Starting a Foodstuff/Grocery Service Business

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In todays busy and sophisticated world, convenience has become a real business opportunity. If you can come up with an idea that provides convenience which you can manage well, you can really make money. Products like

washing machines and vacuum cleaners are based on convenience.

What you do.
Foodstuff is rice, beans,yams, plantains, potatoes, tomatoes .onions ,pepper,oil etc. You buy these items in bulk, clean them up ,sort out the best ,then you package and sell direct to end users.

What you need..
The ability to deal with the stress of moving around the big markets to get good bargains. A system for easy delivery of orders to clients. A van or an arrangement with someone who has a van. ( this will affect cost ). A good client base to start with. Plenty of guts.

Why it can work.
Increasingly people are getting busier in the cities. Both men and women are working such inclement hours that many are reduced to eating junk food or food prepared by strangers in restaurants ( at outlandish prices ). It is clear to see that you will really be doing people a service with this idea. Plus the fact that there is a higher likelihood that your service will not only be less stressful, but more hygienic. Many people who are unable to find time to shop will br relieved to know that they can just make a phone call and ..the groceries are delivered.

The reality.
It is not a new idea so you will have to distinguish yourself to get a share of the market which can sustain and encourage you. There are also problems of perishability of your stock. Hygiene is also a big issue you must constantly attend to. You may need to take long journeys to get good bargains from the actual farmers.

Start-up strategy.
Prepare a plan. Get a list of people you know now who may patronize you. If you can get them to pay upfront.then you are better off with cash flow. You will need less of your own money to take off. If you can get 50 clients to place N20 000. Orders with you a month, then your turnover is N1million a month. It is not easy but it is very possible.

Tips.
Leverage your social contacts. Church ,office,family ,etc. Learn a bit about direct marketing, focus on quality. Streamline your efforts. Consider niches such as strict vegetarians . Diabetic patients,etc. 

Read 337 times Last modified on Monday, 04 May 2015 03:02
Tayo Aroloye

He is the founder of the B.Y.O.B initiative with decades of experience on how small businesses start and grow. He is very passionate about entrepreneurs and how entrepreneurs are able to move from idea into viable businesses.

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