How To Start A Fashion Business In Nigeria


The fashion business is one of the fastest growing industries in the world.

In Nigeria, its popularity is accelerating every day with fashion designers experiencing an increased need by people to want to purchase designer clothes, wear custom made traditional fashion items to occasions and events, adjust ready-made clothing bought from the markets, purchase mass produced and imported fashion items, and much more.

The frenzy surrounding the local impact of the fashion business in Nigeria is setting a business trend leading to the creation of a new fashion store at every street corner almost every day, whether a proper feasibility study had been carried out by the store owner or not.

With several roles for aspiring, new, and existing entrepreneurs to play in the fashion industry, here’s how to start a fashion business in Nigeria, Africa, or anywhere else around the world:

What Is The Fashion Business About?

The fashion business is about the manufacturing, modification, importation, exportation, and general sale of fashion items in Nigeria, Africa, or anywhere else around the world.

Business Opportunities In The Fashion Business

1). Fashion Design Business:

The fashion design business is one of the most popular segments of the fashion business in Nigeria. Creative individuals operate in this segment, and they bring their ideas to life in different ways, through various designs. After sewing, the clothing are then packed and sold to people with a knack for buying designer wears.

The roadside tailors also operate in this segment, as they sew custom-made non-designer clothing for their clients. They also patch and adjust ready-made clothes brought in by people, and this makes up a bulk of their smaller revenue stream, since most people who visit come in to fix one thing or the other.

2). Fashion Retail Business:

Running fashion boutiques or retail stores is another popular segment of the fashion business in Nigeria. They’re widespread across the country, and can be found in every marketplace and most street corners.

People have a longing need to always buy clothing at some point, and as a result, fashion boutiques continue to record product sales daily.

3). Fashion Import/Export Business:

The fashion import/export business comprises of the people who manufacture locally for exports, or that import from other countries. They’re large scale players in the fashion business in Nigeria and many other countries. They usually import in large containers and distribute to widespread market traders.

Due to the large volumes involved in this segment, the fashion import/export business is mostly played by deep pocket individuals or people who have strong access to bank loan facilities.

Many low-budget entrepreneurs still operate here and import import items from Aliexpress or Alibaba, but most of the successful lots are those who import in large quantities and distribute to traders in large markets.

Facts And Benefits Of The Fashion Business

  • The market is growing faster than many other industries
  • The basic start-up cost can sometimes be very little
  • It’s an easy source of income
  • The profit margins can be high, depending on which type of fashion business you’re running

Setting Up Your Fashion Business (Manufacturing)

1). Decide The Type Of Fashion Business You Want:

The first step is to determine the type of fashion business you intend to start. As stated above, there are about three different types, but for the purpose of this article, we’ll focus on the manufacturing of fashion items for the creation of a fashion brand.

2). Create Your Designs:

The next step is to sketch your designs. For this, you don’t need a special degree or certification. Rather, you need a creative mind and one that has a knack for spotting trendy marketable products.

If you have problems putting your ideas down on paper, you can attend a fashion school, so you can trigger and bring a part of your creative side to life.

3). Make A Sample:

The next step is to make a sample of the product(s) you intend to manufacture. The samples can be made locally, but usually cost very high amounts. When you have the sample you want and are sure it meets all the specifications you need, you can go on to find a factory that can produce your fashion items in bulk.

4). Find A Factory:

To find a factory for your fashion business in Nigeria, you could start with Alibaba. Another way could be to either get a referral from an importer or to physically pay the manufacturing hub a visit in whichever country it is.

If your preferred manufacturing location is China, the most popular location for manufacturing fashion items there is Guangzhou.

Upon locating the factory, the first step would be to ensure they can successfully replicate the prototype you have, after which you can then go on to place a bulk order with different shapes and sizes.

5). Market Your Product:

Here, you’d need to setup a sales and marketing team whose goal is to come with a market and execution plan to build up and grow your fashion brand. Since sales is the life-blood of every business, it is advisable you consult a sales expert before you spend a dollar of your money trying to promote any fashion items to a market that may or may not be the right fit for them.

Challenges Of The Fashion Business

1). High setup costs:

Depending on the type of fashion business in Nigeria you’re setting up, it could either be really cheap to start up or very expensive to execute.

2). Rising costs of production: 

Fluctuations in exchange rate values makes the cost of goods and services jump. When the currency depreciates, it falls against the US dollar price, causing the local market price to rise.

3). Marketing & Sales: 

Building a reliable distribution network can be difficult for many fashion entrepreneurs. As such, they need to hire experienced sales people who may eat deeply into their profits. The constraints fashion entrepreneurs face in marketing their products causes many to have low turnovers, which eventually leads to a lot of closed shops.

4). Sourcing credible manufacturers: 

Finding reliable manufacturers in foreign countries can be difficult, especially when you’re basing your research over the internet. With many non credible people masquerading themselves online as garment manufacturers, getting a factory that’d actually produce what you want in the right quality, quantity, and price can prove difficult to find.

5). Staying up-to-date with the trends: 

To stay active and not get knocked off by the competition, fashion brands around the world have to constantly innovate. They need to release a new style every quarter or so, and ensure they’re designing their wears in tune to the current market demands.

6). Competition: 

The fashion business in Nigeria is very crowded, and so, profitability is difficult to achieve, especially for people who are operating in tight niches. Unless a fashion brand can successfully distinguish itself from others, and still create a social ripple effect with its brand name, while offering a superior service at very competitive prices, breaking even would be difficult to achieve.

Conclusion

The fashion business in Nigeria, just like many other businesses, can be profitable and can be terrible for any entrepreneur. First doing an extensive research, asking the right questions, and fully understanding the trade can help you succeed in the fashion business in Nigeria or anywhere else around the world.

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7 Qualities Investors Look For In Every Entrepreneur

Raising money from investors to grow a business is one of the hardest things many entrepreneurs will face. They’d make tens and even hundreds of pitches, attend many networking events, and go through thousands of hours researching potential investors and institutions that can provide them with the required funds their businesses need to grow.

While almost every entrepreneur is focused more on seeking investment or a form of finance, few are focused on preparing themselves and ensuring they possess the core traits that investors look out for in an entrepreneur.

If you’re seeking investment to grow your business, here are 7 qualities investors look for in every entrepreneur:

1). Your Track Record:

Investors want to know your track record. They want to know your experience at a previous startup, see what job roles you’ve played, what you helped the organization achieve, and in what capacity you were able to deliver your targets.

Investors don’t want people to learn with their money. It mostly ends up bad. They rather prefer to invest in people who have had some experience either by running a series of start-ups unsuccessfully or have worked in the proposed industry they want to start or run a business in. This way, there’s a higher chance of success.

2). Relevant Skills:

If you’re launching or running a tech startup, it is expected that you should have a technical co-founder and a sales expert.

Running a business without the necessary skills required to maintain its daily operations and eventually facilitate its growth will keep you running in circles. The absence of these skills means the founders may either lose a lot of valuable time making mistakes or may waste a lot of money outsourcing to other startups or organizations who offer those services.

No single individual can know everything. So it’s important that every company has a great technical co-founder, sales expert, financial guru, and every other necessary piece required to smoothen out its operations and eventual growth.

3). Your Passion:

When you talk to an investor, they want to see the passion in which you’re able to deliver your pitch. They want to know how obsessed you’re with what you want to do, and will mostly only take people who’re passionate about their dreams seriously.

You don’t talk to an investor in a slow and boring tone. You fire up your excitement about the bright future of your company and do everything possible to bring them into the same light.

Since passion keeps people fueled and dedicated at whatever they set out to do, investors only prefer to invest in those set of individuals.

4). Honesty:

No one likes a dishonest person. Even worse, no one will invest their money on a dishonest individual.

Honesty is an important value that every investor wants to see in any entrepreneur they choose to invest in. They need to know their money is in the right hands, someone who would be transparent about how it is used, and who will stay away from any illegal activities that could thwart the company’s growth.

If you come off as dishonest to any investor, no matter how you pitch your company, they’d walk away.

5). Humility:

What does your social life say about you? What do other people think of you?

No one wants to invest in a person who only prefers to show off the luxuries in their lives on social media. Also, no one wants to invest in a person who’s full of pride and loves to make a show of it to everyone.

Humility will enable you to listen to the opinion of others since no one is above making mistakes, will keep you from showing off on social media, and will ensure you understand that not everything is going to be perfect.

A proud person will always have problems convincing investors that it is safe to invest their hard-earned money in his or her business.

6). Ambition:

What are your goals? What do you intend to achieve in the next 6 months? Which companies do you aspire to either be like or surpass? Which entrepreneur motivates you the most? And what do you want to achieve most in your life?

Ambition is a key quality tht investors look out for in every entrepreneur. They want to see how far you intend to take the company and to determine if they’d be willing to go with you on that long ride.

Ambitious people are always hungry for success, constantly create goals and timelines, and always see the big picture. Investors love this and are always willing to invest in individuals who show an extraordinary ambitious spirit and tenacity to achieve their goals.

7). Progress So Far:

A business that has already started and is experiencing a form of growth has a higher chance of securing an investment than one that’s still in the idea stage.

If you have made considerable progress so far, let the investors know. Highlight your strengths and opportunities. And ensure they’re considerably more influential than your threats and weaknesses. Show the potential investors your financial statements, and prove how a cash influx can greatly push up your margins.

If your progress rate so far shows immense promise, investors would be more than happy to put their money into it.

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How To Start A Diesel Supply Business In Nigeria

The oil and gas industry is one of the most profitable sectors in the world. In Nigeria, it accounts for the holy grail of the country’s economic output, making it extremely important in aiding economic development in the nation.

While this industry remains a great source of revenue for the country, a few individuals are taking advantage of it to create fascinating businesses. They’re operating in both crowded and less crowded niches, and are generating amazing revenues ranging from a few millions of naira to multi-billions of Naira.

Whether you have a lot of capital or not to venture into the oil and gas industry, there’s always a niche you can play a role in, and one of them is the diesel supply business in Nigeria.

What Is The Diesel Supply Business In Nigeria About?

The diesel supply business involves the supply of diesel—widely known as Automated Gas Oil (AGO)—to organizations who require a steady supply. Some organizations who need diesel to be constantly supplied to them are hospitals, manufacturing companies, small private organizations, tank farms, and more.

How Does The Diesel Supply Business In Nigeria Work?

There are two ways the diesel supply business in Nigeria works:

1). Diesel Supplies To Tank Farms:

Tank farms usually need a regular supply of diesel or AGO (Automated Gas Oil). Depending on what they’re storing, they could also need a constant supply of DPK, and PMS.

The supplies to tank farms happens with a vessel. Since there are people who import diesel to Nigeria with their vessels, they regularly initiate the services of procurement officers, seller mandates, and brokers to help them identify tank farms who need diesel supplies, so they can either supplement their diesel supply or sign a long term contract with the tank farm to regularly supply them diesel every month for usually a period of one year or more.

The profit margins that businesses who supply to tank farms usually make from their supplies are usually about 5 to 10 Naira per liter, and the tank farms make a profit of that range too. While it may seem little, tank farm supplies usually run into millions of liters, and 5 million liters at a profit margin of 5 Naira is about 25 million Naira.

2). Diesel Supplies To Organisations:

Most organizations like private and government hospitals, manufacturing companies, and more, usually need a constant supply of diesel in Nigeria to run their operations. They mostly can’t pay upfront, and so, get organisations who are into the supply of diesel or AGO to register as one of their regular diesel suppliers.

People who supply to them purchase the diesel from the depots, mark up their profits at about 10% to 25% of the market value, and use petrol tankers to supply them to their clients.

Businesses who operate on this level could tend to make more money than those who supply to tank farms, only if they have a very wide client list collectively ordering hundreds of thousands or millions of litres of diesel monthly.

How Can You Start A Diesel Supply Business In Nigeria Even If You Have No Money?

The larger players who have a lot of money to venture into the diesel supply business in Nigeria easily make millions or billions of Naira monthly. But when you have no money to start a diesel supply business in Nigeria, becoming a broker is the best route to go.

Who’s A Diesel Broker?

A diesel broker is someone who sources organizations and businesses in need of diesel supplies at an affordable price and links them up with diesel suppliers who can deliver.

Usually when they do this, they tend to add their own mark-ups on the price with the company handling the supply, such that if they have an order for 100,000 litres of diesel to be supplied, they could get a quote from the diesel supplier, mark up the amount per litre by 2 Naira, and execute the contract, thereby making 200,000 Naira for themselves.

If they get a tank farm supply of say 10,000 Metric tons, which is about 11,299,435 liters, a profit margin of 1 Naira on every liter will make the broker 11,299,435 Naira profit. Depending on the tank farm purchasing, you may have a markup of 1 to 3 Naira. Including the fact that tank farms usually order anywhere from 10,000 Metric Tons of diesel to 50,000 Metric Tons of diesel, to a whole lot more.

The best part of the diesel supply business is that diesel brokers don’t have to own an office. All you need is to be able to build valuable links between both the buyers and the sellers, and follow up on every supply.

How Can You Know Which Organizations Are Looking For Diesel Suppliers In Nigeria?

The easiest way to find organizations that have an immediate supply need is to pay them a visit and advertise your service. When you’re present, submit your company profile and ask to know if you can speak with their procurement officer.

The procurement officers are the individuals whose job it is to find diesel suppliers in Nigeria that can fulfill their pressing needs. When you’re in contact with a lot of procurement officers and have made it known that your organization can meet their diesel supply needs whenever it comes up, they’d tend to reach out to you sometimes concerning a pressing supply need they may have.

Other times, these organizations could put up an advertisement on LinkedIn, announcing their need for supplementary diesel supplies. As a diesel broker, you should always be on the lookout for such announcements on LinkedIn.

How Can You Find Diesel Suppliers In Nigeria That You Can Successfully Broker Through?

1). Introductions:

This is one method to easily come in contact with organizations that can handle any diesel supply request that you may have. You could have a friend introduce you to a diesel supply company or you could walk into some offices to advertise your brokerage service, so you can know if they welcome the use of brokers or not for their businesses.

2). LinkedIn:

This is one of the most effective ways to find businesses to broker your diesel supply business in Nigeria through. You could connect with key people who work with petroleum companies in Nigeria via LinkedIn, and after they accept your connection request, make them know about your brokerage service.

They’d tell you whether it is possible or not, and will let you know their terms and conditions.

Does Having Diesel Suppliers And Diesel Buyers Mean That Anyone Can Venture Into The Diesel Supply Business In Nigeria?

The ability to build a strong supply chain network is critical to the success of any business. Anyone with the talent wins. The more deals he or she is able to close, the more money they’d make.

Finding diesel suppliers in Nigeria to cover your needs is usually never the problem. The real problem always lies in finding diesel buyers in Nigeria.

When you have a fail-proof and highly effective system to get a lot of diesel buyers like organisations and tank farms to reach out to you for a constant supply of diesel, you could make far more money—based on how many supplies you get in a month—as a diesel broker, than even people who own the products.

So if you have the means to get as many diesel buyers as possible to patronize your service, you’re already in business.

Is There An International Standard Fee For Diesel Or AGO Brokers In The Diesel Supply Business In Nigeria?

Asides a broker who first gets a quote from the diesel supplier before laying out a final price to the diesel buyer, there’s a standard way the facilitators’ commissions are calculated. This standard method is based on tank farm deliveries from vessels and is widely used in many countries around the world.

For instance, if the seller plans to supply diesel to a tank farm for 130 Naira per liter when facilitators are involved, the amount would be 132 Naira Less 2 Naira. The 2 Naira now, would be shared between the brokers on both the buyer’s and seller’s side.

So if there was only one broker on the seller’s side, the broker gets a full 1 Naira per liter. If there are two brokers on the seller’s side, they each get 50 Kobo per liter. The same applies to the brokers on the diesel buyer’s side.

If the commissions to be shared by the brokers on the diesel buyer’s side and the diesel seller’s side is 1 Naira instead, the amount would be 131 Naira less 1 Naira. Meaning both sides share 50 Kobo each, while the real cost of the diesel is 130 Naira.

But while this is the international standard method, a diesel broker could still go out of their way to get a quote from the diesel supplier at let’s say 128 Naira, and markup with an extra 3 Naira, while submitting a final quote of 133 Naira less 2 Naira to the diesel buyer. This way, the broker doesn’t just make a 3 Naira profit per litre on the diesel supply, but could also make an extra 1 Naira per litre on the seller’s commission end, or even a full extra 2 Naira per litre, depending on if there’s any broker on the buyer’s end, making it a full 5 Naira per litre as a profit.

So if a diesel broker gets a diesel supply order from a tank farm for 10,000 metric tonnes, which is about 11,299,435 liters, at a full 5 Naira per liter profit margin, the broker could make 56,497,175 Naira as a profit from the transaction.

The great news is that tank farms mostly only order a minimum of 10,000 Metric Tonnes. They could order 50,000 Metric Tonnes or even as high as 100,000 Metric Tonnes, making any facilitator in the middle of the transaction to be able to make a large amount of money from successfully closing the deal, based on the maximum amount the diesel buyer or tank farm is willing to pay per litre, or based on the international brokerage method and how many brokers are involved in the transaction.

How Do You Protect Your Interests In A Diesel Supply Transaction

If you’re handling a tank farm supply, you’d have the diesel seller and the diesel buyer to sign a SPA (Sales and Purchasing Agreement). In this agreement, the banking coordinates of all the brokers, facilitators, and mandates involved in the transaction would be present. So that when the diesel buyer pays for the AGO supplied, they’d have to pay all the parties involved in the agreement.

Now, if you added a personal commission for yourself before submitting the final quote to the diesel buyer, you’d need to have two separate agreements with the diesel supplier, called a Non-Circumvention/Non-Disclosure Agreement (NCNDA) and a Master Fee Protection Agreement (MFPA).

The NCNDA and MFPA will protect you from any form of circumvention by the diesel buyer and diesel seller. If for instance after the first supply, the diesel supplier decides to circumvent you and go straight to the diesel buyer to sign a one-year diesel supply contract, this agreement will ensure you continue to get paid your commissions no matter what.

Any breach of these agreements would give you the power to initiate legal proceedings. And since the proceedings could run into hundreds of thousands of dollars, it is always important that it should be included in the agreements that any breach by the diesel seller would mean the seller must cover the legal cost also.



So How Do You Start A Diesel Supply Business In Nigeria?

Step One: Find A Diesel Supplier

Getting a diesel supplier in Lagos, for instance, is the first step to starting your diesel supply business. Although sometimes, you could as well start searching for diesel buyers before you reach out to diesel suppliers, having a handful of suppliers you can always get quotes from for every supply is the best way to start.

Step Two: Find A Diesel Buyer

As stated earlier, the diesel buyer is the most important element in the diesel supply business in Nigeria, else, even if you have 100 diesel suppliers, you won’t make any money.

To find a diesel buyer like an organization or a tank farm, you could either advertise your business services by visiting their offices to submit your company profile or by connecting with them on LinkedIn.

Step Three: Broker A Deal

Having found a diesel supplier and a diesel buyer in need of AGO, you could go ahead to broker the transaction. If it is a tank farm supply, you would use the international standard method of handling broker remunerations or you could top up the quote you get from the supplier with a standard fee of maybe 2 to 3 Naira extra, making you more money per liter. If it is not a tank farm supply, but rather a tanker supply to an organization, you could top the diesel supplier’s quote with your commission before submitting the final quote.

What Next After Diesel Brokerage?

While first starting a diesel supply business in Nigeria through diesel brokerage can be a great way to start, over time you’d need to acquire tankers and more to enable you to fulfill most of the orders yourself, so you can make a considerably larger profit than if you were just brokering transactions.

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The Difference Between A Business Plan And A Business Proposal

A business plan and a business proposal are two distinct documents. Most people mistake them for each other, and a lot of articles on the internet that teach how to write a business proposal are actually just explaining how to write a business plan.

While a business plan focuses on a company’s goals, the problems and solutions it’s trying to address, its potential market size, keys to success, products and services, market execution, and more, a business proposal on the other hand usually focuses on how a certain project would be executed, states a quote for the project, terms & conditions, and several other key pointers.

These two documents are very different with each serving distinct purposes. So it is important you know whether what you need is a business plan or a business proposal at any time.

Reasons For A Business Plan

A business plan envisions your pipe dream. It shows how your business goals, objectives, philosophies, industry analysis, target market, products & services, market execution, competitive analysis, financial projections, and a whole lot more will position the business for success.

It is a detailed document that investors, banks, accountants, and financially savvy individuals can easily review to know what your business is about, its chances of success, and how you’ve planned to scale.

Business Plan Structure

In preparing a business plan, here is a sample structure you should follow to get it done right:

  • Executive Summary
  • Business Description
  • Market Analysis & Strategies
  • Design & Development Plan
  • Organization & Management
  • Service or Product Line
  • Sales & Marketing
  • Funding Request
  • Financial Projections
  • Appendix

Reasons For A Business Proposal

Business proposals are usually solicited or unsolicited. A solicited business proposal is written upon request from an organization, institution, or individual. For example, if you receive a Request For Proposal (RFP), what you’re preparing would be a solicited business proposal. In this instance, you’d have to follow the requirements as stated in the RFP.

An unsolicited business proposal, on the other hand, is prepared in response to a client after a sales meeting, giving you more flexibility in curating the contents of the proposal.

Business proposals are limited in scope, and are thus, written for a specific audience.

Business Proposal Structure

Here’s a sample business proposal structure:

  • Introduction
  • Executive Summary
  • Table of Contents
  • The Body of The Proposal
  • Conclusion
  • Appendix

In your business proposal, you will detail the scope of the work, materials needed, cost estimates, project timeline, previous clients, team members, achievements, and a whole lot more in the body of the proposal. It’s a marketing tool, and its goal is to convince the target customer to do business with you.

What Then Do You Need?

The variations between a business plan and business proposal are wide apart. As shown in this article, they serve different audiences and are prepared for different reasons.

If your goal is to seek investment or a bank loan, a bank and investor ready business plan is what you need. But if your goals are to convince a client to use your service whether the client has asked for a document showing how much value you’d add to them or not, a business proposal is what you need.

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The Key To Getting People To Invest In Your Small Business

The cost of starting a business today may or may not be overtly expensive, depending on what angle it is being challenged from.

An internet entrepreneur may argue that it is a lot cheaper because, they could easily run targeted Facebook Ads at a greatly reduced cost and get weigh higher conversions, as opposed to putting up extremely expensive Ads on billboards that may yield no results.

A brick and mortar store entrepreneur may argue the costs of starting a business now is extremely high because of rent, acquiring merchandise, getting a licence, or promoting their businesses through any offline advertisement means.

The key concern between the two different groups of entrepreneurs is on raising startup capital, and how to find investors for this, remains one of the largest problems new and existing entrepreneurs face. If you’ve been trying to get investment for your small business with little to no success, here are 6 steps to convince an angel investor that your startup is one of the best companies to invest in:

Step 1: Show How The Business Can Make Profits

Before you start exploring investment options, first test your business idea to prove that it is viable. This will help your small business pitch when you’re trying to find investors for your startup.

Doing this validates your business idea and doesn’t just build your self confidence, but also builds the confidence of investors in your business.

Step 2: Show How Strong The Demand For Your Products Or Services Are

The next step is to show how much demand there is for your product or service in the marketplace. You should do this by using detailed statistics, showing economic reports, feature popular articles on the subject, and even show the result of a survey you or an organisation carried out.

By proving there’s a vast demand for your products or services, it will be easier for you to find investors and convince them to make an investment in your small business.

Step 3: Outline A Proven Marketing Plan

Outline a marketing plan showing the effectiveness of a strategy that worked when you tested your business idea in step one. Since you haven’t fully scaled your business, your marketing plan would have to be based on what has already worked for you and what currently works for others in your industry.

Step 4: Highlight Your Strengths

If you have experience in this industry or a similar one, now is the time to highlight your years of experience as one of your strengths, which could help prove you’re well suited to run this business successfully. Investors want to believe that you’re the best man for the job. They want their investments to be safe because, a long streak of unsuccessful bets has gotten many of them extremely cautious about what to invest in.

By showing that you have a vast experience in the industry you’re trying to start a business in, investors will feel a lot more comfortable entrusting you with their hard earned money.

Step 5: Show How You’ll Run Your Business Operations

At this point, you should show the prospective investor how you intend to handle the overall business operations.

They’d want to know how you will acquire or manufacture your products, manage distribution links, and also how you intend to retain your customers.

By showing how you’ll run the daily operations profitably after going through the previous four steps, it will be a lot easier for you to secure an investment when you do find investors.

Step 6: Detail Your Budget

Now you show your potential investors a monthly budget on how the business expenditure would run through a period of 12 to 36 months.

They need to know that their investment will not be squandered and can also sustain the business long enough for it to hit its break even point.

Also ensure that your budget doesn’t just show the business expenditures, but also shows how and when your investors will get a good return on their investments.

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How to Start The Production And Sales Of Livestock Feed

The livestock feed production industry has been largely promoted as one of the most profitable agribusinesses to venture into.

This is because the producer does not undergo the risk and high costs of raising farm animals, which could usually cost a lot of money to run, probably get sick, or even worse.

Africa, especially Nigeria, has a major impact in the worldwide production and distribution of livestock feed. In 2016 for instance, the Nigerian animal feed sector was rated the 40th largest in the world, which is 11 steps ahead of its position in the previous years. This shows that Nigerian farmers are quickly getting involved in the sector, because of the opportunities that abound in it.

About 1 billion tonnes of animal feed is sold worldwide, whereas Nigeria alone was estimated to have produced approximately 3.8 million metric tons of animal feed in 2014 alone. The Nigerian Institute of Animal Science statistics also shows that Nigeria hit 5.3 million metric tonnes (MT) of animal feed in 2015, as it produced 3.2 million metric tonnes (MMT) of egg, 1.1 million metric tonnes (MMT) of chicken meat, 647,750 metric tonnes of aquaculture, 265,000 metric tonnes of pork, 53,000 metric tonnes of milk, and 41,250 metric tonnes of beef, amongst others.

This figure has grown steadily over the years, with the country experiencing leaps in the worldwide ranking of livestock feed producers, especially in the area of fish farming (aquaculture).

What Is Livestock Feed Production About?

Livestock feed production is the manufacturing of animal feed like poultry or chicken feed, cattle feed, goat feed, dog food, bird food, and several other types, with raw agricultural ingredients like corn, wheat, sorghum, forage, vitamins, additives and minerals, and formulates them into a nutritious feed tailored for a production animal’s specific dietary needs.

Facts And Benefits Of Livestock Feed Production

1). Serves as a great protein source for animals.

2). A source of employment.

3). Can be cheap to produce.

4). The raw materials can be locally sourced.

5). Machinery can be locally fabricated at an affordable cost.

6). The market is growing rapidly every year.

Business Opportunities In Livestock Feed Production Around The World

Livestock feed production is an agribusiness sector that has a lot of opportunities. From chicken feed production to fish feed production, the opportunities and diversity potential of any livestock feed production business remains vast.

Here are some business opportunities in the livestock feed production in many places around the world including Nigeria or Africa as a continent:

1). Chicken Feed Production (Poultry): 


Poultry or chicken feed are food usually consumed by chickens, ducks, geese, and other domestic birds. They could consist of one or more varieties of whole, cracked, or rolled grains. These feed can also be served through troughs, hoppers, tube feeders, scratch grains or scattered on the ground.

Poultry feed is one of the most sort after animal feed products, because of the volume of poultry animals raised in many parts of the world yearly.

Some common categories of poultry or chicken feed in Nigeria, Africa, and everywhere else around the world are:

  • Layer Mesh
  • Broiler Mesh
  • Chick/Starter Mesh
  • Grower Mesh

If you must start a livestock feed production business, manufacturing poultry feed is a must!

2). Fish Food Production: 

Fish food or pellets are used to balance the nutrition needed by domesticated fishes. They are usually in pelletised or granule forms, and are composed of high quality nutrients like vegetable proteins, cereal grains, vitamins and minerals, to enable the fishes feed efficiently and grow to their full potential.

High quality fish food are always in high demand. You can take advantage of the market’s preference for this and manufacture slightly low priced, but good quality feeds to gain a quick market acceptance.

Some other livestock feed business opportunities to explore include:

  • Pig Feed Production
  • Goat Feed Production
  • Cattle Feed Production
  • Dog Food Production
  • Cat Food Production

Setting Up Your Livestock Feed Production Business

1). Create Your Feed Formula: 

After choosing the type of livestock feed you want to produce, the next step is to create a feed formula for them. Each livestock feed would be different from the other, as chicken feed would be different from fish feed. You’d then need to study the nutritional requirements of each animal, so you can determine how best to create a feed that can lead to high yields.

Some basics that could make up your animal feed include corn, wheat, sorghum, forage, vitamins, additives, and minerals. Making animal feed from a good mixture of some of these will result in a highly nutritious product.

But it’s best you attend a series of seminars on how to make high quality animal feed, so you can get the best results.

2). Purchase And Mix The Feed Ingredients:

After drawing up a great formula, purchasing the pieces you’d need to make your high-valued feed is the next step.

Some ingredients to get include maize, oyster shells, soybean, wheat offal, minerals, common salt, corn, wheat, and several others.

When your suppliers bring in the ingredients, they’re to be weighed, tested, and analysed for different nutrients to ensure their quality and safety. This will help nutritionists to even formulate better livestock feed for specific species.

3). Get The Feed Equipment & Machinery:

Some very important livestock feed equipment and machinery you must acquire for a maximum output are:

  • Grinders
  • Blenders & Mixers
  • Pelleters
  • Steam boiler
  • Scales
  • Sifters
  • Bag sewers
  • Packaging

4). Package Your Livestock Feed:

After manufacturing your livestock feed, the next step is to package it right for the market. It is always best to follow the standards of the most successful product out there. By doing this, your packaging will ring a quality alarm anytime a person comes across your product in the market for the first time.

5). Market The Livestock Feed:

To sell your livestock feed, there are many ways you could go about it. Some of these are:

  • Building a periodic supply chain to stores
  • Owning a distribution outlet
  • Building an 0n-field sales team

And several others.

Challenges Of Livestock Feed Production

The challenges of livestock feed production mostly ranges between these listed below:

1). Lack of experience.

2). High cost of production.

3). Low consumer purchasing power.

4). Lack of subsidy for local agricultural production.

5). Poorly managed supply chain.

6). Spoilage of raw materials.

7). Poor processing and storage materials.

Conclusion

While there are several agribusinesses that have high potentials for profitability, livestock feed production is a great one to venture into, if executed at the right scale with a broad diversity in animal feeds produced and sold both locally and for exports.

What are your thoughts on this? kindly let your opinion known in the comment section below.
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