You can learn how to start a Foodstuff Business in Nigeria, because that is one of the best ways to make money in the current economic situation. If you have been making plans to start a foodstuff business in Nigeria, then you will need some of the ideas in this platform.
I’ll be introducing everything you need to know about how to start this type of business in Nigeria. To find out more about this keep reading.
First of all, there are some many important things you need to understand before venturing into this business. You will have to think about the type of food stuffs you want to sell.
Will it be food stuffs for cooking soup and swallow or stew, rice, beans, plantains and yam? Is it palm oil, groundnut oil, frozen foods, vegetables and other groceries? Or do you want to sell other smaller ingredients for cooking local or foreign food? These are the questions you have to answer before starting food stuff business.
All these kind of business mentioned above is also known as the raw food business, and it is profitable in Nigeria. If you choose to begin any of this business, you can get a daily income. There’s a guarantee to make profit everyday in the foodstuff business because people must eat no matter how poor they are. It is far better to earn every day than to get a monthly salary.
You can still make a living, even if you start small but have many costumers. And as time goes on, your customers number will increase. Since it is not a get rich quick skim, you have to prepare well, learn the business and have patience. Still, if you want to begin a business foodstuff in Nigeria, you need to make sure you have necessary knowledge and information about the business before you get started.
How Much Money do you Need To Start a Foodstuff Business in Nigeria?
Before starting up this foodstuff business, it is very important to ask questions about the type of foodstuff business you want to venture in. Be sure you can handle the type of business you chose.
Do a market survey, business plan and a physical feasibility study before buying any goods. It is also good to know how much capital you need and the profit margin that will come in from the goods you will buy. Please make sure you complete all these process before you proceed into this type of business either in an open market or on the the street.
Anyways, the more money you have as capital, the more the profit opportunities you will make. You can start your own foodstuff business with as little as N100,000 to N500,000. If you want to start big, you need from N1,500,000 to N3,000,000 or more. To be a foodstuff distributor, you’ll need N10,000,000 and above.
However, you can start small, dealing only with final consumers. As time goes on, you can grow up gradually to dealing with high-demand products as well as the wholesale & retail costumers.
What you Need to Start Foodstuff Business in Nigeria as a Beginner
The best way to start your foodstuff business in Nigeria is to self-fund the business. But if you don’t have such capital at hand and you really went to start the business, you can raise funds from family members.
It is not a good idea to take any type of bank loans to start a new business, but you can apply for loan for business expansion. Try to start the business with your own money first, then get the first hand experience before seeking for outside financial help.
In this section, I’ll be telling you the necessary things you need to do before you start. Keep scrolling, because you’re about to find out.
- Do your Market Survey and Feasibility research.
- Get your Capital Needed to start the business
- Register a Business name with CAC
- Rent a Shop to Sell your Foodstuff.
- Considerations Before Renting Shop.
- Buy your Foodstuff in Bulk from distributors.
- Stock Foodstuff in your Shop in selves or table.
- Start Selling Foodstuff to consumers.
- Always improve your Raw Food Business Ideas.
Many people will say it’s not important to register your foodstuff business since you’re starting small, hmmm, I just laugh at them. It is very important to register you local business with the appropriate unions too to avoid embarrassments. Make all government payments using Remita Online Portal. File all your financial reports with FIRS (Federal Inland Revenue Service) using your TIN (Tax Identification Number).
I have previously published all the Benefits of Registering your Business Name with CAC (Corporate Affairs Commission). The info there will help you during a loan application process. Please read it before you continue scrolling down. There are some vital information you will get there.
Carry Out Market Research On Foodstuff Business
Before starting a foodstuff business in Nigeria, one of the most important thing you need to do is to carry out a research about the business. To be sincere, this procedure will give you a little or big idea and knowledge about how this type of business works. Also, you need to know about products types, prices, where to buy goods from and what products are in high demand.
What is The Perfect Approach To Foodstuff Business in Nigeria?
To start a foodstuff business in Nigeria, several important steps must be taken. These include conducting market research to identify the target market, securing a reliable supply chain for your products, obtaining the necessary permits and licenses. Do not overlook location of your shop, store for storage or warehouse.
Make sure that you develop a strong marketing strategy to attract new customers is also a good approach to succeed in the business. I will explain more in the sub-headings below:
Protect your Goods Suppliers
You can also protect your business from a potential supply chain disruption by stocking up on necessary items over time. Stocking up means you’ll need extra storage space, but it can pay off if the shop is full. You know how Nigerians like buying goods from a full stocked-up shop.
If you have a store filled up with essential items, your business may be able to get through several months of without disruption. Trust me, this brings more dividends down the road.
Look for a Good position to Start Your Business
First, consider who your customers are and how important their proximity to your location is. Register your business on Google Map so that people can see it online too. For example, when customers search for closest Groceries store near me, they will see your shop easily on the map, locate it and patronize you.
Furthermore, you can write down your opening and closing time for customers to know when you are open for business. Remember to always update and manage your Business Profile on “Google My Business“. It will provide you with all the essentials for getting your business noticed on Google Search.
For a retailer and some service providers, getting a good shop position is one of the thinhs you need to consider when starting a foodstuff business in Nigeria. If you do so, you’ll be able to make sales and also find new customers walking into your store each day. Take these into consideration and thank me later.
Establish a Business Place and gain ground
Choosing a business location is not something that can be done in a hurry because you will stay there for a long time. Therefore, I urge you to take this critical step seriously before starting the foodstuff business.
First things first, the business location you choose will depend on the type of business you operate. Business parks, shopping malls, strip malls, professional buildings, and others are all designed to meet the specific needs of various businesses. So, choose wisely.
Start Dealing with Foodstuffs and sell to customers
Now, when you’re able to figure out all of the steps above, you can eventually start dealing with foodstuffs in Nigeria. Do a small advert or any awareness to let people know that a new foodstuff shop is now open near them.
So, if you put all of these factors together, you can research more and find the ideas & knowledge you need before you start to sell. When you have started, try to get your market share by reducing your selling price to attract new customers.
My Business Advice to you
Treat your customers right so that you can have returning customers that will buy again and again. Be careful not to sell on credit in this early stage so that the business will not fall apart. Try to minimize your expenses so that you don’t run at a loss. Lastly, don’t fall into debt. A word is enough for the wise. If you find yourself in debt, well, see the best ways to get out of debt quickly from my previous guide. I come in peace. You can thank me later.
If you find the article helpful, please share it on social media to your friends and family. I wish you success in your trade.
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