How To Start A Successful Plantain Chips Business in NigeriaSeptember 20, 2021 2021-09-20 14:32
How To Start A Successful Plantain Chips Business in Nigeria
How To Start A Successful Plantain Chips Business in Nigeria
Plantain Chips are hugely popular street food in Nigeria. It is a delicious and nutritious snack that most people love. It is not difficult to make plantain chips, and given its popularity and texture with most people, it’s a good business to start.
Plantain chips business is a profitable and potential business opportunity in Nigeria. If you have the capital and the passion for the Plantain Chip business, you will not regret it. But getting started can be a bit tricky so we’ve compiled all the requirements here so you get a better understanding of what is needed before starting your plantain chip business in Nigeira.
Table of Content
- How Much Do You Need to Set Up a Plantain Business?
- How Profitable Is Plantain Chips Business?
- Steps To Take To Start Your Plantain Chips Business in Nigeria
How Much Do You Need to Set Up a Plantain Business?
If you want to start a business that does not require much start-up capital, you can use plantain chips as an example.
Starting a plantain chips business requires very little money, you only have to invest a small amount of money in equipment and raw materials, and as the plantain chips are made from plantain, there is no need to purchase any costly additional ingredients.
Starting a plantain chips business can be a viable source of income for you if it’s done right. If you start with about N15,000 capital, you can make at least N10,000 profit in one day when you can sell 1,000 packets of plantain chips a day. You can hardly go wrong with the plantain chips business.
How Profitable Is Plantain Chips Business?
The profitability of a plantain chips business in Nigeria depends on the proper management of the business owner. Your profit on this business is 31.9%.
For Example: If you invested N500,000, Your marginal profit potentials after the sales of your plantain chips should be N310,000. You got back your capital N500,000 + Profit N310,000.
Steps To Take To Start Your Plantain Chips Business in Nigeria
Step 1: Preliminary Stages
Learn how to make plantain chips: Before you can succeed at selling plantain chips, you must first learn how to make them. Then you refine your technique and formula until it tastes the way you want it to taste.
Recipe for making plantain chips
- Plantain (ripe and unripe)
- Olive Oil
- Powdered Chili Pepper (optional)
- Wash and peel the plantains.
- Slice the plantains. You can use a kitchen slicer for size consistency.
- Add salt and pepper (optional)
- Heat the olive oil.
- Put the slices of plantain into the oil, ensuring they don’t stick together.
- Stir the frying pan till the plantains are golden and crispy.
- After about 2-3 minutes, transfer the plantain slices into a bowl.
- Store in air-tight containers when they have cooled down completely.
Develop a unique formula: Making plantain chips requires only a few ingredients, you need to differentiate your product by adding unique features. You can create a unique product by experimenting with essentials like oil, type of plantain, storage etc. until you create a product that is inherently unique.
Step 2: Setting Up Your Plantain Chips Business
Conduct market research: Conduct in-depth market research to know the economic viability of your plantain chips business. Market research helps you understand the potential buying behavior of your customers and the current activities of your competitors.
The purpose of this research is to find a gap between what people want and what they have. That means you have to collect information from a number of potential customers before you create your first product. Armed with the insights you glean from this process, you will be better equipped to determine what to do next.
Create a business and pricing plan: A business plan is a step-by-step procedure of how your business will be built. It will serve as a guideline for how you structure, manage, and grow your new company. The business plan for your plantain chips should be a detailed written report that contains information on your business, its mission statement, management, employees, and operations.
Your pricing plan for your plantain chips has a huge impact on your company’s profitability. If you price too low, you are leaving money on the table. If you price too high, of course, you are leaving money on the table, but more dangerously, you risk scaring away customers who were willing to pay you more. It is important to be able to justify your prices with some clear thinking about what each customer is getting from your product or service and how much value they are receiving.
Some pricing plans you can use include:
Cost-plus pricing- Calculating your costs and adding a mark-up
Competitive pricing- A pricing model based on what the competition charges
Value-based pricing- A pricing model based on how much the customer believes what you’re selling is worth
Price skimming- setting a high price and lowering it as the market evolves
Penetration pricing- setting a low price to enter a competitive market and raising it later
Analyze your finance: Your business plan will help you picture the overall finance you need to kickstart your business. If you don’t have enough capital to invest, you’ll need to either come up with it or get it from lenders or investors. Financial Analysis Documents you can include in your business plan include:
- Summary of Financial Needs
- Dispersal of Loan Funds Statement
- Cash Flow Statement (Budget)
- Three-Year Income Projection
- Break-Even Analysis
- Balance Sheet
- Profit & Loss Statement
- Loan Application/Financial History
- Financial Statement Analysis
Invest in the right equipment: You need to invest in equipment and materials that allow you to produce plantain chips better than your competitors at a lower cost. Having the right equipment can save you a lot of money because you wouldn’t have to worry about their upkeep at all.
Choose your business name: Naming your business is one of the most important marketing decisions you’ll make. A good business name is an important first impression, as soon as they hear it, it gives the target audience an introduction into what your value proposition is all about. Use the following tips to help you choose a lasting business name:
- Don’t choose a name that’s hard to spell.
- Don’t pick a name that limits your growth.
- Search the Internet for that name.
- To avoid brand confusion, make sure you get the .com domain name.
- A name can be more than just a name, your name should convey meaning.
- The name should be memorable and easy to pronounce.
- Check if a trademark or a similar name is already in use.
- Access if the name is easy to remember.
- Ask your friends, colleagues, and family for feedback on the name.
Set up your business administration: From creating the right business structure, getting funding, staying focused on your goals, hiring employees, marketing and advertising, personal finance, business administration involves the coordination of all aspects of a business with the prime objective of achieving success for this business. No aspect can be left unattended because neglecting even one aspect might adversely affect the functioning of the organization.
Register your business: All businesses in Nigeria should be registered properly, the parastatal in charge of registering businesses in Nigeria is the Corporate Affairs Commission (CAC). It is now easier more than ever to register your business at CAC through the online platform. We have a full guide on how to register your business in Nigeria, click here to read.
Set up your Taxes: Having a business without a tax setup is dangerous. Tax audits are no fun for anyone, but they are something every business will have to face eventually. The more time goes by without tax being properly set up, the worse it is going to get. Business taxes are very specific. You’ll need to set up taxes at the federal, state, and local government level. The type of taxes you might file for are income, employment, excise, and sales, etc.
Build Your Team: A business, more than any other activity, is dependent on the services and practices of hired administrators and professionals. Hiring your first set of employees is a huge step for your business, the quality of your first set of hires might determine the longevity of your business which is why you need to attend to this process with utmost detail.
Insure your equipment: When you invest in ensuring your assets, you’re taking the first step toward protecting your business against unforeseen circumstances. Assets insurance passes the risk of loss or damage to property from your
business to the insurance company.
Equipment you can insure include:
- Gas Cooker
- Deep Fryer
- Weighing Machine
- Storage Facility
- Bag making machine
Apply for licenses and permits: As a small business just getting started, you’ll need to get both licenses and permits to operate in a particular locality, state or federation. The requirements and fees differ based on your niche, territory, and government rules.
- State & Local Business Licensing Requirements
- Labor safety requirements
- Certificate of Occupancy
- Trademark & Copyright Protection
Open a bank account: Before you start receiving income, you should open a bank account for your small business. You’ll need a business bank account to store and process your funds. It is possible to set up a bank account for your new business online. Nowadays some banks will even offer you an ‘online only’ current account that can be operated by internet banking. This saves time making trips into the bank branch and allows direct debits and standing orders straight from your office. To open any business bank account in Nigeria, you’ll need several things:
- CAC Documents
- Valid Identification of Directors & Signatories
- Bank Verification Number (BVN) of Directors & Signatories
- Proof of address
- Passport Photo(s) of Signatories
- Tax Identification Number (TIN)
- Board Resolution
- Two (2) References
- Other Relevant Licenses/Documents
After creating a bank account for your business, you might request a debit card as well for seamless withdrawal and online transactions.
Step 3: Starting Your Plantain Chips Business
Develop stock: One of the most challenging and exciting stages of a startup is when it’s time to start making something. Having done the necessary groundwork to set up your business, you now know the quantity of your first batch of production, where to store them, information on your suppliers, and how to get it to them.
Market your business: Every business needs to market itself. This means creating buzz around your company, attracting customers, and turning them into evangelists for your brand. Most successful businesses leverage online platforms to reach new audiences beyond their physical locality. Here are some things to do to get started on selling online,
- Create your website
- Create a Google My Business store
- Create social media accounts
- Assemble good photography and graphics design team
Tips for Marketing Your Product
- Create amazing content that resonates with the target audience
- Use a robust mailing list
- Optimise your physical distribution channels
- Use social media ads to promote your content and products
- Leverage user reviews by highlighting them to new customers
- Incorporate marketing automation to perform repetitive tasks faster
Stay up to date with food industry education and technology: Be sure you’re applying the latest food industry education and technology to keep you competitive. Learn what the latest food science innovation is all about. Collect valuable information that can help you improve your business.
We’ve discussed the opportunity, the profitability of starting a company, and several aspects of what you’ll be doing. Note that all businesses are alike, they have to have a product that is sellable. The details may be different but they face the same basic decisions on how they will develop their customers, markets, and products.
The final point is about skill. It’s about learning how to create something worth having and bring it to market. It’s about putting everything else aside and working tirelessly to make it happen. It’s the thing that makes you fall in love with your work and go beyond what anyone else can do.
Now it’s time to put all the information on starting successful plantain chips together into one and go out there to create magic.
We can’t wait to taste your snack.