This is a step-by-step tutorial that will show you how you can start your own successful soft drink business in Nigeria. Soft drink business is an everyday income business in Nigeria, bringing in huge profits as one of the top business ideas in the country.
This is a business that you can do every day to earn money. Nigerians are fond of soft drinks, and many drink them daily to satisfy their thirst or hunger. Soft drinks are also consumed at ceremonies. This is the reason why it is one of Nigeria’s most profitable businesses. What is the deal with soft drinks? Why are Nigerians so fond of them? Is the business of soft drinks profitable? All these shall be answered within this article.
You can start a soft drinks business as either a distributor or retailer. Also note that the reason this business does well is because Nigeria has naturally hot weather and these drinks are used during this time to cool down the body temperature. The sugary drink is also a great source of energy, allowing the average Nigerian worker to continue working even when they are tired.
WHAT IS SOFT DRINK?
Soft drinks contain sugar and colors. They are non-alcoholic beverages that we can drink anywhere to relax. You can drink soft drinks at work, home, parties or even while driving. Soft drinks are carbonated beverages containing carbohydrate and gas. As we move through this article, I will list the most popular soft drink brands in Nigeria.
SOFT DRINKS BUSINESS: IS IT PROFITABLE?
The soft drinks industry is lucrative whether you start the business in Nigeria as a distributor of soft drinks or as a retailer. Drinks are so large that even though many Nigerians enter the industry, everyone will still makes their own profits. You will find soft drinks at every Nigerian event, including owambes and concerts.
START-UP CAPITAL REQUIRED FOR SOFT DRINKS BUSINESS
Capital required to start a soft drink business will depend on what kind of business you are starting. If you want to open a soft drink distributor business in Nigeria, you’ll need ₦3,000,000. If you are interested in starting a soft drink retailing business, you will require a capital between ₦100,000 and ₦500,000.
Capital required to launch a drinks business depends also on the equipment you have to begin. You will still need capital to purchase soft drinks if you already have the necessary equipment.
BRAND NAMES OF SOFT DRINKS IN NIGERIA
In Nigeria, different brands of soft drinks are available in a variety of packaging options. They are packaged in glass bottles or plastic bottles. Here are some of them.
- Coca-cola (Coke)
- Mountain Dew
- Big Cola
HOW TO START A SOFT DRINKS BUSINESS IN NIGERIA
The step-by-step guide to starting a profitable soft drink business in Nigeria.
STEP 1: CHOOSE THE RIGHT TYPE OF SOFT DRINK BUSINESS
The first step in starting a soft drinks business in Nigeria is deciding what kind of business you would like to open. Are you interested in becoming a distributor, or a retailer of soft drinks? This is something you will need to decide, and it will depend on your capital.
You can either ask your family or friends for help if you don’t have enough capital to start the business, or you can save up and invest in the future.
STEP 2: RENT A SHOP
Renting a container or shop to sell your drinks is the next step after you have the capital to get started. Renting a container or shop depends on how much money you have and what you can afford.
The location of your business will also influence which one you choose. My advice is to rent a store if your business will be a retailer and a container for a distributor. Renting a shop or container should not cost more than 30-40% of your capital. You need to make sure the shop you select has constant power. You don’t want to spend too much money on your generator to cool your drinks.
STEP 3. PURCHASE THE EQUIPMENT YOU NEED
Equipment is essential for starting a soft drinks business in Nigeria, especially if your goal is to sell cold drinks. Soft drinks retailing is the type of business that falls under soft drinks. You will require a lot of equipment to launch a cold drinks business. This includes generators and refrigerators. There are also other items that you will need to run your business comfortably for both yourself and your employees.
If you can’t afford new refrigerators or freezers, you may opt for tokunbo (fairly-used) ones. You can use them for up to 2 years until you are able to purchase new refrigerators to run your drinks business.
STEP 4: REGISTER AS A SOFT DRINKS DISTRIBUTOR
If you are interested in becoming a soft drink distributor, it is important to register as a retailer. This will make them trust you. This also has many other benefits, such as being able to buy drinks at the lowest price, or on credit.
They can borrow money from you to expand your business and do much more. Soft drink distributors are the second most important players in the drinks industry after soft drink manufacturers.
You should also keep in mind that some companies charge a fee to register as a distributor. Here is where that $2,000,000 capital needed comes into play.
STEP 5: START SELLING SOFT DRINKS
You need to be open to all the possibilities that you can find when it comes to selling soft drinks. Start by telling family and friends what you are doing and selling them soft drinks. You can also sell soft drinks to people selling in traffic, or hire some guys who will sell for your company and pay them commission.
Take a regular inventory of your drinks. Keep a journal or book where you can record the drinks that you’ve sold and those still in stock. Your proper accounting will also keep you informed about your drinks business, for example when to order drinks.
STEP 6: INCREASE SOFT DRINKS BUSINESS PROFITS
You can increase your profits by a variety of ways. I’ll list a few below.
- Sell Drinks Online
You probably didn’t know that you could sell soft drinks online. Yes, you can.
- Sell to those that organizes parties
You can also increase your profits by selling your soft drinks in bulk to event planners. You will profit from selling in bulk to party organizers, since they buy in large quantities.
- Sell Soft Drinks on Traffic
You can sell soft drinks on the street by hiring guys to sell them for you. Paying them commission is a good way to do this. You can earn anywhere from #1,000 to #5,000 per day as a retailer or distributor depending on how many soft drinks or crates you sell.
RISKS INVOLVED IN SOFT DRINKS BUSINESS
You can face a few challenges in the Nigerian soft drink industry. These risks include:
- Drinks that have fallen or been mishandled and lost
- The drinks in the store could be expired. If you don’t pay attention, this will result in losses.
- Theft of drinks by workers Sometimes, your drinks may be stolen. This can be monitored by doing your stock regularly.
- Drinks purchased by customers who are in debt, and the customers do not pay their debt when it is due.
TYPES OF SOFT DRINK BUSINESSES IN NIGERIA
In Nigeria, there are two main types of soft drinks businesses. There are two main types of soft drink businesses in Nigeria.
- Soft Drinks Distribution Business
In Nigeria, a soft drinks distributor sells soft drinks to other buyers of soft drinks. You could sell to schools, churches, or party organizers. To start a soft drinks distribution business, you will need a large amount of capital. You need millions of Naira to be a distributor in Nigeria.
- Soft Drinks Retailing Business
In Nigeria, a Soft Drinks Retailing Business is one where you purchase drinks from distributors of soft drinks or companies that produce soft drinks to sell to consumers directly in small quantities. This type of soft drink business doesn’t require a lot of capital. This business requires some marketing and managerial skills.
You should take the time to decide if this is the right business for you after knowing the risk and how much capital is involved. Apart from that, it is a lucrative if you always attend and prepare all the accounting related to the business.