The food supply industry in Nigeria is one of the fastest growing companies with a significant return on investment (ROI).
With food at the heart of our lives, everyone needs the service of those who are part of the food value chain.
It is such a profitable business with low risk involved. The good news is, you can start small and scale it up easily down the road.
The business thrives in market areas and residential places where people can easily access your products without facing any sales barriers.
However, there are steps to take when preparing for your investment in the country’s food market.
As long as humans exist, the food business will continue to be a profitable business in all aspects of life. Hence, it takes little knowledge and skill to elevate the business. As simple as a food business may seem, there are many problems that can be faced and even into debt if the business is not properly run with the required basic knowledge.
Depending on your location, there must be a significant market around, which you can go and negotiate for the wholesale price. And depending on your bargaining power, you can get it for less than the usual amount, especially if you deal directly with the wholesaler or can even go beyond the market to the producer. To this end, you will get the goods at a relatively cheaper price.
Place of business
This is essential for the survival of the business, therefore the first priority should be finding a suitable location for the business. The sustainability of this business is only guaranteed if and only the determining factor of location, capital and others are viewed favorably.
Speaking on this, a food retailer in Lagos, Mr Sola Kehinde, says the business requires little start-up capital to start up, adding that due to inflation and the price of food on the market market, the start-up cost will increase. based on the market price of the goods.
She says the higher the cost of food, the more capital you need to invest.
It further reveals that in order to start a food supply business you will need between 300,000 and 500,000 naira. After securing a location for the sales, the money will be used to store bags of food for distribution.
A delay in the delivery of any merchandise could cause your customers to move elsewhere to make an emergency purchase. If this happens repeatedly, you risk losing your customer base.
Kehinde further notes that the food supply sector has created and creates jobs for unemployed Nigerians, saying that through the business, some have been able to meet the social and financial needs of their respective families.