Feasibility Study on Chin Chin Production in Nigeria
One cannot say exactly where the name chin chin originates from, but it is a well known fact that it is an all time favourite snack to a lot of people. Chin chin is not just popular to Nigeria alone. Other west African countries like Cameroon and Ghana also enjoys chin chin as well. Chin chin is an everyday snack for a lot of people. Workers, students, retirees, and even full time home dwellers enjoy snacking on chin chin. Ceremonies are also not left out. There is hardly a party you attend that chin chin is not served. Sometimes, it is even served as the only refreshment package together with drinks and optionally groundnut.
Chin chin is made from a dough ( a thick but soft and workable mixture of flour and liquid used for baking into bread or pastry ) of flour, sugar, milk and butter or margarine. This dough is cut in desired size and shape and can either be fried or baked to produce chin chin. There are other optional ingredients for making chin which are usually added based on preference of consumer.
Chin chin business is a profitable and lucrative business to venture into. As someone rightly put it, it is a business that is sure to give you 50% return on your investment. However, profit on this business will depend on your products quality, how you manage and run the business, location and some other factors which we will look at shortly. So, if you are thinking of a business to invest in and chin chin business comes to mind, then you have come to the right place to get necessary information needed to start this business. However, before we go on let us take a look at a quick calculation for this snack.
If you start this business with a capital of #30,000 and you sell an average of 50 packets of chin chin for #50, you will get back your capital in less than a month of doing business. So in a month, if you sell 50 packets everyday for #50, you will end up making #75,000 monthly. Now this is just for the production of 50 packets, of which the quantity can increase. With a monthly sales of #75,000, you can get a profit of #30,000 or more, once you remove cost of materials for production. Earning this every month will give you an idea how much you will earn every year and even more when your production increases.
Also Read: Snacks Production Business Plan in Nigeria
Now let us look at what you need for a chin chin business production in Nigeria.
Market research: A market research will help you to know those that will give your business high patronage, what is trending in the business and with consumers of this product, what producers are stealing the show or those getting big patronage and how they do it, the uniqueness of highly patronised products, and if customers are satisfied with existing products or will appreciate something different from the norm. Only a market research can help you answer these questions. Once you are able to accurately answer these questions, then you would have taken a long stride in this business start up.
Business plan: No matter how small your business is going to be at start up, you still need to plan your business. As the popular saying goes, “ he who fails to plan has planned to fail”. So, if you do not want your business to fail, then you must plan it. A business plan will help you set the goals you want for your business and help you develop ideas to meet the goals. A business plan will also help you develop strategies to reduce risks in your business once you have identified them. For instance, if you identify risk of burning your chin chin during frying because of tiredness or distraction, then you can get a loud alarm that can help you set the time for the minutes your chin chin is supposed to fry, and when it reaches the time, you will be alerted. This is one of the things a business plan can help you come up with. Also, a business plan will help you analyse your business goals, as the business progresses, if the business is progressing the way it should or not, based on your aims and objectives. If you are planning to start chin chin production on a large scale and you are thinking of getting financial assistance from a bank or any other financial institution, then a good business plan will give you that boost you need in the eyes of your investors.
Feasibility studies/analysis: Feasibility studies or feasibility analysis provides analysis for your proposed business, project if the project is going to be viable and possible . A feasibility analysis will help you know if your budgeted capital will be enough to see the business through start up or establishment. A feasibility studies will also help you understand whether there will be need for your business to be registered before it can function. A feasibility studies therefore, will help you answer if your chin chin business production will work if you put all the factors and resources available to set up the business.
To get your Chin Chin Production Business Plan in Nigeria today. To place order pay N10, 000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, text your full name, email address and title (chin chin business plan sample) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Brand name and logo: A brand name and logo may not be important if you are starting small. However, when you start making plans to expand your business or you are starting big, then you need to brand your products to distinguish it from others. This is important especially if you will be supplying supermarkets and will partner with distributors. Your branded products used in ceremonies will also allow others who wish to purchase your products get the necessary information about your product. Remember to have a unique name that will be easy to remember and is also catchy.
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Train yourself: Training is only necessary if you do not have the basic knowledge of chin chin production. You do not have to spend a lot of money on training. You can get step by step guide and even videos description for chin chin production on the internet. Once you have gathered enough information for the process, then start making test samples and offer to family and friends while they rate your work and suggest more ideas to you.
Equipment and materials: If you are starting on a small scale, you may not need to purchase a lot of equipments, but if you are going into the business for the purpose of large scale production of chin chin, then you need to purchase equipments for commercial chin chin production. Below are a lists of equipments needed.
Small Scale Chin Chin Production Equipment
- Gas cooker or stove.
- A slotted spoon.
- Pots or frying pan for frying or portable deep fryer.
- A roller.
- Bowls for mixing ingredients.
- Kitchen knife.
- Work surface. A work surface will be used for kneading and slicing the dough. If made of wood, it should be properly coated with fine material to avoid leaving wood particles in chin chin.
- Iron sieve.
- Stainless bowl to keep sieve with chin chin just taken out of the oil to let the oil drip.
- Spoon for scooping chin chin.
- Manual sealing machine.
Large Scale Chin Chin Production Equipment
- Dough mixer or blender. For mixing the ingredients together.
- Dough flattener. For rolling the dough and to make it flat for cutting.
- Chin chin cutter.
- Deep fryer. This deep fryer has a sieve incorporated as part of it to drain out excess oil.
- Electric or coal oven. This is used for baking if you do not want to fry.
*** It is better to buy locally fabricated machines as listed above, because they are cheaper than the imported ones.
Materials you will need for your chin chin production includes;
- Milk or its edible substitute.
- Vegetable oil.
- Flavours e.g. vanilla, nutmeg, cinnamon, garlic, onion cardamom, ginger flavourings.
Location: The location of your business matters a lot. Your selling location does not necessarily has to be the same with your production location, especially if you are starting small. You can produce at home and take to your selling point. Which ever way it is, the location must be strategic. Your business should be in a busy location that has a lot of foot traffic. This can be near a market, close to schools, offices, bus stops, motor parks, mechanic work area e.t.c. If later on, your business expands and you need to move to another location, make sure your customers receive notice on time of your plans to move or better still, you can keep the business running in a small scale while customers that buy in bulk can be referred to the new location. Once you are satisfied and completely sure your new business site is well known, then you can move out of the old one.
Packaging: Your packaging is almost as important as the product itself. For commercialised production, there is an automatic sealing machine. However, for a small scale production you can use a manual or hand sealer. There are two types of packaging; plastic bags and transparent containers packaging. The latter is more expensive, which will in turn make your products a bit more expensive than a plastic nylon packaging would have made it. However, you can make use of your preferred choice. Your packaging should be attractive and properly sealed to prevent air from entering the chin chin. Also, the plastic bags should be of high quality to prevent easy tear which will cause air to enter the chin chin. Remember to leave your contact information on the package to enable prospective customers contact you easily.
Marketing and Advertising: This is important if you want your business to grow. The more people know about the business, the more patronage you will receive and the more profit you will make. In order to market your products, you have to find major buyers, discuss about your products and offer them free samples. Also, you may need to offer certain incentives at the beginning to woo customers, especially when there is competition in your location. Once these people agree to do business you can then partner with them and make them distributors. Also, offer nice bonus package to anyone that is able to refer a new customer. This way, you will get more customers and your already existing customers will be happy and satisfied. Remember to keep trend with what is happening in the business and do not give incentives or bonuses at the expense of your profit.
Your friends and families should be encouraged to market your products on your behalf whenever they have the opportunity. When you get the opportunity to supply your products at an event, ask that your products be advertised to the guests. You can offer extra packets of chin chin for this.
I hope this article has helped to answer some of the questions you have about chin chin production business in Nigeria and has given you the knowledge to start up your own chin chin production business.
Take Home Tips About Chin Chin Business in Nigeria
- Don’t be afraid to try out new recipes. Break free from the norm and create something different. You don’t have to be an artist to be creative. Make a name for yourself. You can always test the acceptance of your products by letting existing customers try samples and give you feedback.
- Always be open to suggestions from customers.
- Allow oil to drain out completely and the chin chin cool of completely before packaging to reduces dampness of chin chin.
- Most people prefer crunchy chin chin to soft chin chin. Know what sells most and follow the trend.
- This business can be started with less than #50,000.
- You can package your chin chin together with groundnut or cashew but, to create a separate brand.
- Your chin chin can have different shapes. Mark the favourite and produce more of it.
- Your chin chin should be tasty and have high quality.
- You can bake your chin chin to provide an healthier version. However, baked chin chin is usually soft and not as crunchy as fried chin chin.
- The need may come to register with NAFDAC ( National Agency for Food and Drug Administration and Control ). Once your business starts to expand and your supply base increases, then you need to register the business with the appropriate body and get NAFDAC approval.
Get your own sample Chin Chin Production Business Plan in Nigeria now! To place order, Pay N10,000 to:
BANK NAME: GUARANTY TRUST BANK (GTB)
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 0044056891
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, send your full name, email address and topic (i.e. chin chin business plan sample) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Feasibility Study on Chin Chin Production in Nigeria © www.businessplan.com.ng
Hoping to start my own chin chin business. Thanks, this helped a lot
Akinbobola faith says
This for the guide, hope to start a business of mine soon