Are you disturbed about the current state of the economy and equally looking for a profitable business you can venture into in Nigeria? Well i really need to let you know that egg distribution business is one of the profitable businesses we have in Nigeria today due to its high rate of demand from different parts of the country.
Egg distribution business is highly profitable and you can determine what your monthly profit should look like. Before I start giving you the step by step guide on how to setup this business in Nigeria, let us talk about the nutritional benefits that comes with these eggs.
Egg nutritional benefits
- Egg is rich in vitamin A which makes patients with eye sight problem regains bright view
- It supplies good protein nutrients to human body system
- Egg is rich in chlorine which is used in building cell membrane in human brain.
Aside these nutritional benefits, eggs can also be used for cakes, meat pie, bread and some other types of confectionaries. It can also be used as cosmetics like soaps, face mask, shampoo and conditioners.
Egg is in high demand in the Nigerian markets due to its raw material benefits and some other nutritional benefits that comes with it. For you to start a profitable egg distribution business in Nigeria, there are some certain procedure you need to put in place which include:
The backbone of any entrepreneur is his or her capital. You don’t need large amount of money to start up this business. With just N50,000 you can kick start it and earn more than some salary earners.
This business is not capital intensive as people think it is. You just need the right network with your little capital for you to succeed with the business.
Write a business plan
Your business plan will help you determine how you want your business to look like. The exact strategy you will make like how to get buyers, how to source for farmers, the numbers of create you want to start with and most importantly if you will be running the business in wholesale or retail.
Rent a shop
Rent a shop in a strategic location so that customers can rush in to buy when ever they exhaust their eggs. These shops would serve as a warehouse where you can save up your eggs before setting out for delivery.
Source for crates
One of the basic tools needed to start up this egg supply business is empty crates. It could be plastic or paper crates. The total number of crates you will need for your supply and distribution depends on the amount of capital you want to start with.
Get a reliable poultry farmer
Since you are just a distributor in this chain, you have to get a reliable poultry farmer where you can be getting regular supply. However, you have to put distance into consideration because of the egg fragility. If you are sourcing your eggs from a far distance there are tendencies that you will be at high risk of losing some eggs due to cracks from bad Nigerian road networks.
Also, it is necessary to source for fresh eggs from poultry farmers, because if you distribute eggs that are about to spoil believe me, you will count loses in this business.
Market and link up with buyers
This aspect also determines the amount of profits you can rake in from this business. Eggs are consumed virtually by everybody in the society. If it’s not for eating it will be for cosmetics which make it easy to sell and distribute to people.
Link up with restaurants, Mallams doing Mai shai business, bakers and salons. If you have 10 customers with these set of people I listed up there that’s 40 customers. Now imagine you sell 20 creates of eggs to them weekly. Did I hear you say wow? Yes that’s a lot of money.
Get your personal delivery van
You will make tons of thousands form this business when you make it a duty to deliver these products to your customers at their comfort zone. Most people prefer home and shop delivery option when it comes to egg purchase. So if you are willing to start up this business in a commercial way you need to get your self a personal delivery van that would give you the access to deliver eggs to your customer anytime.
Why you need to start egg distribution business
- It is not capital intensive like some other businesses out there
- The demand for egg is high in Nigeria as it seen as one of the nutritional diet for kids and adults
- It doesn’t require any technical skills to get started
- It is highly lucrative
Cost analysis of egg distribution Business in nigeria
The amount of profit you realize from this business at the end of the month depends on how much capital you are willing to put into it. In this business, you are the boss and your capital and marketing skills will make you smile to the bank if done the proper way.
In most cases, suppliers add up to N100 on each crates of eggs which means if you can distribute up 50 crates per day that’s a whooping N5000 in a single day. If you subtract your daily expenses after distribution, it shouldn’t be more than N1,000 which leave you with profit of N4,000
Now let’s see
N4,000 x 30 = 120,000 monthly profit.
How to stay ahead of competitors
You can not start up a business in Nigeria today and tell me you are the only one in the business. Do you know why? We are all looking for a means of survival
All businesses are saturated which egg distribution business is one of. So if you want stay top of competitors in this business, you need to link up with more customers. Link up with bakers, indomie sellers, sell to market women, restaurants, hotels and supermarkets.
Most importantly, if you have a personal van for your supply, you can brand it up with your business name. With this everybody will be familiar with your business even if you don’t introduce it to them.
Supplying eggs in your community can help you stop waiting for a white collar job that may not come until your responsibilities are enormous. This business is easy to set up with a low capital and sustain you and your family with its high profitable margin.
I believe with the little information I put up here you must have found one or two tips on how to start a lucrative egg supplying business in Nigeria.
If you’ve any questions or suggestions over this business, drop it in the comment section