- 1 Steps on How To Start Food Supply Business in Nigeria
- 1.1 Carry out market research
- 1.2 Write your food supply business plan
- 1.3 Choose the product to sell
- 1.4 Learn the trade and choose a location
- 1.5 Choose a location
- 1.6 Things to Consider When Renting a Shop for Food supply Business in Nigeria
- 1.7 Buy the products And Start marketing
- 1.8 Start Selling Your Food Products
- 2 Reasons Why Raw Food Business is Profitable in Nigeria
- 3 Conclusion
If your looking for a very profitable business to venture into in Nigeria, food supply business is a good one as it is a very lucrative and a daily income business which deals with everyday products that people cannot do without as every person needs to eat food to fill our empty stomachs, give us strength and also nourish our body with the good nutrients needed to make us grow. Here is a guide to starting this business in Nigeria.
Inspite of the oil, agriculture remains the base of the Nigerian economy, providing the main source of livelihood for most Nigerians. Though, the sector faces many challenges. With these,agriculture still remains the largest sector of the Nigerian economy and employs two-thirds of the entire labour force.
Food supply business is a lucrative one with lot of people making it from the business.
The business involves buying and selling of food stuff in demand. You buy at a cheaper rate, sell at a higher rate and the rest is up to you. That include managing your fund, scaling the business and other management activities.
If you are interested in making money through buying and selling of food stuffs in Nigeria then read this article, it will serve as a guide on how to start.
Steps on How To Start Food Supply Business in Nigeria
Carry out market research
To run the business properly, you will need to understand the market or industry that the business belongs to. A good market research can help you achieve this. You can interact with potential customers and find out the viability of your business. The market research also involves engaging in a series of investigations about your competitors. This will give you insight into the potential threat they pose to your business, in addition to their strengths and weaknesses. You can also get the counsel of other successful business owners. All the feedback from the market research will be valuable in creating a solid business plan.
Write your food supply business plan
A business plan is an important document in the formation of a business. This Is always a very important step as It contains all your plans for your business future and the steps you will take to attain whatever goals you set for your business. Your business plan should also have all the important details about your business. Ensure you spend time getting a concrete business plan for your business.
Choose the product to sell
The next step toward starting this business is making a choice on the food item to sell. There are variety of food products to sell. You can go for beans, maize, guinea corn, soya beans, yam, cassava, rice etc.
Generally, the food item should be the one with high demand in your area or your market of choice. This will ensure that you sell off your products as soon as you buy them and this is needed for the success off the food supply business. If you go for a product that of less demand then you are going to find it really difficult in the business.
Learn the trade and choose a location
You might think the business is easy but it is not until you know it in and out.
Firstly, you should have a knowledge of the product you want to supply before going into the business . By so doing, you will get to know the market you can get the product from and the rate you would sell to make profit.
You will also learn the tricks associated with the food business. Every business has a trick associated with it and this business is no exception. You wouldn’t understand until you ignorantly go to buy beans and they fill the top of the sack with good ones and what is at the bottom is a mess. That is when you would know you don’t need just money to excel in the business.
Choose a location
After learning, the next step is choosing a location for your business. it should be in a place where that product is in high demand.
This is needed so you can easily sell your goods. You can start the business by renting a shop and using your house as a warehouse till your business is big enough and you have enough money to rent or own a warehouse. This is important because you cannot afford to expose your products to things that will destroy them. When you rent a shop for your foodstuff business, you are able to protect your products from rain which can cause massive spoilage, from the sun which is not also good, and lastly from rodents.
Things to Consider When Renting a Shop for Food supply Business in Nigeria
A. Consider Location
You need to consider location and this is because it has a lot to do with how customers can easily locate you. When it comes to choosing a location you need to consider where thousands of likely customers will pass every day.
B. Money for Rent
After deciding your location, you also need to consider how much you will pay for rent at least for the first few months. This money is often taken from your capital and to make it logical it Shouldn’t be more than 20% – 30% of your capital.
For example, if the capital you have set aside for your foodstuff business is #2 million this means the money for the yearly rent for your foodstuff shop must not exceed #300 to #400 thousand.
C. Consider Space
You also need to consider the spaces I.e. if it is spacious enough for your products, if it will be able to contain more products in the nearby future when the business starts growing?
Buy the products And Start marketing
After the above steps, you can then stock up the product of your choice and start selling. Marketing is at the top of this business. usually, when you are doing the business on a large scale, you will need a vehicle to transport the goods from the market to your warehouse.
Make sure you are buying from the right source either you are buying directly from the farm or from a wholesaler. He/she must be a trusted person who has built his or her reputation over the years and has gathered experience.
The food products should be well placed in your store so as to remain in good condition till you sell them. This is why when you are about stocking your products, you are to make sure the floors of the store are dry enough and you should not place the foodstuff on bare grounds but on planks. The best planks to place food products on is pallets – the wooden pallets that come with goods from the seaports. These wooden pallets are bought from ports and laid on the floor before placing the foodstuffs.
Also, make sure the food products are not resting on the wall so that when rain falls they won’t get spoilt. After proper placement of the foodstuffs in your shop the next thing you should do is to do an inventory of all the food Products. This is to make sure all the food products bought are complete and none was missing during transport.
Start Selling Your Food Products
At this point, you can inform your friends and family about your new business so that they can start patronizing you from day one. Also because of where you are located, you will be able to start selling your foodstuffs immediately you open.
To draw potential customers closer to you, you can reduce the price of your product just a bit. For example, if a paint of garri is sold for N500 in that area you can sell your’s for N480. This will attract traffic of customers to your shop. Also, develop a good relationship with your customers.
Reasons Why Raw Food Business is Profitable in Nigeria
A. Raw food business is profitable in Nigeria because you will be buying in bulk and selling to small quantities. This always happens no matter the capital you use in starting your foodstuff business in Nigeria it just depends on how much small quantity you sell.
B. Another reason why food supply business is lucrative in Nigeria is the fact that it is an everyday business as customers will not be able to retain foodstuff for a long time thereby always have the need to buy from you all the time.
C. Finally, it is a profitable business because even the waste products of the foodstuff are useful. You can also make money from the waste products of your foodstuff by selling it to people who buy agricultural waste in Nigeria.
Also, it can be sold as animal feed to those who rear animals. Examples are those in goat farming, cow farming, and ram farming even poultry.
How to get capital for foodstuff business
The best way to start your foodstuff business in Nigeria is to self-fund the business yourself but if you don’t have such capital at hand and you really need helping hands make sure you borrow the money from reliable people you know will not disturb you about the money on regular basis.
List of products for food supply business in Nigeria
When it comes to starting a food supply business in Nigeria there is a list of food products you can sell. This is because they are high in demand. Nigerians love these food products because they can be used to prepare different delicacies.
- Guinea corn
- Garri (White and Yellow)
- Cocoa yam
- Irish Potato
- Dried grinded Pepper (Ata gungun)
When it comes to starting a business like foodstuff business in Nigeria, you have to properly plan on how your business will grow if possible, have branches, see into the future, and aim higher. Don’t be driven by your everyday profit and therefore remain stagnant.