How To Start A Cereal Business In Nigeria – There are some important things you need to know before starting a cereal business, this business is such an easy way to make a lot of money in a year, people are already making millions. Make the most of the opportunity.
To make money in this business, it is necessary to wait until a famine period to produce and sell grain when there is a surplus on the market. This way you will earn a lot of money because farm prices will go up due to the lack of market and that is due to food season. Food is plentiful and plentiful during harvest season but then becomes severely scarce.
In this article, you will be learning how to start a cereal business in Nigeria. It is known that farmers many times do not protect their crops because they need to sell them and solve their immediate problems. This is a huge money-making opportunity for agricultural investors as data shows that green storage increases profits by 200% and makes it very profitable considering the return on investment.
How To Start A Cereal Business In Nigeria
1. Research
No matter what anyone says about a business and how guaranteed it is to succeed or how profitable it is, always try to do your research. The research will only cost you time, and it will be time well spent as the work picks up speed and success begins to flow.
It is important to thoroughly research the company because you are going to invest your money in it and you are never interested in the company. A few hours of research won’t hurt.
The study offers insights into how to persist and succeed in business. Imagine some of the points mentioned, the more you are the less equipped for anything, especially something you are going to spend money on.
Of course, there are experts in the business, so seek advice from these people as well, as they are probably your best bet for reliable information about the business. Take note of even the smallest details during your investigation, and pay close attention to how you stay and survive with the company. Research is as important as any business.
2. Write a business plan
The business plan is like any other process or thing related to the business. Entrepreneurs who decide to start a business after extensive research now have to put all their ideas on paper.
The business plan includes the way you operate, the cost of various things, how you plan to market your business, future projections, and contingency plans.
A business plan has several purposes. This is useful in cases where the person may need an investor or even a loan, as it covers everything there is to know about the business. It is also a point of reference for the proposed company.
3. Capital and location
Capital is always important when starting any business and ensures that something can be bought and something related to the business can be started. The cost of starting this business is not very high depending on the scope or size of your business.
It may not be necessary for a small business for the location, but if you think you need it, it’s okay to get it. You need this for the high-volume look as you produce more.
4. Getting the materials
For every packaged material there are certain products made from it, and now is the time to obtain those products. It can replace going to the market to buy products. When shopping at the bazaar, be sure to buy quality products and options in case your main supplier or retailer is not around or runs out of the items you need.
5. Marketing and sale
Whether it is a new product or an old one, you need to promote and market it. Make sure your prices are cheap and affordable for your customers. Also, make sure it is well packaged and well labeled. Advertising can also be done through social media, and if you want to receive orders from there, that’s great too, but you need the services of a shipping or logistics company. Word of mouth and referrals are also great ways to find clients.
How To Succeed In Cereal Business
1. Know your market
Before starting a business, you need to know what the market wants and how much the market can consume. Knowing the market gives them a clearer idea of how much to invest and what to invest in. Corn is the most profitable grain and requires very little capital to create. Only 10 or 5,000 people can start a business.
2. Choose the site
This is where people decide to run their businesses. Startups don’t need a big place to sell corn, they can do it on someone’s porch, by the side of the road, or under a tree, and then expand as demand increases.
3. Re-invest the profits
For a grain business to grow, every little profit must be used to raise capital until you feel you need a store and help you start saving.
Merits Of Cereal Business
1. Flexibility
You can spend as much time as you want in the business. If you enjoy working and have first-hand experience, you can start small and run all aspects of your business on your own.
2. Opportunity to start your own business from home
You don’t need a physical store or office space to start a business. First, you can do everything from your own home!
3. Low initial cost required
The cost of starting a grain business is significantly less than most businesses, ranging from $12,209 to $27,209.
4. A rewarding job
Starting a cereal business can be truly rewarding. After all, you are solving an urgent problem for your client and working on something that matters to you.
5. Scalable
Since businesses and processes change every day, there is always a demand for new features, products, and services for your business. You can also implement several different business models and pricing levels, allowing you to reach all kinds of customers.
6. Traffic to your website
Grain businesses give people a reason to visit your website and come back to you!
Cons Of Cereal Business
1. Crowded space
Competition is high when it comes to the business of selling grains, so it is important to take enough time to analyze the market and understand the demand.
2. Finding the right supplier
Most companies in this industry go the supplier/manufacturer route, which is not a bad thing! But finding the right provider can take a lot of time, energy, and trial/error.
3. Security Issues
A SaaS company may experience data loss and security issues during the product manufacturing process. It is important to fully understand what you are responsible for and how to avoid potential problems.
4. Lack of benefits
In a grain business, you are often self-employed and are responsible for finding your insurance, which can be quite expensive and time-consuming.
5. Isolation
As a grain-selling business, you often work alone and don’t have much face-to-face interaction with other team members.
6. Taxes
As a grain business owner, you typically pay self-employment taxes, which can be quite high. It’s important to understand what you’ll pay in taxes each year so you can determine if what you’re doing is worth it.
Conclusion
However, we leave you with one last tip for success: work hard, don’t give up, and be willing to risk everything. Starting any new venture is challenging and possibly difficult, but in the end, nothing tastes sweeter than winning.
Frequently Asked Question(s)
Which food business is most profitable in Nigeria?
The spices and condiments business in Nigeria can be quite lucrative. It is a country with a large population and a growing economy. The demand for these products is always high. There are many ways to get involved in this business.
Who buys cereals most?
Most of the purchases (65%) occur at supermarkets with another 28% at superstores, including Walmart and Target. Only 2% buy cereal at convenience or drugstores, though an earlier Mintel survey found that more than 40% of consumers consider it a snack, including 56% of millennials.
What food is high in demand?
Processed food items such as frozen fruits and vegetables, dairy products, seafood, and meat have high demand across the world. Such food items require efficient packaging in transit and storage which is done with the help of cold chain packaging.
What foods can I sell from home?
- Candy and other confectionery.
- Cookies, pastries, and other baked goods.
- Dry herbs, seasonings, and herb mixes.
- Homemade fresh bread.
- Hummus and other dips.
- Jams, jellies, and other preserves.
- Nuts, coated, and uncoated.
- Pickles and other pickled vegetables.
Who is the king of cereal?
Wheat
Reference(s)
- financialquest.com – HOW TO START A PACKAGED FOOD SALE BUSINESS IN NIGERIA
- dailymediang.com – How to start grain business in Nigeria
- sokodirectory.com – Make Money Selling Cereal Produce
- starterstory.com – Start A Cereals Selling Business – Business Ideas
Recommendation(s)
