The products are weighed and sold per kg at a
predetermined price. The business is profitable and comes with its own set of
challenges.
The main difficulty is the unstable power supply in
Nigeria. You tend to spend huge amounts
on fuel/diesel to power your generator.
Write
a Business Plan
Write a frozen food business plan and carry out a
feasibility study. Study your competitor’s business format, pricing and
customer service. Find your customer demography that requires such services.
Funding
The amount of money you need depends on the size of your
operation. You can start the business with moderate funds of about N400, 000.
This will go into renting a shop, buying a generating
set, stocking and freezer. Try target saving or borrow from friends and family.
Frozen
Food Business Equipment
To start your business you need to buy appropriate
equipment. Common equipment’s are cutting boards, sturdy cutting tables, empty
cartons for cutting.
Others are sharp cutting knives, cutlass, buckets and
freezers. You need measuring weights, a standby generator, cutting plank, waste
bins and aprons.
Equipment
- Cutting boards
- Sturdy cutting tables
- Empty cartons
- Sharp cutting knives
- Cutlass
- Buckets
- Freezers
- Measuring weights
- Standby generator
- Cutting plank
- Waste bins
- Aprons
Locating
the Business
The best location is a commercial area or open market. Closeness
to residential homes is also ideal for food related businesses. Make sure the
shop is visible, easily accessible and
in a heavily populated area.
Stocking
your Freezer
Frozen food shops generally stock the freezers with assorted
products. Popular products are fish and poultry products.
Common fish are Titus, Kote, Croaker, Argentina and
tilapia fish. Poultry products are usually chicken or turkey meat.
The poultry are sold as wings, laps, whole poultry and
gizzards. Some dealers diversify and
offer cooking ingredients, rice/ beans grains.
Fish
and Poultry Products
- Titus
- Kote
- Croaker
- Argentina
- Tilapia fish
- Chicken
- Turkey meat
- Gizzards
Hire
Staff
You need only a few staff to run a small shop. You can run
the business yourself or hire an apprentice.
Services include weighing the meat and cutting to
customers specification. The products are priced according to weight per
kilogram.
Marketing
Promote your business through flyers, posters and sign
boards. Others techniques include discounts, promotions and home delivery
services.
Start Frozen Food Business
Frozen food business is highly lucrative and competitive.
The demand is huge because of the large population in urban areas.
The average Nigerian loves to eat fish, chicken, turkey
and beef. Frozen food is easy to process, convenient and affordable.
The food are produced locally, smuggled or imported into
the country. The amount of startup is low, however utility costs are high. To
start the business you need equipment, a store and funding. Here are some ideas
on how to establish the business.
Starting
a Frozen Food Business
Types
of Frozen Food
Most frozen food dealers stock specific products. Common
products are chicken, turkey and fish. The type of fish are Titus, croaker, and
tilapia.
The food are weighed and sold whole or in parts. You need
to decide on your product line depending on your customer base. Conduct a
survey to find out the preferred frozen food in your locality.
- Poultry
- Fish
- Pork
- beef
Find
a Location
Locate the business in a commercial area. Other ideal locations
are close to residential homes and markets.
The shop should be easily accessible and well ventilated.
Supplies
As a retailer you need a good supplier. Buy your stock
from frozen food wholesalers, farmers or cold room operators. You can also
start your own farm and stock.
Get Finance
You need about 1.5 million naira to start a frozen food
business. The amount is just appropriate to but a freezer, rent a shop and buy
your fist stock.
Write
a Business Plan
Write a frozen food business plan and carry out a
feasibility study. The plan should focus
on customer preferences. Study your competitor’s prices and products. The plan
should cover equipment, funding, fixed and working capital.
Register
the Business
You are not obligated to register the business. However
registering the business would give it a corporate identity. Register the
business as a sole proprietorship or limited liability company. There are some
local or state associations to join.
Storage
Facility
The only storage you need is your freezers and cooling
system. The food would spoil without ice. Purchase three to four freezers to
store your excess inventory.
Power
Generation
The biggest challenge in Nigeria is electrical power.
Nigeria is known for poor power generation and blackouts. Without regular electricity your products
will spoil. The only alternative is to buy a generating set with enough
capacity to power the freezers.
Equipment
You need basic equipment to start the business. The
primary equipment is freezers, generator set and weighing machine. You need a
worktable, bowls, buckets, knives and nylon.
- Freezers
- generator set
- weighing machine
- worktable
- bowls
- buckets
- knives
- nylon
Added
Service
Many frozen food dealers add food items or fruits. They
sell tinned tomatoes, salt, rice, spice cubes and seasoning. This way you can
increase income and offer your customers cooking essentials.
- Tomatoes paste
- Salt
- Rice
- spice cubes
- seasoning
- cooking essentials
Marketing
Place a sign board in front of the shop. You can print
handbills, posters and banners to attract customers.
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