20 Tips to Start Rice Wholesales Market

Rice Wholesales Market :Rice is the most consumed staple food in the world and in Nigeria it is a must eat in most families.

Rice  wholesales business is a very lucrative business to engage in.

Many wholesale rice distributors are now making millions and smiling to the bank.

There are many reasons why you should go into this business.

If you are looking for a new business to start.

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1. Get the Rice Wholesales Market Reasons 

1. Rice is not a perishable food like vegetable, if water do not get to it and it is placed on wooden pallets, it will take at least 4 years for rice to get spoiled.
2. Within this period, there is no way you cannot sell your stock of rice.
3. Nigeria is Africa’s biggest economy. The population of Nigeria is 170million people and by the year 2020 it will be about 200million people.
4. Statistic shows that about 22million bags of rice is consumed every month. So there is a big and growing market for rice in Nigeria.
5. There is always a ready market in almost any locality.
6. If you go into the business as a wholesaler, you will always find many retailers around you, who will patronize you regularly.
7. Rice is an essential commodity, almost like salt and sugar.
8. No wonder even billionaire businessman Aliko Dangote is investing $1billion in integrated farming. You can hardly go wrong with this business.

2.Get the  Supplier-:

This is where your work really starts.

You need to go to the rural areas where there are local rice millers.

Look for a miller with “near modern” equipment and excellent perboiling and drying techniques.

Also look out for high level of hygiene.

You need to buy from a source where you can get the rice in very large quantity and at the cheapest possible rate.

So that you can still make profits after spending for the logistics involved in getting the rice from the supplier to the retailers.

3.Get a space

Most times, you don’t get to sell of the whole bulk of supply you get at once to the retailers.

Because there may be times when the market demand may be low.

That is when you need a space to store your rice until you are ready to ship out to retailers.

4.Get a business Capital

To become a wholesale distributor.

You need to buy in very large quantity from the rice millers and sell in smaller bits to the retailers.

So starting a rice wholesales market requires much capital.

The only exception is if you have a mutual understanding and agreement with the millers.

Where they supply you the goods on credit sales.

You sell to the retailers and pay them off as soon as you are done with the sales.

You can source for low interest loan from Bank of Industry or Bank Of Agriculture.

But don’t go to commercial banks at this stage.

Their interest rates will likely kill your business at this stage.

Rice Wholesales Market

5. Be locomotive

As the wholesaler, you may have to be in charge of transporting the rice from the rice farm to your warehouse.

Or delivery to customers when orders are placed.

You may need to get an old truck to handle the distribution process.

Or you can strike an agreement with a logistic company to take care of the transportation process.

It may be cheaper for you to get an old but strong pickup or station wagon.

Rice Wholesales Market

6. Get the best variety

Check out the most popular variety of rice in your locality.

And decide on the ones to invest in.

Rice Wholesales Market

7.Know the marketing Strategies

 Where you locate your rice business can be one of the most important factor.

That will lead to the quick success of your enterprise.

Look for a good shop close to or opposite to a normal conventional market.

If you are in a town, do your market survey properly.

And do not locate in an area where there are already too many wholesalers.

Unless the market in such places is still huge.

However it will be easier for you to go to a place with no or few wholesalers.

This will force all the retailers around your locality to patronize you.

So as to save on their transportation cost. Location is very vital.

8. Get the Rice Wholesales Market Activities

It’s important to understand the aspect of Rice Wholesales Market we’re discussing, considering how vast the food sector is.

So what is Rice Wholesales Market in Nigeria?

This is a type of business where you buy rice in bags and then sell it at retail to customers.

Your customers can be individuals, restaurants, hotels, schools etc.

Due to the popularity of the wholesale  business in the country.

There is still room for more entrepreneurs to invest and profit from the business.

9.Get the Business Needs

Rice Wholesales Market Can be done anywhere.

The Rice Wholesales Market is one of the businesses that can be done irrespective of the location.

No matter the location, whether in the rural or urban location people need food to survive.

It is needed on a daily basis to maintain our daily body functioning and optimum health always.

You can make profit from the business.

If you start the business, there is every chance of making a profit from the business.

However, this is in no way trying to tell you that the business is a get rich quick scheme.

But when you develop a solid business foundation.

You can be sure to grow the business from nothing to a profitable one.

Now that you’re ready, let’s dive into the step by step process required to set up Rice Wholesales Market.

10. Get a proper business operation

This is really important because without figuring out the business operation of your business.

It’s going to be difficult to operate the business effectively.

You can decide whether your mode of operation can be to be a door to door delivery.

Delivery to hotels, restaurant or find a static location for the business where you sell for individuals etc.

For most beginners, they start the business by selling from a static location then scale it up.

When you’re able to figure it out, then move to the next step.

11.Get your Rice Wholesales Marketing Business Plan

Well, this is really important as a rice wholesales business plan.

Will help you keep everything and all calculated figures on record.

Your business plan should include the following:

• Decide on the type of product you intend to sell.
• There are several reasons and factors to consider here.
• But the important of them is the knowledge and demand of the product.
• Then decide on the amount of money you need to spend on the business startup project.

However, these may vary according to the product you choose.

Some may require more startup capital than the other.

• Then write your projected profit and future expansion of the business.

Well, we’ve outlined all the steps required to write a great business plan for any business of your choice.

12. Get your Rice Wholesales Market Registered 

To ensure that you have a business name.

You’ll need to register your business with the corporate affairs commission.

And also register to other relevant institution.

The reason why this is important also is when you intend to become a major supplier of rice to hotels, restaurant, food processing companies.

They’ll need you to be fully registered to ensure that you’re legit.

Then move to the next step of the process.

Rice Wholesales Market

13. Hire people

Now your business is getting set to start.

But you’ll need to employ the staff that’ll need to help you in running the business.

But you have to write all the rules and what each worker will do when they’re employed in the business.

If you’re not going to do it immediately.

Then you need to keep that in mind as you’ll need to employ as the business grows.

Rice Wholesales Market

14. Start selling the goods and make profits

Open for business and begin to sell your products.

Business grows as the hours, days increases.

As the number of customers grows, so will be the profit of the business.

15. Advertise the business

Advertisement can come before the last option.

Well, the advertisement is an important part your business.

To get more people to patronize your business, you’ll need to let the voice out.

You can begin the advertising by telling your friends and family.

Make some flyers and distribute to potential customers.

Visit hotels, restaurants, school and submit a foodstuff supply proposal.

Ensure you do it to several of the places involve to boost your chances of getting more than one place to supply rice

Give some time and so a follow up to see whether your proposal has been approved or not.

16. Know the Business Challenges 

Like any other business, there are some challenges of wholesale rice wholesales business in the country.

This is not in anyway trying to discourage you.

But to ensure that you’re better prepared for the business.

These are 

The prices of foodstuff may not be the same all the type due to several reasons:

• When the rice supply to the market is lower and there is more demand for the product.
• That will affect the prices. This scenario always happens at the peak of the farming seasons.
• Another reason is inflation.
• Inflation pushes the value of the naira down which can also affect prices of the commodity in the market.

17.Get your suppliers

Sometimes the middlemen are the problem. You sometimes not get what you ordered.

These can be devastating and lead you to get the product that is not of good quality.

The way around this is to ensure you find the yam market or farmers market to get your rice.

18 Rice Wholesales Market Business Packaging:

You may decide to package the rice with your own brand name.

Branding is a long term plan that will pay off later when you start having competitors.

The branding may involve packing the rice in personalized sacks.

Also, packaging improves the look of your product, and increases its appeal to your customers.

19.Rice Wholesales Market business Marketing:

Now you have everything set up.

You will need to quickly penetrate the market by doing some marketing.

Especially to retailers around you.

In any business, it is important that you go to market very fast.

Business is never the same every where.

So going to market quickly, still remains the best way to study your market.

You may use certain incentives to lure your initial customers, such as giving out free 1kg samples, free delivery to their market stores, etc.

Some may decide to give out credits at the initial stage, this will surely pull in customers quick.

But I don’t advocate this, unless you are willing to lose some money, to get market share.

20.Rice Wholesales Market Business Book Keeping: 

Finally, remember that it is very important for you to keep accurate records of your business from day one.

This will give help you in managing your business.

Even if you employ sales boys & girl.

It will also give you a great advantage when you want to expand your business and properly seek for finance from lending institutions.

Remember that you can now get very sound business education from online business training schools like Millionaires Academy.

Conclusion

Now that you’ve read the steps required to start Rice Wholesales Market in the country.

It’s really important to analyze the market.

Make some tough decision and then start making a profit from the business.