How To Start A Rice Distribution Business In Ghana

Are you interested in starting a rice distribution
business ?

Do you need a sample rice retail store
business plan template ? If YES, then we advice you read
on.

Rice is the most consumed staple food in the whole
world.

This shows that any rice related business anybody
invests in; whether rice farming, rice hulling service, or
wholesale distribution of rice will definite have a ready
market for the product or services.

We will focus on rice
distribution business in this article including why you
need to start a distribution business and how to get
started and become a big time wholesale distributor of
rice.

As a wholesale distributor, your duty is to serve as a
distribution link from the rice farmers to the retailers.
Most retailers do not have the capital required to
purchase in bulk quantities from the rice farmers.

It is the wholesaler or distributor that will buy in large
quantities and sell in smaller bulks to the retailers; so the
service of a distributor is needed in order to get the rice to
its needed locations.

With the rate rice is consumed
around the world, getting retailers to supply to will not be
a problem at all.

4 Things You Need to Start a Rice Distribution
Business

In order to start and run a smooth distributor business,
you need to get the following things in place;

A Supplier-: This should preferably be a rice farm
because as the wholesale distributor, you need to buy
from a source where you can get the rice in very large
quantity and at the cheapest possible rate, so that you
can still make profits after spending for the logistics
involved in getting the rice from the supplier to the
retailers.

Warehouse-: Most times, you don’t get to sell of the
whole bulk of supply you get at once to the retailers
because there may be times when the market demand
may be low, that is when you need a warehouse to
store your rice until you are ready to ship out to
retailers.

Capital-: To become a wholesale distributor, you need
to buy in very large quantity from the rice farmers and
sell in smaller bits to the retailers; so starting a rice
distribution business requires much capital.

The only
exception is if you have a mutual understanding and
agreement with the farmers where they supply you the
goods on credit sales, you sale to the retailers and
pay them off as soon as you are done with the sales.

Transportation-: As the distributor, you may have to
be in charge of transporting the rice from the rice farm
to your warehouse or delivery to customers when
orders are placed.

You may need to get few trucks to
handle the distribution process or you can strike an
agreement with a logistic company to take care of the
transportation process.

With these four factors in place you are now set to start
your distribution business.

The next subsection will be on
how to start a rice distribution business.

Starting a Rice Retailing/Distribution
Business – Sample Business Plan Template

1. Carry out Feasibility Study-: In as much as any rice
business have an available market, you still need to
conduct a feasibility study on the demand of rice in your
location.

You need to find out if there are retailers who
are available to buy your rice produce and how fast they
sell out to consumers.

This will help you have an idea of
the market you have in your location; though you are not
subjected to a particular location as a distributor because
you should be able to distribute fast and wide within and
outside your country wherever there is demand for your
produce.

2. Get the Necessary License Required to Become a
Distributor-: You may be required to get some sort of
license in order to operate as a wholesale distributor in
some states.

Find out the license and other legal
formalities applicable to your state and get them.

3. Get Your Supply of Rice from the Rice Farmers-: After
you are done with your feasibility study and you are sure
that there is an available market for your produce, it’s
time to contact your supplier to supply the first
consignment of produce for you.

When you get the
produce, you can choose to repack them to become your
own brand.

The branding may involve packing the rice in
personalized sacks.

4. Promote Your Products to Retailers Around-: At this
stage, you are done with the licensing, supply and
branding, its time to find retailers and promote your
product to them.

Chances are that they already have other
distributors they buy from, so you have to give them
reason to patronize your products; some incentives you
can give to retailers to make them buy from you includes:

Free Samples-: Some retailers maybe afraid to order
from new distributors whom they don’t know the
quality of rice they have to offer; one to get around the
issue is to offer a small bag of rice; lets say 2kg as
sample to any retailer who feel is a potential
customer.

Discount-: You can also offer to give some
percentage discount for any distributor that will order
a certain number of bags, or that can refer other
distributors to buy from you.

Free Delivery-: You can offer to give retailer free
delivery services to any destination of their choice, if
they can order for a certain number of bags of rice
from you.

Payment on Delivery-: You can offer this service to
retailers who are in another location to build their
trust; you ship out the produce and they pay once they
get to see it.

Credit Supply-: When you succeed in getting few
regular retailers that large customer base, you can
make a deal to supply them on credit for them to pay
back after sales.

5. Accounting-: When the business is up and running, you
need to have a good accounting system to keep track of
income and expenditures.

This will help you keep track of
the business progress and to make amends in financial
structures when necessary.

On a final note, this rice delivery business is very viable
for anyone who wants to make quick turnover on his
investment within the first few years.

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