starting a business is good move… but starting a business based on expert guidelines is a great move. little things like this are the difference between success and failure… and in this article, i will be sharing with you expert guidelines on how to start snacks business in Nigeria. A SUCCESSFUL ONE AT THAT.
snacks business is one the top businesses to start in Nigeria right now… and this is because you can start it with just 100k or less and still generate a positive return of investment.
so without any further ado, let get into details on all you need to know in other to open snacks business in Nigeria.
7 Key Guidelines To Start A Successful Start Snacks Business In Nigeria You Need To Know
Training involves the act of acquiring knowledge. And I’m sure you know this skill won’t just get to you. You have to get it yourself.
Therefore, my first recommendation for you on how to start snacks business is to actually learn and have good baking skills.
However, below are some of the things you should consider before choosing someone to learn from
How long has the person been baking for? In most cases, the older the better.
- Customer base and reviews
You know someone is doing a lot right when you notice customers keep repeating purchases. And the product reviews are very good too.
It only takes a good teacher to raise a good student. And like they say, an apple doesn’t fall far from the tree. So if you settle for the best, you’re also more likely to become the best one day.
if you don’t have know how to come up with the desired snacks type you want to specialize in, go learn how to.
2. Market research
In relation to this article, market research is all about gathering information on the type of snacks your target audience will appreciate best.
We both know there’s nothing new under the sun… so it’s possible your snacks business idea may just be around the corner in your neighborhood.
Therefore, before you start your snacks business, ensure to go around to see what others are offering and how they are going about it.
While others are focusing on – for example puff puff, fish roll and buns etc, you should consider focusing of sausage, meat pie, egg roll and the likes.
This will make you not only stand but also attract the right audience.
In summary, gather enough information on what your competitors are doing. This will enable you come up with something different and you’re more likely male sales that way.
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3. Source for the needed finance
After getting to know what will work best around you, it’s time to source for funds to get things in place.
You can start this business with less than 100k. That’s because the materials to start snacks business in Nigeria are not expensive. So even 50k can do.
However, I understand all fingers are not equal… and below are the ways you can seek funds needed to start snacks business in Nigeria.
- Personal savings
It’s understandable if you don’t have any cash saved up already.
However, you need to get to work on looking for a way to go about it. And the best way to do that is to get a job and save up part of your monthly allowance.
- Seek aid from friends and family
The idea here is just to let your loved ones know you want to start snacks business of your own.
And you will appreciate any form if assistance they could render to getting you started. Sometimes, it’s possible they don’t have cash but are blessed with a couple of items you need to get started.
Imagine getting an oven instead of the ₦5000 or ₦10,000 your uncle wanted to support you with. Isn’t that good? So when seeking their assistance, let them have the list of key equipment you’ll need if they don’t mind.
- Cooperative society
This happens to be one of the of the quickest ways of raising money for a business.
If you know someone who belongs to a cooperative that indulge monthly, weekly or daily contribution, let him or her know you need a small loan to cover the expenses and get your snacks business up and running.
Be very truthful to yourself and make sure you’re good enough or rather in the best position to keep to their terms and condition.
Keep in mind that cooperative also collect monthly interest funds, until you pay them up completely.
4. Source for a shop.
In my opinion, this is optional. Because you can actually work from home if you’re on a tight budget.
Just ensure you get orders delivered in the right quantity, right quality, when and where it’s needed.
However. in a situation where by you have the cash to splash on finance, consider the following before settling there
- Target audience
- Nearness to resources (it’s possible you run out of supplies on a good day. So you want locate near a store you can easily get the raw materials like flour needed for production.
5. Get a business name
The idea here is just for you to come up with a name your business would be called.
If you intend packaging your product then this phase is 100% compulsory. Because it’s one of the ways your customers can use to demand and also recognize your product.
While working on a name for your business though, ensure its simple and easy to understand.
6. Register the business name.
For a start, this isn’t really necessary.
However, when your products start climbing up stages in its life cycle, copy cats will come up.
And to ensure they don’t appear to your customers as you, you should get a legal backing by registering your business name. That way when appear to your customers as you using your name, you meet in court.
In most cases, they won’t even dare mess with you when they know your business is registered with the corporate affairs commission in Nigeria.
Another advantage of registering your business name is that customers will take you more seriously.
7. Brand and package your products.
My next tip on how to start snacks business in Nigeria is to use the idea of branding and packaging to your advantage.
The essence of this is to communicate difference and quality to your target audience.
Let me tell share with you some benefits of a good package.
- It gives protection to your product
- It enables containment
- A good package attracts customer to buy a product.
- Furthermore, it educates prospect about your brand.
Most importantly, good packaging makes you stand out from the rest.
And it’s likely to attract good deals… because majority will see you as a professional, not just a random snacks seller.
Pro Tip: Ensure you put your contact details on your product package.
8. Market your snacks.
As a beginner, you can start selling at or in learning institutions around you. This is just to test market your product to see how people are reacting towards it. And it’s possible your big break could come from a student that’s very convinced yours snacks are exceptional.
Aside schools, it’s also advisable you reach out to restaurants, hotel and bars. Convince the owners or managers with samples of your snacks. You never can know what may come out of such act.
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How Profitable is Snacks Business?
In terms of profitability, this is the little I know…
- As at when I am writing this article, a Congo of flour is around ₦300 (
You can get it in small quantity (yeast and baking powder) for as little of ₦100 each
- A bottle of groundnut oil for ₦500
- Total = 900
The price of your snack will depend on your package. I have seen a couple of persons sell a small package for ₦50 (containing 3 pieces of bonce) and the random style of selling 1 piece for ₦10. It’s your call.
But what I know based on my little experience on this particular business to start in Nigeria is this;
A Congo of flour could generate at least 60 fair sized pieces of bonce. While for puff-puff balls, around 80 pieces would be the outcome at least. Now if you adopt the method of selling 3 bounce for ₦50, you will generate as high as ₦1000.
Do the math. Not forgetting it’s impossible to finish using all the oil on one Congo of flour.
What are some of the equipment you’ll be needing to start snack business in Nigeria.
Below are some of them
Cooking gas (6kg)
Packaging materials (Nylons)
With the above and other key ingredients such as vegetable oil, lukewarm water, salt, sugar and ground nutmeg, you’re good to go.
For you to be successful leveraging this lucrative business idea, two things are key at least
Your baking skills. (are you good, very good or very very good?)
Your pricing strategy.
How for your pricing strategy, do your research on your competitors price and also on what your target audience can afford. Above all, just make sure your prices are competitive.
Unlike other businesses you can start with 100k in Nigeria. One thing is peculiar to the snack business…
…the taste is the difference and difference is in the taste. So be sure to be the best around in other to enable repeat purchase.
If you can stand out positively in terms of taste, in no time you’ll start getting deals to bake for birthday parties, meetings and so on. With time, you can improve to small chops and start supplying restaurants.
The difference is just the package and shapes of the snacks. This is another profitable business you can start with 100k in Nigeria.
Notable advantages of starting snacks business in Nigeria.
- It require little capital to start up
- The snack business in Nigeria is very profitable
- The business doesn’t require high technical skills
- Snacks are very affordable, and that’s why the business is fast moving
- Production ingredients can easily be seen and bought.
- You can start and indulge in production activities from the comfort of your home.
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Summary on how to start snacks business in Nigeria.
Get trained to acquire professional baking skills
Conduct extensive market research to know the type of snack your target audience will appreciate the most (remember this step is key to helping you have an edge over your competitors)
Seek for fund to start your snack business
Source for shop
Get a good business name
Register your business name
Embrace the strategic concept of branding and packaging your snack.
Market your snacks.
Snacks business is very profitable but I’m sure you know this already. So let me not bore with that…
However, if there’s something I want to stick with you in this article, they are as follows
- If you’re not well trained already.
Please don’t start this business. I don’t want my audience to be like the rest out there.
Therefore, I’d advise you do your best to acquire good baking skills. Little things as sugar content, water content, salt etc can make or break your business.
Remember the difference is always in the taste.
- Embrace branding and packaging: when your snacks taste good, you want to differentiate it from others.
The idea is just to separate the sheep from the goats in the industry. Take a close look at apple products, that’s what they’ve successfully done.
Haven’t you noticed people rate a 2018 iPhone higher than the latest the Infinix 2020 model?
Needless to say, it’s why they are today, a globally recognized brand.
It’s the same impression you want your customers to have about your product.
So that’s it on how to start snacks business in Nigeria from my end. If there’s anything we missed or you need additional information on this topic, please drop a comment. It will be highly appreciated.
Thanks for stopping by AND stay safe.