Rice distribution business is a lucrative business that prospective investors should consider looking into here in Nigeria because it’s very promising, especially when the profit potentials are analyzed. You will agree with me that there’s no home in Nigeria that doesn’t eat rice. As a matter of fact, rice is regarded as a holy grail that can’t be done without. In this article, I’m going to guide you on you can start a rice distribution business. A business that will make sure you always walk to the bank smiling.
WHY SHOULD YOU START A RICE DISTRIBUTION BUSINESS IN NIGERIA?
Believe me, there are 101 reasons I have considered rice distribution business a venture that every potential business person should start up. In this section, allow me to make few of them known to you.
1. HIGH IN DEMAND
Like I have already said, rice is a delicacy that can be found in many homes in Nigeria and almost all over the world. It can be cooked white, jellof, fried and in collaboration with other delicacies also. Major restaurants can’t do without having rice in their menu because it’s always in demand. The high rate of demand is so high that we can’t even satisfy ourselves with our locally produced rice. Because of that, some importers began to import rice which was later banned by the Nigerian government. You see, there’s demand and all you need is to make yourself available.
2. HIGH CONSUMPTION RATE
Nigeria has about a population of 200 million and this number eats rice at least thrice a week. It’s a sure breakfast every Sunday morning, especially in Christian’s homes. Some individuals eat it every day cause it’s easy to cook and very yummy each time its eaten. Rice distribution business is profitable.
3. GUARANTEED INCOME
Rice distribution business is a business that guarantees steady inflow of income and because demand is steady and consumption, continuous. Each time you supply rice, your bank account smiles in return. The only requirement on your side is to supply/distribute and you’re good to go.
4. NOT DEMANDING
Rice distribution business is not a business that stresses out their starters. Once your supply networks are set and ready to receive, all you need do is order for a haulage service, a truck, van or trailer to supply to the desired location. The choice of transport system depends on the size and number of rice you’re supplying.
5. EASY TO START
If you’re looking for a business that’s easy to start, without having to pass through rigorous processes and documentation, then rice distribution business is for you. What is required from you is to connect to a major rice producer or importer to work with. You’re merely serving as a middle man, someone who links producers to retailers. As you grow, you can decide to become a producer or perhaps, a major importer.
PROFIT POTENTIALS IN RICE DISTRIBUTION BUSINESS IN NIGERIA
The profit potential in this business is mind blowing and will get you excited instantly. This is a business you can start with at least, 1M. Let’s say for instance your ordered for 50 bags of rice, 50kg each at the rate of N15,000. When selling to retailers, you can choose to sell at the rate of N9000, thereby making a profit of N1000 per bag. Now, N1000 x 50 bags of rice is N50,000. Good thing is, you can make that in one day provided you have your supply networks set. You can make millions monthly depending on how big your supply network is.
TYPES OF RICE THAT YOU CAN DISTRIBUTE OR SUPPLY
1. OFADA OR LOCAL RICE
This is the locally made rice that’s usually produced in the south east and south west of Nigeria. It’s a dirty rice, but very cheap and nutritious.
2. STALLION RICE
When we talk about stallion rice, we talk of top brands like Caprice, Mama Gold, Tomatoes King. Stallion rice is one of the most popular breeds of rice worldwide.
3. BROWN RICE
This type of rice is brown in color and more nutritious than the white rice. It’s mainly found in mega supermarkets
There are still lots of varieties of rice that every rice distributor can consider distributing. It’s about making a feasibility study and discovering the type that’s more in demand.
BUILDING YOUR SUPPLY NETWORKS
The most crucial aspect in rice distribution business is your target market, the people you’re supply to. So, before you order rice from a producer or importer, make sure that your supply network is ready and waiting. Now, how do your set up a supply network?
Let’s assume that by now, you already know you’re target market through your business plan or feasibility study. The next step is to reach out to them, either through face to face talk, social media or by creating awareness in form of Facebook ad, TV or radio advert, newspaper classified ad etc.
If I’m to advice you, it will be to write a well detailed business plan cause through that; you get the whole overview of potential customers or market. Not only that, you also diverse a strategy how to meet and convert them to loyal customers.
Rice distribution business is a one of these lists of businesses than entrepreneurs, investors etc. can take charge of and live in financial freedom here in Nigeria or anywhere in Africa. It’s lucrative, high in demand and easy to start up provided a business plan has been written. If you can’t write a business plan, please consult a business consultant or business plan writer.
If you have any question, don’t hesitate to ask using the comment box.