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How To Start A Cereals Business: Steps To Take Before Investing

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Tuesday, September 14th, 2021 at 5:16 AM (EAT)

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In a country where people are looking to start profitable businesses, choose an idea involving food and you will never go wrong. One such a choice is the cereals business which is practically cheap to start from as little capital as KSH. 15,000 to KSH. 20,000 with room for expansion. You may ask, why a cereals business? Well, there is more rural to urban migration than in the past hence a ready market.

The requirements for starting a serial business in Kenya

For you to set up the cereals business you will need a sieve, business permit, storage bags, weighing scale, tags, packaging materials, measuring jars and a wooden palette. Its important for you to look for suppliers and compare the quality and prices before settling on one. However, as the business grows, you may consider sourcing for produce directly from rural farmers while looking into the logistics. Other considerations to make include the demand for that specific area so that you are able to supply fast moving grains, availability of storage space that is dry ; a shop or your house if you are selling from home and ways of marketing while incorporating online platforms such as WhatsApp and Facebook in this digital era.

How to choose a good location for your cereal business in Kenya

The location you choose for your business should be densely populated for you to tap into a larger customer base hence more sales and maximization of profits.  Your shop should preferably be along a highway where it is visible and easily accessible.  Also, decide on what to stock and when since cereals tend to have seasons. For instance, if you buy maize in the low season, it means you might end up with redundant stock when farmers harvest and prices are lower. Hence its advisable to buy-low and sell-high basis. Apart from individuals, your target customers should also include institutions of higher learning, hotels and other organizations intending to buy grains in bulk.

Storage is an important aspect for a cereals business. Apart from making sure the stock you buy is properly dried, your storage facility should also be dry to avoid spoilage from dampness. Another risk likely to damage your stock are rodents. Deal with the issue first before settling on a store.

Obtain a license for your cereals business in Kenya

After obtaining the required licenses form the County offices, you are good to go. A cereals business is less likely to be affected by economic hardships since people consider grains to be nutritious and whatever happens, people will always prioritize food. The first days of running any business are expected to be dry days, so it the grains business. This means you will need to get out and look for local tenders, make friends with caterers and soon you will be having a stable customer base with whom you can strike deals. Always choose to sell on cash basis as credit sales for a start up business may lead to failure in the long run.

Bottom line

In conclusion, cereals business in Kenya is profitable as there is a ready market. The main factors to look into before setting it up is the location which ought to be strategic, reliable suppliers, the target market, competition and safety of the storage space. Licenses too and capital are factors to look into on the onset of the business. You are expected to make a 25% profit on total sales in a cereals business, so what are you waiting for? Avoid procrastination and start today.

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