculture-related activity then Cold storage investment makes sense and it is profitable and holds big opportunities for expansion.

One of the major problems that Indian farmers face in selling their produce is storing and dispatching it at the proper time. Farmers face difficulty in finding Cold storage near their farms or proper cold supply chain to get their products from farm to market in proper conditions and stipulated time frame. When there is excess production, there is a glut in the market and prices come down to unreasonably low levels.

The major consuming areas are big cities and food processing industries that are generally thousands of miles apart. Raw produces are perishables and must be preserved until it is the time ripe for realizing better prices or moving it over long distances. Also, changing lifestyles and demand for processed or packaged food is creating the need for Cold storage solutions globally.

The initial investment is high in this Cold storage business. Generally, the Cold storage business investment includes acquiring the land, building construction, obtaining permissions and licensing, arranging utilities like water, electricity, etc. Also, you will need to invest a major startup capital in procuring the cooling machinery. Usually, modern and updated machinery ensures better performance and long-term sustainability.

Globally, the wastage of vegetables and fruits is huge. Normally, food crop growing countries hold the maximum share in the wastage for fresh foods. Cold storages are essential for extending the shelf life, and maintenance of the quality of the product. Also, Cold storages have an important role in reducing the wastages of perishable commodities. Also, it helps in providing remunerative prices to the growers and to make available farm products to the consumers at competitive and affordable prices.

In case if you miss this: Hydroponic Farming Business Plan, Hydroponic Yield .

Here, we discuss the functions of Cold storage ;

Protect Perishable Food – At room temperature perishable food items such as fish, meat, and milk made products tend to get decayed. Nowadays industries are using blast freezers for the storage of fish and meat. Before making a delivery to final consumers and logistics companies store perishable food items in refrigerators with high storage.

Protect perishable nutrient products – There are various nutrient items such as cold-blooded aquatic vertebrates and flesh of animals that turn into the radioactive product when they are kept in building temperature. At present, there are several Cold storage warehouse logistics that provide blare freezers to the flesh of animals and cold-blooded aquatic vertebrate’s products.

Storage of dairy products – Along with food items, dairy products need proper care or Cold storage. Storage equipment for dairy products needs control of temperature levels.

Storage of food and vegetables – Fruits and vegetables need certain kinds of Cold storage but they do need to be frozen. They just want to be kept at a cool temperature.

Bulk Cold Stores – Generally for storage of a single commodity, these mostly operate on a seasonal basis e.g., stores for potato, chilies, apples, etc.
Multipurpose Cold Stores – These stores are designed for storage of a variety of commodities which operate, practically, around the year. The products stored in these types of cold stores are fruits, vegetables, pulses, dry fruits, spices, and milk products.
Frozen Food Stores – These come with or without processing and freezing facilities for fish, meat, poultry, dairy products, and processed vegetables and fruits. These units have helped the promotion and growth of the frozen foods sector, in the domestic and the export markets. Though, the percentage of foods so processed is extremely low and great potential exists for growth in this category.
Small Cold Stores – These come with pre-cooling facilities for fresh fruits and vegetables, mostly, for export-oriented items like grapes. The concentration of these units is in Maharashtra but the trend is now picking up in other states like Karnataka, Andhra, and Gujarat.
Mini Units or Walk-in Cold Stores – These stores are located at hotels, restaurants, malls, and supermarkets.
Controlled Atmosphere (CA) Stores – These are meant for certain fruits and vegetables like apples, pears, and cherries.
Ripening Chambers – These are mainly set up for bananas and mangoes.

Steps involved in setting up Cold storage business ;

Select a promising location and do a market survey on potential produces for which you can provide Cold storage services.
Choose appropriate land. It must be easily accessible and have proper roads and uninterrupted power supply round the clock.
Contact Cold storage manufacturers and obtain a firm quote for machinery and erection charges.
Contact Cold storage construction companies to design the building and infrastructure related to it.
Based on the quote and the costs involved get investments right. Study the Return on Investment and the time it takes to get the unit up and running profitably. Always give a time frame for gestation.

To start a Cold storage business, the business owner needs to create a detailed business plan that should contain all the business-related information, details regarding products and services to be used, and employee details with full name address.

Are you looking for how to build Cold storage ? Here is a step-by-step process to start Cold storage business ;

Step 1) Finalizing Location

Location plays a vital role in business. For Cold storage businesses , it must be kept as close as possible to producing farms or consumer centers. Approximately, once acre of land is required for a multi-storage or multi-commodity Cold storage facility with a capacity of about 5000 metric tonnes.

Step 2) Equipment Selection

During summers as the heat is immense, equipment to be used must be cautiously selected and installed to manage heavy loads and power cuts. There are the following factors to be considered before finalizing on equipment for Cold storage business, such as equipment’s age, and light, fan, and product load, the heat produced from stored products, ceiling, wall, and floor, etc.

Step 3) Maintenance and Cleaning

Maintenance of the Cold storage plant holds equal importance and should be checked regularly like temperature, humidity level, and preserved produce. Timely servicing or cleaning of containers, trays, and storage bins is necessary.

Step 4) Promotion and Target Audience

The success of a Cold storage business relies on the effective implementation of marketing strategies and advertising campaigns. In the initial, as well as the later stages of business, an entrepreneur must target various market segments, including traders, wholesalers, marketers, promoters, retail markets, and warehouse companies, supermarkets in rural and urban areas. For further increase in sales and profit, business owners can approach retailers, business growers, producers, distributors, and exporters, etc.

Step 5) Arranging Funds

Arranging finance is one of the difficult tasks, as the Cold storage business requires substantial capital investment. Managing total investment for Cold storage business from the hard-earned savings is not a viable option, neither is it recommended as savings are used to meet urgent financial requirements or cash crunch situations.

Entrepreneurs who want to start a Cold storage business can opt for business loans offered by several financial institutions. They can check and compare numerous loan deals obtainable in the financial market and choose the best loan deal that suits their business requirements.

You may also check this: Dall Mill Project Report, Dall Mill Cost, Subsidy .

The Cold storage business is a capital-intensive business. You must have an investment capacity of about 3 to 4 crores for commencing this business. Generally, you can set up this Cold storage business with financial help from banks. Also, check if there is any subsidy or Govt. grants are available for this business in your District or State. In India, the National Horticulture Board provides financial assistance for this Cold storage business for the entrepreneurs. To set up multi-commodity Cold storage of about 10,000 tonnes capacity, investment of around Rs 20 crore is needed with a payback period of 6–7 years.

India is offering Financial Assistance for the Establishment of Cold storage Chain. These integrated Cold storage chains from the farms to the consumer ensures the safety and also the preservation of the food products. The government offers a grant-in-aid ranging from 35% to 50% of the total cost of plant and machinery installation along with pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi-product or multi-temperature Cold storage, packing facility, blast freezers, and the technical civil work depending on the location. Cold storage business can be done with an 80% loan from a nationalized bank. If the land is rented, the loan available is 90% of the total rental cost of Cold storage.

Cold storage loan is a type of agricultural loan that is available to farmers, individuals, and groups of individuals who run the business of Cold storage. Then, this loan is used to set up Cold storages or for expanding the existing business of Cold storages.

Eligibility criteria for cold storage loan;

Following are the eligibility criteria laid out for those who would like to avail this loan:

Individuals/Group of Individuals
Cooperatives/Companies/Proprietary/Partnership concerns
Banks check the reputation of the promoters of such business.
Capacity storage should not exceed more than 5000 Metric Tonnes.
If it is an existing facility, it should be in a running condition and must be a profitable business for the last 3 years.
Accounts must have been maintained as per rules.
For new projects, the feasibility study must be submitted to the bank for assessment.

Some of the banks that offer Cold storage Loans are SBI, NABARD, Corporation Bank, Union Bank of India, Canara Bank, Vijaya Bank, and IDBI Bank.

Setting up of cold chain is assisted by APEDA (Agricultural and Processed Food Products Export Development Authority) as a part of a strategy to develop the industries relating to the scheduled products for export. And, the Scale of assistance as 40% subsidy subject to a limit of Rs 75 lakhs for cold chain projects with mechanized handling system.

The cost of Cold storage Refrigeration System with capacity 5 MT to 5000 MT is approximately Rs 25 Lakh/ Piece

Cold storage investment cost

The investment cost includes acquiring the land, building construction, obtaining permissions and licensing, arranging utilities like water, electricity, etc. Additionally, you will have to invest the main startup capital in procuring the cooling machinery. Normally, modern and updated machinery ensures better performance and long-term sustainability. Apart from the above-mentioned fixed costs, you will want to consider the working capital expenses also. The main considerations are staffing, utility bill payment, and promotional expenses.

The cost and investment will mainly depend on the scale of the Cold storage unit . Though, according to experts, the estimated project cost for setting up 5000 MT Cold storage may be in the range of Rs. 3 Crore – 4 Crores in Indian Rupees.

Benefits of a cold storage room

Cold storages help prevent products from degradation. Cold storages work on the principle of refrigeration. Cold storages are used to store fruits and vegetables and keep them fresh for a specific period. They are used to reduce the post-harvest losses of economic productivity.
A Cold storage plant is a great place to store fruits and vegetables, as well as other products, as they prolong life and also help prevent spoilage of foods.
Cold storage rooms are temperature adjustable; they can be used for different functions by adjusting the temperature. These units are airtight, they will help to protect products from extreme temperature and weather changes that will happen outside of the unit.
A Cold storage room can keep fruits and vegetables at the correct temperature while controlling the moisture level to help extend the life of the fresh produce longer until it can be used and this will help to minimize waste and save money.

You may be interested in this: Rice Mill Subsidy, Loan, Permission, License, Schemes .

Commonly asked questions about the cold storage business

MT in Cold storage means per metric ton of product, based on the maximum amount of product that can be stored in each chamber. This is necessary for the rapid cooling of the produce.

Keep foods 4°C or colder, the safe temperature for refrigerated storage. Keep these factors in mind when storing fresh meats, poultry, and also produce all carcass meats should be unwrapped and hung so that air can circulate them.

Cold storage is the main method for extending the life of fruits. Apples and pears quickly soften and become mealy in texture when kept at ambient temperature levels. To keep the quality longer than one week, the fruit must be kept in refrigeration.

Cold rooms are important because they help to prolong the shelf life of fresh goods. They are effective in reducing the amount of waste and in lengthening the timeframe for marketing these foods.

The good thing about Cold storage units is that it is capable to keep any type of food in the optimal temperature level where it won’t perish or get decomposed fast. Meat, fish, vegetables, and fruits are best put on the fridge after having groceries.

For large Cold storage facilities, ammonia has the refrigerant of choice. Because it produces the greatest net refrigerating effect and the lowest BHP/TR (brake horsepower per ton of refrigeration) of any industrial refrigerant.

That’s all folks, you may use the same information for cost and subsidy of 100 mt cold storage in India, the cost and subsidy of 500 mt food cold storage, the cost and subsidy of 1000 mt cold storage, the cost and subsidy of 2000 mt agriculture cold storage, etc.. In case if you are interested in this: How to Make Money from Organic Farming Business .

15 COMMENTS

I had a land of 75000 sq feet in Digha , West Bengal beside fish jety. The land has 100 feet front. Drainage canel is back side (with in 10 ft). Want to build a cold storage . Want to know step by step process and guidance ( paid consultation also wellcome). Also need investors for the project.

I will assist you in this regard and also may help to prepare project finance to bank

Hello Paul-ji, I have enjoyed reading your very informative article on stating a cold storage business and I would like to engage. I am based in Kenya.

I want to open a 1000MT capacity cold storage in kota(Raj). Land area is 2000 sq. Meter. Need assistance

Nice information. Will cold storage is a profitable business

Hello, I’m planning to setup a cold storage facility in Nagpur, Maharashtra; and I need some consultation (paid) in this regards. I already have a good size plot in Industrial area with all the basic amenities. I would appreciate If anybody can help me. Thanks!!

hello, i habe a 2000sqft area in mumbai, can i start a cold storage in it. is it a profitable business?

I am having 2000 ft area near gurgaon and want to start cold storage business and can you provide all the details related to it?

I want to know the detail about the cold store business setup and total cost and profit for it. and guidance about the process for loans.

I have come to know from reliable source that you are providing Machinery and other support for cold storage . I am going to set up 2 cold storage ( Fruit & Vegetable) each will be 150MT . If you share your machinery cost of the complete solution of that particular project , I will be grateful to you.

I want to know cold storag business? How can i proceed ? Help me

Hello Sir I am Intrested in opening a Cold Storage for Red Chillies & potatoes & Kabuli Chana & Soyabeen & Onion. In Khandwa [MP]. I Would need your Complete Assistance in opening This Cold Storage. Awaiting for Reply.

Can I get details to set up cold storage, I have 20000-30000 sq ft land road touch near Jnpt road , Thanks Sandeep

I want civil dezine for 6mt cold storage

I have 35000 sqft land in industrial area ,planning to open cold storage please provide some guidance

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How to Create a Self-Storage Business Plan [Plus a Free Template!]

By the end of 2020, roughly 4.35 million hopeful individuals had filed new business applications .

Perhaps the motivation was the loss of jobs or that people were fed up with the traditional 9-5 gig. Whatever the case, entrepreneurship has been a popular theme lately.

Many new business owners opted to pursue a real estate investment, specifically a self-storage business. For those of you on this path, let’s discuss creating a self-storage business plan and how a few purposeful decisions can catapult your business to the forefront.

It starts with a solid self-storage business plan.

Developing a business plan

Before you can start creating your business plan, you need to do some market research first. Start by relying on others’ history and experience. Do lots of market research. Network and learn from other marketing strategies. Attend an industry trade show. Diligently learn the ins and outs of running a small business.

Start to hone in on the details as you begin to formulate your plan. For example, , are you building or renovating your own potential storage space? You’ll need to consider the zoning in your chosen area, and contemplate the land cost and interest rate from a lender or two. In terms of marketing strategies, will construction costs or developmental costs be worth the initial investment? Thinking through these aspects with some “back of the napkin” math early on will help you as you start to formalize your business plan

Self-storage business plan template

Putting the vision for your self-storage business to paper is important. Not only will it help you develop a roadmap for all the things you need to do to make your business dreams a reality, but it will allow you to easily share your vision with others. This is necessary if you want to bring in funding partners or borrow money for a lender.

Download a business plan template and start drafting your own self-storage business plan. Dive deep into a recent market analysis to determine any possible cash flow outcomes. Understand that your first year as a startup might be your most challenging. Read various feasibility studies, and talk to your peers in the industry.

Your business plan should look at least two years out into the future. Plan for different scenarios in regards to your return on investment projections. Consider your returns under a best case scenario and a worst case scenario, as well as a conservative median projection.

Components of a self-storage business plan

Aside from the initial planning phase, remember to consider the operational logistics it will take to run this business. Fortunately, self-storage business investments are desirable because of the traditionally low operating expenses.

Make sure your business plan includes these components:

Executive summary

Business description, market research and strategy, management and personnel, financial reporting documents.

An executive summary is a brief overview of your business. Think of it as the first thing you would tell someone about your business in a conversation. For example, an executive summary for a self-storage business might start something like this:

“The purpose of this business is to develop and operate a 100-unit facility on a parcel of land outside of Colorado Springs, Colorado.”

Or, like this:

“This venture seeks to find and acquire value-add self-storage facilities in secondary markets in the Southeast. The business will modernize and update the facilities with the latest technologies to increase their profitability over the next two years.”

An executive summary should go on to summarize and highlight key elements from your business plan, such as total costs and projected revenue.

Everything You Need to Know About How to Start a Self-Storage Business

What kind of business will you be: sole proprietor, LLC, C- or S-corporation?

Here, you can describe the details of how your self-storage business will operate. Beyond your legal status, cover the operational details of your business such as branding, services offered and projected expenses.

Businesses are more tech-enabled than ever before, with easy-to-navigate websites , advanced phone systems, user-friendly apps and online payment services . Of course, these things aren’t always necessary to achieve success; however, having a few tech-powered options will put you ahead of the game. Consider how you will use these technologies sooner, rather than later.

Also consider things like your hiring plans, insurance needs , and maintenance procedures. Include additional revenue sources besides self-storage rents, such as sales of tenant insurance or moving supplies.

Remember all that market research you did on the self-storage industry? Lay out your most relevant findings and how they support your self-storage business idea in this part of your business plan. Examine the demographics and supply and demand story of your target market. For example, if individuals need RV storage, consider offering that option. Decide how you will make money and attract new renters (i.e., social media , content marketing, etc.).

Like any industry, the self-storage industry has a unique ebb and flow to it. Knowing these trends will help you execute a more successful self-storage project.

This is the who’s who of your self-storage business. Discuss the experience, qualifications and duties of the executive team, as well as additional employees that you have or need to hire to execute your plan.

Is your self-storage business plan financially feasible? Here is where you demonstrate that it is, by laying out details of your financial situation. What are your assets and liabilities? Will you have debt service?

This section should include the projected profit and loss, balance sheet and cash flow for your business for the next two to three years.

Expect the unexpected

Once your business is up and running, you will no doubt encounter challenges and situations that your plan did not anticipate. However, a strong business plan will greatly increase your chances that your business will succeed. If you are looking to do more with your business, Storable offers a host of technology solutions to help your self-storage operation thrive in a competitive environment.

Financing Options for Self-Storage Businesses

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The spiraling 246m high Evolution Tower is located on plots 2-3 of Moscow-City high-rise business district on Presnenskaya Embankment of Moscow river. New multi-function center occupies the territory of 2.5ha in area, 2ha of which is a landscaped terraced civic plaza, the integral part of the new city piazza, the central open public space of Moscow-City business downtown.

ivic plaza includes 10m high ceremonial stairs (leading from embankment and pedestrian Bagration Bridge to the higher terraced levels) as well as landscaped areas with green lawns, trees, water features, travellators and feature lightboxes.

Evolution Tower

Location: Moscow, Russia

Typology: High-Rise, Office, Mixed-Use

Years: Construction 2011-2014

Status: Built

Height: 246m

Design team: GORPROJECT (2011-2015),

RMJM Scotland Ltd

(original concept 2005-2007)

Under the piazza levels the 2-storey retail mall connects the Evolution Tower with metro station and pedestrian bridge over Moscow river, thus integrating the new development into the large Moscow-City district, the Europe's newest and most ambitious high-rise cluster (7 of 10 highest European skyscrapers ae located here), housing over 4 million square meters of office and retail areas with associated transport and engineering infrastructure.

The Evolution Gallery mall houses food court and 6,000m2 family entertainment and educational center for various children activities (the first center of that kind in Moscow).

The 82,000m2 office tower has 52 levels rotated 3 degrees each floor with overall twist reaching 156 degrees clockwise. With world’s largest innovative cold-bent glazing the tower façade provides seamless floating reflection that rotates the panoramas of Moscow skyline vertically, where the reflected clouds moving up enhance the dynamic visual impact of the twisted tower, an unprecedented optical effect in the world architecture. The Crown with supporting steel structure made of two twisted arches provides the helipad at the very top as well as the open observation roof decks at Levels 51-52 featuring the best panoramas of Moscow riverside with views towards the historical center.

From the very beginning the developer and architects have set an ambitious task to create a recognizable and symbolic tower, the new icon of contemporary Moscow. The sculptural DNA-shaped twisting tower symbolizes the evolution spiral with the white façade ribbon wrapping over the roof in a form of 90-degree twisted infinity symbol, which speaks of philosophical concept of evolution and celebrates the development of human civilization. From spiraling onion domes of St. Basil to the iconic Tatlin Tower concept the Russian architecture was obsessed with idea of spiral. The simple and innovative design was based on principles of twisting square-shaped floor plates with vertical structural RC frame supported by a central core and 8 columns with continuous beams and 4 spiraling columns at the corners.

The proposed structural scheme with cantilevered continuous RC beams and cantilevered floor slabs picking up the overhangs from the twisted floor plates appeared to be simple, efficient and economical. The complex sculptural tower façade envelope was built using the innovative cold-bent glazing with flat double glazed units cold-formed in 3D within the aluminum frame under its own weight to avoid stepping in geometry. This approach appeared to be both more energy-efficient and more cost-efficient solution in comparison to the stepped curtain wall units previously applied in some twisted unitized facades.

The multifunctional architectural glass by Guardian significantly reduces the solar gain whilst providing the double glazed unit thermal performance equal to standard triple glazed unit normally used in Moscow to withstand harsh winter conditions. The use of innovative TWIN elevators by ThyssenKrupp saved 2 shafts within the core (10 TWINs instead of 12 double-deckers in the original concept) and contributed to the overall project sustainability with lesser power consumption per passenger. Other sustainable design features include green roofs over the retail mall and integrated coil floor heating under landscaped civic piazza levels using the return water in winter to melt the snow and ice for the safety of pedestrians. The reinforced concrete formwork by PERI, including self-climbing ACS formwork specially designed for the twisting corner columns, allowed to achieve the impressive speed of RC frame construction of 6 days per floor due to perfect site logistics by Renaissance Construction as main contractor.

All innovative design solutions and optimizations secured the delivery of this fairly unique skyscraper within the project plan and almost within the budget of the standard ‘benchmark’ high-rise building. This turned out to be a major achievement of the design and construction teams.

The organic twisting silhouette dominates on its background of extruded glass towers greatly contributing into the overall composition of the high-rise Moscow-City cluster. The development delivered a significant open public space on the landscaped roof of the retail mall, thus providing the perfect mix of business uses with public and social activities of the civic plaza and the mall with its food court and core family entertainment function. The synergy of that mix with large underground car-park complemented by the direct link to the metro station and pedestrian bridge as means of main public transportation secured the successful project completion with the recent entire tower acquisition. Bold shape and timeless aesthetics as added values brought by its unique architecture materialized in a commercial success of this project with the tower being fully acquired for corporate headquarters even in the context of oversupply in the Moscow office market. The outstanding quality of architecture and its fine detailing, state of the art building services and communications of Class A office Tower together with the highest level of transport accessibility (direct access to metro station from the lobby, large car-parking, proximity to boat pier and helipads) make this property very attractive for tenants and visitors. The beautiful riverside panoramas from offices are complemented by green roof and water features of the large 2ha terraced civic piazza as the main recreational outdoor space with direct link from the office tower lobby.

The highest quality of façade cladding, glazing, vertical transportation and MEP equipment from leading European and international suppliers provided the truly Class-A office environment with the luxury of minimalist spirit in the architecture of the new landmark on the Moscow skyline. Even before its completion the sculptural spiral of Evolution Tower, more often appearing in commercials, posters and magazines, became a new icon for modern Moscow as the symbol of its business ambitions and fast development. The Evolution Tower also became the monument to the courage of its developer (Snegiri Group) and investors, who built the great deal of trust with architects, engineers and contractors by investing their efforts and funds in a challenging adventure of designing and building the unique and innovative skyscraper for the capital of Russia.

Evolution Reflections

Philipp nikandrov.

Moscow, Russia skyline: the 50 most iconic buildings and best views in Moscow

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1 The Moscow Kremlin

3 Bolshoi Theatre

4 gorky central park of culture and leisure, 5 krasnaya ploshchad'.

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6 St. Basil's Cathedral

7 the state tretyakov gallery, 8 cathedral of christ the saviour, 9 red square, 10 kolomenskoye, 11 museum of cosmonautics, 12 all-russian exhibition center, 13 the pushkin state museum of fine arts, 14 novodevichy convent, 15 state historical museum.

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26 Central Armed Forces Museum

27 afimall city, 28 winzavod, 29 mini hotel rest on paveletsky train station, 30 catherine palace, 31 st. peter and paul orthodox church, 32 mayakovskaya, 34 kuskovo estate museum.

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46 Grand Kremlin Palace

47 moscow art theatre, 48 moscow cathedral mosque, 49 zachatyevsky monastery, 50 house on the embankment, top searches in moscow, popular road trips from moscow, what's the weather like in moscow.

It depends on when you visit! We've compiled data from NASA on what the weather is like in Moscow for each month of the year: see the links below for more information.

Weather in Moscow in January
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Explore nearby places

Likino-Dulevo
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Moscow throughout the year

Moscow in January
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Looking for day-by-day itineraries in Moscow?

Get inspired for your trip to Moscow with our curated itineraries that are jam-packed with popular attractions everyday! Check them out here:

1-Day Moscow Itinerary
2-Day Moscow Itinerary
3-Day Moscow Itinerary
4-Day Moscow Itinerary
5-Day Moscow Itinerary

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Top things to do and attractions in Khimki

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Where to eat: the best restaurants in Mytishchi
Where to eat: the best restaurants in Khimki

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Moscow Itinerary: How To Spend 3 Days In Moscow

By: Author Lotte

Posted on Last updated: March 2, 2023

Categories Trans Mongolian Express

ultimate-Moscow-itinerary-phenomenalglobe.com

Moscow is the capital of Russia and there are few cities in the world that have played such a significant part in history.

Home to the Kremlin, the Red Square, the colorful St. Basil's Cathedral, and many more famous landmarks, Moscow is a city like no other.

This Moscow itinerary will help you plan your trip and make the most of your time in Moscow. From the best places to see in Moscow to how to get around, this post has got you covered.

Moscow itinerary

Disclosure: Some links in this post are affiliate links. If you make a purchase through one of these links, we may earn a small commission (at no extra cost to you!). We're very grateful when you use our links to make a purchase:-).

Moscow 3 day itinerary: map with highlights

Click here for the interactive map .

What to do in Moscow in 3 days

Day 1: The Red Square, GUM Department Store, St. Basil's Cathedral, Lenin's Mausoleum, and the State Historical Museum.
Day 2: The Kremlin, the Cathedral of Christ the Saviour, Gorky Park, and the Bolshoi Theatre.
Day 3: Izmailovsky Market, Bunker 42, and Zaryadye Park.

The famous pedestrian street Nikolskaya Street (Никольская улица) located in Kitay-Gorod Moscow with thousands of fairy lights.

Important things to know when planning a trip to Moscow

The best time to plan a trip to Moscow is April-May and September-October . During these months temperatures are (generally) quite comfortable, though even in April there can be a bit of snow! The summer months are hot, both in regard to temperature as well as activities in the city. While it's a nice time to visit, it's also the busiest time of the year to visit Moscow. Hotel prices reflect this as well and summer definitely isn't a great time for budget travelers to visit Moscow. Winter in Moscow is cold, and I mean seriously cold (-15°C isn't rare). However, if you can withstand the subzero temperatures and freezing winds, it can be a magical time to visit. A snow-covered St. Basil’s Cathedral is a sight you will never forget. Keep in mind that days are short in winter and be sure to bring plenty of warm winter clothes!

The official currency in Russia is the Russian Ruble (₽ or RUB). Here you can find the current exchange rates, at the time of writing €1 is approximately 70RUB and $1 is around 62RUB.

Yes, you probably do. Getting a visa for Russia requires a bit of time and effort. You need to fill out several forms and provide a detailed travel itinerary and information about your accommodation. Also, you will need a Visa Support Letter which can be provided by your travel agency or your hotel. Depending on your nationality, there may be additional requirements, please refer to the information provided on the website of your country's Embassy in Russia.

While most of the things to see in Moscow listed in this post are within walking distance of each other, sometimes you will have to travel a bit further afield. The best way to get around in Moscow is by metro. It's cheap and efficient and a sightseeing activity in itself, because Moscow has the most beautiful metro stations in the world ! Among the most exquisitely decorated stations are Komsomolskaya, Novoslobodskaya, Mayakovskaya, Taganskaya, and Prospect Mira Station, but there are many more worthwhile stations to be found in the Moscow underground. You can purchase a single ticket from one of the ticket machines or get a rechargeable Troika Card when you plan on taking the metro several times. Read more details on how to use the Moscow metro here . If you prefer to get around by taxi, that's possible too. We used the Gett app to order a taxi (similar to Uber) to avoid confusion about our intended destination and having to negotiate in Russian. A convenient extra for families is the Gett Kids option, these cars are outfitted with a car seat.

The best things to do in Moscow

While you could easily spend a week in Moscow (or more), most of us, unfortunately, don't have that much time available.

This 3-day Moscow itinerary will guide you to the most popular and important places to visit in Moscow, as well as to some of the more unusual things to do in Moscow.

Below you can find the list of the Moscow sightseeing highlights included in this post.

The Red Square

Gum department store, st. basil's cathedral, lenin's mausoleum, the state historical museum, the kremlin, cathedral of christ the saviour.

The Bolshoi Theatre

Izmailovsky Market

Zaryadye park.

Planning a trip to Moscow? Click through to read about the best things to do in Moscow and practical information to plan your Moscow trip. #Moscow #Russia #CityTrip

Plan your trip like a pro with these tools: ✈️ Find the best flight deals on Kiwi.com . ? Get the best car rental deal for your road trip on Rentalcars.com . ?️ Find your dream accommodation on Booking.com or Agoda . ? Book the best tours via Get Your Guide , Viator or Klook . ? Plan your journey with the Lonely Planet . ?️ Travel safely and get reliable travel insurance from Safety Wing .

Moscow itinerary day 1

There is no better place to start your first day in Moscow, than at the world-famous Red Square.

This square is considered the central square of Moscow, not just because all the major streets start here, but also because no matter where you look when standing on this square, there are historic buildings all around.

Starting with the impressive GUM store and going clockwise, there is the colorful Saint Basil's Cathedral, the Kremlin, Lenin's Mausoleum, the State Historical Museum, and the Kazan Cathedral.

However, before entering any of these Moscow must-see attractions, allow yourself a moment to take in the view and let it sink in that you're standing on historical grounds (and a UNESCO site).

The Red Square was the official address of the Soviet government and played an important part in history. Many military parades have been held (and are still being held) here. It's the place where protests have taken place, as well as high-profile concerts from famous international artists.

All in all, it's one of the places in Moscow you can't miss during your Moscow city trip!

Red Square with GUM department store in Moscow

Yulia from That's What She Had: it might seem like visiting a department store is not something you’d do on the first visit to Russia’s capital.

But GUM is not like any other department store and is well worth your time, if only for its unique architecture.

First of all, it’s located right on Red Square which makes it an easy stop on your Moscow trip itinerary. Second, GUM is not a simple mall, but an institution built in the late XIX century.

The abbreviation stands for Glavniy Universalniy Magazin or Main Universal Store. Its impressive facade extends for over 240 meters along the eastern side of Red Square.

Inside you’ll find a beautiful glass ceiling supported by a metal framework, not unlike the ones found in the old train stations of Great Britain.

While shopping in GUM will cost you an arm and a leg, there’s one reason why tourists and locals come here anyways: traditional Russian food at Stolovaya #57. Stolovaya is Russian for canteen and this is where you can get your pelmeni , borsch , and pirozhki fix!

Afterward, don’t forget to get the famous plombir ice cream in one of the kiosks on the ground floor.

Saint Basil's Cathedral with its colorful domes is easily recognizable and one of the most popular Moscow tourist attractions. The building, built on orders from Ivan the Terrible, was completed in 1561 to commemorate the victory over Kazan and Astrakhan.

Until the construction of Ivan the Great Bell Tower (which can be found within the walls of the Kremlin), it was the tallest building in Moscow.

The design of St. Basil's Cathedral is truly unique; it's shaped like the flame of a bonfire and not one building in a similar style can be found in the whole of Russia.

A legend tells the story of how Ivan the Terrible had the architects of the Cathedral blinded so they could never build anything comparable.

This is a myth, however, but the fact remains that Saint Basil's Cathedral is one of a kind and it's not surprising it has become the symbol of Russia.

Wendy from The Nomadic Vegan: Lenin Mausoleum is hard to miss. It's a stepped-pyramid construction that sits right at the base of the Kremlin walls on the western side of Red Square.

Entrance is free but note that opening hours are quite limited, with visiting hours lasting only from 10 am to 1 pm on Tuesday, Wednesday, Thursday, and Saturday.

If seeing Lenin's embalmed body is important to you, be sure to take this into account when planning your itinerary in Moscow.

One of my top tips for travelers to Russia is to arrive early, well before the mausoleum opens, as the queue is usually quite long. However, usually, the queue does move pretty quickly.

This is especially true now that they have lifted the ban on bags and cameras.

It used to be that all cameras, smartphones, and bags of any size had to be checked at a left-luggage office nearby. But now you can bring a small handbag or backpack as well as your camera and phone.

Photography inside the mausoleum is still strictly forbidden, but you are allowed to take photos of the graves of various other important Russian figures that line the path leading to the mausoleum.

Once you finally enter the mausoleum, the atmosphere is surprisingly peaceful and uncrowded. It doesn't feel nearly as rushed as when visiting Mao Ze Dong's tomb in Beijing or Ho Chi Minh's body in Hanoi , for example.

The illumination of the body is very well done and would make for superb photography if it wasn't forbidden. As an added bonus, just after you exit, you'll see the grave of Joseph Stalin outside.

Rai from A Rai Of Light: the imposing crimson building at the northern end of the Red Square is the State Historical Museum.

By decree of Alexander III, the museum was built with the support of Russian historians, philosophers, and artists. The red brick building, dating from 1875, was designed in the Russian revival style by Vladimir Shervud.

The National Museum of Russia houses a collection of over four million items, devoted to the history of the country's ancient and imperial period.

The exhibitions include many items previously owned by members of the Romanov dynasty, such as documents, artwork, personal items, furnishings, and decorations from the palace interiors.

Another exhibit features relics of the prehistoric tribes that once inhabited this region.

Notable items include ancient manuscripts, birch-bark scrolls, a longboat excavated from the banks of the Volga River, and the largest coin collection in Russia, sourced from the museums in St Petersburg .

The State Historical Museum is open daily from 10 am to 6 pm. The entrance fee is 700₽ per adult.

Moscow itinerary day 2

When listing the best Moscow things to do, one cannot miss the Kremlin! The Kremlin houses the current seat of power in Russia and has done so for several decades.

Within its walls, the offices of the Russian Government can be found. During Soviet rule, the Kremlin was where all the important decisions were made but its history goes back for many centuries.

The first mention of the Kremlin in history books was in 1147, however, the current citadel dates from the 16th century.

The Kremlin is one of the major fortifications found in Europe, with walls that are up to 6.5 meters thick and 19 meters high in particular sections.

Inside the complex, there are many government buildings, however, these aren't accessible to the public.

Around Cathedral Square you'll find (as the name suggests) many churches and cathedrals, such as the Cathedral of the Archangel, Annunciation Cathedral, the Church of Laying Our Lady's Holy Robe, and Ivan the Great Bell-Tower.

While Cathedral Square is definitely worth visiting, the highlight of the Kremlin is a visit to the Armoury.

Inside you can find an impressive collection of Faberge eggs, beautiful dresses worn by Catherine the Great, intricately decorated thrones used by the Tsars, and much more. Unfortunately, photography is forbidden inside the Armoury.

Practical information about visiting the Kremlin

In order to visit both Cathedral Square and the Armoury, you will have to buy two separate tickets. A ticket to Cathedral Square costs 700₽ and a ticket to the Armoury is 1000₽. Prices mentioned are for adults, children below 16 years old are free.

Tickets can be bought at the ticket office onsite on the same day, however, there's no guarantee tickets will be available, especially during peak season.

Conveniently, tickets can be bought online as well, which is highly advisable if you want to make sure you'll be able to visit the Kremlin during your city trip to Moscow.

How much time to spend at the Kremlin

Be sure to allow plenty of time to explore the Kremlin, at least half a day but it's easy to spend more time as there is so much to see.

Please note there isn't any food sold inside the Kremlin, so bring a snack and enough water (especially in summer when it can get pretty hot).

Luggage storage

Backpacks aren't allowed inside the Kremlin, they can be stored (for free) in the cloakroom, but you can bring your camera and a small purse.

We could also take our Babyzen Yoyo stroller inside, which was very convenient as our 10-month-old son could take a nap while we explored the sights.

After the original Cathedral of Christ the Saviour was demolished by Stalin in 1931, a new version was completed in 2000.

The imposing building is the tallest Orthodox Christian church in the world (103 meters high), and is beautiful on the outside as well as on the inside.

Visiting the Cathedral is free of charge and it's open any day of the week from 10 am to 5 pm (except on Mondays when the opening hours are 1 to 5 pm).

When visiting the Cathedral of Christ the Saviour it's important to dress appropriately. For men, this means no shorts or tank tops.

Women can't enter with mini skirts or shorts, strap tops, or anything too revealing. Also, women are advised to cover their heads with a scarf as a sign of respect.

Inside the Cathedral photography isn't allowed, but believe me when I say there is plenty to see. There are beautiful frescoes, colorful icons, impressive statues, and other vivid decorations.

For a beautiful view over Moscow, walk up the stairs to the 40-meter high observation deck (entrance fee 400₽).

Visit Gorky Park

Helen from Holidays from Hels : Gorky Park, named after the Soviet writer Maxim Gorky, has recently undergone extensive regeneration to become Moscow's central leisure hub for young Muscovites.

Every day of the week you can find many Moscow residents strolling along the banks of the river in the summer, hiring bikes, picnicking on the grass, or dining at one of the many restaurants.

Open-air cinemas, petanque, and ping pong are all on offer. Not to be missed is the iconic white stone entranceway and museum, complete with columns carved with Soviet hammers and sickles.

In winter, look out for the ducks waddling across the frozen Moskva River, and watch boats attempting to navigate through the cracked ice. However, the real winter highlight is to try ice skating on one of the biggest rinks in Europe!

Ice skating in Gorky Park

The park’s maze of pedestrian pathways is transformed into one huge skating rink, which can play host to up to four thousand skaters.

Not surprisingly, Russians are talented ice skaters and there is a good chance you will find yourself next to a pirouetting ballerina.

Handily, you will find you will already be wearing most of what you need – gloves, hat, scarf, and thick socks and you can hire skates on-site. Lockers are included in the price if you don’t fancy skating with your day pack.

Disco tunes fill the air, and the whole arena is backlit in spectacular neon lights. Rest your weary legs and warm up at one of the cafes dotted along the frozen pathways, with the added bonus of not having to take off your skates.

Opening times

The rink is open from 10 am until 11 pm on weekdays and until midnight at weekends but closes between 3 and 5 pm. Like most attractions in Moscow, the rink is closed on Mondays.

The prices range from 350-650₽ and go up in the evening, which is the best time for the light show. Arriving at 5 pm, just as the rink opens for the evening session will give you time to find your ice legs before it fills up with more confident skaters.

Whilst waiting for the rink to open, try out the nearby tubing track where you can shoot down a snowy hill on an inflatable ring repeatedly for a very enjoyable half an hour!

How to get to Gorky Park by metro

The nearest metro is Park Kultury Station, on the other side of the river. As always, check out in advance what this looks like in the Russian Alphabet so you know when to get off!

Bolshoi Theatre

James Ian at Travel Collecting : one of the best places to go in Moscow is the famous Bolshoi Theater, located only a short walk from Red square. Bolshoy means big in Russian, and the theatre is not only big but also beautiful.

There are two ways to see the theater: on a guided tour or by watching a performance .

Take a guided tour

English tours are held on Tuesdays, Wednesdays, and Fridays at 11:30 am. Tickets for these tours can be bought (on the same day) at the ticket office located in the Historic building of the theatre (door #12).
A ticket costs 2000₽ per person, tours last one hour, and the number of people on a tour is limited to a maximum of 20. The tour takes you inside the theater and to the historic main stage.

Watch a performance

My favorite way to see the theater, though, is to enjoy a performance and experience the theater as a patron.

The entrance is a little underwhelming when you first arrive, the street lobby is small and quite plain and you will be immediately directed up to your floor.

There are helpful attendants on each floor to guide you to the correct door. Arrive a little early and head up to the Grand Salon on the top floor where you can enjoy a glass of champagne while people-watching (Russians dress up for the theater).

Then head to your seat and take in the stunning theater before enjoying the famous Bolshoi Ballet or another performance.

Be sure to book a show at the historic stage, there is a modern stage as well but that isn't nearly as much fun.

Moscow itinerary day 3

Karen from WanderlustingK : one of the most interesting Moscow places to visit is the Izmailovsky Market .

This flea market and tourist attraction a bit outside of the tourist center is a recreation of a Tzar’s Palace, known as a Kremlin, produced in a colorful 16th-century style.

The market is filled with tiny stalls that sell everything from snacks to kitsch to authentic items from Soviet times such as hats, pins, and other pieces of memorabilia.

You'll also find authentic antiques such as vases, paintings, and other religious items if you're looking to splurge within the interior parts of the market.

Negotiating in English is not always possible as many vendors only speak Russian, so be sure to practice your Russian numbers and see how well you can do with haggling.

It's important to carry cash when you visit given that many vendors do not accept cards. We ended up purchasing a series of hats at the market, along with a beautiful hot tea glass with a metal holder with a typical Russian scene.

Elsewhere in the market, you’ll also find a few tourist shops that sell typical Russian products. It takes a few hours to see the market in full, so arrive early as the best items go quickly!

Lindsey from Have Clothes, Will Travel : Bunker-42 was once a top-secret, Soviet military complex. Stalin commissioned its construction after the United States succeeded in creating a nuclear bomb.

An impressive 65 meters (or about 213 feet) underground, was the desired depth to protect Russia’s top officials from a nuclear attack.

Bunker 42 became operational in 1954. Fortunately, it was never needed for its true purpose, and instead it was used as the command center of strategic bombers for nearly 30 years.

Nowadays it's a museum dedicated to the Cold War and visiting is a truly unique experience!

You will need to join a tour in order to see the museum. You can call ahead to book your tour (the number is: +7 499 703-44-55), there are several English tours throughout the day that are held at 13:30, 16:30, and 18:30 (the price is 2200₽).

On Mondays, there is an extra tour at 17:30, which lasts an additional 30 minutes and costs 2800₽ per person. There is also the option to book a private tour. However, I am unsure of the price for this.

You will have to wait until exactly 15 minutes before your tour begins before you'll be admitted inside. After paying for your tickets and a quick restroom stop you will descend 65 meters underground…

Another option for visiting Bunker-42, if you would rather not do the tour, is to visit the restaurant inside Bunker-42. Actually, I highly recommend visiting the restaurant before or after a tour as well!

While the food is not that great, it’s worth visiting for a drink. The restaurant is also located within the bunker and is decorated in the old Soviet style.

From time to time there will be live performances and visiting Bunker 42 is definitely an experience worth having while in Moscow! After all, how many people can say they've had a drink in a top-secret Soviet military bunker?

If you’re visiting Moscow during peak season (June-July-August), it would be worth making a reservation, to avoid having to wait. Otherwise, I would not say you need to worry about a reservation at the restaurant.

Bunker-42 is a short cab ride away from Red Square (10-15 minutes). But I recommend taking the metro to get there. The closest station is Taganskaya, which is a beautiful metro station very much worth visiting.

Pedestrian boardwalk in Park Zaryad'ye (also called Zaryadye Park)

Park Zaryad'ye or Zaryadye Park is a lovely place for a stroll and a nice place to relax after a day of sightseeing in Moscow, especially when exploring Moscow with kids.

There are many things to see and do in this park, but I recommend starting your visit at The River Overlook , a 70-meter-long boardwalk with beautiful views over the river and the Kremlin.

Other interesting places to visit in Zaryadye Park are the Ice Cave, The Museum of Nature, and The Glass Crust. But most importantly, do as the Muscovites do and find yourself a nice place in the park to sit down and relax.

Enjoy the view, do some people-watching, and take a moment to think back about all the Moscow top sights you've seen in the past couple of days.

Where to stay in Moscow

There is a huge amount of hotels in Moscow, ranging from budget hostels to exquisite 5-star hotels. Below you can find three well-reviewed Moscow hotels (rating of 8.5+ on Agoda and Booking ).

3-star hotel in Moscow: MIRROS Hotel Mokhovaya

This 3-star hotel is one of the best budget Moscow hotels and is all about location! From the hotel, it's just a 10-minute walk to the Kremlin and only 600 meters to the Christ the Savior Cathedral.

Set in a historic 19th-century mansion, the hotel features classic rooms with ensuite bathrooms.

The staff is friendly and there is a metro station nearby (Borovitskaya), making it easy to get to the Moscow attractions a bit further afield.

Click here to book

Modern hotel in Moscow: Barin Residence Myasnitskaya

The Barin Residence Myasnitskaya is a newly built hotel, located about 1.2km from the Red Square (about a 15-20 minute walk).

The rooms and bathrooms are very modern and clean, the beds are comfortable and room service is available. This hotel is an excellent choice for travelers looking for a nice hotel without a hefty price tag.

Luxury hotel in Moscow: Hotel National Moscow

Hotel National is potentially the best Moscow hotel. It's a gorgeous 5-star hotel located just a stone's throw away from the Bolshoi Theater, the Red Square, and the Kremlin.

The building was designed by architect Alexander Ivanov and completed in 1903 and has been welcoming international travelers ever since.

With its imperial architecture, luxury design, and charming classic rooms (some with a view of the Kremlin!), the Hotel National is a unique property.

Furthermore, you can enjoy an indoor pool, sauna, and fitness center as well as the well-reviewed Beluga restaurant that serves both Russian and European dishes.

While this hotel doesn't come cheap, your stay at the Hotel National will make your trip to Moscow an unforgettable experience.

Moscow itinerary and travel guide: in conclusion

I hope this guide to Moscow will help you plan a trip to this interesting Russian city. Feel free to ask any questions you may have by leaving a comment or sending me an email !

Below you can find my other posts about the Trans Mongolian Express , and the stops we made along the way:

St. Petersburg itinerary
Irkutsk and Lake Baikal itinerary
Ulaanbaatar itinerary
Trans-Mongolian Express travel guide

Planning a trip to Moscow? This detailed Moscow itinerary will help you plan your trip and discover the best things to do in Moscow. #Moscow #Russia #CityTrip

This post was updated in December 2020.

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Cold Storage Business Plan
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Cold Storage Business: How To Start Cold Storage Business?
Business Plan For Cold Storage

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small cold storage 2 room /cold store system 5×5
Solar Cold Storage Making Video (part 3) Cold Storage Plant Application
Cold Room Manufacturing

COMMENTS

How to Start a Cold Storage Business in 12 Steps
Before diving in, conduct thorough market research. Identify the demand for cold storage services in your target location and assess the competition. 2. Create A Business Plan. Starting a cold storage business demands strategic planning and careful implementation.
Cold Storage Business Plan [Sample Template]
A Sample Cold Storage Business Plan Template. 1. Industry Overview. Cold storage business is classified under the refrigerated storage industry and operators in this industry include establishments that operate refrigerated warehousing and storage facilities. Temperature-controlled services include blast freezing and tempering.
How to Start a Profitable Cold Storage Business [11 Steps]
Open a business bank account and secure funding as needed. 7. Set pricing for cold storage services. 8. Acquire cold storage equipment and supplies. 9. Obtain business insurance for cold storage, if required. 10. Begin marketing your cold storage services.
How to Open a Cold Storage Business in 2023 [Business Plan]
The cost for leasing a facility (long-term lease agreement) - is $175,600. The cost for facility remodeling and construction of cold storage warehouse - $150,000. Phone and utility deposits will cost - ($3,500) Operational cost for the first 3 months (salaries of employees, payments of bills et al) - $20,000.
A Sample Cold Storage Business Plan Template
At Prime Care Storage, our business plan is to start up our first pharmaceutical cold storage facility in Philadelphia, Pennsylvania, before opening more company-owned facilities in strategic locations across the country. d. Threats. Competition from developing cold storage businesses.
Cold Storage Business Plan Template & Guidebook
How to Write a Cold Storage Business Plan in 7 Steps: 1. Describe the Purpose of Your Cold Storage Business. The first step to writing your business plan is to describe the purpose of your cold storage business. This includes describing why you are starting this type of business, and what problems it will solve for customers.
Freezing the Competition: A Strategic Cold Storage Business Plan
On average, starting a small-scale cold storage business in the United States can range from approximately $25,000 to $70,000. This amount typically includes expenses for equipment, rental space, ... Developing a business plan for a cold storage facility is a critical step in setting up a successful operation.
How To Start A Cold Storage Business
Startup Expenses: Average expenses incurred when starting a cold storage business. Min Startup Costs: You plan to execute on your own. You're able to work from home with minimal costs. Max Startup Costs: You have started with 1+ other team members. Equipment & Supply Expenses: Cleaning Supplies: Cleaning supplies are essential products we used daily at home and in almost all places worldwide.
Cold Storage Business Plan: How to Start Cold Storage Business?
Benefits of Cold Storage Business. Starting a cold storage business in India offers multiple benefits, including the following: Minimises food waste. Provides a decent remuneration to farmers. Stores vaccines and medicines. Makes off-season produce available at reasonable rates.
How to Start a Cold Storage Business With a Good Plan
The Inherent Features of a Cold Storage Business Plan. The primary considerations for starting are cold storage business include: Eligibility. Finances. Premises. Licences and permissions. Water supply and electricity. Know-how of the equipment and maintenance. Types of cold storage.
What is Cold Storage Business
Cold Storage Business Plan - Investment, Profit Margin and Resources. Let us look into the business plan to start a cold storage business which covers all the important aspects from Investment to Profit Margin. In general, the business plan for a cold storage is little complicated to understand.
How Much Does it Cost to Start a Cold Storage Business
Costs associated with obtaining necessary permits and licenses to operate a cold storage business. $10,000. Marketing and Advertising. Costs associated with promoting the business, including website design, signage, and advertising. $5,000. Total Startup Expenses For Cold Storage Business.
Cold Storage Business Plan: Requirements, Profits & Subsidy
Typically, an initial investment of approximately 3 to 4 crores is necessary. While the investment required is substantial, it is possible to secure financing from a bank to fund the development of a cold storage business. The National Horticulture Board of India finances cold storage chains for entrepreneurs.
Cold Storage Business Plan
There are some factors that need to be focused on before finalizing which equipment are to be used for cold storage. These factors are the age of the equipment, fan, light, and product load besides ceiling, wall, floor, etc. Basic requirements for an ideal cold storage plant:-. Storage Space Humidity. 85-90%.
Cold Storage Warehouses: The Ultimate Guide
A refrigerated container is the most basic and inexpensive cold storage option for storing small quantities of temperature-sensitive products. ... If your business is one of them, you'll want to consider what services a cold storage warehouse offers before you agree to contract with them. ... This makes it necessary to have contingency plans ...
Cold Storage Business Plan
Here is a guide on how to create a solid big or small cold storage business plan and script your success: 1. Finding a Perfect Location & Purchasing the Land. The first step to implementing your cold storage unit business plan is to scout for the perfect location for setting up a cold storage unit. To maximise profits, you must establish your ...
PDF COLD STORAGE BUSINESS MODELS FROM DEVELOPING COUNTRIES
Sultanpur, Uttar Pradesh in India. The cold room is operating near a farmer retail market and helping farmers to earn a profit of about $500 - $650 per month. The main benefit of having cold storage near or at the retail market, both in Rwanda and India, is that the cold storage unit proved to be a self-sustainable business model. Farmers can ...
Cold Storage Subsidy, Loan, and Business Plan
Cold storage business can be done with an 80% loan from a nationalized bank. If the land is rented, the loan available is 90% of the total rental cost of Cold storage. Cold storage loan is a type of agricultural loan that is available to farmers, individuals, and groups of individuals who run the business of Cold storage.
Free Self-Storage Business Plan to Maximize Profit [2022]
Download a business plan template and start drafting your own self-storage business plan. Dive deep into a recent market analysis to determine any possible cash flow outcomes. Understand that your first year as a startup might be your most challenging. Read various feasibility studies, and talk to your peers in the industry.
Evolution Tower
The spiraling 246m high Evolution Tower is located on plots 2-3 of Moscow-City high-rise business district on Presnenskaya Embankment of Moscow river. New multi-function center occupies the territory of 2.5ha in area, 2ha of which is a landscaped terraced civic plaza, the integral part of the new city piazza, the central open public space of ...
Moscow, Russia skyline: the 50 most iconic buildings and ...
Saint Basil's Cathedral is a stunning and iconic landmark in Moscow, Russia. The cathedral's unique onion-shaped domes and vibrant colors make it one of the most recognizable buildings in the world. The cathedral was built in the 16th century under the orders of Ivan the Terrible and is located in Red Square.
Moscow Itinerary: How To Spend 3 Days In Moscow
Winter in Moscow is cold, and I mean seriously cold (-15°C isn't rare). However, if you can withstand the subzero temperatures and freezing winds, it can be a magical time to visit. A snow-covered St. Basil's Cathedral is a sight you will never forget. Keep in mind that days are short in winter and be sure to bring plenty of warm winter clothes!
PDF Upward Spiral: The Story of the Evolution Tower
This bespoke self-climbing formwork system achieved an impressive maximum framing speed of six days per fl oor, with an average speed of seven days per fl oor. The 12 concrete columns and central core are supported by the 3.5-meter-thick raft over piled foundations. It took 48 hours to pour 8,000 cubic meters of concrete for the raft.

How To Start a Cold Storage Business – Complete Guide

What is a Cold Storage Business?

Key Components of a Cold Storage Business

b) Logistics and Distribution

c) Monitoring and Security Systems

d) Customized Storage Solutions

e) Technology Integration

f) Compliance with Regulations

g) Collaboration with Stakeholders

h) Energy Efficiency Measures

i) Risk Management Strategies

Is Cold Storage a Profitable Business in India?

Benefits of a Cold Storage

⇒ Preservation of Freshness

⇒ Prevention of Spoilage

⇒ Extended Shelf Life

⇒ Market Accessibility

⇒ Supply Chain Efficiency

⇒ Global Trade Facilitation

⇒ Quality Retention

⇒ Diversification of Products

⇒ Reduced Post-Harvest Losses

⇒ Adaptation to Climate Variability

12 Steps to Start a Cold Storage Business

2. Create A Business Plan

3. Obtain The Permissions & Licenses

4. Secure A Location

5. Cost of Starting a Cold Storage Business

6. Arrange Finance

7. Cold Storage Business Subsidy

8. Setting Up Your Cold Storage Facility

9. Procuring Equipment and Technology

10. Fix Pricing

11. Staffing

12. Promote Your Cold Storage Business

Frequently Asked Questions

How can one secure funding for initiating a cold storage venture?

Are there specific regulatory requirements for establishing a cold storage unit?

What are the critical considerations for choosing a suitable location for a cold storage facility?

How can technology be integrated for operational efficiency in a cold storage business?

Are there specific types of products that can be stored in a cold storage unit?

What are the key challenges faced by entrepreneurs in the cold storage business?

How can one stay updated on advancements in cold storage technologies?

Is there government support available for cold storage businesses in India?

What is the expected return on investment (ROI) for a cold storage business?

Cold Storage Business Plan [Sample Template]

Why Start a Cold Storage Business?

A Sample Cold Storage Business Plan Template

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

Generating Startup Capital for ZERO® Cold Storage Company, LLC

14. Sustainability and Expansion Strategy

Related Posts:

A Sample Cold Storage Business Plan Template

Steps on How to Write a Cold Storage Business Plan

Company Profile

b. Nature of the Business

c. The Industry

d. Mission Statement

e. Vision Statement

f. Tagline or Slogan

g. Legal Structure of the Business

h. Organizational Structure

i. Ownership/Shareholder Structure and Board Members

SWOT Analysis

b. Weakness

c. Opportunities

i. How Big is the Industry?

ii. Is the Industry Growing or Declining?

iii. What are the Future Trends in the Industry