The team from City Circle Group arrived at the Charleston Road site on Monday and expected to have dismantled all silos over the course of Thursday, developer Mark Ward said.

"One of the guys told me they are crumbling like tissue paper against the force of this massive machine they have brought in," he said.

Crews demolished one roughly 25 metre high silo in just over 20 minutes early on Thursday afternoon, using a specialist machine brought in for just that job.

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The silos' destruction marks the start of early preparation works for an Amazing Mill Market antiques and collectables venue and other businesses that could soon populate the site.

Only structures with no heritage significance will go, Mr Ward said.

"All these demolitions will do is highlight the glorious building in that five-story flour mill, which is what we want to do," he said.

"We don't want it surrounded by 30 or forty year old industrial structures that hold no historical relevance whatsoever."

Developers remain in discussions with Heritage Victoria about how to treat heritage structures that will remain but Mr Ward said talks now centre on comparatively minor structures.

"We still have to go through and do our due diligence," he said.

Mr Ward wants to install a museum on part of the huge site paying tribute to past uses, along with a slew of other ideas.

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He has earmarked the flour mill for a range of potential businesses including hospitality and short-term luxury accommodation.

A separate three-storey building nearby would likely have room for several food and retail venues, as well as high-tech office space.

"It's a whole complex. The site covers several acres and is in a prime position, so there's certainly no overkill as far as the development is concerned," Mr Ward said.

"We want something that is worthy of the site."

The Mark Ward Property Group revealed plans for the multi-million dollar site transformation last year in what was regarded as a major coup for Bendigo's tourism industry.

That includes an Amazing Mill Market.

A similar market in Daylesford currently brings in 1000 visitors a day, Mr Ward said, with others in Geelong and Ballarat.

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