Frozen Food Business was the boom last yuletide as demand rose off the chart. The way everything played amazed me as the curiosity in me grew, which has become a normal occurrence since I launched this business blog. Frozen food business is a lucrative business that the middle class in our society doesn’t joke with. Who have got the time to start preparing these when it can easily be gotten from a frozen food venture nearby? Certainly not me.
The epileptic power supply in Nigeria has made this business a less competitive business. Power is no doubt a major challenge and this is what has actually made it a lucrative goldmine. Not everyone can afford this business. So, if you can plan adequately, you’ll certainly succeed since you’ll be the only source of frozen food in your chosen business location.
In this article, i’m going to guide you on how you can start a frozen food business. With a good business plan and location, you’ll be able to create a good residual income that makes you financially buoyant and free.
HOW TO START A FROZEN FOOD BUSINESS
1. A GOOD BUSINESS PLAN
When I talk about having a business plan, I’m not referring to going on a market survey.. It’s much more than that. A good business plan will give you the overall overview of the business, even the height of demand and competition. There are so many freelance business plan writers that will gladly do that for a token and at the same time, give you what you need. So, make sure you get a frozen food business plan before you consider starting this business.
2. YOUR PRODUCT LINE
The most popular is usually seafood, that’s different varies of frozen fish. Another popular one is poultry products like chicken or turkey. Before you make your decision, first of all find out the one that will be mostly demanded in your situated location. Frozen food business is a location base business, in the sense that the location have a great impact on the success of the business. There are numerous other products that can be frozen too, like pizza and pickles. From your business plan, you’ll know the product that will strive well in your area.
3. GOOD BUSINESS LOCATION
It’s crucial that you take this aspect very seriously. In fact, a bad business location is one of the major cause of business failure in Nigeria and all over the world. Be sure that the business is in close proximity to potential customers. Also make sure that the respective location has steady access to electricity so as to save you the hassle of having to fuel the generator always. If the location is close to your target market, lack of electricity shouldn’t deter you anyway. You should simply diverse a strategy.
4. GOOD STORAGE SYSTEM
In frozen food business, freezing and cooling is the main order of the day. You’ll need at least, two refrigerators. That’s if you’re dealing with more than one product line like seafoods and poultry. Both product must not be in the same refrigerator if you must remain in business. This is because seafoods like fish might compromise the taste and scent of poultry which customers hate a lot. If you can’t afford a new refrigerator, go for fairly used.
5. GET THE NECESSARY EQUIPMENT
Below are most of the equipment you need to fully kick off with this business.
Frozen Food Business Equipment
- Waste bin
- Wooden boards
- Cartons of food
- Salespersons (you can hire one for start)
- Air conditioners
Go on a market survey to find out their prices. This will give you an idea of how much you need to acquire them.
GETTING A LICENSE FOR FROZEN FOOD BUSINESS
Since this has to do with edible product, you have to find out from local authorities if a permit will be required before operation begins. You don’t want a situation where you’re arrested for defaulting the law. Also find out from other frozen food business owners what it takes to be in business. If you’re starting on a large scale, then I will advice getting a product insurance which will protect your business from whatever that might arise as a result of your frozen products.
DELIVERY AND LOGISTICS
Some sets of customers might order in bulk and as thus, require a delivery service. This is made possible if you have a delivery van. In a case where you don’t, then hiring a logistics company become the only option. Delivering service has a way of giving you an edge over your competitors. Not only will you save your customers the stress of having to carry their good themselves, you end up making them loyal customers for life.
CHALLENGES IN FROZEN FOOD BUSINESS
There’s no business that’s devoid of challenges. However, the major challenge as long as frozen food business is concerned is power. Nigeria is still battling with epileptic power supply and because of that, only few players exist in this business. Nevertheless, there are also some parts of Nigeria where steady power supply is experienced. If you are in such an area, then you have no excuse. One of the ways to go around this major challenge is to use ice block in other to manage fuel.
FROZEN FOOD BUSINESS: BUILDING YOUR CUSTOMER BASE
Building a customer base is a measure every business must take part in to stay in business. As you already know, the success of every business lies on the customers. The bigger your customer base, the better. I wrote an article some time ago on how to build a big customer base. Do well to check it out as it will help give you an idea of how to go about this. When you do it well, you’ll get it right.
Frozen food business is among these rising and untapped business opportunities many are yet to see. Although it might be capital intensive, but the gain is worth every penny you invest. After about 3 to 6 months of startup, you’ll be able to make not less than N200,000 a month, depending on the size of the business.
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