Last Updated on July 28, 2020 by Henry Ibeleme
If you want to start an egg business in Nigeria, the first and most important thing you need is a reliable guide or mentor.
Before writing this article, I browsed through the internet looking for a guide that someone can follow to start this business.
Unfortunately, I kept coming across half-baked, mediocre articles that know nothing about the egg supply business.
At first, I was sad, because these articles have, no doubt, misled many prospective business persons out there.
I was able to meet with someone who has made millions from this business, and he was able to share some great tips that will you.
It will be a long read, so I would advise you to bookmark this page so you can read whenever you’re free.
Without wasting further time, let’s begin!
Table of Contents
- 1. Business Capital
- 2. Get A Business Vehicle
- 3. Get A Reliable Poultry Farm
- 4. Know Your Target Market
- 5. Storage Facility/Shop
- Why Start An Egg Business? Supply and Distribution:
- How To Build Your Egg Business Customer Base
- Opportunities In The Egg Business
- Success Tips In The Egg Business: Supply And Distribution
- Over To You!
1. Business Capital
Almost every business idea in Nigeria require capital to start.
In that case, you will need to save or borrow some finance that you will need to start up.
I did my analysis, and I discovered that you would need at least #750,000 to start this business.
If you have a vehicle that you will use for transportation, it will significantly reduce your start-up capital.
One of the reasons why many individuals in Nigeria are yet to start this business is often lack of capital.
In that case, I am going to share some tips which I used to realize the money for my business. You have no reason or barrier why you shouldn’t start this business.
1. Personal Savings
Saving money can be hard, especially if you don’t have many sources of income.
But if you must make your dream become a reality, you need to learn how to save even when it’s hard.
If you have only one bank account, I want to urge you to open another one.
That is the account you will use to start saving.
Opening a bank account in Nigeria is very easy and free.
A lot of banks today can open an account with zero nairas. All you need is your passport and ID card.
After creating a savings account, try and save at least #2,000 or more weekly, depending on how much you can comfortably save.
Please, do not request for ATM for this savings account so that you will eliminate every temptation to touch it.
2. Borrow From Friends And Family
Another way to get money to start this lucrative egg business is through friends and family.
Many people are afraid to borrow from the bank, but borrowing from friends and family shouldn’t come with any issues.
The purpose of friendship is to help each other in moments of need. So, don’t be shy to ask for help with the promise of paying back.
If you’re able to convince them about how lucrative the egg supply or distribution business is, they will undoubtedly help you out.
3. Borrow From Lenders
Thankfully, there are lots of lenders today who can lend you some money without collateral.
You have absolutely no reason not to start this business.
However, the amount they will lend you depends on your BVN activity.
You might be eligible for only #50,000 to over #2 million.
Some of the lending platforms in Nigeria you should know include:
- Aella Credit
- FINT Loan, etc.
With #75,000, you will be able to buy over 100 crates of eggs.
Imagine you sold each crate for #800, you will be making over #800,000 monthly if you’re able to sell up to 1000 crates.
This figure is very realistic, as there are numerous people today making millions every month.
2. Get A Business Vehicle
Since egg business entails supply or distribution, you will need a source of transport.
Getting a vehicle is the only thing that will take a massive chunk of your capital. But don’t worry, since it’s an investment you will never regret.
If you don’t have the enormous finance to get a vehicle, there is always an alternative.
However, it will be less reliable compared to when it’s your vehicle.
There are lots of second-hand pickups that you can get for #500,000.
All you need is to get a trusted dealer and a mechanic to ensure you’re buying a good one.
I have seen lots of people buy second-hand vehicles, only to spend all their profit working on one issue or the other.
If you have the money to go for a new vehicle, it would be best.
As your business grows, you can begin to do some periodic maintenance or service to avoid breakdown.
3. Get A Reliable Poultry Farm
In this egg business, you will need a reliable supplier, not just any poultry farm, a big farm since you will need abundant supplies.
There are lots of poultry farmers in your locality. Sometimes what you need to discover them is by asking around.
Ask your friends and family, or even some business persons, for recommendations.
The internet is a prominent place to look, as most of these egg supplies now have an online presence that helps them connect to customers like you.
There are lots of poultry farmers in your locality, and you need to choose the best by comparing their prices.
A #50 difference is something; please don’t be shy to negotiate.
Since you’ll be buying in large quantities, they will always bend their prices to accommodate you.
Nearest To You
When choosing a poultry farm to source for eggs, consider the distance.
Ensure the farm is not too far off, so you won’t be wasting lots of fuel during transport.
Starting an egg business is a business that will make you a millionaire, but you need to ensure that you get most of the things right.
4. Know Your Target Market
I always advise aspiring egg suppliers or distributors to start with a business plan. That is because it will help define your target market.
Who are your target markets?
The target market refers to potential customers who are likely to patronize you. In that case, they include retailers, supermarkets, hotels, restaurants, etc.
Your success in this egg business lies mainly in how big your customer base is.
Imagine supplying to five restaurants, ten hotels, and ten retail shops every week. No doubt, your account will never be empty again.
Keep in mind that your target market is vast, thereby making the egg business a profitable business idea.
There is no limit to how many businesses you can supply to.
5. Storage Facility/Shop
Since what you will be doing is mostly supply and distribution, you will need a storage facility where you store your eggs.
You can use your home and save money, or perhaps rent a warehouse somewhere.
With your pickup vehicle, all you will be doing is deliver the goods to your target market’s address.
If you’re in areas like Lagos or Port Harcourt, you can open a Jumia store and use their warehouse as storage.
When potential customers make an order, it is delivered to them directly from the warehouse.
It is a good idea that will help you reach more target markets. In other words, you’re tapping from the online opportunities your business offers.
Why Start An Egg Business? Supply and Distribution:
The demand for eggs in Nigeria keeps skyrocketing.
Do you know the intriguing aspect? The existing players are not enough.
That means starting this business will make you a lot of money.
Your target market ranged from everyday people to hotels, restaurants, companies, etc.
All you have to do is build a customer base, and you’re good to go!
Easy To Start
Unlike some businesses in Nigeria that require lots of protocols and equipment, this business is easy to start.
All you need is to identify a reliable poultry farm, a customer base, and a vehicle. These three elements are all you need to succeed.
Another factor that makes the egg business a lucrative venture is the profit potentials.
The egg supply market is worth billions in Nigeria, and you have all it takes to tap into that national cake.
Honestly, you can never go wrong in the egg supply and distribution business. It is a goldmine that will change your life.
Potential For Growth
There are some businesses today that don’t allow you to grow. I see most of these businesses, and if you observe, they are the same every year.
The egg business is not like that.
If you’re good at what you do, your business customer base will keep growing exponentially.
It will get to a stage where you will need to hire workers that help for the smooth running of the business.
How To Build Your Egg Business Customer Base
Print Business Cards/Flyers
The only way to build a significant customer base is to up your marketing game.
Creating a beautiful business card for your business goes a long way to distinguish your business from competitors.
Get a good graphic designer to help design your business cards and flyers. With these materials, you can quickly build your network.
Another way to build a customer base is through social media.
The fact is, the majority of your target market is on social media. All you have to do is create a business page on Facebook or Instagram.
Most of these social media platforms allow you to run a sponsored post, thereby exposing your business to potential customers.
It is a reliable way to build a customer base for your egg business.
Most of your customers will be around your locality, so one of the best ways to reach them will be through their favorite TV channel or radio FM.
Running adverts on this platform is excellent since the return of investment is impressive. However, you will need to give them a reason to patronize you.
By offering what your competitors can’t provide, they will have a reason to do business with you.
Opportunities In The Egg Business
The egg business is an industry of its own, with some sub opportunities that you can leverage.
Here are some opportunities in the egg business that you can exploit here in Nigeria.
1. Common Supplies
It is what almost every egg business person is into. It entails serving markets like supermarkets, bakeries, hotels, etc.
The demands for eggs from these targets are enormous, making it an untapped business idea you can exploit.
They might require daily, weekly or monthly supply, depending on how big their customer base is.
That means you can be earning a steady income. After all, scientists advise eating one egg per day.
2. Industrial Supply
There are lots of industrial companies that rely on materials like eggs to function.
The glue or cosmetic industry is a perfect example, and they always need a supply of eggs.
If you can start supplying to these huge companies, rest assured that you’ve made it in life.
However, getting this kind of deal requires you to up your game.
What do I mean?
You will need to write a business proposal to the company, and ensure you make them an irresistible offer.
Having a registered business will widen your chances of getting such big contracts.
In the fitness center, they often encourage their clients to take lots of eggs since it helps for bodybuilding.
It is a good idea in this egg business since you can make lots of profit selling to these fitness gurus.
All you have to do is reach out to any gym center in your locality. No doubt, you will get lots of orders from these centers.
Success Tips In The Egg Business: Supply And Distribution
Write A Business Plan
Before starting this fast-moving business, conduct a feasibility study. It will help you write a good business plan for your business.
When writing a business plan, ensure you work with a business consultant.
By all means, avoid buying business plan templates sold on some business blogs today.
Use Paper Crates
The reason you should use paper crates is that it’s cheaper, and protects your egg from cracks.
Although the plastic crate is more durable, the chances of your egg cracking are very high.
The success of your business lies in your marketing strategies. Without this, reaching your target market won’t be possible.
You can use numerous marketing strategies, like social media, business cards, starting an online store, TV/Radio adverts, Newspaper adverts, etc.
Fast delivery is an essential factor you shouldn’t joke with. When there is an order, strive to beat the deadline.
That will distinguish you from competitors in the market.
Register Your Business
Your business has immense potential, so registering your business with CAC is something you won’t regret.
Registering your business here in Nigeria doesn’t cost more than #20,000.
That way, you secure your business name from being used by another business.
Aside from that, a registered business comes with its numerous benefits too.
Start A Poultry Farm
In case you want to make more money in the egg business, why not consider starting a poultry farm?
That way, you will be making more gains and more income streams too.
Over To You!
Do you think you can start an egg business in Nigeria?
I think you do, especially with a detailed guide like this.
The reason many are yet to start their dream business is not a lack of capital or technical know-how.
Most times, it is the fear of failure.
If that is your problem, I want to challenge you to look beyond that fear.
Focus on the reward and take a step.
Do you have some questions? Use the comment box, and I’ll guide you further.
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