How to Start Vegetable, Groundnut Oil Business in Nigeria (2019 Guide)
The groundnut being a commercial crop has so many business advantages found in it. Groundnuts are available throughout the year simply because they are not seasonal unlike most other crops that only come seasonally. If you need this crop, you’ll find it all the time from January through December and that is what makes it a highly-profitable crop among others.
One of the business advantages so many people in Nigeria have found in groundnut is the oil that is derived from it. This is yet another source of revenue on its own. There are thousands of Nigerians out there who have been into the business of processing and selling groundnut oil so far, and that is the topic idea for this particular article.
Launching a groundnut oil business in Nigeria literally entails some special skills. You’ll also need certain steps to follow in order to run this business profitably in Nigeria. No matter how high the capital demanding may be, you can, of course, start up somewhere. The groundnut oil business sells well as the crop contains a lot of nutritional values which are suitable for a pregnant woman.
Here are the basic steps to follow while preparing to start a groundnut oil business in Nigeria:
- Learn the special skills required
- Do some thorough market research to learn more how demanding the product has been so far
- Draw a brilliant plan for the business
- Choose a suitable business name and register that with the Corporate Affairs Commission (CAC)
- Raise the capital
- Get a marketable business location
- Get a practicing license
- Employ some people
- Test the quality and acceptance rate of your product in market
- Create a personal business website
- Promote and market your business website
Learn the Special Skills Required
In as much as there are special skills to acquire first before you can run the groundnut oil business successfully, you must learn from those who have been in business for some time. You must set aside some days, weeks or months to learn these entrepreneurial skills from other groundnut oil processing business experts and apply that practically into your own business.
If you could do some walks around your locality, you could find a groundnut oil processing company that has been in operation for some years. Take actions by going there to work for some little time so as to gather enough practical experience for your own proposed groundnut oil business.
Do Some Thorough Market Research to Learn More How Demanding the Product Has Been So Far
A thorough market research would be favorable for the business as you won’t have any reason to venture into what never sells in market.
Your understanding of how demanding this product has been so far in market will motivate you a lot and that will prompt you, of course, to start yours in earnest. It will encourage you to make all necessary preparations without hesitation.
Your working experience in any groundnut oil processing company will speak to you further on how promising the business is.
Draw a Brilliant Plan for the Business
Drawing a brilliant business plan begins with stating your goal. You could be specific on both the short-term and long-term goals and this is the ultimate plan that tailors any promising business towards becoming successful.
Write your vision and mission statements and make it available to the potential customers. Making this to be at the reach of your potential customers is part of what make the people view your business as a trustworthy venture they can always depend upon.
Choose a Suitable Business Name and Register that with the Corporate Affairs Commission (CAC)
As part of the process to run a commercial enterprise legally, you may want to register your business as a company. The appropriate authority to consult on this is either the Corporate Affairs Commission (CAC) or the Chamber of Commerce.
Once you’re registered as an operating groundnut oil processing company, you’ll have your full freedom to present your product anywhere. In addition, you may also want to join the association of groundnut oil dealers in your locality. Doing this will give you further insight and opportunities into the numerous marketing strategies you can implement to boost your business on time.
Raise the Capital
As it’s always needed for all businesses, capital is equally required for a groundnut oil processing business and this would depend on whether you’re operating on a small-scale or large-scale.
If it’s going to be a small-scale business, capital is little, but if it’s a large-scale business, capital is huge.
Get a Marketable Business Location
Aside from starting a groundnut oil processing business, location is, generally, the major step that determines success. Without getting a good and marketable location for a groundnut oil business, success is not guaranteed.
Make sure you carefully choose the right location for your business lest you go bankrupt eventually.
Get a Practicing License
For a groundnut oil seller or dealer, the right place to go to get an operating permit is the trade union established by the government to be in charge of groundnut oil business. Get a work permit and be free from public harassment.
Employ Some People
As the business moves on, you will need to add some people to yourself as you won’t be able to handle the business alone. When it comes to operating with machines, a number of people would be required. Create an employment opportunity for some people who might be interested in working with you.
Test the Quality and Acceptance Rate of Your Product in Market
Before you go into large quantities, you must produce a little first and send part to the market in order to see how people will access the quality. Once it’s highly accepted by the masses, it becomes a business deal for you. The only thing you must bear in mind is to keep to the business vision that you’ve made a lot of people aware of.
Create a Personal Business Website
A website helps businesses a lot when it comes to creating grounds in market and getting stronger business connections. So, you’ll also need a personal website for your groundnut oil business to grow fast. The business website will grant you the opportunity to sell online and offline as it represents your online identity or shop.
Promote and Market Your Business Website
Once you’ve successfully launched a business website, the next step is to advertise in order to reach out to a lot of people within a short period of time. When traffic starts coming, revenue is guaranteed.
Common Tools Needed for Groundnut Oil Processing
The main tools commonly needed for processing groundnut oil include:
- Oil extracting machine
- Metal or plastic drums