Food business is another stream of income that can boost your wealth creation, especially in a festive or trade fair season.
For instance, if you are a great cook or you have a new food idea, you may be able to start up a low-cost food business during the ongoing Lagos International Trade Fair, which is easier to make more money.
This is also a business that you can start as part-time, and then invest your profits to grow it into a large-scale operation.
The market in which you sell will determine many of the steps and regulations you need to follow, just as the largest International Trade Fair, organised by the Lagos Chamber of Commerce and Industry, is a hot bed of profits for food vendors this season.
Conduct some market research by visiting festivals and fairs and observe the available food selections. Look for an under-served or less crowded niche that might be profitable. You should also investigate the average prices for single items and combinations
The simple step to follow is to obtain a business license and a health permit as everyone requires special permits for businesses involving food.
Conduct some market research by visiting festivals and fairs and observe the available food selections. Look for an under-served or less crowded niche that might be profitable. You should also investigate the average prices for single items and combinations.
Decide on the kind of food you want to sell. The simplest items, like amala and ewedu, rice, beans and swallow, do require much expensive equipment for menus that combine several ingredients to make a dish.
A food vendor expert, Mr. Thompson Edoboh, said it is important to purchase or lease start-up equipment.
“Many food concessions use trailers that can tow behind a large car or a van. The equipment that you select will depend on your food items and the laws that govern food handling and mobile food concessions where you plan to sell food. If you have sufficient start-up capital, consider investing in a mobile food truck that meets the regulations for your area,” he advised.
According to him; “It is important to find suppliers for the products that you need to make your dishes, your serving supplies and any equipment that the law requires, such as refrigerators and sinks. To get wholesale prices, you often need to supply a copy of your business license.”
In putting necessary things in place before start up, he said one should buy the insurance that is required.
“Contact business insurance brokers to get several quotes. If you plan to travel to festivals outside of your local area, you need insurance that covers your liability in more than one jurisdiction,” he advised.
Other tips are: Contact your state’s sales tax office to get information about collecting and submitting tax revenue. Although some states do not tax retail food purchases, many require restaurants and food concessions to add tax to the cost of food
items.
Identify a suitable location for storage of your supplies and equipment. You may need a zoning adjustment to store your equipment at home. Some cities have zoning ordinances that restrict using a home as the location for a food business.
Obtain a list of festivals and fairs from your Chamber of Commerce or the Tourist and Convention Bureau. Contact the event management company to get vendor application forms, booth information and vendor registration fees. Review applications and contracts carefully before paying your fees.
Develop a marketing plan to make your business visible and distinguish your concession from other vendors at the event.
