Popcorn business is a good investment and a very lucrative venture, it is very easy to start because the materials involved in the production are not costly, very affordable and with little efforts. The product sells fast too because people just enjoy eating popcorn for many reasons.
Equally, the profit potential is quite good.. For example, if an entrepreneur produces 10,000 packets monthly and sell to the retailers at the price of (maybe) N70, the retailers will sell for N100 and make profit of N30 each.
Market analysis shows that the cost of producing a pack is not more that N40, that means as an investor, one will be making profit of N30 on each packet. With this projection, 10,000 packs will be 10,000 x N30 = N300,000 profit in a month!
However before starting the business, it’s important to conduct a feasibility study. This popcorn business might look simple and easy to start, but planning well ahead of the business will ensure its profitability. So answering the following questions is very vital: What type of popcorn business should I do? How will I reach my potential customers? Who will I supply to? Should I sell to the final consumer? Where will I stay to make my sales?
The more questions you can ask yourself, the better because it will give you a detailed overview of what you are going into.
What You Need To Start Your Popcorn Business
Popcorn Machine – Known as popcorn maker. You will need bigger popcorn machine since you will be producing in larger quantity. Look for nice one in the market and buy two or more depending on how many hands you need in the popcorn business. I will encourage you to employ hands in this business for effective production and distribution.
Sealing Machine – Manual sealing machine cost N10,000 to N15,000 in the market, find out what the exact prices are and negotiate with the seller. Buy according to the number of workers you have — more hands, more machine, and more productions.
Bags of Corn – Your major raw material in this business is corn. Buy enough bags of corn depending on the quantity you wants to produce. You can get as many bags of corn as you want in Mile-12 market in Lagos.
Sugar, Salt, Butter – You need sugar and salt and butter to make your popcorn taste great. These one are difficult to get, go to any shop near you and buy as much as you need.
Note: You need to get additional training on how to mix the sugar, butter, and salt and the desired quantity. You will also need to learn how to pop the corn.
How To Market Your Popcorn Business
Target the street hawkers, they sell the product faster and in large quantity. If you can get 10 hawkers, you will be sure of supplying them about 500 daily — that is a whooping 13,000 monthly.
Talk to Supermarkets and shop owners, you will be surprised of the positive response you will get if your branding is attractive enough.