The Billion Naira Foodstuff Industry
Are you thinking of starting a foodstuff business in Nigeria? Listed below is everything you should know before making a foodstuff business plan.
Nigeria is Africa’s most populated country and one of ten most populous countries in the world. It hosts a large number of enterprising, dynamic and ambitious challenges.
Until recently, the fastest growing economy of Nigeria prompted the Investment Bank “Goldman Sachs” to include it in the “Group of eleven” (N-11) – the list of countries with the potential to become the world’s largest economy.
With a growing population and a more diversified economy, the foodstuff business in Nigeria is definitely a goldmine. Although previously, the nation’s oil sector traditionally controls over 80 percent of the country’s economy. But with the development of other sectors, like telecommunications, real estate, financial services, and agriculture. Nigeria’s economy has really been diversified.
The banking system of Nigeria is also the largest in Africa.
The Financial Times inserted ten Nigeria banks in their list of top 1000 banks in the world. All these factors joined with promises of high yields, have made this country highly attractive to potential investors.
Foodstuff business in Nigeria Startup Plan
It is definitely not advisable to keep calculating all the figures in mind, so you will need to make up a Foodstuff business plan.
- First of all, you need to make a decision – what products will suit you the best. It may depend on various factors, in particular, your background knowledge about certain types of products.
- Set aside the amount of money you are ready to spend on your business start-up project. The sum will vary from the character of field you have opted for. Some products require more money, while some require less. Make all the calculations thoroughly, taking into account all the small details.
- The third thing is to think about the amount you want to be making daily or annually. Estimate your income and profit.
- Find the right store/shop for your wholesale foodstuff business in Nigeria.
- Then make a plan of what you have already done and what is to be done in the future.
- It can be very useful to ask for an advice from a previous customer or anyone who has experience in the foodstuff business.
- Hire some qualified and diligent employees. Teach them how to work.
- Start selling goods and making profit!
- Now that you have a clue on how to go into the foodstuff business in Nigeria. Make sure you always go with the demand, make all the essential calculations, evaluate the market and start making money!
Business risks in Nigeria
There’s no business without risks. However, the main limiting factor of economic development in Nigeria is the frequent shortage of electricity. The second constraint is the different types of financial fraud and theft.
The problem with electricity might be solved by the proposed construction of new power plants with the help of China, the second problem is solved exactly by finding reliable and trustworthy partners. Unfortunately, the level of conventional robbery is also extremely high. You are advised to employ a gallant security officer.
What You Need to Start a Foodstuff Business
A Shop – Rent a shop in a good location. Any place with lots of people is a good location, especially if people are living there in a neighborhood setting. The size of shop you rent totally depends on the amount of money you have presently and how big you want to start. Be very choosy when looking for a shop and make sure you get a decent one in a strategic location.
Shops are not too costly in the neighborhoods, in Lagos suburbs N60,000 to N100,000 will get you a decent single shop. If you are going for double shop as some people would prefer, then you should budget N120,000 to N200,000. Having paid for the shop, you have to furnish it appropriately and make sure it is very welcoming.
Floor Tires – In most cases, the floor of the shop may not be tiled, you need to fix tiles for some reasons (1) To beautify the shop and add more sophistication (2) To prevent ants and insects from digging holes from the ground and invading your shop. Insects can destroy most of your items such as sugar, biscuits, beverages, etc..
Store Self – There are different types of store shelf, either they are made of woods, aluminum or iron. The wooden one is preferred and the most commonly used. And you have different types of wooden shelf as well, some are cleanly completed with polished materials while other are hurriedly done. Your choice matters in this regard.
Tables – Probably one or two tables may be okay depending on the size of your shop. The most important is the cashier’s table, you may do additional one or two tables for product display.
Painting – You need to paint your shop with high quality paint. When a shop is well painted and floor tiles fixed, it helps prevent ants, insects, and rats from invading your store.
Installation of lights – You don’t need to be reminded how important light is in business premises. It helps you quickly see where the goods are at night and quickly reach out for them. When a shop is well illuminated, it attracts more customers.
Air conditioner – Apart from your personal comfort and convenience, air conditioner helps preserve your goods from the very hot weather. Nigerians are more at peace shopping in a store that is made conducive with AC. Therefore, try and install at least one.
Refrigerators – Refrigerator is a must in a foodstuff shop to keep your soft drinks and juices cool. With the very hot weather in Nigeria, no one buys drinks and juices that are not cold. If you hope to sell drinks, juices, and pure water, you must get a refrigerator.
Stock your Shop with Goods – With all these in place, the next and final step is to proceed to the market and buy your goods. Wholesale prices are usually fixed in any place where the foodstuffs are sold in wholesale, although some dealers do sell some items slightly higher or lower, the prices are appropriately the same.
You can get the products from wholesalers and farmers in most major markets at a very good price. After you have established your shop, you will also be getting supplies from manufacturers of some products who usually go from streets to streets supplying to shops.
That’s all it takes to start this business.