Guide of Starting Sifted Maize Business
Ugali is a main dish in many Kenyan homes. In fact in some homes it is the only food considered a meal! This mentality has contributed to the success of many sifting businesses all-over the country. In rural Kenya you are guaranteed to find a miller in the shopping centre. Despite the continuous rural –urban migration and the advent of modernization even in our cuisine, Ugali is and will always be a staple meal on many Kenyan tables. The systematic migration is presenting an opportunity for millers to not just produce flour but to increase capacity to meet the market demand. It’s against this background that the maize milling business can never be ignored and is on the trajectory to become a main shilling earner for courageous Entrepreneurs. You want to flex your muscles in the maize milling industry? Here are a few tips on how to succeed in the maize milling sector:
Conduct a Market Research
Research breathes in new strategies and drives a business in the right direction. Aspiring millers should consider availability and reliability of electricity within the business location. If electricity in your location is unreliable consider purchasing or leasing a generator. Also, endeavour to gauge the demand for maize flour in your region to decide whether to start small or large-scale milling.
Jot Down a Business Plan
All information gathered in the market research should be included in the business plan. A good business plan consists of the start-up costs, marketing strategies, the demand vs. supply analysis of the maize flour, risks of the business, and competitors. A business plan should also include cash flow projections and management. A business plan will be crucial in shielding the company from unseen predicaments.
Determine Business Location
Vigorous market research will determine the ideal location of the business. One can set up the mill in an area where maize is grown which reduces the transportation costs or you could set up in a densely populated estate especially in the low and medium-income earners. Finally, you could choose to set up near supermarkets, shops and or other outlets that make your distribution easier and faster.
Acquire Business Licenses
Business Permit from the county government and health certificates are ideal before starting. Millers are required to acquire KEBS certificates. This certificate is a sign of quality maize flour for human consumption. Additionally, if you intend to plug into the supermarket value chain, its important to get a barcode. This makes it easy for supermarkets to include your product in their inventory. Barcodes are sold by organizations such as http://gs1kenya.org/get_barcodes
Purchase and Install Maize Milling Machinery
Follow the business plan to the latter, it guides you on the machinery aspiring millers should purchase. The market also dictates the kilogram output of the maize flour. Firms that sell the machinery install and deliver the maize milling machinery—training how the machinery is available after purchase. Large-scale milling businesses can hire skilled personnel to help in milling.
You can use different strategies to market the maize meal. Printing posters that can be erected in marketplaces and building entrances can reach more people. One can also market using word of mouth, especially in rural areas where people can spread the information. Identifying reliable and organized value chains will see your flour reaching people in far and wide places. Do not overburden your business, identify distribution value chains that suit your target market. This way you will also be building another business as you focus on your speciality: milling
In Conclusion, the maize milling business can do well in both rural and urban areas. Be keen to choose your market location according to the clientele base. Are you looking for an idea to explore? Make a sound decision whether to select a maize milling business or wait till you raise enough capital.