Milk is one of the one of the most basic food products in a family and also most of the Households in Kenya for meal preparation, especially for breakfasts and also as a supplement of our diets. Many people use it to prepare tea while others take it in its raw form.
The demand for milk makes the milk business a profitable venture to start in Kenya. To succeed in it, you should start it in areas where milk supply is scarce or on a high demand but the supply is limited in that particular area.
For this set of publication, we are going to take you through the factors you need to consider before setting up a milk vending shop in your locality.
- Set up a Milk Distributorship Business Plan
Any business has got a plane that enables it to roll out its operations upon successful installation.
To ensure that your milk business starts and runs in the right direction, it is crucial to develop a detailed business plan however small the business is.
This business plan act as a guideline and reference for the future of your business. Your business plan will answer questions like how many liters you will sell per day, where you will sell your milk, and how much money you will need to start and run the business.
Including your finances and cash flow in your business plan will help you set a fair selling price for your product.
- Choice of your Milk Business Location
A strategic location for your milk business will play a critical role in the success of your business. It is best to start your milk business in shopping centers or major towns where there is a high population. Milk business premises should be well lit and ventilated, and have a steady water supply.
- Identify a Reliable Milk Supplier
Finding a reliable milk supplier is important to ensure that you have enough to sell and meet your expenses. You can get find large-scale dairy farmers who can be supplying you with milk. Make sure that the milk is fresh and not mixed with water.
They are reliable and have favorable prices. Finding a milk supplier who sells milk at low prices will help you set fair prices and leave you with a significant profit margin.
IMPORTANT NOTE: AS NEEMA TECHNOLOGIES WE WILL HELP YOU TO GET A DISTRIBUTOR FOR YOUR MILK, AND ALSO, WE CONNECT YOU WITH THE RELEVANT SUPPLIER OF MILK.
- Secure Milk Business Licenses
Having a license and a business permit is critical for ensuring that you smoothly run your business legally without interference from the local authorities. These licenses are:
- Single Business Permit: It can be obtained from county offices. The cost depends on the size of your business and the county in which you want to operate. In Nairobi, for example, you can get the license from City Hall and it will cost between Ksh 7,000 and Ksh 15, 0000.
- Public Health Certificate: It ensures that the business adheres to cleanliness and standards of hygiene especially if you are handling foodstuffs. A county official will visit your business premises to inspect and if he is satisfied, he will issue you the certificate.
- Kenya Dairy Board (KBD) Permit: The license will cost about Ksh 5, 000.
Cost of Starting a Milk Distributorship Business in Kenya
Capital is one of the main things to consider before launching any business. The startup costs will depend on the size of your business and the customers you intend to serve.
You need between Ksh 100,000 and Ksh 200, 000 to start a wholesale milk business. You can start a small milk distribution business with Ksh 50,000 and expand it with time. The following is the startup cost breakdown for a medium milk business:
- Business rent
- Business Licensing
- Renovation and branding
- Milk ATM
- Launch your Milk Business
When everything is in place, you can start your milk business. It is important to maintain high standards of hygiene to avoid milk contamination. Offer exceptional customer service will help to retain your customers and bring more customers to your business.
- Marketing your Milk Business
After dealing with the basics of starting a milk business, it is time to market the business. You can never make huge profits if people do not know that your business exists.
You can distribute flyers, pamphlets, and brochures to passersby or stick them in public places.
Another perfect way to market your business is by offering exceptional customer service. Your customers will recommend your milk to their friends and family.
Although the milk business is naturally lucrative, you will need to go the extra mile. Offer excellent customer service and always ensure that you maintain high standards of cleanliness and hygiene. Employing smart marketing strategies will keep you on top of the competition.