How to start a frozen foods business in Nigeria


Frozen food business is one of the lucrative businesses you can start in Nigeria. 




HOW LUCRATIVE IS FROZEN FOOD BUSINESS?

Frozen food business is very lucrative, it is a business you can start today and be sure of continuous flow of income. 




Food is one of the essential needs of man and as such it is a commodity you are sure of selling on a daily basis. One carton of  10kg chicken goes for 10,000 naira, 1 Kilo of Chicken is sold for 1200 to 1300 in some places after selling it you will realise a profit of 5000 naira.




 Remember if you are located in a densely populated area a little bit far from the market, you are sure of selling two cartons per day. 




That means you are sure of going home with a profit after sales of about 10,000 naira daily that will be sum up to a total weekly profit of about 70,000 and a total monthly profit of 280,000 and an annual profit of 3, 360,000 million.




 You can even make more than this depending on your location and customer base. 




COST OF SETTING UP A FROZEN FOOD BUSINESS 

Frozen Food business is not the kind of business that needs a very huge Capital base, with 100-300 thousand naira, you can comfortably start this business and scale up as you grow. 




PROCESS 

Frozen food Business is really an easy one that does not require sophisticated skills and training to start. 




The business involves buying and storing frozen foods such as Chicken, Fish, goat meat, cow meat and other frozen foods from wholesalers who buy from the merchants and importers. 




This frozen food is stored and sold to the final consumer for a higher gain. 




When the stock finishes, the retailer will go back to the wholesalers and purchase another stock and continue repeating the process. 




Sometimes the retailer also combines this business with other essential food commodities such as; ingredients, rice, beans, spices etc. 




USES OF FROZEN FOODS 

Frozen foods are used to prepare different types of delicacies such as rice and many other local and foreign delicacies.




 It is also used in preparation of different types of soup such as bitter leaf soup, egusi soup, vegetable soup and stew.




STEP BY STEP GUIDE ON HOW TO START A FROZEN FOOD BUSINESS IN NIGERIA 



CARRY OUT MARKET RESEARCH: 




Carrying out market research will enable you to carry out a deep analysis of your prospective market, ascertain the consumption patterns of your prospective customers, and know who your competitors are. 


Market research will help you arrive at a holistic market penetration strategy to penetrate the new or existing market and will help you to make crucial business Marketing decisions. 




 You can pay professionals to help you carry out market research and feasibility study. Good market research will enable you to discover untapped opportunities and will help you formulate a workable marketing plan. 





CONDUCT A FEASIBILITY STUDY:


Feasibility study is carried out to determine the overall organisational, legal, management, and operational need of a business. It helps to ascertain the profitability or viability of a particular business in connection with the resources available to the disposal of a particular business entity. 




Sometimes, a business idea will look very promising but laced with many underlying challenges which if not clearly spotted and tackled may lead to the liquidation of a particular business entity.




 A feasibility study is carried out to discover all these.






PREPARE YOUR BUSINESS PLAN

Apart from securing grants, funding and other benefits of business plan, a business plan will enable you to launch your business successfully. 




Some of the important contents of the Business plan includes; executive summary, cash flow analysis, marketing plan etc. 




LEARN THE TRADE:

If you already have knowledge about this business then you can go ahead and launch your business, but if you don't have an idea you can go ahead and look for someone who is going to teach you the business.




 There are many people who will be willing to teach you the business for free or for a taoken. 




Some of the things you will need to learn is how to scale the frozen food, how to fix the price, where to buy the products, how to store it and how to relate with your customers. 




REGISTER YOUR BUSINESS NAME:

Registering your business name is one of the steps you need to take to launch your frozen food business.




 It will make your business have a corporate look and you can use your business name to open a corporate account, register on online payment processors and even secure grants and funds from the Government and private organisations. 





 INCORPORATE YOUR BUSINESS:



If you are starting as a sole proprietorship i will advise you to just register your business name first and incorporate your business as Limited Liability Company as your Company  grows. But if you have enough money to Incorporate your business, you can go ahead and do so.




Some Grants, Loans providers just request for a Business name, therefore Business name Registration is good for a start. 




LOOK FOR A GOOD LOCATION WHERE YOU WILL SET UP THE BUSINESS 



While looking for a location where you are going to set up your frozen food business you have to watch out for the following;




How close is your frozen food shop to the market?


If you are too close to the market, you will not make as much sales as someone who is far away from the market. 




Also you have to consider getting a lockup shop in the market or in the street. If you are inside the market you are going to make more sales but at the same time you will have many competitors to contend with and that may cause a downwards review of the prices of frozen foods products unlike someone who is on the street. 




How consistent is the electricity supply in the area?


Frozen foods business needs an area that has a steady supply of electricity. Therefore when you are looking for a place to establish your business, make sure you do so in an area with constant electricity otherwise you will incur a lot of expenses buying fuel for your generator which will affect your overall profit. 




Always carry out a background check, to ascertain the nature of electricity supply in the area.




How densely populated is the area?




The more desnsely populate the area is, the higher your customer base.  You have to check how densely populated the area is, if you set up your business in a street where hundreds of people live, you will make more sales than someone who is located in a scantily populated street.




There are many densely populated streets where nobody is selling frozen food, you can just carry out a research and find out.




How secure is the Area?


You have to check the level of security of the area where you want to establish your frozen food business to avoid losing your equipment and products to the hands of thieves. 




GET AN E-COMMERCE WEBSITE AND LAUNCH AN ONLINE FROZEN FOOD STORE:



 One of the best ways of making more sales is by launching an E-commerce website and offering home delivery services.  




An E-commerce store will allow you to list all your products and allow people to visit your store and order for products. 




You will receive the order, process it and deliver it to them in the comfort of their homes and offices. 




We now have many logistics companies which will help you deliver these products to your customers.




We have millions of households with working class people who will prefer to order for frozen foods online because of their tight schedule. 




Tap into this Opportunity by setting up an E-commerce website and deliver frozen food products to them at their doorstep. 





You can also sell your frozen foods products on Nigeria popular marketplace websites like Konga and Jumia which will handle the logistics and payment aspect.




EQUIPMENT NEEDED FOR FROZEN FOOD BUSINESS 

To start a Frozen food business you need the following equipment


A deep freezer: Deep freezer is needed to store your frozen foods products You need at least two or three  Deep freezers for a start, so that you can store frozen fish and frozen chicken in different freezers. A good deep freezer that can serve you goes from 80,000 naira upwards.



Weighing balance/SCALE: Weighing balance is one of the most important tools you need for your frozen food business. You can get a good weighing balance from 5000 naira up. 





Apron: You can get a good apron from 2000 naira. 



You can alsoplace an order for a customised Apron which will make your business stand out here. 




Knives and Cutlass: This is needed for cutting of the frozen food products.



A Chopping Table which may be wooden or Iron.



A generator set which will provide an alternative source of power if there is no electricity. You can check out here for a new generator set



Hand Glove: This will enable you to maintain strong hygienic practises 



A laptop and a smartPhone: This will enable you to manage your ecommerce website and receive orders. 



A delivery Bike: This will enable you to handle some of the delivery of your products to your customers. 



Chopping board




PACKAGING TIPS FOR YOUR FROZEN FOOD BUSINESS



Inorder to make your business stand out, you need to package your business well and inculcate some innovative business management practises. 




Here are step by step tips on how to package and market your frozen food business 




Get a Good looking Business Card: Whenever you bump into an old friend, prospective customers or even a family member you have to arm them with your good looking business card that will remind them of your business.




Flyers: With a good looking flyer, you can use it to create awareness around your neighbourhood and attract more customers and make more sales. 



Get a world class Logo for your Business: You need a good looking Logo for your Business.



 A good looking logo will make your business  stand out and gain both local and international recognition.




Get a Good Looking Business Letterhead: 

Don't run your business like any other person will run, get a good looking business letterhead  and use it for B2B or B2C Corporate communication. 




By doing so your business will have a corporate outlook and will not be treated with  contempt and disdain. 




You can click here to order for  Letterheads printing services and make a choice and place an order to get the business Letterheads delivered to your doorstep.




Get A branded T-shirt for Your Business: 

With your Branded T-shirt, your brand will get more brand visibility.



Set up your social Media Accounts: With the facebook, Instagram, Whatsapp and twitter having millions of users. You need to leave on the social Media to increase your brand Visibility. 



Here are some of the Popular Social Networks you can learn on to promote your business.




facebook


Twitter


Instagram 


LinkedIn




You can also create a WhatsApp group and add all your customers, so that you can easily pass Vital information such as promo, Coupons across to them effortlessly. 




RISKS ASSOCIATED WITH FROZEN FOODS BUSINESS 

FREEZER BURN: This happens when a frozen food is stored for a very long time. To avoid this make sure you buy lower quantities of cartons of frozen food at the start and increase it as you grow. 




INSUFFICIENT ELECTRICITY SUPPLY: Frozen food business needs a constant electricity supply. Starting this business in an area with insufficient electricity might spell room for your business. 










BUILD YOUR CUSTOMER BASE 

Building your customer base is the key to suceeding in this business. You have to think of Innovation ways of adding extra values to your customers such as offering home delivery services. This move will neccesitate you having an Ecommerce website where they will order for your frozen foods online. 




Also print flyers and do door to door marketong to notify the neigbourhood of the prrsence of your business and what they stand to gain from you. At initial stage just look for a way to work on reducing rhe price of the products so as to win more customers to yourself.




Also you need to mount a big signage so as tp direct people to your Store. 


CONCLUSION

Frozen food business is a very Lucrative business, but it requires your patience to grow the business and build your customer base. Also try to make more money by getting an e-commerce store and offer home delivery services.

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