How To Start A Groundnut Oil Processing Business In Nigeria
Groundnuts are not seasonal crops and as such can be found all the time. They grow all year round. The groundnut being an economic crop has a lot of business opportunity vested in it. One of the business opportunities vested in groundnut is the oil that comes out of it called groundnut oil. It is referred to as groundnut oil processing business.
Well, truth is that you can make good money from processing groundnut oil. Establishing a groundnut oil processing business requires some technical details which need a lot of care to put in place. However, this doesn’t stop you from setting up your groundnut oil processing business.
The groundnut has a lot of health and nutritional values. It can be eaten just the way it is and still give full health benefits or also eaten alongside other foods. Groundnuts are highly nutritious and it is no wonder doctors usually recommend it for pregnant women. They can be highly tasty too.
The groundnut oil is a supplement to the palm oil, and so many households prefer that option to the palm oil. So, you can start this business and turn it into a very lucrative business with time.
All you need is the doggedness and perseverance required to weather the early storms of entrepreneurship. In this article, I will be guiding you on how to set up and succeed in groundnut oil processing business. So read through with some eagerness.
Starting A Groundnut Oil Processing Business – The Tips You Need
For you to succeed in any business, you need to garner enough knowledge about the research. This is why you wish to research extensively on the business you wish to go into.
In starting a groundnut oil processing business, you need to research to know the various companies that are already in the business, how they have been able to thrive, the various uses of groundnut oil, what values are derivable, when groundnuts can be planted and harvested, how it can be processed, and so on.
This information will make you better prepared to carry out this business and succeed hugely.
Go Learn the Skill
You need to get firsthand experience on how things are run in this line of business and apply it to your own groundnut oil processing business; hence you can consider learning from an experienced person in the business.
If you know any groundnut oil processing company in your area, you can go and work there as an intern or volunteer to garner experience. This experience will help you build a successful business. Take it seriously.
Pick a Name and Register Your Company
Visit the offices of the chamber of commerce or the corporate affairs commission to register your business. This is to give your groundnut oil processing business a legal and professional front. Also do well to register with any relevant trade union around you such as groundnut oil sellers association.
This will give you some protection in the market and also place you in the best position to always be aware of the major market trends.
Generate a Business Plan
Draft a good and worthy business plan that will give your business a good outlook and render it presentable before financiers. Therefore, you have got to put all measures in place to do this.
If you have no inkling on how things like a business plan is written, then you may consider hiring a professional business writer, who would be able to tell you all the information that is needed in the template.
Also required in your groundnut oil production business plan would be the short term and long term goals of your company.
Choose a Location for the Company/Business
The groundnut oil processing business is one that involves machines that make lots of noise. So, you need to site your business in an industrial place and not a residential one. When siting your business, endeavor to make enough space as you will be working with large machines that require spacious hosting. Ensure that you tell your relator of the essence of renting the space so that he will advise you properly on what size of industrial space you need.
Get an Operating Permit
After obtaining your certificate of incorporation or registration, you need to obtain an operating permit. You should approach the food and drugs regulatory body in your country (NAFDAC in Nigeria). This is important because the groundnut oil is a consumable product and requires some tests to ensure its fit for consumption. You should get this certification so as not to run an illegal company.
The groundnut oil processing business is a capital intensive one and requires huge investments. You can secure funds from angel investors if you have a worthy business plan. You can also get a loan from commercial banks or microfinance banks.
On another consideration, if you have wealthy friends and family, you can get approach them to fund your groundnut oil processing business too. At least, this should be your cheapest source of funds as it may not be coming with interest.
At this point, you have to hire very experienced workers to help pull things off. On the other hand, if you try to save cost, then you may look at getting some inexperienced workers in addition to some experienced ones so as to save cost. Be informed also that employees with the right skills set are an addition to your business.
Test the Market
Next, you have to ascertain how your product is accepted in the market. All you have to do is to produce the product and send it to the market to see how people will react to it through their various feedbacks. Also, use their reactions to improve the product for full production and marketing.
Build a Website
You need to build a website for your groundnut oil processing business. This will help make it more appealing to your potential customers. The website will tell the story of your product better via pictures and explanations with the prices attached.Get a good website designer to design a good website for you to aid your advertising your business.
Advertise your products to potential clients via all legal platforms available to you. Print brochures and flyers, embark on road shows in the open markets, malls and what have you. Also, television and radio adverts wouldn’t be too much a marketing strategy if you are looking at your brand gaining grounds soon.
You need massive advertisement as a newcomer groundnut oil processing business to succeed. Take it seriously as that will help you get some market share from the already established players in the market.