Foodstuff business is one of the hottest trending business in the food industry in Nigeria with a continuous growth. You might not know how profitable starting a foodstuff business in Nigeria can be. But opening this business is the best decision ever.
Like any other businesses, Foodstuff business requires adequate research and planning to get started. However, it requires inspections, market analysis and marketing strategies before venturing into this food industry.
Starting a foodstuff business in Nigeria has enormous contribution to your area. Foodstuff business entails about providing a place to buy healthy food related products like beans, rice, millet, corns, etc.
How To Start A Foodstuff Business In Nigeria
Below are some things to consider when starting a foodstuff business:
1. Choose Your Niche
You have to decide the type of foodstuff you want to sell. Here are variety of foodstuff related options to consider; beans, rice, millets, garri, corns, tomatoes, crayfish, baking materials. You can focus on specific markets like baking materials, pepper and tomatoes niche, etc.
2. Conduct Market Research
It is very important to conduct a market research before starting a foodstuff business in Nigeria as the food industry is very competitive. Market research gives you an opportunity to analyse the food industry and a grab what works and what doesn’t work. If you can’t conduct a market research, use the people you know to analyse what works most in your area of specification.
3. Prepare A Good Business Plan
Draft out a long and short term business plan that can guide your business. This does not only help you to develop your business but it is important for securing finances, insurance and investors. Write out the aims, goals and objectives for your foodstuff business, and also the type of finance that will be needed, and how it will help your business. Also attach your marketing strategies and how to workout with it in your business plan.
Your business plan is essential to take a vague idea for your foodstuff business with a more solid plan for accomplishing it. If you are not experienced in creating the best business plan for your business then you will need the service of an expert to help you out.
4. Register Your Business
If you are planning to expand big, it will be a good idea to register your business as customers tend to trust a registered business. Also obtain permits and licences for your foodstuff business. Ask local authorities about the required steps needed. You can consult other foodstuffs seller as to ensure you obtain the right licences and certificates.
The requirements for permits and licences varies from state-to-state. However, you will probably need proof of ownership, record-keeping, inspection report, etc.
5. Buy A Delivery Truck
Though, it depends on the scale you want to run your foodstuff business, if eventually you decided to provide a delivery services you will need to buy a delivery vehicle for that. Buy vehicle that can carry your supplies and serve your customers, Note that: having a vehicle can help in attracting more customers and making the work easier for you.
If your capital isn’t enough to purchase a vehicle you can consider hiring (renting) a used vehicle in order to save out some cash.
6. Getting A Supplier
You will need to work with suppliers to supply food stuff to your shop. Investigate by calling multiple suppliers and ask questions about their price rate then check out the best rate that fits your criteria, Ensure that the quality of the product to be supplied are good as well as the quality of their services.
The best way to negotiate and also making more profits is by buying in bulks from suppliers. Shop at warehouse or companies that sell foodstuff in large quantities. It is very important to buy in bulks before selling to your customers if eventually you want to make a reasonable profit.
Don’t forget to establish a good customer relationship and services with your customers, so that there will be a sincere transactions always.
7. Setting Up Your Own Price
This is very important to all foodstuff sellers. At this point, you need to setup a price structure for your foodstuffs.Your charges should be estimated to cover all operational cost and to make profit. Also figure out the ranges of prices from other foodstuffs sellers in order to fit in your own price. This is one of the factors to consider before setting up your food stuff price. Ensure that they are related and similar to other foodstuff vendors in your area.
8. Set Up Your Payment Structure
After setting up your prices and cost for each foodstuff, Establish an invoicing and payment system. You have to come up with the payment system and how to give out receipt for payments (any transaction). Be transparent in your prices with your customers and vendors.
9. Hire Staff
Depending on the scale, most especially your capital for projection, You may need a helping hands to run your foodstuff business. So you have to hire potential employees to assist you in the business.
10. Implement Your Marketing Strategy
Social media and word-of-mouth are the major key marketing strategies to implement. Hooking your potential customers with the best prices and discounts can help attract a wide array of customers. Maintain a strong and good customer relationships so as to attract more clients. Always pay close attention to your customer’s demands and suggestions, And eventually know how to correct some of your services.
Cost Of Starting A Foodstuff Business In Nigeria
Foodstuff business is a fast-growing trend in the food industry in Nigeria. And thereby the exact amount needed to start a foodstuff business varies according to the processes it took before being established. Starting a foodstuff business in Nigeria might cost between $750 to $8000 on a minimum startup cost.