After reading this post, you will be able to start a profitable yam business in Nigeria and earn from it in a short period of time. In previous articles, we discussed several food enterprises in Nigeria that any Nigerian teenager who is interested in business can start.
Many young people in the country are interested in the yam business since it assures extremely high returns. If one is extremely fortunate in this industry, they can sell their yams in record time and restock to continue selling at extremely low costs, ensuring that additional profits are earned to sustain the business. This essay will go over how to start a yam business in Nigeria in 2023. Let’s get started.
Is Yam Business Profitable?
Yes, yam business in Nigeria can be profitable, especially if you know what you’re doing and approach the business strategically. However, based on my findings, I can provide further reasons why yam enterprises can be profitable. The primary reason it is profitable in Nigeria is that all Nigerians require and consume yam.
When rice becomes prohibitively expensive, especially in rural areas, many Nigerians substitute yam for rice, a source of carbohydrates. As a result, it is one of the foods that cannot be pushed to the sidelines. The fact that Nigerians use yam to prepare a variety of other cuisines is the number two reason why the yam business is profitable.
So, if people are not purchasing it to cook yam, they are buying it to create pounded yam, yam soup, or for any other purpose since it is a food that is used to make other cuisines, which has increased its demand. Another reason the firm is profitable is that it is run by a small number of entrepreneurs.
It is not like other types of food enterprises, where many individuals are involved on a large or small scale. Sometimes, there isn’t even one yam seller in a neighbourhood, which is why many people go to the market to get their yams in such instances. This is where you, as a seller or distributor in Nigeria, come in.
How to Start Yam Business in Nigeria
Here are the steps to starting a yam business in Nigeria.
#1. Conduct a market survey
When it comes to launching a business like yam business in Nigeria, you must conduct thorough research, especially if you intend to invest large sums of money. You cannot merely base your knowledge on what you know and what I have provided on this site. You must understand how this firm operates on a personal level. Also, you must obtain “first-hand” information from yam sellers and buyers.
- Where you can get your yams at the best price.
- In which states in Nigeria can you get these yams, particularly if you wish to buy them directly from the farm? I was told that Benue state is one of the states in Nigeria that produces a lot of yams, but if those states aren’t close to you, you can pick a state that is.
- Techniques and methods for preserving the yams you purchase in order for them to last longer in your business or shop. Before publishing this essay, I was told that yam can last between 3 and 6 months if they are not exposed to salt and do not touch the ground.
When I heard this, I remembered why our grandfathers used to elevate their yams above ground (yam barn), leaving them hanging on something.
#2. Obtain the Required Capital
If you have completed your research on the yam business in Nigeria, here is the next stage. With appropriate research and a realistic quantity of money, you will know how much you can put in the firm. Depending on your capital, you can start the business as a yam distributor in your area or simply start small and gradually work your way up.
Everything is up to you. And if you don’t have enough money to get started, I strongly advise you not to borrow. Instead of borrowing, find people who will provide you with (starting) capital. These could be family or friends that you believe will support you. All you have to do is tell them about your company in detail, and if possible, include a business plan (if you have one).
This will give you a more serious appearance. Inform them that you will require their financial assistance. Gather any amount they can afford to offer you, and utilize it wisely. Use the funds to begin wherever. The most important thing to remember here is to get started.
#3. Selecting a Location for Your Company
In a business like this, you can’t afford to be unaware of where you’ll be selling your yam. You must be cautious about it. You must seek out the ideal site for your yam business – one that is both affordable in terms of rent renewal and very visible. Preferably, this shop or venue should be positioned in an area where thousands of Nigerians pass through on a daily basis, such as a major bus stop, roundabout, or t-junction.
Obtaining this type of place is critical for your yam business because it decides a lot in your business. Customer accessibility, profits, low shipping costs, low advertising costs, and other factors. This is why, even if you don’t get everything right at first, you must perfect your placement.
#4. Yam Purchasing and Transportation
Transportation is one of the most difficult aspects of any business, particularly in a country like Nigeria. Aside from the fact that over 80% of Nigeria’s roads are in poor condition, there is also a high cost of fuel. All of these factors contribute to the high expense of corporate transportation. In such circumstances, all expenses are frequently shifted down to the customers, who must face the cost.
This is another reason why yam is so expensive in Nigeria, but you may make a difference by doing two things in particular.
- Purchase from the nearest market. This is if you are launching a small-scale yam business in Nigeria. If you want to start on a larger scale, such as becoming a yam distributor, you can buy your yam directly from any yam farm near you.
- This lowers the price of your yam relative to the standard yam in your neighbourhood, attracting customers to your yam business to purchase from you.
- Selling yam on behalf of a yam farm. This type of yam business also lowers your transportation costs because the yam farm is in charge of it. Your job is to sell the yams once they arrive at your store.
Once these yams have been delivered and sold, you will take your gains and pay the remainder to the farm. Aside from diminishing your income, this type of yam business also minimizes the amount of capital required to be put into the business.
Aside from that, if you want to be the only owner of the yam business and carry the yams yourself, there are a few things you should keep in mind.
- Ensure that all yams are correctly loaded into the van so that no one breaks while doing so.
- Ensure that all yams are properly counted and complete before being loaded into the van.
- Ensure that yams are properly organized and secured so that they do not fall on the road during transportation.
- If the distance is long. To protect yams from the sun’s rays and rain, which shortens their shelf life. To maintain the quality of your yams, organize them immediately after transporting them to your business on ship crates rather than bare floors.
#5. For the First Time, I’m Selling Yams
Getting people to trust you as a yam seller for the first time can be difficult, especially if you are new in the area, but this can be avoided by doing the first thing I mentioned earlier: renting a shop for your yam distribution business in a popular area – a place where thousands of people pass every day. This will compel them to purchase from you.
When you become closer to them, they will consider buying yam from you rather of going to the market. You can also persuade your family and friends to purchase yams from you. This will also quickly enhance your sales.
#6. Profits in Yam Business
This is critical in every business. In fact, if you’re not after this in your own business, it suggests you’re more interested in charity than in business. Making money in the yam industry is simple, but the question is how. I’ll explain how to do it in a few simple steps below.
Cut back on all expenses.
So, the first step is to cut your spending at all costs. I mentioned some of these earlier, as well as the remedies to them, such as the expense of transportation, renting a shop, and purchasing yams. You must find a way to cut all of these expenses and begin looking for ways to enhance your revenues.
Purchase Yams Prior to Festive Seasons
When you buy yams ahead of time and sell them during the holidays, you can buy them cheap and sell them costly because foods are inherently more expensive during the holidays.
Market Yams to Party Cooks
There are cooks who specialize in catering for gatherings such as weddings, birthdays, and anniversaries. When these people cook, they frequently cook for hundreds of people. All you need to do is obtain the contact information for these party planners or cooks and make better deals to entice them to come and buy yam from you. When they do this, your yam business revenues will skyrocket.
Sell your Yams on the Internet
Yes, you may sell your yams online as well. There are numerous platforms – eCommerce websites in Nigeria such as Jiji, Konga, and even Jumia – that promote online commerce. All you have to do is sign up for these platforms, upload clean, crisp photos of your yams, and start selling.
What is the Cost of Starting Yam Busines in Nigeria?
Any sum can be used to establish a yam business in Nigeria. You can start with $18,000 – 20,000 and gradually expand your business to where you want it to be, but if you have $100,000 or more, you will be able to earn more earnings and refill as soon as possible. Prices are not fixed and are subject to change; this is determined by the forces of demand and supply, as well as the rise and fall of the country’s exchange rates at any given time.
Why are Yams so Expensive?
Before we go any further, yams are among the most costly tubers on the market, and for good reason. This is understandable given the amount of effort that goes into planting and collecting them. The price of yams could simply be the result of market dynamics such as supply and demand.
How Long Does Yam Take to Grow?
Yams normally mature in about 14 weeks. They should be harvested when the plant’s tops begin to yellow and wither. Harvesting is usually done in the autumn.
Which Country is Yam Exported to?
According to Volza’s Nigeria Export data, yam export shipments from Nigeria totalled 926, with 277 Nigeria Exporters shipping to 356 Buyers. The majority of Nigeria’s yam exports go to the United States, India, and Uganda.
Which is Healthier Yam or Sweet Potato?
Sweet potatoes and yams are both healthful crops, albeit in very different ways. They are both healthy foods to eat as part of a balanced diet, and neither is nutritionally superior to the other. Sweet potatoes, on the other hand, have higher vitamin C, vitamin A, fibre, and protein.
Conclusion
Many individuals will dissuade you from launching a business in Nigeria. Many would not even support you because they believe Nigeria’s economy is insufficient and uninspiring, while others will not support you because they do not believe in you, but you must believe in yourself and have faith that you can succeed.
This is the reality of the life of a Nigerian entrepreneur. You simply must begin someplace – in our example, with a yam business.
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