How To Start Profitable Frozen Food Business Easily In Nigeria
You’re greatly mistaken if you think the frozen food business in Nigeria is not profitable. Despite being part of the driest continent in the world, Nigeria has a high demand for frozen food. The large population of the middle class
How to Start Frozen Food Business in Nigeria
In addition to writing a good business plan and raising enough capital to start the business. Here are several things you need to know when starting a frozen food business.
1. Know Your Niche
Your niche is the key to your business livelihood. Make sure you do all of the necessary research before choosing a niche. Two general categories in frozen food are processed and non-processed products. Processed refers to the byproducts such as cheese, milk, and sausages. While non-processed are those that still retain their original form such as meat cuts, fish, and most seafood.
2. Understand the Product Line
After deciding on a niche, you still need to specify your business into several products. This will help build your credibility. You also can focus on specific products, knowing them inside out. Another thing to note is that different lines of products may require different temperatures to store.
3. Choose The Best Location
Like many other businesses, location is key. The best scenario is to have your storage and office in the same complex. You can have better control over the process and ensure your high-quality standard.
4. Complete all paperwork
Since you’ll be in the food business, you may need additional licenses after registering your business. Some of these extra licenses are health and hygiene. This is to ensure the customers that your products are safe the products are safe to consume.
5. Have enough power and storage unit
This point has a strong relationship with the location. You must have enough power and storage to prevent the ice to melt early and ruin your products. Storage units also have a specific capacity to provide maximum chill. These may sound trivial, but you may need to have some extra funds for the generator and emergency storage.
6. Build a logistic army
Logistics is key since you need to have the best method of transportation from the supplier to your storage, before delivering them to the customers. If you plan to work on the grassroots level or only have a small area to work with, you can utilize a motorcycle or small box cars as your primary transportation.
7. Have the best marketing
Marketing is the heart of any business. Therefore, you need to utilize it to gain more customers and earn their trust. When it comes to marketing frozen food, you can highlight the source location or the product itself.
Challenges in Frozen Food Business
Like many other businesses, frozen food also faces several challenges. Primarily in the health sector since the food is no longer fresh and losing most of its nutrients. Another challenge is the high cost of capital.
You also must have a secondary plan to repurpose the products that are still in your storage. This will reduce the amount of waste and you still can gain profit.
When you start a frozen food business in Nigeria, you must remember that you’re essentially providing a storage and logistic service. As the company between the supplier and consumers, ensure that you’re giving your best effort despite the challenges that come your way.
