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How To Start a Profitable Food Business in Nigeria

How To Start a Profitable Food Business in Nigeria

How To Start a Profitable Food Business in Nigeria
West African national cuisine. Jollof rice with grilled chicken wings and fried bananas plantains.On gray stone table. Copy space top view

Introduction.

Nigeria is blessed with so much food, fresh organic produce with a lot of variety, due to its wonderful climate.

Nigeria is home to more than 200 Million people with over 500 ethnic groups, each of them with varying food and culture.

Nigerian food is mostly rich and spicy, and the sheer variety of dishes found in Nigeria is amazing.

If you live outside Nigeria like in the United States, Canada, United Kingdom etc., you will be able to source the Nigerian food ingredients from your local African store.

Not to ignore the local market in Nigeria with over 200 Million people and an emerging middle class who is in dire need of good food at an affordable price.

Starting a food business is ever profitable in the Nigerian market, and if you plan to start a food business I welcome you to this blog because this article has been written to help you scale your food business from start to finish.

What is a Food Business and How does it Work?

A food business is any business, enterprise or activity that involves the handling of food. The business model behind running a food business enables anyone to take orders and deliver food to anyone and demand money in exchange.

Why Should You Start a Food Business?

Everyone loves food! Whether you like spicy, salty, sweet, or savoury foods, there are options to satisfy everyone’s taste buds. For this reason, the food industry is filled with countless opportunities to innovate and get creative.

If you’re thinking of starting a new business, here are a few reasons why you should start a food business in Nigeria

1. Food is a basic need of man.

The necessities needed for the survival of man remain the same till the end of time, among which food is paramount.

The biggest reason to invest in the food industry is that it’s a basic need. Unlike fashion, accessories, or other similar business types based on people’s “wants”, you can always count on people to “need” food.

2. Running a food business is convenient.

In addition to people having the basic need for food, they also lack time to prepare it themselves most of the time.

The food industry offers convenient and time-saving solutions to those with the busiest schedules especially those in the middle-class or urban areas.

3. Running a food business is less risky.

Since food is an essential need of man, starting a Food-related business is far less likely to go bankrupt or experience financial trouble than other business types as they respond to a basic human need. As long as your food is delicious, customers will keep coming back.

4. Food Business resonates with passion.

If you love cooking, you should start making money doing what you enjoy. Many people have started their food businesses because of passion. You are most likely to succeed when doing something you like.

Cooking is not only a fun activity, but you get to learn lots of things. You can learn to cook different dishes or try using new ingredients.

5. People want to get meals delivered.

People have loved the convenience of food delivery since the beginning of the dining industry. Online food delivery still presents a $210 billion market opportunity globally.

The truth is that no one likes to do it all by themselves, some people like the fact that they can order food by themselves and get it delivered to them.

How Do You Start a Food Business?

It was reported that Nigerians spent 56.65% of 40.20 trillion which is equivalent to about 21.62 trillion on food consumption. Developed countries spent less on food unlike poorer countries like Nigeria spent more.

One of how you can tap from this business opportunity; is by starting a food business, this section teaches you step-by-step how you can start a food business in Nigeria.

1. Choose a Niche.

When you decide to start a food business, one of the first steps you’ll need to take is to choose a niche.

Having a focused niche allows you to more easily grow your audience, connect with sponsors and advertisers, and concentrate your marketing and content creation efforts.

Whether you intend to start a food business, one thing you need to do is decide on the niche you want to serve.

A niche is the area of expertise in which you will specialize. This guides the type of products you will focus on, partnerships you will accept, content you will produce, and customers you will try to attract.

When it comes to running a food business, you need to decide on your prefered niche. Some of the food niches include; Family meals, Wines and champagne, indigenous meals, Exotic cuisine, Baking and Quick meals, and a keto Diet.

You should choose your prefered area of focus and invest in it to acquire a target audience.

2. Register Your Business.

As a food business owner, business name registration is essential to get your business up and running.

For a food business owner to make their business eligible for investment, grants or government it has to be registered as a company. 

In Nigeria, the institution responsible for business registration is the Corporate and Affairs Commission (CAC). 

This is an autonomous body established in 1990 under the Companies and Allied Matters Act.

They are charged with the responsibility of regulation and management of companies in Nigeria.

Registering a business name in Nigeria is as easy as creating an account on Facebook, all can be online, all that is needed to be done is to access the official portal of the commission and that settles it.

TRY IT NOW – CAC.GOV.NG.

3. Get Funding For Your Business.

Next is to get funding for your business. There are various ways to fund your business, the first of which will be self-financed.

Self-financing or personal investment is the best way of financing used by several business start-ups. 

Even when you take a loan or ask a venture capitalist or government entity to provide funding for your start-up, they still have this question; how much capital you shall be investing in your start-up? 

In the later stages of business, you can easily opt for business loans and lenders shall not have a reason to deny it, as they will consider the stability of business, as it will be a low-risk factor for them.

I wrote a comprehensive guide on this blog on how you can access funds for your business in Nigeria.

4. Choose a Location.

The success of any business is subject to where it is located in a given environment on account of political consideration, religion, ethnicity etc. 

Without business or economic advantages in place, a business will fail. Further research shows the experts confirm that majority of Nigerian entrepreneurs do not achieve their expected goals in terms of profit because of the wrong location of business.

When starting a food business choosing the best location is the best thing that can help your business grow.

You dont want to cite your business in a rural area, your main target should be the urban cities where the middle-class lives.

5. Promote Your Business.

Marketing is the lifeblood of any business. The best way to promote your food business is with visual content because people will crave your food if they see such good pictures.

After you take those awesome photos, now it’s time to make use of them for promotional purposes.

1. Use Facebook.

Your Facebook Page is often the central hub for your entire social media marketing presence as a small business.

Facebook is home to one of the largest market place in the world, with more than 3 Billion people on its platform.

I wrote a comprehensive guide on how to grow your business on Facebook. Check out the link to the article to learn more.

2. Promote on Twitter.

Every single minute, an average of 350,000 new tweets are posted on Twitter. This equates to more than 500 million tweets per day, While it might seem like a large quantity, by comparison, Facebook has an average of 3 million new posts per minute.

Twitter is home to over 1 Billion users as of 2022 and has recorded more engagement that any social media platform.

Twitter can be used as a tool to grow your food business, by tweeting out branded tweets, creating paid ads and partnering with social media influencers to help boost your reach.

I wrote a comprehensive guide on how you can grow your business on Twitter. Check out the link to the article below to learn more.

3. Instagram can Increase Your Reach.

Instagram has been Projected to reach 1.2 billion users by 2023, Instagram has huge potential for small business owners to boost their marketing efforts, and marketers everywhere know it.

Marketers and business owners rank Instagram as second in importance after Facebook, and sixty-four per cent of marketers plan to increase their activities on Instagram over the next year.

Instagram is one platform that can help grow your food business in a short period because of its photo-centric approach, it is one place to showcase your delicacies.

I wrote a comprehensive guide on how you can grow your business using Instagram. Check out the link to the article below to learn more.

4. Start a YouTube Channel About Your Business.

YouTube receives more than 40 million visitors a day, who watch nearly five billion videos. Aside from that YouTube is the second biggest search engine, coming after only Google itself.

And take note that YouTube is only growing. Year after year, because more people are spending more time on it.

Many people go to YouTube to find answers and how-to tutorials especially, You can leverage this as a food business owner to reach out to a huge audience.

I wrote a comprehensive guide on how to start a YouTube channel and become successful with it. Check out the link to the article to learn more.

5. Blog about your Food Business.

People want to know that they can trust you. And they also want to see that you know what you say you do!

By writing blogs that showcase your expertise in your field, you can establish your credibility and win the trust of your customers.

Blogs are also a great way to give your customers a glimpse of your business’s personality! They’re able to hear your voice, and they’re able to see your passion for what you do.

I wrote a comprehensive guide on how you can start a blog and become successful at it. Check out the link to the article to learn more.

6. Pin your Food Business.

Pinterest is a social media platform that allows users to share images that inspire them or that they’d like to revisit onto their own personal, virtual mood boards.

Users can also search for, well, anything and within various categories. Pinterest is a great, often under-utilized resource for businesses, as these pins can share product information, link back to websites, increase brand exposure, and more.

Using Pinterest coupled with your brand website can help expose your business beyond borders.

I wrote a comprehensive guide on how you can utilize Pinterest to grow your business. Check out the link to the article to learn more.

7. Create a Google Business Profile.

Google is the world’s most-visited website, and currently holds more than 92% of the search engine market share.

Creating a Google Business Profile is an important way to attract new customers to your business through Google search and Maps.

A Google Business Profile helps ensure that people find your business when looking for products and services like yours in their local area.

Most times people want to visit the closest canteen to them, and one of the first things they do is open their Google app and make a search.

A Google Business Profile also improves your local SEO. In particular, a listing for a local business is more likely to appear when people search for a nearby business using Google Maps.

I wrote a comprehensive guide on how you can get your business listed via Google my business. Check out the link to the article below to learn more.

 

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What do you think?

Written by Udemezue John

I teach you how to make money online.

You can connect with me on Twitter Twitter.com/_udemezue

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