Welcome to this guide on how to start soft Drink Business in Nigeria. Some of the popular soft drink brands in loved by Nigerians are the Coca-Cola family (Coke, Fanta, Sprite etc.), Mirinda, Pepsi, Limca, Crown Drinks, 7 Up, etc.
Soft Drink Business works in Nigeria, given the appetitive nature of a typical Nigerian who loves to party and drink even to the detriment of his pocket. So, capitalizing on this, you can make so much money selling or distributing soft drinks to parties, weddings, ceremonies, club meetings, shows and events, and even homes in Nigeria, either part-time or full-time.
This article takes you by the hand and shows you how to start soft Drink Business in Nigeria, step-by-step.
How To Generate Money From Soft Drinks Business
(1) Make Money Running A Bar
Being the owner of a bar is one way to generate cool money from the business of selling drinks. Generally, bars sell alcoholics, but soft drinks are also sold as supplementary drinks.
So, if you wish to run soft drink business in a bar, understand that it comes as an additional aspect of the business. This means you must already be running a bar. It does not make sense to open a bar solely for the purpose of selling soft drinks. If you do, you may have very low patronage as the majority of people coming to a bar are in search of alcoholics, and not necessarily soft drinks. The exception to this is if you make it clear that your bar sells majorly Soft drinks, and not necessarily alcohol.
So, if that is the case, go ahead and rent a little store and make it comfortable for relaxation by people. Make the drinks available to those who come around to relax. You bar, of course, should have a television set with access to cable stations which keeps your customers relaxed while having their drink. Chances are that they are likely to come around for another good treat.
(2) Make Money Selling/Distribution Soft Drinks In Bulk
The other aspect of this business is the bulk sales and/or distribution. If you must run it successfully, then it is recommended that you get a deep freezer, different brands of drinks and a generator set.
Chilled drinks will surely attract lots of customers. This business is very viable because of the hot nature of Nigeria’s weather. Passers-by and people in your locality will always come around to get cold drinks because of the hot weather.
(3) Make Money Setting Up A Soft Drink Depot
If you have a drink depot too you can get lots of drinks which you’d retail to customers in need of them. This aspect of the business entails that the drinks are supplied by companies to your depot and from there to your customers/clients.
Basic Requirements To Starting Soft Drink Business In Nigeria
1. Understand The Business Metrics First
Although this business may appear very easy on the surface, understand that there is more to it than what meets the eyes.
There are numerous things you must learn before starting soft drink business. This includes how to buy the drinks, mostly demanded soft drink brands, marketability skills, consumer buying patterns and behaviors etc.
Starting out this business needs you to consider your target market that you will be selling to. To increase sales, you must know which products or brand gets the most patronage from your clients/customers. This is very essential while starting out.
To be successful in this business, you should develop a strategy for the target market. With this, you will be able to circumvent the stiff competition out there and maintain or even increase your market share.
2. Buy Your Drinks From The Manufacturing Company or Major Dealers
Purchase your drinks directly from the manufacturing company. If you have a drink depot, it will be very easy for you as you will be storing them in your depot and retailing them to customers who want them. By so doing, you will double your earnings by buying them at a reduced rate or company price.
3. Employ A Few Staff
Employ a few workers or staff to help you with the workload at your shop or bar. They will help in serving the drinks, offloading them where necessary and distribution to customers, as well as attend to customer complaints when you are not around in the shop or bar.
4. Get A Vehicle For Mobility
Of course, you will not be hugging drinks on your head to and from your business premises to the client(s). No, it doesn’t happen that way. If you cannot get a car, or a van you should at least afford a tricycle with an open cart attached to the back.
You will be using this to move your goods around. In the list of staff mentioned in (3) above, a driver should be there. Or, one of them must be skilled in driving and part of his job will be transportation and delivery of your goods.
You must pick a good location for your business, do not choose a place where there is a low influx of people. A busy area is recommended or an area closed to working stations. You also need to register your business if you must place a signboard with your business name. Placing a signboard with a business name that is not registered is illegal and you could fall off with the law of the land.
5. Become A Soft Drink Distributor In Nigeria
To become an official soft drink Distributor in Nigeria and make money from it, there are basic official steps to take.
First, you need to apply in person or in a written letter to the company whose drinks you wish to distribute. Today, it is even much easier – you can simply give the company a call and intimate them with your intention to join their distributors’ network.
You will then be invited to the company’s office for enlightenment on their requirements. This includes things like the amount of capital needed to start the business, profit-sharing and daily/seasonal returns etc.
Majority of the companies have policies which seem to be general policies. An example is, “The more you buy, the lesser the price”. So, here, how much you make can be greatly influenced by how much you buy in terms of purchase unit/volume.
With each growth in the company, you get awarded a particular level and subsequently crowned a stakeholder. Some companies use the power of referrals where you may boost your portfolio by introducing people into the business. Other indices could be speed or fastness in selling off products bought.