Frozen Food Business Plan in Nigeria | Cold Room Sample Feasibility Study
Our sample frozen food business plan in Nigeria is updated regularly and can be used for loan acquisition, grants and investment purposes.
Over the last few years, the frozen food business has gradually but steadily grown to become one of the largest and fastest growing industries in Nigeria. Like I always say, any business that is food related has a potential to become big, it will only depend on how serious the business owner is and how much capital is available to run the business. The frozen food business owes its top flight business status to the continually growing population, the increasing bustling nature of the average Nigerian family, especially those with a working class status.
Also Read: How to Start Frozen Food Business in NigeriaIn fact in the cities, it is quite difficult to gain access to fresh farm products of this class (by this I mean chicken and fish of different classes). This is quite different in the rural areas where you can readily gain access to these, but then again most rural towns are fast evolving into urban centers and the urban centers are growing into metropolitan cities, a major effect of urbanization.
The frozen food business has made it easy to gain access these foods in comfort and at affordable prices, this has made the business thrive in even the toughest of terrains. Depending on the time of the year and the product being sold, the profit raked in by these frozen food business owners can be between two hundred thousand and three hundred thousand naira monthly for an average store.
Presently, on the average you can buy a kilogram of chicken for about #1,200, same goes for a kilogram of turkey and for fish it ranges from #600 to about #1,500 per kilogram depending on what kind of fish you are buying. These prices were far lesser just about two years ago, with a kilogram of chicken going for #650, invariably this tells us that the price will most likely continue to rise. This shows that staying with this business can mean one will be grossing quite an amount of profit at the end of the year, it is a very profitable business.
Inasmuch as the business is very lucrative, there are a number of things that should be considered and set in place before starting up this business to avoid woeful failure. There are several hazards that could rise from running the business, these hazards need to be adequately prepared for to avoid unnecessary problems on the long run. If these can be sorted out efficiently, the business owner can be sure of raking in a good amount yearly from profits.
Things Needed to Start a Frozen Food Business in Nigeria
Below are a few suggested steps required to start a frozen food business in Nigeria, this is only a guide and the steps are written in no particular order. I will also not be stating particular amounts to avoid misleading you, as prices of most items depend on the location of the proposed business.
Take an Intent Study of the Business and Choose your Niche. Starting a business without making considerable deliberate efforts to study the terrain first is like a man who wants to build a house without a foundation. It is simply a disaster waiting to happen. Take time out to study the business both theoretically and practically. There are several materials online that will give you in depth knowledge on how best to run the business, the eventualities that may arise and how best to combat them. You should also visit other existing stores in your area that you deem successful to see how they run their business, learn from their errors and successes. Your study will also help you discover what niche you will be able to run effectively, if you want to run a specialized business or you want to sell a variety.
Write a Business Plan. Your business plan is a map which guides you throughout the lifespan of the business. It is therefore imperative that every business, no matter how little it may seem, should have a plan written down. A lot of effort is required in making a business plan and most of the information needed is the information gotten from the feasibility study. You will be required to take massive surveys relating to the business and also make intelligent projections. This business plan will help in raising interest from investors and also give you an opportunity to apply for a bank loan without stress.
If you cannot write a frozen food proposal for yourself, you can buy our Frozen Food business plan in Nigeria.
To place order, pay N10,000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, text your full name, email address and title (frozen food business plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Raise Business Capital. Having a business plan does not mean the business will automatically kick off. You will need to raise capital to start the business and as we all know, capital is the amount of money required to start up or run a business. The size of the business at start up is largely dependent on the amount of capital available at start up. There are several ways of raising capital, some of which include, personal savings, raising loans from banks, attracting investors, gifts and loans from family members and friends. It is important to put a proper structure on ground for raising capital because it will determine how long the business will last on the long run.
Get a Befitting Location. The location of a business will also contribute largely to how well the business will thrive, how many customers will patronize the business and how much profit the business owner will gross at the end of the day. For every kind of business there is a specific kind of area that is suitable, frozen food business is not an exception. For this business, depending how big you want to become, you might be looking at getting a place that will allow for future expansion. You should consider getting a place that is quite accessible to your prospective customers, the place should also have access to good electricity. This will reduce the amount of money spent on a generating plant. As you know it, a major requirement for a frozen food business is constant power supply.
Register with the Required Associations. There are several bodies in charge of regulating food related companies in Nigeria. Before starting up your frozen food business you should consider registering with them to avoid unnecessary embarrassment. Some of these bodies include, National Food and Drugs Control (NAFDAC), Standards Organization of Nigeria (SON), State or Federal Ministries of health, and of course the Corporate Affairs Commission. In your location there will also be associations that control the activities of frozen food marketers in that area, you should find out what it takes to be a part. These kind of associations have key roles to play to ensure the smooth running of your business. A note of warning however in joining market associations is to make proper inquiries to be sure the association will not be one that drains your business from levies.
Plan Your Storage System. This will require a lot planning, but the plan should have been taken care of in your business plan. There are several measures to be set in place for proper storage of frozen food, your choice will largely depend on the scale at which you want to run. The storage measures could range from using regular freezers to larger freezers and cold rooms. It is advisable to start little and then grow except of course if you have a very large capital. Your storage system will determine to a large extent how well your business will thrive, you should be looking at a storage system that is durable and can retain coolness of the supplies for longer periods. Proper freezing ensures that your produce are kept crisp till they are purchased by customers. If they are not properly preserved, it will adversely affect your sales and profit levels, you might even lose loyal customers.
Challenges of Frozen Food Business
Power Issues. The rate of power supply in Nigeria is quite alarming, it is a major cause of concern for a frozen food business owner as the business is almost completely dependent on electricity. Without electricity you cannot power your storage devices, meaning that you will be heading for a major loss as these supplies are perishable. So before even getting any supplies at all, you should ensure that you have sorted out power supply issues. Your best bet in Nigeria presently is getting a standby generator, the sizes may vary depending on the size of your business. Ensure the generator is capable of powering your storage devices, it must also be versatile so that it can accommodate a change in devices, just in case you are planning to expand.
Freezer Burn: This happens when your products loose their original taste because they have been in your freezer for a long time. Therefore you will have to do everything that you can to sell off your products as soon as possible.
No Customers: You should make sure you do a proper feasibility study so that you do not go and open a frozen food business in an area where people will rather eat live chicken or fish then frozen.
Do What Others Don’t. One thing that will stand you out from the crowd of frozen food businesses in your area is doing something they normally do not do, bring something different to the table. This will be a major scheme to help grow your client base. An example of this is providing home delivery services, which could come at a little extra cost. Think outside the box and you will be sure to grow your client base within the shortest possible time.
Build Your Client Base. This is expedient because for any business at all to make profit, it must have a client base. It is your clients that will bring you the profit you desire, so you must invest in reaching out to them and attracting them to your business. Understand the kind of things they need, and invest in making those things available. Do as much publicity for your business as you possibly can, do not depend on just the usual techniques for frozen food businesses. If you want a different result then you must do something different. There are several methods of publicity asides just a signboard in front of your shop, design fliers and posters, utilize social media to inform people about what you do.
Here is a list of likely materials and equipment you will need to purchase when starting up your frozen food business:
Coolers, seats, tables, generating sets, a store, fan or other cooling system, storage devices (fridges, freezers, cold rooms, etc.), knives, scales, squander receptacle, etc. You might also need a sales personnel depending on how big the business is at start up.
Challenges of Frozen Food Businesses in Nigeria
In Nigeria, a major challenge of frozen food businesses is that of power supply. The power supply is somewhat erratic, this means that for those without access to generating sets, they will lose a lot because their supplies will get spoilt when there is inadequate power supply. It also leads to additional costs as the purchase and maintenance costs of running the generator will lead to extra cost placed on the commodities so that there can be a balance in profit and expenditure.
Another major challenge is government policies. Should there be a change in policies with respect to this sector of the economy, there will be an adverse effect on the business. Some time ago, there was a policy banning the importation of frozen foods, it cost a lot of business owners a lot as most of their goods were seized.
In conclusion, the frozen food business option is a viable one which can bring in much profit. The growth of the business however depends largely on the zeal of the business owner, the management techniques and the measures taken to publicize the business. A major issue to be noted is where you get your supplies from. You should ensure that your supplier is someone who is trusted to provide top notch products which are free from diseases and are healthy for human consumption. With all these in place, you can be sure to make some good profit within the shortest possible period of time.
Get your own frozen food business plan in Nigeria ! To place order, Pay N10,000 to:
BANK NAME: GUARANTY TRUST BANK (GTB)
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 0044056891
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, send your full name, email address and topic (i.e. Frozen Food Business Plan pdf) to 07033378184. Your business plan will be sent to your email within 15 minutes.
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