Regional produce wholesaler with cold storage

Restaurants, grocery stores, caterers, schools, hospitals and other food service buyers that order weekly in volume.

You buy in volume from farms and sell by the case or pallet at a markup, earning a margin on each order. Standing weekly orders from steady customers help make income predictable.

• Buying and pricing produce
• Managing inventory and cold storage
• Route planning and driving
• Building long-term customer relationships
• Basic bookkeeping

• Food safety rules for storing and transporting produce; check FDA requirements and your state's wholesale food license or registration
• Federal PACA license rules for produce dealers above certain purchase amounts; check with USDA before you start buying
• Spoilage losses and cooler equipment breakdowns
• Commercial auto, general liability and product liability insurance; workers' compensation once you hire drivers or warehouse help
• Buyers may pay on 30-day terms, so plan your cash flow, and budget working capital to buy stock before customers pay you

Estimates are typically around $80,000 to $250,000, depending on your warehouse or cold storage space, your refrigerated vehicle, and the working capital you need to buy stock before customers pay you.

Monthly revenue is typically estimated at around $10,000 to $50,000, depending on how many restaurants, grocers and institutions you supply and how much they order. Revenue is not profit, so plan for your costs.

Check FDA requirements and your state's wholesale food license or registration for storing and transporting produce. Also check with USDA about federal PACA license rules for produce dealers above certain purchase amounts before you start buying.