You’ve decided on this nice business idea; the next thing on the agenda is to learn how to start this lucrative business. Kitchen equipment and utensils are always in high demand in Nigeria, with a profit rate of about 20% to 70% annually.
A kitchen equipment and utensils business is not gender-based and can be done online and offline. There’s hardly a household in Nigeria that does not use kitchen appliances. This article will address “how” and explain “what” to know in starting this business in Nigeria.
In this article, you will also learn how to create your presence both in online and offline spaces.
Table of Contents
How Profitable is the Kitchen Appliances Business in Nigeria?
This business is known to be very profitable in Nigeria due to food preparation practices at home, at events, and in outdoor restaurants. The prevalence of large kitchen equipment has also brought this business into the spotlight.
The awareness of microbial infections and good hygiene has recently increased the demand for quality products, increasing the market worth.
Also, this kitchen equipment and utensils business is not a business that will cease to exist as long as humans exist and we still consume food.
Who are Your Target Audience?
The ideal customers in this aspect are those who are likely to spend large amounts of money on kitchen equipment and utensils and are more likely to buy regularly. Examples of these target audiences are owners of culinary schools, cafeteria owners, everyday people, and managers of hospitals.
Attending conferences and networking with people already in the business and potential customers such as event planners, restaurant managers, and culinary school owners is advisable to get to know your target audience.
You will get to supply kitchen appliances to certain people regularly once you’ve done your homework and gotten your target audience.
Do you want to have a wider reach of your target audience? Then sponsor your business on Insight.ng to access this opportunity
How to Start a Kitchen Equipment and Utensils Business in Nigeria
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Carry out a market survey
The first thing to carry out in this kitchen equipment and utensil business is to conduct research about this business. This will let you know your target audience, their demands, and the best marketing strategies.
You can easily achieve this by having a good relationship with others who are already doing great in the business here in Nigeria.
In addition to this, carrying out your market survey will allow you to familiarize yourself with how things are done in this business industry.
Read Also: How to Perform Market Research and Identify your Target Audience
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The cost of establishment for starting this business
Establishing this business in Nigeria can be capitally demanding. The capital needed to start this business varies, depending on the scale of the business. The capital needed for a small-scale business is as low as 100,000 naira, while a large-scale kitchen equipment and utensils business requires 800,000 to 1,500,000 naira.
In a large-scale business, you must rent a good shop to keep your wares and other basic amenities running your business smoothly. On the contrary, renting a shop might not be necessary in a small-scale business. It can simply be done by displaying your kitchen wares on a table.
An easy way to raise capital for this business is by starting with mini importation that requires a capital that is as low as 10,000 naira.
Read Also: A Simple Guide to Cost-Benefit Analysis for the Nigerian Business Environment
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Register your business name (large-scale business)
The name you give to your business goes a long way. As a kitchen appliances business owner, it is important for you to register your business name with the government. This will permit you to obtain necessary documents and licenses when needed, especially if you plan to import and export. You can follow the guide below to register your business name.
Read Also: Steps on How to Register your Business Name on CAC
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Create a website for your business
We now live in the technology advancement era, where you can get your buyers online. Having a website and good search engine optimization will help you build your presence online among various competitions.
Read Also: Where to Find Amazing Website Templates for Your Business Online
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Choose the most suitable location for your business
The growth of your business greatly depends on your location. Being in a good location can help you drive up your sales and simultaneously reduce the cost of transportation in supplying kitchen wares to your customers.
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Source for a good supplier
The profit acquired at the end of the day will depend on where and from whom you purchase your goods. For a large-scale kitchen appliances supplier, you might want to connect with companies that manufacture this product to increase your profit margin.
Small-scale business personnel can do well to buy in bulk from wholesalers and retail to their customers.
Requirements of a Kitchen Appliances Store
An ideal kitchen store sells kitchen appliances that comprise large equipment, mechanical equipment, utensils, or small equipment. Some of these are listed below:
- Dishes
- Dishwasher
- Kitchen cutlery
- Plastic wares
- Measuring spoons and cups
- Food mixer
- Food chopper
- Scales
- Sink
- Blender
- Oven
- Refrigerator and lots more.
How to Enhance Your Profit Margin
After taking notes of all mentioned above, it is pertinent to note that your profit margin can be enhanced by building your offline and online presence. Your offline presence can be built by word of mouth, referral by a happy customer, partaking in conferences, and so on.
One of the most effective and easiest ways to enhance your profit in this business is by building your online presence. Your online presence can be built by widely advertising your brand via social media, billboards, fliers, online ads, and TV. Your WhatsApp status can help you communicate your kitchen equipment and utensils business to friends and family. Your social media spaces should be widely used to advertise your business.
Likely Challenges Faced in This Business
The kitchen equipment and utensil market is known to be competitive. This is the first problem you will have to solve to thrive in this crowded market. As a business owner in this field, you must be exceptional in suiting your customers’ tastes. You should always go for distinctively unique designs when sourcing equipment in the market.
One of the challenges that you can face is trying to restyle your products periodically to suit different customers’ tastes. People tend to look for quality and inexpensive products. Employing this in your business will help you attract many customers and yield a maximum profit at the end of the year.
Read Also: Challenges Entrepreneurs Face in Nigeria (Plus Possible Solutions)
Conclusion
Although the kitchen equipment and utensil industry is quite competitive, doing things properly will help you get it right. As a business owner, you should encourage asking your happy customers to refer others because referrals build more trust in your customers. It is important you consider your customers in any of your business plans. As the saying goes, customers are always right.
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Edited by Emmanuel Odebiyi
About Author
- Barakat is a professional content writer with competence in academic writing, ebooks, and blog posts. To help you convey your ideas to your audience, she provides articles written in the most appropriate style and tone.
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