Snacks Production Business Plan in Nigeria
A snack is a part of food, but usually smaller than serving size of a regular meal, that is eaten mostly between meals. Snacks come in different forms and sizes and can either be packaged or made from fresh home ingredients.
Snacks consumption in Nigeria is one that does not regard age, class, tribe nor religion. Whether you talk about market men and women, students or people sat in officers working, snacks is a major part of food and also compulsory for a lot of them who find it hard to eat regular meals during work periods because of their demanding jobs, but have something to snack on right in front of them.
Ceremonies, gatherings and social functions are not left out of this snack hunt. Whether you talk about weddings, birthday parties, religious ceremonies and even get together parties by corporations and organisations, there is always a place for snacks. So, if you are unemployed and thinking of what to do or are currently employed but thinking about being self employed, going into the snack business is a wise choice. Now, why do we say it’s a wise choice? The first reason is that it has a huge market. Secondly, progression in this business is very high. On a scale of one to ten, you could start on one and in a couple of months you are above seven on the scale as long as you do things the right way. Thirdly, you can move from being self employed to being an employer of labour. I could go on and on about why this business is a wise choice but the grandest reason of all is its profit generation. Due to the high demand of snacks, there is the best possible opportunity of maximizing profit, whether from sales of a single snack like in the case of cakes or profit got from fast and quick turnover of sales of smaller snacks like doughnut, chin chin e.t.c. One beautiful thing about this business is that it is not affected by harsh economic situations. People will always eat even when prices of snacks increase because of increase in price of raw materials. Now you are probably thinking and trying to figure out snacks varieties. We will give you some types of snacks production you can go into.
- Chin chin.
- Small chops e.g. puff puff, mini sausage rolls, buns e.t.c
- Meat pie.
- Fish roll.
- Peppered gizzard.
- Spring roll.
- Plantain chips.
- Pop corn.
- Cookies (vanilla and chocolate chip cookies).
The list goes on and on. However, you can import foreign snacks idea and add a new definition to the original definition of snacks as it is in Nigeria. Now, let’s look deeply at what I mean. This is 2018, and for the past couple of years there’s been a lot of advocacy for healthy eating and snacking. Adding a different category or variety of snacks will definitely draw attention to you. Remember there are a lot of snack production businesses around you, while this should not scare or intimidate you, it should make you inventive and innovative in this business. Here are some healthy snacks options you can add to your business to give it a different look. But remember, these snacks have short shelf life. They include;
- Apple, seedless grapes and banana mix.
- Mango and cucumber mix.
- Groundnut and cashew nut mix.
- Raisins and dried pumpkin seed mix. Raisins are dried grapes.
- Dried banana, raisins and cashew nuts mix.
- Oatmeal bars.
The combinations have no limit, however you have to keep in mind that snacks with fresh fruits have to be hygienically prepared, stored in the refrigerator and not kept for more than a week. These type of snacks does not need to be produced in large quantity at first. Small quantities mainly for sample purposes should be made initially and when the request grows, you can increase production quantity and trust me, you will create a memory in the minds of people with your innovative touches.
Now that we have had an introduction to snacks business, let us move on to what we need to set up a snack production business.
- Market research: You are probably thinking you know all about snack production business and a market research is not necessary, but no so. Snack production business is a very popular business that you are not the first to start, neither will you be the last to venture into it. Some people go into a business with so much enthusiasm that soon dies off because of the absence of proper market research. So, if you intend to start up this business and keep the ball rolling, then you will need to know more about the market for this business.
A market research is a process where data, information and recordings are logically gathered and analysed to let you know the customers available to purchase your products, the already existing competitors in the business and the available market for your products. In simpler terms, a market research will help you know
- Who your major buyers will be.
- What is trending in the business, especially around your choice location.
- Who your competitors are and
- If available products are giving customers satisfaction. If you find that existing products are not meeting customers satisfaction, you can capitalise on this and turn it to a huge advantage for your business. So do your market research, find out the missing link and be ready to fill in that missing link.
- Feasibility studies: A feasibility studies will help you analyze if your proposed business project is possible and if it will possible at you proposed estimated cost. Feasibility studies will help you analyze the legal, technical, organisational and financial factors of your business. For instance, if you are aiming to have your products supplied to supermarkets and eateries, you will be asked by most of them to provide certification or production approval especially by NAFDAC ( National Food and Drug Agency and Control). So a feasibility studies will cover this aspect, which happens to be the legal aspect of a feasibility studies. This studies will therefore help you analyse the aforementioned factors, if your business success and progression depends on it and what it will cost to have these factors addressed.
To get your Snacks 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 (snacks business plan sample) to 07033378184. Your business plan will be sent to your email within 15 minutes.
- Get trained: If you already understand the rudiments of snack production, you may not need the training. However, you can improve on product modifications and add more skills and knowledge to yourself by consulting videos online and recognised snack making books. If there is a trending skill you desire to learn, then you can get trained by a professional. This can be done for as short as two weeks or possibly shorter.
However, if you do not have the slightest idea about snack making, then you will need to get registered at a reputable training institute, where you can get appropriate training. You may decide to employ workers, but the more knowledgeable you are about the business, the better.
- Location: Location is a very important factor for this business. It is true this business can be started from your home if you are starting on a small scale. However, whether you are starting on a small scale or medium to large scale you need a good location to sell your products. First thing is to target a busy environment. The more people around your target location, the higher your sales will be and the more profit you will make. So when thinking of a location, look out for busy areas like school environment, office environment, bus stops, motor parks, around markets, proximity to halls that are rented out for events.
- Business name and logo: This is an important aspect of this business. Your business name and logo can be a marketing point for you, and can also create a spot in the memory of those that hear or see it. This is very good for your business. You don’t have to be formal in choosing a business name. It is advised to go informal when choosing a business name. For instance, instead of using delicious snacks, you could use instead chop chop snacks. This will attract people that hear or see the products and will make them want to give it a try.
- Purchase your equipments: Equipments purchased will depend entirely on the types of snacks you will be making. Some snacks may need frying, while others may need baking. Below are some major equipments you need for your snack production business. As time goes on, you will be able to decide on additional equipments you need to purchase.
- Deep fryer.
- Freezer and refrigerator.
- Food processor.
- Work tables. Remember to coat table surface with durable material that will not leave wood particles in the snacks.
- Spoons of various sizes.
- Gas or stove cooker.
- Variety of cake pans.
- Muffin trays.
- Shelve to keep products and allow them cool off, and for products display as well.
- Sealing machine.
- Packaging nylons.
- Show glass.
*** Note: Fire detection and prevention equipments always come in handy. You can install smoke detectors in your work area. Mistakes can be made and things on heat could be left longer than they should and start to burn. A smoke detector will alert you if this happens. There are cheap ones you can buy online. A fire extinguisher is also very important, as it will quickly help you stop the spread of fire in cases of fire outbreak. However, the most effective of them all is to practice safety and be very vigilant.
7. Materials needed: Below are some of the major materials needed for snacks production business.
- Edible fat.
- Minced meat for meat pies. You can buy meat and mince it yourself if you purchase the machine.
- Egg for egg roll production.
- Vegetable oil.
- Employ labour: You may not need an extra hand if you are starting small. However, if you are starting on a medium to large scale, you need to employ labour. Ensure to employ staffs that are generally enlightened and experienced in snack production.
- Registration and Relevant approval: You may not need to register and get NAFDAC approval immediately. However, once your business starts to grow and you begin to make contacts to spread you products to eateries, supermarkets, restaurants, offices e.t.c Then you need to get registered and get NAFDAC approval. NAFDAC approval boosts confidence in your products. Most people will easily buy a product that is approved by NAFDAC than one that is not. Registration gives you the required legal backing needed to run your business. It also protects your business idea from theft. Where such happens, it will be easier for you to take up the case legally.
*** Hygienic environment and process of snack production is paramount to get approval from NAFDAC. Also, check NAFDAC guideline for food production to avoid using materials and ingredients that are not approved.
- Marketing: No matter how good your products are, if you aim to be one of the major distributors of snacks in your locality, then you must work for it. One good place to start is with drinks distributors. Offer them free sample of your product or products. Once they are convinced and want to partner with you, make them distributors. Supermarkets are also great places to market your products. You can also have a nice show glass in a strategic place where you can sell and display your products. Also, lobby for position to make snacks in ceremonies when you have the opportunity. Once the word about your business goes out and gets the desired attention, you will be the one trying to meet up with demands.
How much profit is in this business
You may be wandering how much profit is in this business. Is the business demanding? Yes it is! But the profits raked in far outweigh whatever time, energy, innovation and money you put into it. Cakes are usually hot sales. You can sell a cake between #5,000 and #20,000, and trust me, these are for small cakes. You can sell a cake for #20,000, and this can even get better. Some cakes are sold for as high as #200,000. Is that a stretch? I can guarantee you it is not. If your cakes are top notch, the price will not be a problem. Now let’s look at profit margin from sales of smaller snacks.
Egg roll. Egg roll now goes for #100 for the one with full egg or #50 for the one with half egg, depending on your location. If you sell at #100 and supply 200 everyday, you’ll have
#100*200 = #20,000.
#20,000*26 days ( if you do not work on Sundays) = #520,000.
Chin chin. Chin chin can be sold for #50, #100 or even more, depending on your location. If you supply 200 everyday, you’ll have
#100*200 = #20,000.
Now assuming you produce only 26 days in a month, you will have a total sales of #520,000. This is just a quick calculation for just two snack types. Other snacks are there you could make everyday in addition to these ones and in a month you can have a sales of over one million Naira. After removal of production cost and staff salaries, you will see that the labour put into this business is worth it. So, dear reader, if you think you have what it takes to be that exceptional snack producer, then I’d say go for it.
Tips for your snacks production business
- The price of your snacks should be right. Do not over prize them. This can make you loose customers and do not under prize either, it will reduce your profit.
- Your products should be packaged attractively. It is this first attraction that will make people want to thirst your products. Some people use ribbons for packaging. Use what suits you best, but be innovative.
- You can sell soft drinks with your snacks to increase your profit and patronage, especially if you have the space to accommodate chairs and tables where people can sit to eat. You can make local drinks like zobo, soymilk, tigernut milk e.t.c. Trust me, with the right combinations and preparation patterns, you will never be short of customers especially when you are in a strategic position.
- The quality of your product should speak for your business. However, be mindful of cost of production of your snacks. The lower the production cost, the easier it is to make good profit.
- Products with short shelf life, that is products that spoil quickly should not be produced in very large quantities. You can produce such products based on demand.
- Do not sell products that have gone bad by mixing them with fresh ones. This will destroy your business very fast.
- Keep an organised record of products. If by chance you do not sell all your products in a day, the remnants from the previous day should be sold first, as long as they are still healthy enough to be consumed. Snacks that can be stored in the freezer till the next day should be stored but not for too long.
- If you live around a university, you can take your products to sell around hostels in the evenings. You should use a vehicle with a large booth, that way you can display your various products. It will fetch you sales and contacts. Students enjoy partying and if you can give them quality products, you will be on their top favorite snack producer list.
- Make hygiene a priority in your business always.
- Keep proper records and audit accounts from time to time. This will help to monitor your sales and profit and also determine if you are making profits or losses.
Get your own sample Snacks 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. snacks business plan sample) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Snacks Production Business Plan in Nigeria © www.businessplan.com.ng