Selling foodstuff is one of the profitable and lucrative businesses you can do in Nigeria to make money and if you are here to learn how to start a foodstuff business then you are the right place at the right time.
Do you know that your life can change overnight as a foodstuff seller in Nigeria? I guess you are not sure what I meant but I am going to teach you how to start a profitable foodstuff business in Nigeria. If that’s what you are interested to learn then keep reading till the end.
Some of you have been looking for a way to start a profitable business but don’t even know where or how to start while some are still more concerned about the amount required to start a profitable business of any kind in Nigeria.
Well, I have good news for you today, you will not only be learning how to start profitable foodstuff business but will as well have the privilege to explore other guides such as Tips on how to Start Okrika business in Nigeria
you can as well learn more about Online Side hustle to make money in Nigeria
Now, let discuss the foodstuff selling business in Nigeria and all it requires to succeed but before that, I will like to ask this simple question.
What is Foodstuff Business
In as much as this question might sound funny, it's still necessary to ask and I guess you have your own definition for a simple question like that. You already know that foodstuff is everything that relates to what we eat on a daily basis, it can be beans, rice, millet, corn, and other grains. When we talk about foodstuff business then it's all about getting it at a cheaper rate and resale for profit and that's what we are going to learn today.
Some of my followers have been asking a few questions on how to start foodstuff business in Nigeria and that's the area I am going to focus on, some of the questions they ask include:
- How do I start a foodstuff business
- Is foodstuff business lucrative in Nigeria
- How much do I need to start A foodstuff business
- How to maximize profit in foodstuff business
I am going to give a solid answer to the above questions and I will like to remind you that you have nothing to loose sticking to this page till the end but a lot to gain so let proceed.
How do I start a foodstuff business?
This type of business model is the type you should be venturing into especially if you don't have hundreds of thousands and millions of Naira as a startup capital because it doesn't require much capital to start. In foodstuff business, all you need is a piece of information and any amount of money you can afford as capital can do. However, your capital will still play a crucial role in determining the type of foodstuff business you can start.Read
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When I say you need a piece of information, you need to know the right foodstuff you need to start with, you need to know where to buy cheaper and sell for profit to retailers or final consumers. Where to buy and who to sell to is the most important answer you need before you can start this business. You need to decide whether to become a wholesaler or a retailer.Start as a wholesaler
You already know what I meant by a wholesaler, If you have enough capital then you can be a wholesaler since you have what it takes to buy in large quantity and resale in units to retailers or directly to consumers. The only question that remains unanswered here is where and how to buy foodstuff in large quantities. As a wholesaler, there some foodstuffs you can only get cheaper from different towns and villages.
If you wish to venture into Yam business then you might consider traveling to the northern part of Nigeria. The same goes for rice and other foodstuffs you need to go to states, towns, and villages that specialized in the production and farming of such commodities. If you're in Lagos, you can go to places like the Alaba rago market, Ojo, where you can get some foodstuffs like beans, rice, millet, corn, and other grains in large quantities at a cheaper rate.Start as a retailer
It's okay if you don't have enough capital to buy in large quantity, you are still good to go even if you don't know the main source where you can get foodstuffs because you can be a middleman between wholesalers and consumers. There are some consumers who don't have any market close to them, you can ease their pain and supply them foodstuffs or open a shop closer to them. There are some restaurants that are too busy but you can be of help to them by bringing what they need to their doorsteps.Assignment for you
- Decide on what foodstuff you can sell considering few basics, where to buy, how to sale and who to sell to.
- Consider starting as a retailer or wholesaler (you need a good capital to be a wholesaler).
- Enquire about the price of foodstuff business you wish to start (That's the only way to get the accurate amount you need to start the business).
- You must work on the demand and the availability of the food item you want to specialize in.
Is foodstuff business lucrative in Nigeria?
A simple and straight answer to this question is YES, foodstuff business is very lucrative and can change your life in no time if you are ready to work hard to turn nothing into something. A reasonable person will as well ask why is foodstuff business lucrative but let me tell you, we all eat food every day no matter the condition of the country, it doesn't matter how we struggle to get the food but what matters is that we eat at least two to three times every day.
One of the businesses that will never fade away is foodstuff business especially in Nigeria that is estimated to have more than 200 million people and still growing rapidly, these 200 million people eat foods on a daily basis. I understand that many people are already into the business but the demand remains high because it requires more sellers to meet up with the demand of more than 200 million people across the country.The business can be done anywhere in Nigeria
Foodstuff business can be done anywhere as long as there are human beings living in that area and that's another good thing about this business. While doing research on a particular foodstuff to sale and where to sell, you should look out for any food items that have more demand without corresponding supply.
How much do I need to start A foodstuff business
This guide will surely help you with all the basic information you need to start this business but for the fact that market prices differ from place to place and often changes. You might not be able to get an accurate amount you need to start any type of foodstuff business in Nigeria. You can follow this method to get an idea of the amount of money required to start the business.Read
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You will surely see people that already doing the type of business you want to do in your area, make friends with them and ask some questions though, some businessmen and women don't like having competitors that might compete with them in the future but a good friend will still help you and tell you where they buy from and how much they started with.Do a market research or survey
It might not be necessary to ask someone if you don't wish to, simply go to any biggest foodstuff market in your area and check the prices of the foodstuff you wish to sell. Determine the quantity you can afford and compare the price you can offer to your potential customers. There are some foodstuffs that can only be bought at a cheaper rate from rural areas (villages), you can deal directly with farmers and supply to other sellers.Estimation of the startup capital
I know you will not be happy without at least knowing something about the capital required to start this business but below are my estimations.
* N10,000 - N50,000
: With this amount of money you can start a vegetable or Yam selling business. You can also buy Garri, Beans, Rice in 1 to 5 bags and sell in paint and cups to smaller retailers and final consumers in the market. you will see good profit growth over time as you gain more customers.
* N50, 000 - 500,000
: You can become a wholesale with this kind of money depending on the type of foodstuff you want to be dealing with. You can be buying Yams in large quantities from farmers or mostly from the north and supply to market yam sellers in different markets across the country. If you stay in Lagos, you can go to places like the Alaba Rago Market, Ojo, where you can get beans, rice, millet, corn, and other grains at a cheaper rate.
How to maximize profit in foodstuff business
The last but not the least question we have here is how to maximize profit in foodstuff business. The desire of every businessman and woman is to maximize their profit but how do we achieve that in foodstuff business.Buy from the right place
Let me use fruits as an example, In our village, Mango is free of charge but if you are not the owner you will not be able to sell it in the market except the owner. Now, when you go to our town market you can by a full basket of mango between N500 - N1000 but try that in urban areas and you will see 3 to 5 pieces of mango N200. Imaging the profits but lets not forgets it's among the perishable goods that can easily deteriorate.
So what am trying to say here is that when you buy your foodstuff from the right market or main source where you get it cheap and still sell in your targeted market you will still make more profit because your price will always be fair compared to any seller that bought the same goods from the middleman.Buy in large quantity
This might be hard if you don't have enough startup capital but still, you need to buy in large quantities so that you can be the boss to those small retailers, you can be the last bus stop to consumers because you sell cheaper than others. More sales more profit.Consistency matters a lot in business
One thing that kills every business faster is a lack of consistency when you are not consistent with your business you will not be able to maintain your customers. let assume you have some restaurants that always need your goods but you are not regular in supplying those goods to them, what do you think that will happen, they will switch to another seller that is more consistent than you.Read
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Even in an open market, people will not stress themselves coming to your shop knowing fully well that you are not always around. When you manage to come out you will find it hard to sell because people who would have patronized you thought that you are not around. Building and maintaining more customers means more sales and profit.
I tried my possible best to provide my best answers to the questions people asked about foodstuff business in Nigeria but not sure if I have covered all the areas you are mostly confused about. If you still have any questions to ask about this business, I will be happy to help you further without any hesitation. Just ask and I will respond in a few minutes.