Raw Food Stuff Supply & Trading Business In Nigeria [The Step By Step Guide]
The food supply business is one of the major entrepreneurial businesses that a lot of Nigerians venture into. People literally believe that foodstuff is needed by everybody and it’s highly demanding to the core. So, it’s such a profitable business with a low risk.
Building connections with enterprises, schools, companies, organizations, restaurants, and hotels would be as instrumental as becoming highly successful in this business. It’s a business you can even start on a small scale now and expand easily at a later time.
The most essential commodity in market is foodstuff. So, it’s such a promising business as no one can remain healthy or live without eating daily. Wherever the business is located, it wouldn’t be a barrier to making sales. As long as people exist in this world, foodstuff will continue to be a profitable business.
How Lucrative is Food Supply Business in Nigeria?
- Everybody needs food
Food supply business is lucrative in Nigeria as everybody needs to sustain, survive, and take care of other people.
Food is needed at home, at work, in the offices, at occasions/ceremonies, at conference meetings, and everywhere else. So, it is such a promising business which anyone can run profitably in Nigeria.
Whether you’re selling raw food or opening a food restaurant in Nigeria, you’ll make sales. While some people would just like to buy raw food in the market and prepare on their own at home, many others would prefer to visit food restaurants in order to save the time they would have spent on cooking.
- The foodstuff business is run at several levels
There are foodstuff dealers who supply raw food items locally to the retailers and final consumers. Also, there are other categories of dealers who supply directly to the restaurant owners, hotels, schools, hospitals, and other places. Most organizations that prepare food for one purpose or the other have some suppliers who ensure that raw food is regularly made available even without visiting the market at all.
At every scale of the business, everybody is selling and making profits. The food supply business does not require a high capital as it permits small scale enterprises to begin at their own affordable levels.
If people must eat daily in order to live, then this business becomes such a profitable one anybody can venture into. For fully-prepared food, it doesn’t matter if it’s a local style or modern style of food.
For instance, in big hotels such as the Transcorp Abuja, Sheraton Hotel Lagos, and others, there are different food restaurants set up for the different cultures, tribes, and traditions. People go to their respective restaurants and choose whatever they desire to eat at any point in time. Food is sold everywhere, every time, and every day and this is why so many people including some men have ventured into this business passionately in Nigeria.
- The varieties of the food items to be supplied
There are varieties of the foodstuff that need to be supplied to the sellers, buyers, and other categories of personalities. Some food items are fully-processed and ready for consumption. Such food items are choices of some people while other people may prefer to buy their own food items completely raw.
Different sellers deal in the different items depending on factors such as location, environment, economic, and many others.
For instance, in the villages, nobody buys preserved food at all. The villagers only believe in feeding from their farm products alone except they want to buy certain stuff such as groundnut oil, seasoning, salt, cow meat, and such other items to complement their cooking.
Despite the fact that those villagers feed from their farm products, there are other items they may not have access to at all which they would need to buy in order to make their cooking complete and reasonable.
Thus, location, environment, and economic factors would need to be considered while planning to start a foodstuff business in Nigeria.
Steps to Follow While Preparing to Start Foodstuff Business in Nigeria
- Acquire Some Knowledge about the Business
Everything in life requires little or much knowledge in order for things to be accomplished. As simple as the foodstuff business seems, yet, one may face a lot of problems and even run into debts if the business is not run on the required basic knowledge.
Many people have overlooked the learning aspect, and have eventually ended up losing all the money they’ve invested into the business so far.
Even if one is going to be selling crayfish, there are certain things one needs to know about the crayfish selling business such that one would have every course to profit from it.
Without any ado, one can simply learn the business by connecting to those who have been there with lots of marketing experience so far.
- Get a Suitable Location for the Business
Before starting at all, the first emphasis should be on finding a suitable location for the business. For the investment not to be a waste, it has to be properly planned for and organized. Survival is only guaranteed If and only if the determinant factors are taken into consideration such as location, capital, and others.
For instance, it doesn’t matter where you are locating a rice distribution business so far the expected quality of the product is guaranteed. People wouldn’t mind patronizing the business with the location not being a barrier.
- Set the Capital
Though the business can be run at any level or any scale, yet, whatever amount is being used to invest in the business will be referred to as the capital. So, whether the business is going to be run on a small scale or on a large scale, capital is always required.
It the dream is to be distributing for a rice producing company, but the money to qualify as a rice distributor has not yet been available, then starting from the retailer’s level would be feasible. As the business grows gradually, things will start moving and the dream of becoming a distributor for a giant rice producer will materialize.
- Be Prudent
When it comes to being prudent, it simply means being conservative, not spending extravagantly. Realizing that business money is not the kind of money one can begin to spend anyhow will save the business from cracking.