13 Tips to Start Garri Distribution Business

Garri Distribution Business: If there is one food that almost everyone in Nigeria eat is garri.

It is the food for both the rich and the poor .

The demands for garri is always on the high side daily.

And the price of the product continues to skyrocket.

Because few people produce garri that is being consumed by the whole country.

The law of demand and supply is what is at play here .

Out of the few that are being produced by local farmers in villages across the country.

Many of them are being wasted in the villages.

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Garri Distribution Business

Where they are produced due to lack of access to good means of transportation .

Most of the farmers just produce as plenty as they can but a fraction of what they produce gets to cities.

Where we have the population and markets.

Because of these challenges.

Suppliers of garri make as much as over 300% profits .

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For example, from Okitipupa to Lagos by road is 3 hours maximum while from Ore to Lagos is less than 2 hours drive.

Imagine if you buy garri at very cheap price from Ore or Okitipupa to Lagos for sale.

In less than two months, many people might think you did money rituals because the profits is just overwhelming.

Garri is even cheaper if you buy from the villages in the Eastern.

And Some Southern parts of the country Like Enugu, Delta, Edo, Ondo, some parts of Ogun and few others.

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Garri Distribution Business

This opportunity has been there for long.

The reason why many refuse to tap into it is because of ego and Education.

Yes, i said education because an average Nigerian graduate has the mindset of working for someone and not working for his or herself.

Also, another major reason why youths especially refuse to go into this profitable business and the like is because of what the society will say.

You hear phrases like ” What will people think or say about , a graduate selling garri”

Anytime i hear this , it really weakens me

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Garri Distribution Business

Because life is an individual journey and success is the best revenge for undue critics.

We tend to measure standards by what people think about us and not what will better our lives.

That is why many people remains poor.

And will continue to be so until they refused to allow their lives to be shaped by what others say or do.

Garri business can easily make you a billionaire yes i said billionaire, it is not a typographical errors.

Check this out, do you know that if you have 2 million people patronising you and you make profit of N500 Naira from each person.

Our ROI will be a billion Naira. Pick your calculator and check it out.

Sales of garri is a very profitable venture.

This can be done by young and old, across all gender.

Unfortunately this lucrative venture has been left in the hands of few for long time in Nigeria.

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Garri Distribution Business

Getting into product distribution means entering a big industry.

With some planning and entrepreneurial spirit.

You too can be on your way to owning a successful distribution business.

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Garri Distribution Business

1. Decide what type of distribution business you will run.

Distributors can be split into two categories based upon who they serve.

First, retail distributors buy from wholesalers or manufacturers and sell products directly to consumers (end-users).

In contrast, wholesale merchant distributors buy from manufacturers and resell the products to retailers or other distributors.

Which one is right for your business will depend on your goals and experience.

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2. Put together a business plan that lays out the full vision of your new distribution business.

A business plan allows you to follow a direction for making your business a success.

This plan will included the type of distributor you will be, the products you plan to offer (at least initially), the name of your company, your target customer base, shipping method, and a general strategy.

This strategy can be as simple as focusing on fast and effective service, or more complicated, such as specifying a way to offer specialized products that are unavailable from other distributors.

  • Writing a business plan can be the most complicated part of starting a small business.
  • For more information, see how to write a business plan for a small business.

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Garri Distribution Business

3. Estimate your startup costs.

In addition to a business plan, you will also need some idea of how much money it will take to get your business up and running.

As a distributor, your single biggest expense will be inventory.

This means that your startup costs will vary widely depending on what you are planning on selling.

You will also need a place of business, office equipment.

And some warehouse equipment (like forklifts if you have heavy products or shelves if you have lighter products).

  • For an example of how much costs can vary, two successful business in different markets started with #7000 and #150,000.00, respectively.
  • The first, a tie company, started with such a small amount because the business was run from home, started with low inventory costs, and didn’t require any equipment to manage.
  • The second, a fine wine retailer, had expensive product to buy, had to rent a large warehouse, and had high operating expenses like temperature-controlling the warehouse and investing in equipment to transport the product around the warehouse and to customers.
  • The advent of online distribution has also created new options for distribution businesses. One of these, drop-shipping, allows for distributors to avoid all inventory control and shipping issues by never taking physical possession of the product. Never taking control of inventory means that your initial investment can be much lower. However, this a crowded market that can be difficult to make money in.

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Garri Distribution Business

4. Figure out how to sell your products.

This will depend largely on who your customers are and what type of products you’re selling.

In any case, your goal should be to let potential customers know about your business and what you can offer.

This can mean anything from advertising to personal meetings with store owners to search-engine optimization (SEO).

  • As part of selling, put together a marketing plan so that you can promote your services.
  • This may include the costs of printing brochures, creating catalogues detailing your offerings, and placing ads in trade journals or magazines. As a small business, you can expect to do a lot of marketing for the first few years until you have a good-sized customer base and have established a reputation.

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Garri Distribution Business

5. Determine how you will be funding your business.

With low startup costs, you may be able to purchase your inventory and get your business started with money you already have.
However, more expensive startup costs may require you to take out a loan.

Garri Distribution Business

6. Make your business official by getting it licensed and registered.

You will have to register your “doing business as” (company) name with your city or county business office.
Other legal steps may be required to get your business started.
Contact your local Small Business Administration office for more information.

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Garri Distribution Business

7. Find a location for your business.

The size of the space you need to hold your inventory will be determined by the size of your product and your delivery method (you don’t need inventory space for drop-shipping).

You should consider starting off small as your business builds a reputation.

As your business grows, you can move into larger facilities that can accommodate your inventory needs.

Such as a distribution warehouse.

  • It is conceivable that a successful distribution business could be built and run from your home.
  • This depends on the physical size of your inventory, however.

Garri Distribution Business

8. Contact manufacturers or wholesalers of your products.

You will need to find sources from which you will buy your product.

To locate manufacturers and wholesalers.

Contact the National Association of Wholesaler-Distributors or use an online resource like.

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Garri Distribution Business

9. Purchase inventory.

Once you’ve found a source for product.

It’s time to place your first order.

Unless you’re using the drop-shipping model.

You’ll need to purchase however much inventory you think you can sell.

Keep in mind not only your budget and space constraints but also how many items you will likely sell at first.

This is especially true of products with a short shelf-life. When ordering inventory, keep the following tips in mind:

  • Don’t buy too much inventory, especially at first.
  • Try to estimate your customer’s needs before you invest in inventory.
  • If you can get away with low overhead (storing items at home or at a cheap location) at first, go for it.
  • Purchase inventory to a point where you can sell that inventory before you have to pay the manufacturer or distributor for it.

Garri Distribution Business

10. Create a website for your business.

In addition to simple contact information, this website should describe prices and product offerings.

This is especially important if you sell directly to consumers.

  • You can also invest in search engine optimization (SEO) that directs potential customers directly to your website by placing it higher in search engine results.

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Garri Distribution Business

11. Design a catalog that lays out your products.

 You can send these out to potential clients so that they can see what you have to offer.
Another option is to highlight a few items.
And then lead your potential clients to a website that shows off your full inventory.

Garri Distribution Business

12. Market your product to potential customers.

Send out your catalog to potential customers in your area.

You can also make cold calls or place ads in trade publication relevant to your products.

With some luck and salesmanship, your first orders will be coming in soon.

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Garri Distribution Business

13. More tips

  • Distribution is all about covering the spread, or making sure that you charge enough for your products to cover your cost in buying them and your operating expenses with a bit left over for you to keep as profit.
  • A good model in determining your prices is to copy the markup used by the manufacturer.
  • For example, if they produce as a product for #500 and sell it to you for #1000 (a 100% markup), you should sell the product for #200 (a 100% markup from #100).
  • This, of course, is only a general guideline.
  • What you end up charging for your product will also depend on your market and your competitor’s prices.

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