HOW TO START EGG DISTRIBUTION/SUPPLY BUSINESS IN NIGERIA: A Complete Business Plan
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In Nigeria, poultry business is an immensely profitable one for any entrepreneur to venture into. But while growing chickens can be a very lucrative investment, venturing into the distribution and supply of eggs to buyers is a lucrative segment of the poultry business for anyone to start up a profitable enterprise in.
A lot of people do not believe that there is very huge business opportunity in connecting egg buyers and egg sellers. Many poultry farmers who produce eggs on their farms do not have much time to market in a bid to reach out to potential buyers because of the task of managing the farm. This burden is taken off by egg distributors who come into poultry farms to purchase crates of eggs at reduced price and sell to market men and women (who retails to end consumers) at a profit.
Eggs are largely consumed by a wide range of people and organisations in Nigeria ranging from restaurants, hotels, boarding schools, events, families, and individuals. It is even more interesting to know that in the production of most confectioneries, eggs are used in the manufacturing process, and as such, their demand and usage in Nigeria remains astronomical.
Let’s go into the main business of the day..!
STARTING THE EGG SUPPLY BUSINESS
How do you go about the eggs supply business in Nigeria? It is simple, we have compiled some practical steps to follow. Here are they:
STEP ONE. IDENTIFY YOUR TARGET MARKET
The truth is sourcing for eggs is not a problem. You may even have your own poultry where you pick eggs from. However, what is very important is to identify/locate your target market. Who are you selling to? Or who is buying from you?
As long as egg is concerned, its target market is very large and demand is always on the increase. The good thing is, there are so many outlets where you can market your product (eggs). Places like restaurants, hotels, school hostels, canteens, baking factories, boarding schools, open markets etc. Meet them one on one and offer to be their egg supplier with mouth-watering benefits attached.
Once you have an agreement with the places listed above, all you need to do is to supply them anytime they order. Knowing when next your customers will need a supply is something you must also enquire. That will keep you busy into meeting demand.
STEP TWO: SOURCE FOR A RELIABLE POULTRY FARM THAT PRODUCES LARGE EGG VOLUMES
Having located a potential market for your eggs business, the next step is to identify at least two or three farms to pick up eggs for sale. A proper survey and investigation might be needed here so as to find a farm that is consistent and reliable. You should look for farms that can give you the eggs at very affordable, reasonable and competitive prices.
The price of medium size eggs ranges from N600 to N650 per crate. Extra-large goes for N700 to N750 per crate. Other factors you might need to put into consideration before making decision are size of the eggs, colour (Brown or White), distance to market and means of transporting the eggs.
STEP THREE: RAISE ADEQUATE START-UP CAPITAL
One of the advantage of this business is that it doesn’t require much start-up capital. Although some farms may give you certain amount of crates of eggs on credit after you have been tested over time, nevertheless you will need to have your capital with you when starting egg distribution business. Your start-up capital will be used in the initial purchase of eggs from the poultry farm, purchase of crates and if possible an egg delivery van.
STEP FOUR: GET AN EGG DELIVERY VAN
Most retailers prefer distributors who would help to convey their goods (eggs) to their shop. This is because most of them are afraid of recording a high number of cracked eggs during transportation of the egg from the distributors warehouse to their shop.
Rather than having a point of sale where buyers come to purchase the eggs, it is more profitable if you make it mobile by taking it to the doorsteps of customers who buy it in large quantities. If you can afford to get a delivery van, then go ahead. If you do not have a personal van or truck, you can hire one for a start. Asides careful driving, compact arrangement of egg crates will minimize the amount of cracks.
STEP FIVE: SETUP A STORAGE FACILITY (WAREHOUSE)
Demand for eggs fluctuates. Sometimes you end up purchasing more eggs than is eventually sold. There comes the need for an egg storage facility. You’ll need to get a shop in a strategic market place where it will be easily accessible for your customer as this will give your egg marketing business the needed exposure.
STEP SIX: PURCHASE OTHER WORKING TOOLS (CRATES)
This can be paper or plastic crates. It is advisable to purchase the paper crates because it is more protective and reduced the number of cracks from egg transportation. Paper crates are also cheaper than plastic crates. It, however, gets damaged quickly than plastic ones. The total number of the crates you'll need however depends on the volume or quantity of eggs you are distributing to your customers.
STEP SEVEN: GET A COMPLIMENTARY CARD
You need to have a professional looking business card, with your contact details and address clearly printed. Issuing a complimentary card to your potential customers is a good way to help them patronize your product. You never can tell who else might get in contact with your card. One card can get to more than one individuals.
STEP EIGHT: HIRE EMPLOYEES
You cannot be the one driving and at the same picking up eggs from the farms, supplying eggs to the customers and all other things involved. You will need to employ one or two persons to help you out which leaves you to do much of supervision. This will inject efficiency to your work and ensure quick delivery of eggs to customers.
COST OF STARTING THIS BUSINESS
About 80% or more of your capital will be used to acquire an egg delivery van. Once you get that out-of-the-way, then getting the eggs with N70, 000 will be reasonable. As you go, you grow bigger into the egg supply business thereby realizing your start-up capital within a short period. No matter how small your finance is, you can start-up something. We believe in start small and end big.
There are eggs for sale at a very cheap farm price.
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