How to Start flour business
How to Start flour business in Nigeria: Nigeria is one of the biggest producers of flour in Sub-Saharan Africa. More than 300,000 tones are produced per annum.
Government has understood that the fate of Agribusiness in Nigeria lies in the processing of agro items as far as profit, wealth creation and generation of employment opportunities is concerned.
As of late the Nigeria Export Promotion Council said that FG will soon place a ban on the exportation of raw materials to different nations.
There is therefore the need to begin processing a large quantity of raw materials accessible in Nigeria, to Nigerians, both for local consumption and for export.
One of the agriproducts to begin processing is that which is produced locally and in large quantities as well as is promptly accessible in large markets in the nation.
To begin a profitable flour business, a great deal of inquiries and research should have been done before wandering into the business.
How to Start flour business in Nigeria: Inquiries to Be Made Before Going into This Business
1. What development am I bringing into the business?
2. How would I be able to Differentiate my products from the contenders?
3. Who are/would be my clients?
3. How do I contact them?
3. Where do I source the fund to start this business?
Beginning a processing plant requires that you realize what your competitors are up to. There is likewise a requirement for separation of your products from theirs through branding.
Also in the know is getting access to your clients at the cost and means than your rivals/competitors. Plantations which produce flours in Nigeria are concentrated in Cross-river state, Anambra and Ondo state. Others include Bayelsa, Oyo, Ogun, Osun state etc.
Hence, to begin flour business on a profitable note, there is need to put these considerations into careful thought.
Why Flour Production Business is Good Business
All the packaged/junk foods we eat nowadays are produced using flour; Cake, Burger, Pizza, Doughnut, name them, are altogether produced using flour. There are diverse sorts of flours and each kind of flour is subject to the raw material used to produce it.
For example, wheat flour is produced using wheat, corn flour is produced using corn/maize; then there are others like rice flour, cocoyam flour and yam flour and my stance is that you know the raw materials each of these sorts of flour are produced with.
Beginning a flour business is an exceptionally profitable business. It can equal the initial investment after a couple of years. This is because of the appeal for flour by organizations that utilize flour as raw material. Flour is used to produce other kinds of finished products.
The principle end users of flour products are the bakeries. These folks produce bread and related cakes, pharmaceutical organizations. Others include food processing organizations, private individuals. In fact, anyone that participate in little baked good preparing business.
In this article, I will give you a sample wheat flour process business plan. I will likewise disclose to you how to begin your own flour producing organization.
3 Reasons to Setup a Flour Production Company
1. High Demand-: I have clarified this point before
I have clarified this point before on this article. One reason to open a flour producing organization is on account of the increased popularity for flour.
They get high patronage from cake making industries and other food processing organizations.
2. Raw Materials Readily Available-:
The raw materials required for the production of flour are promptly accessible.They are also easy to get at cheap rates. For example, if your business makes corn flour, the main or significant raw material you need is corn. This is anything but difficult to get from farmers.
You can concentrate on the production of more than one sort of flour. Reasons is, the entire procedures are nearly the same. For example, your business can produce both wheat flour, corn flour and millet flour. That is, if you have the capacity to acquire mass quantities of wheat, corn and millet.
3. Easy Loan for Expansion-:
You can without much of a stress get credit or loan from a bank or other financial establishments for the expansion of your business. Since flour is a popular product of high demand and a quick moving product.
Most banks won’t be hesitant to encourage an expansion of your business since they know you can pay back the loan as well as the interest within a short time-frame.
Beginning a Flour Production Company – Sample Business Plan Template
(1) Get Trained on How to Handle the Machineries for Production-:
Unless you have worked in a flour processing company before now, you have to get the essential education and training on the most proficient method to handle the machineries being used in the crushing and further production of the raw materials into a finished flour product, ready for sale. You additionally need to know different ingredients which are essential to get the last outcome.
(2) Enlist Your Business as a Company-:
You may not begin as a gigantic flour processing business, but rather you have a likelihood of expanding the business to a flour processing business one day, so you have to enroll your business as an organization; ideally a restricted obligation organization. This likewise gives you the benefit to patent any new flour product you invent to your organization’s name.
The first port of call is the Corporate Affairs Commission of Nigeria, CAC. So, while enlisting your business with them, enlist it as a company, keeping the afore-cited in focus.
(3) Rent/Acquire a Space for Your Factory-:
When you are finished with the formal enrollment and registration processes, you need to search for a space to purchase or lease as your manufacturing plant complex. A fundamental flour processing plant doesn’t require much space to begin.
You require for the most part, a place to keep the raw materials, a space for your machineries, a space to keep the produced flour for packaging, and the space for the last packaging of your flour. The location of the plant ought to be effectively open for simple transport of raw material into the site and simple delivering out of packaged flour to clients.
(4) Buy Equipment and Materials-:
Once you get the space for the processing plant, it’s time to purchase the equipment and machineries you will require for production.
One of the reasons while going for training is necessary is so as to have insight into what the requirement are for each equipment and which particular equipment are crucial for the production of your flour as well as how to utilize each of them.
You can likewise rent machineries if the business is running on a tight budget, yet attempt to buy your own set of equipment once you begin making substantial profit.
(5) Source for Raw Materials-:
It is time to scout for raw materials you require for production. As I said earlier, the raw material you will require relies upon the sort of flour you are producing. A decent place to search for raw materials is from agriculturists and farmers that develop the raw materials in large quantities.
In a situation that you have additional land space, you may choose to cultivate your own raw materials for flour production which might be less expensive however more distressing with the entire development process, supporting, holding on for the crop to develop and at last harvesting the food produce. So, it is greatly advised to buy from farmers.
How to Start flour business in Nigeria
(6) Discover Customers for Your Products-:
At this stage, I accept that the main arrangement of flour production has been done and also packaged; so, you need to search for buyers for the finished produce.
A decent approach to do this is to get a rundown of pastry shops, food processing organizations and pharmaceutical outlets close to your location; compose a proposal to them that you have flour that you can supply them with any amount of flour they require.
Additionally, incorporate a little sample of the flour you made to them for them to see the product you have and lastly, let them realize that you can produce different kinds of flour on request (in a situation that you have the equipment to produce different sorts of flour).
This is all you have to think about when beginning a flour production plant. Kindly note that you have to get confirmation from the association in charge of checking the nature of food products in Nigeria, as it will expand the legitimacy of your product to your clients.
The right port of call to begin with is undoubtedly, the Corporate Affairs Commission of Nigeria, CAC, Standards Organization of Nigeria, SON and NAFDAC, etc.
Additionally, recollect that the packaging procedure involves making use of a pack or sack that is branded with your organization’s name and logo to package your flour; as this promotes your products to anyone that get in touch with it. Click here.