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|How To Start A Profitable Foodstuff Business In Nigeria by EXICON(m): 12:54pm On Oct 11, 2019|
Here are the steps to take when starting a raw foodstuff business.
There are many businesses within the agricultural industry. One of such is the foodstuff business. Foodstuff businesses cover domestic supply and international export.
Although so much potential exists, kick starting the process is where the problem lies for many. We hope to proffer solutions to such problems by showing you just how to start a foodstuff business.
Food Security and How It Affects Food Business
Food security is almost guaranteed in first world nations. However, the same cannot be said of 2nd and most especially third world nations. This is mostly due to crude forms of agricultural production techniques amongst others.
Food processing facilities are also in short supply. In view of these factors, foodstuff businesses encounter significant risks.
Starting a Wholesale Foodstuff Business
Starting a food business requires several structures to be in place. These are crucial to your success. Hence, this section of the article will highlight them. These include the following;
• Understanding the Forces of Supply and Demand
It’s no secret that humans need food to survive. This makes food a basic human need. While this is true, there’s also the need to understand the forces of demand and supply. Certain food products are seasonal. The demands for these may be periodic.
Still yet, the prices of foodstuff are influenced by market trends and forces. This brings us back to the issue of supply and demand.
To succeed, you’d need to understand what food products attract the most demand at what time of year. In addition to this, certain foods are found in specific regions. These need to be exchanged for other food products.
By finding what these are, you will be well on your way to realizing your goal.
• Interact with Other Foodstuff Business Owners
Existing foodstuff business owners have a wealth of experience. This can be leveraged on by interacting with them. The aim is to avoid making costly mistakes they themselves have made in the past. But easy as it may seem, foodstuff business owners may not be forthcoming with information.
One of the reasons may be due to their perception of your business as a competition.
To avoid such scenario, you can speak to those outside your territory. Of course you’d need to inform them of where you intend to locate your business. This may make them open up to you.
• Raising the Capital Required
Food business is capital intensive. This means you need to raise adequate funding to cover all your startup and operational costs. Capital should be sufficient to rent a store, procure equipment as well as your inventory. Running costs are also necessary. They cover payment of utilities, wages, maintenance etc.
• Your Food Business Plan
Having understood the dynamics of foodstuff business, the need to plan arises. Planning encompasses all areas of the business. These include your choice of food products, financial projections, and marketing. Others include a test of strength and weakness, identifying and understanding your market as well as identifying sources of funding among others.
The more thorough your food business plan, the better chance your venture has to excel. But its full implementation is as important. There will never be real growth without a full commitment to its implementation.
• Renting a Store or Space
This is one of the essential requirements for your foodstuff business. You need a strategically located store to display your products. Therefore, your location counts.
In other words, where you choose to locate your store will impact on sales. We recommend areas with a lot of foot traffic. Malls offer perfect locations.
• Buying the Right Equipment
Did I just mention equipment? Yes, you heard right! Certain equipment are a necessity for foodstuff businesses. These may include cold rooms, shelves, tables, POS machines, and adequate storage space among others.
These enable smooth transaction of business.
• Who are your Suppliers and Distributors?
The answer to this question depends on your scale of operation. If you’ll be selling directly to end consumers, then there’s no need for distributors. Both suppliers and distributors are crucial to the success of your foodstuff business.
This has to be properly worked out before setting sail.
However, not every supplier or distributor qualifies to do business with. Doing a thorough scrutiny will reveal the advantages some have over others. This is done with the aim of working with the best people to grow your foodstuff business.
• Growing your Brand
You have a name and reputation to protect when starting out. In other words, you want your business to be remembered for the right reasons. But growing a solid brand doesn’t come easy. Deliberate effort needs to be put towards achieving such lofty goals.
Therefore, quality products and service delivery need to be the central focus of your operations.
When this is done consistently over time, you create a dedicated and loyal customer base. These will have total trust in your ability to offer the best product and service.
• Hiring your Workforce
Your foodstuff business is expected to grow at some point. This will require additional hands to function effectively. So, the need to hire arises. But not everyone is fit to join your workforce. Hence the need to closely scrutinize those you hire. Persons having some level of experience in foodstuff retail should make ideal candidates.
But not everyone has the experience right? Under such circumstances, hire those willing to learn on the job. This is of the utmost importance because your staff are a reflection of your business.
As we’ve seen, starting a foodstuff business requires a great deal of planning. We have tried to capture as much information as required. These steps, once followed diligently provide clarity and enable you establish and grow your young business.
|Re: How To Start A Profitable Foodstuff Business In Nigeria by mrsfavour(f): 5:41pm On Feb 10, 2020|
I love this
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