Frozen foods are foodstuffs exposed and treated at freezing temperatures to prevent them from decaying. Population increase in the country has resulted in the popularity of the frozen food business.
This is because so many are scared of the whole stress of fish rearing. Hence, opt for already made ones.
The frozen foods business deals with freezing, storage, and sales of fish, turkey, prawns, etc. that are refrigerated. You notice that in most homes, there’s always a can of frozen foods in their fridge.
How To Start A Frozen Business In Nigeria
The importance of frozen foods is quite many and it’s most sought today. On big occasions, the need for fresh meats is fading away. This is because frozen foods are easier and more accessible than fresh foods.
This business is more profitable in urban areas than in rural areas. The latter has more abundant fresh foods than the former. Most hotels are delving into the era of using frozen foods for any food they sell.
So, it’s of no doubt the frozen business is a lucrative one. In Nigeria, there’s no looking back in the business as fish farmers are almost in this line of business. So, here’s an outline if you’ll like to start the business someday.
Map out your business plan and register your business
Set up plans for running your business. The plan should cover up for the survival and thriving of the business. Map out strategies on how to survive despite your competitors.
You may seek a business professional’s advice to help come up with a suitable plan. It is where you lay down every single detail of the business from the location to the supposed gain estimated at each sale.
It’s also important you register your business with the relevant association. This association oversees the affairs of every business registered in it. They also offer credit facilities for their members. Make sure you can cope with their levies before joining.
Have a starting capital
For as low as 200,000 nairas, you can start a frozen food business. It’s important to have money at hand to run your business, especially if solely owned by you.
For a large-scale business, you’ll need about 500,000 nairas of which 2 deep freezers are covered in this amount.
Your capital can be realized through various means. Either via your savings, loans, or gifts from friends. There should be available means of maintaining and running costs in your business.
Decide on which line of frozen foods to go for
There’s a need to have a particular business line and not just delve into all. Several food items can be sold frozen. From seafood and poultry products to fruits.
Protein foods are mostly in high demand than fruits. Although, it depends on the preference of the customers in that location.
If you’re settling with poultry foods, that’s a good one. But if you’ll combine poultry foods with seafood like fish, you should have separate refrigerators for them. This is due to its awful smell and this would rub off on your chicken if placed together.
Choose the right and conducive location
If you want to make more sales in this business, you locate near commercial fast foods. You then become their go-to for frozen foods and their likes.
You can also locate in a university environment as students opt more for frozen foods.
You can also locate it in the market areas or in front of your homes. Ensure your location isn’t hidden. When choosing a location don’t leave after a year or two due to business stagnancy.
Every location is a potential market. There’s probably something not done right that you should sort out.
Ensure your storage system is working
This is the base of the business because if you don’t have a storage system, you shouldn’t be talking about the frozen food business. Make preparations for either a refrigerator or a cooling system.
If you’re at a small-scale level you should not go for more than a refrigerator. This way, the expenses wouldn’t be too much. Your storage system determines if you’ll gain or lose in this business.
This storage system makes the foods fresh by staying frozen. Go for high-quality storage systems.
Get the necessary equipment
The freezers, tables, generators, knives, aprons, refuse bins, water, and so on are necessary must-have equipment before starting the business. Let’s start with the generators.
Availability of electricity is always a challenge in our country. You know you’re products are perishable, this is why you should make adequate plans for an alternative.
A standby working generator should be on your site. This generator should be of high voltage and portable. Also, opting for diesel generators saves more cost than that fuel.
If you’re not financially buoyant to get a generator you can pay to keep your product in a cold room.
Failure to do this results in spoilage, loss, and even great smell. Don’t wait to incur losses before you take the necessary step.
Other equipment like knives, chairs, tables, waste bins, etc., are for convenience and hygiene purposes. Don’t forget to get a standby source of water to aid in washing off blood from the foods.
Adopt the necessary marketing technique
You’ve taken all the prior steps, now it’s time to work on your marketing. Firstly, your environment is a factor.
In areas with more kids, red and poultry meat would thrive there while in areas with more elderly ones, the sea and poultry food is the demanded protein.
This is why you should evaluate your environment and know who your customers are. Remember, they’re the driving force of your business. Now for areas with hotels and bars, you can run logistics or door delivery to boost their constant patronage.
Also for bulk purchasers, you can be so generous as to run after-sales services to maintain their patronage. You can even run ads for your business to ensure that your area gets informed of your business.
This way, you’ll have a lot of orders needing your attention.
In conclusion, this business is enriching if diligent in it, even for a short period. It can run to be a multi-dollar company over time. You can get about 200,000 Naira per month and above or even less.
There are some risks attached to this business. The major one is food spoilage which results in great loss. It costs much running it, especially in electricity. But in the end, it’s worth it.
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