Tips and Capital for Running a Banana Fritters Business, the Favorite Snack of Millions of People

The banana fritters business offers promising opportunities for business people. With small capital and affordable raw materials, this snack is an attractive choice for the culinary business. 

Interested in starting this business? The BFI Finance team is ready to help you! This article will thoroughly examine the banana fritters business opportunities, starting from a SWOT analysis to the risks that may be faced.
 

1. SWOT Analysis of Banana Fritters

Before starting a business, it is important to carry out a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) so that you can understand all aspects of your business. The following is a SWOT analysis of this fried banana business according to the BFI Finance Team:
 

1.1 Strengths

• Popular: Bananas fritters are a popular snack that is loved by many groups. This means the potential market is large and continues to grow along with increasing consumer demand for traditional snacks.
• Affordable Raw Materials: Raw materials such as bananas and flour are easily available at affordable prices. This allows you to keep production costs low, thereby offering competitive prices to consumers.
• Easy Making Process: No special skills are required to make delicious banana fritters. With a simple recipe that is easy to find on any platform, anyone can produce delicious fried bananas and maintain consistent taste quality. You can look for menu inspiration on YouTube or Google. 
• Availability of Raw Materials All Year Round: Bananas are a fruit that is available all year round in Indonesia, so there is no dependency on certain seasons for those of you who are just starting a business or who are already running a business.

1.2 Weaknesses

• Intense Competition: The large number of banana fritters sellers indicates that there is intense competition in the market. You have to find ways to differentiate your product to attract consumers' attention.
• Quality Must Be Maintained: If quality is not consistent, customers can switch to another seller. It is important to maintain the quality standards of your products so that customers do not turn away. For example, the taste of this snack really depends on the type of banana used. Does the banana have a high or medium sweetness level? It could also be that the quality of banana fritters is determined by the density of the bananas used.
• Dependence on Weather: Even though bananas do not know the season or weather to be harvested, when the rainy season arrives, these conditions can affect how you sell. If you decide to sell offline, it might be a good idea for your business to have an alternative way of selling via online orders.

1.3 Opportunities

• Product Innovation: Developing new variants, such as Nutella Banana Fritters, Tiramisu Banana Fritters, or other interesting variants can attract more customers. This innovation can also create new trends and increase the attractiveness of products in the eyes of consumers.
• Market Expansion: With the right marketing, you can reach a wider market, including through online platforms. This opens up opportunities to sell your product to not only be known in one city, but in many cities in Indonesia.
• Collaboration with Cafes or Restaurants: You can offer your business to cafes or restaurants that have the opportunity to sell banana fritters as an appetizer or dessert. This opportunity can help you expand your business networking and increase sales significantly.
• Participation in Culinary Exhibitions: Participating in culinary exhibitions can increase the visibility and reputation of your business, as well as attract more potential customers. Find out as much information as possible about culinary exhibitions and adjust it to your needs and budget.

1.4 Threats

• Raw Material Price Fluctuations: Prices of bananas and other ingredients can fluctuate, affecting production costs. The rise and fall of banana prices is influenced by market demand. If banana production is too large, but not balanced with balanced purchases, then the price of bananas will fall. Vice versa, the price of bananas will rise if demand for bananas exceeds the stock of bananas on the market. Apart from that, the price of banana raw materials can also be influenced by the harvest season, transportation costs between cities, production costs such as fertilizer, and others. You need to monitor market conditions regularly and adjust your strategy to stay competitive.
• Changes in Consumer Tastes: Food trends can change, so you need to continue to innovate so that your products remain in demand. You have to be able to think of the thousands of banana fritters businesses that exist, what can make your product unique or different compared to competitors. Whether from the taste, processing method, packaging or other factors. You should always pay attention to market trends and consumer behavior to adapt your products.
• Government Policy: New regulations regarding MSMEs can affect business operations. For example, regarding minimum employee wage standards, business permits, and others. Stay updated with the latest government policies and be ready to adapt to existing changes.

Also Read: 10 Easy and Profitable FnB Franchise Business Ideas

2. Banana Fritters Business Capital

Capital is one of the important things that needs to be considered before starting a business. This is done to ensure business operations run smoothly and avoid financial problems in the future. The following is an estimate of the initial capital for a banana fritters business, based on several sources: 
 

2.1 Equipment

Includes items that can be used for a long period of time: 

• Stove and Gas Cylinder: Rp. 500,000
• Knife: Rp. 20,000
• Jumbo Pots & Pans: Rp. 300,000
• Cutting board: Rp. 100,000
• Jumbo Oil Filter: Rp. 100,000
• Jumbo Plastic Bowl: Rp. 200,000
• Cart: Rp. 5,000,0000

TOTAL EQUIPMENT: IDR 500,000 + IDR 20,000 + IDR 300,000 + IDR 100,000 + IDR 100,000 + IDR 200,000 + IDR 5,000,000 = IDR 6,220,000

2.2 Initial Raw Material Costs

The initial raw materials depend on the number of fried bananas you want to sell. Assuming sales of 40 portions in 1 day and 2 holidays a week, the following is an estimate of the initial raw material cost:

Estimated sales:

• 40 servings (1 day) x 5 days = 200 servings *two days off
• 200 servings x 4 weeks = 800 servings 

Assumed servings:

• 1 portion consists of 6 pieces of crispy banana
• 1 slice of crispy banana made from ⅙ of a whole kepok banana. That way, 1 portion of banana fritters requires 1 whole kepok banana
• In 1 banana comb there are an average of 12 bananas

Based on the assumptions above, the total raw material costs for 800 portions of banana fritters are: 

• 1 banana comb (Rp. 27,000) for 12 servings, so 800 servings require 67 banana combs. So, IDR 27,000 x 67 = IDR 1,809,000
• 1 kg of flour (Rp. 15,000) for 5 portions, then 800 portions require 160 kg of flour. So, IDR 15,000 x 160 kg = IDR 2,400,000
• 500 grams of rice flour (Rp. 7,000) for 10 portions, so 800 portions require 40 kg of rice flour. So, IDR 7,000 x 40 kg = IDR 2,800,000
• 1 kg baking powder (Rp. 72,000) for 200 portions, so 800 portions require 4 kg baking powder. So, IDR 72,000 x 4 kg = IDR 288,000
• 1 kg of salt (Rp. 15,000) for 200 portions, so 800 portions require 4 kg of salt. So, IDR 15,000 x 5 kg = 75,000
• 2 kg of butter (Rp. 150,000) for 100 portions, then 800 portions require 16 kg of butter. So, IDR 150,000 x 16 kg = IDR 2,400,000
• 1 gallon of water is 19 liters (Rp. 21,000) for 60 portions, so 800 portions require 14 gallons. So, IDR 21,000 x 14 gallons = IDR 294,000
• 1 plain packaging (Rp. 600), then the total packaging for 800 portions is 800 pieces. So, IDR 600 x 800 = IDR 480,000

TOTAL INITIAL RAW MATERIAL COSTS: IDR 1,809,000 + IDR 2,400,000 + IDR 2,800,000 + IDR 288,000 + IDR 60,000 + IDR 2,400,000 + IDR 294,000 + IDR 480,000 = IDR 11,531,000
 

2.3 Initial Operating Costs

The following is an estimate of the initial operational costs of a fried banana business. Assume you open this business in a shophouse or booth:

• Employee salary (2 employees) IDR 700,000 (per employee) x 2 = IDR 1,400,000
• Electricity and water: Rp. 500,000
• Booth or shophouse rental: IDR 1,500,000
• Cleaning & fees: Rp. 100,000

TOTAL INITIAL OPERATIONAL COSTS: IDR 1,400,000 + IDR 500,000 + IDR 1,500,000 + IDR 100,000 = IDR 3,500,000

TOTAL INITIAL CAPITAL FOR BANANA FRITTERS BUSINESS: 

IDR 6,220,000 + IDR 11,531,000 + IDR 3,500,000 = IDR 21,251,000

Also Read: 8 Tips for Starting a Fried Food Business along with Details of Capital

2.4 Estimated Profit

Let's calculate the potential profit from your banana fritters business based on the data that has been collected. The following table estimates the profits and the explanation:

Example of selling price calculation:

• Production costs per portion: IDR 11,531,000 / 800 portions = IDR 14,413.75
• Operating costs per portion: IDR 3,500,000 / 800 portions = IDR 4,375
• Total cost per serving: IDR 14,413.75 + IDR 4,375 = IDR 18,788.75
• Assumed 30% profit: Selling price = IDR 18,788.75 x (1 + 30%) = IDR 24,424.38 (round to IDR 25,000)

So, assuming a profit of 30%, the selling price per portion of your products could be around IDR 25,000. To reach the break-even point or start making a profit, you need to sell a certain number of portions to cover all the costs incurred.

Simple calculation:

• Total cost: IDR 21,251,000
• Selling price per portion: IDR 25,000
• Number of portions that must be sold to return capital: IDR 21,251,000 / IDR 25,000 ≈ 850 portions

This means you need to sell around 850 servings of banana fritters to cover all initial costs.

Disclaimer: the calculations above are estimates. There may be differences in the raw materials used and the selling prices of raw materials. This calculation was made with the aim of being an educational tool.

3. Risks and Strategies for Overcoming the Risks of the Banana Fritters Business

Every business has risks, including this type of business. Therefore, a strategy to overcome this risk is needed. The following is a summary of the risks and strategies for overcoming risks in the banana fritters business that you can apply:

The banana fritters business can be a profitable business option if managed well. By understanding SWOT analysis, preparing sufficient capital, and anticipating existing risks, you will be one step ahead in running a banana fritters business. 

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If you are interested in starting a banana fritters business, but need additional business capital, BFI Finance can be your solution. BFI Finance offers cash loans for business capital needs with collateral for motorbike BPKB, car BPKB and house certificates with competitive interest rates and long tenors. Enjoy a fast financing approval process if your document requirements are complete and pass the consumer eligibility assessment. Don't worry, because BFI Finance is licensed and supervised by the OJK. 

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