Frozen food business in Nigeria has become another successful goal to become rich and have a sustainable income. The demands for frozen foods only grows concerning to the increase of middle-class citizens. Moreover, these citizens tend to live in urban areas of Nigeria. If they can get some fresh food in rural areas of the country, it may not be an option for big cities. It makes frozen foods business one of the best options for new entrepreneurs.
Frozen food poses many advantages for any urban consumer. The frozen state of the food keeps it fresh and saves nutrient elements. The business is very profitable as depending on the food`s size and sale location – one entrepreneur can get up to 200% profit.
How to start frozen food business?
Frozen food business plan sample
First of all – you need to have a business plan for the frozen food business. When you start your business – many things come into your mind. Therefore, you need to analyze the market and your actions to conquering the market. It means that your strategy would be divided into two folds:
- How to survive?
- How to prosper?
You may need to find other persons who are also in the frozen foods business. They would give you a professional advice how to write a business plan. The simplest business plan consists of the following clauses:
- Product description. In this part, you need to include your type of goods to sell, distributors, farms, manufacturer, freezing, and packaging process.
- Equipment. You need to include how many freezers you plan to get and if they are ready to be sold or ship. If you are setting up a frozen food business from home, then you should explain the whole process for packaging and freezing. Describe vehicles you plan to use to distribute your products.
- Industry. If you plan to sell directly to consumers, then you need to analyze the market demand of the area where you want to sell products. You should explain – why people will want your product! If you plan to sell to the local restaurants and groceries, then identify the size of the business. Do not forget to analyze your competitors and prove that your food would be competitive on the market.
- Marketing. In this section, you need to describe how you will sell the products. If you plan to sell it directly, then explain your packaging and label that will help people to buy food from you. Marketing also cover your product promotion plan.
- Finances. In this part, you need to estimate your profit and expenses. Do not forget that expenses include the cost of equipment, delivery, packaging, storing and manufacturing. Calculate your prices and be sure that they are marketable. You should also calculate some products you need to sell to stay in the frozen food business in Nigeria. The frozen food business plan is to be composed for three years at least.
The mentioned above clauses are minimally required for a frozen food business plan.
Business Capital
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It`s an essential part if you want to launch your frozen food business. You should search for capital before you start any business. The scale of your venture is limited by the amount of money you have brought to support it.
Moreover, you should understand that before your recently open frozen food shop starts to bring you profit, you need to invest a huge amount of money in it. Make enough budget so that you would cover all initial expenses. You might also consider setting aside some sum of money to stay in business if you can`t stabilize your income in first months.
Product Line
Think clearly about what you are going to sell to the people. You might think about getting your hands on poultry products as they are in great demand. Therefore, poultry and seafood can be your first option as it`s the best to start with something what everybody needs. Still, make your local market analysis, try to find what the number one frozen food in the area is.
For instance, you want to start with fish, then try to find which fish people prefer in this particular area. Moreover, if you want to sell different frozen products, then do not store them in one refrigerator. For example, fish has not pleasant aroma for some people. If you are about to start poultry and fish frozen food business, then some people may not like the idea of getting two products from the same refrigerator.
Suitable Location
The location is also a necessary part of any business. Some ventures thrive in certain locations, while others fail. Once again, make a complete analysis of the area you want to start your business. Moreover, analyze your frozen food shop perspective in two years in this area.
If you understand that you will live in this area in the survival mode and it will not change in the next few years, then why don’t you consider other options? Initial costs for the business can provide you few month of the survival mode until you start to get profit.
Join the relevant association
A lot of people in Nigeria conduct frozen foods business. Therefore, if you want to start a business in this sphere, you are expected to join the association that will oversee your affairs. For the security reasons, any appropriate body should register to the relevant association.
It helps your business to be protected within the terms of the association. Some organizations may also provide loans to its members. Moreover, within the associations – you can find people who would gladly share their experience in the frozen food business in Nigeria.
Customer Base
You need to analyze the area before setting up a frozen business. It will help you to make some strategies how you want to attract, persuade and keep people buying your products. Remember, customers are the fuel which makes your business engine running.
Storage System
You can`t open a frozen food business in Nigeria without proper storage facilities. It means refrigerators and other cooling systems. It`s advisable to start with purchasing several refrigerators and then buy more if your business prospers. In the frozen food business – storage facilities are the key elements.
Your business is largely dependent on them. Therefore, storage facilities can be your biggest money invest. Nevertheless, do not economize on this part of your business. Even if you plan to buy used refrigerators – make sure that they can save your products in perfect conditions.
Power Supply
All your electricity staff can`t work without proper generators. You should understand that you deal with perishable goods. Therefore, one electricity shut down may destroy all your products. Nobody wants to spend money on rotten frozen food, and you will bear all expenses after all.
Why do not you avoid these heavy losses by buying a good power generator? When you buy a power generator, you should look for high voltage and portability. Moreover, it`s easier to manage to generate sets in a petrol power generator. A power generator is a necessary equipment for a frozen food business.
Delivery and logistics
Delivery of products to your costumers can be your ace in the sleeve. This strategy can attract more customers to your frozen food business. Still, you can`t provide delivery for all customers as it includes extra costs to emerge in the process.
It means that you may focus on delivery to clients who make bulk purchases. You can also decide to go online and provide options for your products delivery. If you do not have your own trucks to deliver the products, then think about hiring a logistic company who would do it for you. Do not forget to stay in contact with bulk customers.
Frozen food business equipment list
If you do not know how to start your list , then you might check this one:
- Waste bin
- Buckets
- Aprons
- Wooden boards
- Cartons of food
- Salespersons (you can hire one for start)
- Air conditioners
- Workspace
- Generators
- Chisel
- Knives
- Chairs
- Table
- Capital
- Freezer
Frozen food business ideas
If you don`t know from how to start your business, here are top 10 ideas to start your frozen food business.
- Fruit Juice. You can get money from selling frozen food juice which is 100% natural.
- Salads. It`s a very healthy product. People eat salads for daily basis because they are filled with vitamins.
- Chopped potatoes. Chopped potatoes are also common in frozen food industry. You just need to buy industrial choppers, preservatives, and some potatoes.
- Sea foods. This type of products is mostly used by restaurants to cook continental cuisine.
- Poultry products. It`s the most popular frozen food in Nigeria. This business includes chicken fillets, chicken wings, turkey and whole chicken.
- Yoghurt. Yogurt is a healthy snack. Still, it`s difficult to start this business from scratch. It`s advisable to buy a franchise.
- Fresh farm supplier. You can be just a middleman between farmers and manufacturers of frozen products.
- Mobile frozen food store. It`s a good idea to help people to buy frozen foods without making a trip to a grocery store. Moreover, it`s much cheaper to open than just a frozen food shop.
- Frozen meals. You can try to make money by selling pre-packaged frozen meals.
- Snails. Frozen snails can be a good supplement to your frozen food business.
Pros and cons of frozen food business in Nigeria
Pros
- Frozen food saves flavor and nutrient elements.
- Frozen foods keep longer than normal foods in a refrigerator.
- It suspends fungal and microbial activity in the food. Therefore, the food remains safer in a frozen condition.
- Frozen foods might be a better choice for when there is a shortage of fresh food.
- Frozen food is the best option for busy people who are always in a hurry.
Cons
- Frozen foods may contain too much salt.
- Frozen foods include a significant amount of sodium, which increases risks of high blood pressure and heart diseases.
- Most foods lose their crystallized structure after being frozen.
- Freezer conditions may add unwanted flavor to frozen food.
- Some vital nutrients, like B and C vitamins lost their power in frozen foods.
So would you like to try Frozen food business in Nigeria after you’ve learned all these facts?
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