Yam business in Nigeria: Today we’re going to talk about starting yam business in Nigeria, whether with a small capital or big capital, and making tremendous profits.
Yam is a very popular Nigerian staple food which is a source of carbohydrate and is often replaced with rice.
Besides being the best replacement for rice it was also loved because one of Nigeria ‘s biggest swallow foods (pounded yam) can be obtained from it.
Yam can also be used to cook other foods, such as yam soup, porridge (pottage) and to get a special taste it can even be fried or roasted.
This is never enough for everybody, however, because it’s not always in season (the time of abundance).
If yam is in season (just harvested), there’s still enough to make it affordable for buyers , sellers, and even consumers at fair prices but when it’s scarce (out of season) it’s usually expensive.
There are various breeds of yams. Once you peel them, we have the yams that are generally yellowish in colour.
We do have those that when peeled are brownish in color, and the normal white ones.
Yam also can differ in size depending on their habitat. Although some may be very large, some may be moderate, and some may be low.
We water yam, cocoyam, and the likes as well but we don’t think about them now. Perhaps we’re going to think about other subjects.
Is Yam business in Nigeria Profitable
Yes, Nigeria’s yam business can be profitable, particularly if you know what you’re doing and you ‘re tactical in your business approach, but apart from that I can offer more reasons why yam business can be a profitable business base based on my findings.
The number one reason Nigeria makes money is that all Nigerians need yam and they eat yam.
Many Nigerians also substitute their rice when rice is expensive especially in rural areas – a source of carbohydrate with yam.
And for that reason, it is one of the foods that can not be moved to the corner.
The second reason the yam business is profitable in Nigeria is because it is used by Nigerians to cook many other foods.
And if people don’t buy it to cook yam they buy it to make pounded yam or buy it to make yam soup or for some other reason.
Since it’s a product that’s used to produce various foods, this has increased its need.
Another reason the company is successful is that there are only a few businessmen at the company.
It is not like other kinds of food businesses where many people are on a large or small-scale basis in the business.
Sometimes you could not even find even one yam seller in an region, which is why many people still go to the market in these cases to buy their yams.
That is where you come in in Nigeria as a salesman or dealer.
How to start a yam Business in Nigeria
1. Conduct a proper research
When it comes to starting a business like yam in Nigeria, especially if you are going to invest a big capital in the business, you need to do your proper findings.
You need to learn how personal this company goes. You need to get what I call yam sellers and yam buyers firsthand information.
– Where you can buy your yams at the lowest possible prices.
– Which states you can buy these yams in Nigeria particularly if you want to buy the yams from the farm straight away.
I hear Benue State is one of the states in Nigeria that produces Yams massively, but if the states aren’t close to you, you can find out what state is near.
– You may use strategies and methods to conserve the yams you are buying to make them last longer in your store or in your shop.
2. Capital for Funding
This is the next step to take if you’ve done your findings on everything about Nigeria’s yam business.
You can know how much you can spend in the business with the correct results and with the appropriate amount of money in your pockets.
Depending on the resources you have, you can start the company in your region as a yam distributor or simply start on a small scale and then slowly work your way to the top.
All depends on you.
And if you don’t have money to start the company, then I would strongly advise you don’t borrow.
Instead of borrowing, meet people with (capital) resources to start helping you.
Such people may be your family or friends you know they will love you.
What you have to do is tell them in depth about the company, if you can add a business plan (if you have one).
It is going to make you look more serious. Tell them that you will need their financial assistance.
Gather every amount that they can afford to give you, collect it, and use it wisely.
Using the money to start wherever you want.
3. Get a good location in Nigeria for your Yam Business
You can’t afford to be ignorant of the location where you will be selling your yam in a business like this. You’ve got to be careful about it.
It is very important for your yam business to get this kind of spot, because it decides a lot in your business.
Issues like openness to consumers, revenues, low travel costs , low advertisement costs and more.
4. Buying yam and transporting
Transportation is one of the most difficult parts of any business especially in a country like Nigeria.
Apart from the fact that over 80% of Nigeria ‘s roads are not good, there is also a high fuel rate. These all add to the high transportation costs when it comes to industry.
And in situations like these, all expenses are mostly passed for him or her to bear the costs down to the customers.
This is another explanation why in Nigeria yam is expensive but by doing 2 things mainly, you can make the difference a little bit.
1. To buy from your nearest store.
This is if you start a small scale yam business in Nigeria.
If you start it on a bigger scale like becoming a yam distributor you can buy your yam directly from any nearby yam farm.
Doing so makes your yam a little cheaper than the usual yam in your region which will in turn encourage consumers to buy from you.
2. To sell yam in the name of a yam farm.
This form of yam business also lowers the shipping costs, because it is the yam farm that will be responsible for this.
Your part is to sell the yams after they are shipped to your shop. After you deliver and sell these yams you will then deduct your profits and transfer the remainder of the money to the farm.
5. Selling your first Yam
Getting people to trust you as a yam seller for the first time can be very difficult , especially if you’re new to the area, but this can be defeated by doing the first thing I mentioned earlier here to rent a shop in a popular area for your yam distribution business – a place where thousands of people pass each day.
That will get them to buy from you. If you’re closer to them they ‘re going to think about buying yam from you rather than going to the market to buy.
You may even convince your family and friends to buy yams from you too. It will also raise your sales in no time.
6. Make money from Yam business
This in any company is very important.
In fact, if you’re not in your yam business after this, it means that now you’re not a business in charity.
Profit making is very easy in yam business but the problem is how. I’m going to share easy ways in which you can do that below.
How to make more money from yam business in Nigeria
1. Reduce costs
Well, here’s the first step to slash your expenses by all costs. I will list some of these earlier and their solutions, i.e. the cost of transport, the cost of renting a store, the cost of purchasing yams.
You need to find a way to cut all of these costs and start searching for opportunities to raise your earnings.
2. Buy Yams well ahead of festive seasons
If you buy yams before the festive seasons and sell them during the festive seasons, you can buy them cheaply and sell them expensively, as food is obviously expensive during the festive seasons.
3. Sell Yam to Party cooks
Cooks are cooking for parties-weddings , birthdays, anniversaries, and more. And often they cook for hundreds of people when those people are cooking.
All you need to do is get those party planners or cook contacts and give them better deals to inspire them to come and buy you yam.
When they do this your yam business profits will spike up.
4. Sell Yam online
Yes, you can sell the yams online as well. There are several platforms in Nigeria – eCommerce websites such as Jiji, Konga, and even Jumia, which promote online sales.
Everything you need to do is register under these sites, upload and start selling nice, tidy pictures of your yams.
Most people would dismay you when it comes to creating a business in Nigeria.
Many won’t even support you because some of them feel that Nigeria’s economy isn’t good enough and isn’t encouraging while others won’t support you because they don’t believe in you but you have to believe in yourself and trust you ‘re going to break through.
This is an entrepreneur ‘s life in Nigeria and that is the reality.
You just have to start somewhere-yam business in this case.