You might not realise this, but opening a raw food business in Nigeria is a very convenient and profitable business opportunity. Find out why you should start your own business in this and what steps you should follow when setting up your venture.
Steps to opening your own raw foodstuff business in Nigeria
As with any other business, you cannot simply start right away. There are certain steps you must take before your raw food business is up and running. Here are 10 steps you should consider when starting your business:
- Location. Find the best location to conduct your business. It does not have to be big right away, but it should be close to both your suppliers and potential customers. You should also take into consideration the rent price and whether you would be able to turn profit without spending all your money on your location.
- Mode of operation. Decide whether you want to work in delivery or sales from a static location. Based on this, you can figure out how big of a place you are going to need. With delivery service, all you need is a storeroom for your products, while with sales, you need to think where your store/stall is going to be and how big you want it. Do not forget that you can always upscale it in the future, so do not go all in right away.
- Business plan. This is essential for any potential businessperson. Before you jump right into it, you should first figure out if you would even turn a profit from such business. Consider what you plan to sell, how much the startup will cost for you and calculate your projected profit. If you have no clue how this works. You can always find a consultant to help you out.
- Registering the business. Unless you want to deal with the government on the daily, it is best to register your business as soon as possible. You should come up with the name of your company, have an office (it can just be your flat) and prepare whatever documents are expected of you. Registration is also important while building a client base, as clients tend to trust registered businesses more.
- Setting up the location. Set up your storage facility. Make sure it is an optimal environment for your raw food, so that its shelf life can stay long. If you are in delivery, you do not really need much more. If you are in sales, set up your store/stall, so that your buyers can see what you are selling.
- Supplier. Before you get everything running, it is important to find a reliable supplier with good quality raw food that does not ask all the money in the world for it. It is also important to establish a good relationship with them, so that you both turn profits in the future.
- Delivery van. If you decided to provide delivery services, you will obviously need a van to do it, if you already do not have an appropriate vehicle for that. However, a big car can also be useful to you if you work in sales, especially if your storage is located far from where you are selling your raw food.
- Employees. If you see that you will not be able to deal with everything on your own, you should hire some employees. You can start off by asking some friends and relatives to help out before you actually have enough money to pay proper salaries to the employees.
- Advertisement. Advertise your business, so that people know where to go when they need raw food. You can get some posters, create an online campaign, create a website or at least a Facebook/Instagram page and share the information about your company and how people can find you.
- Sales. Once people start learning about you, your business can finally become operational. As long as you conduct it well, it should become profitable in no time. Just make sure that customers decide to return to you when they are in need of raw foods.
Why you should start a raw food business
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If you are still on the fence about this whole thing, let us offer you some reasons why opening your raw food business can be a good idea:
- Everybody needs food. There will never be time when there is no demand for food. Unlike other businesses that might go under because people are no longer interested in the products, raw food is always needed, and you will be there to provide it.
- Raw food has a longer shelf life. Compared to fruits, vegetables, farm products and other similar things, raw food (by which we mostly mean such things as rice, garri, beans and so on) can stay on the shelves for much longer. As long as you maintain proper conditions, it can live for quite a while.
- You can start your business from anywhere. Depending on your chosen mode of operation, you can conduct your business even from your own home, especially if you consider doing deliveries.
- You can easily make profit. While the answer to the question ‘How profitable is raw food business?’ depends solely on you, you can be sure that it is, in fact, profitable, as long as you conduct it properly. When you build your customer base, money will come pouring in.
What challenges can you expect?
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Compared to many other businesses, raw foodstuff business is relatively risk free, but there are still some challenges that might come along the way, for instance:
- Fluctuating prices. Even though there is always a demand for food, sometimes the market gets oversaturated. Therefore, the prices might drop significantly when there is too much supply. At the same time, nobody is protected from inflation, which can also influence the prices.
- Relying on third-party suppliers. Unless you plan to grow the raw food on your own, your whole business will be reliant on suppliers. If you run into some issues with them, your business might take a hit, that is, until you find your next supplier.
- Pests. While raw foodstuffs have a longer shelf life, improper conditions, as well as various pests can significantly shorten it. For that reason, finding a proper storing place for your goods is essential.
Other than that, most other problems you might encounter are going to be unique to you, so we cannot predict them. That said, this should not discourage you from opening your own business, as every enterprise comes with its downsides. As long as you follow the steps we have outlined above, and you are smart about running your business, you should be fine.