{"id":4788,"date":"2023-05-11T16:06:49","date_gmt":"2023-05-11T16:06:49","guid":{"rendered":"https:\/\/kobotalk.com\/?p=4788"},"modified":"2024-12-17T16:19:20","modified_gmt":"2024-12-17T16:19:20","slug":"egg-supply-business-a-lucrative-small-business-to-start-right-now","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/egg-supply-business-a-lucrative-small-business-to-start-right-now\/","title":{"rendered":"Egg Supply Business: A Lucrative Small Business to Start Right Now"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><div class=\"pvc_clear\"><\/div>\n<p id=\"pvc_stats_4788\" class=\"pvc_stats all  \" data-element-id=\"4788\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" version=\"1.0\" viewBox=\"0 0 502 315\" preserveAspectRatio=\"xMidYMid meet\"><g transform=\"translate(0,332) scale(0.1,-0.1)\" fill=\"\" stroke=\"none\"><path d=\"M2394 3279 l-29 -30 -3 -207 c-2 -182 0 -211 15 -242 39 -76 157 -76 196 0 15 31 17 60 15 243 l-3 209 -33 29 c-26 23 -41 29 -80 29 -41 0 -53 -5 -78 -31z\"\/><path d=\"M3085 3251 c-45 -19 -58 -50 -96 -229 -47 -217 -49 -260 -13 -295 52 -53 146 -42 177 20 16 31 87 366 87 410 0 70 -86 122 -155 94z\"\/><path d=\"M1751 3234 c-13 -9 -29 -31 -37 -50 -12 -29 -10 -49 21 -204 19 -94 39 -189 45 -210 14 -50 54 -80 110 -80 34 0 48 6 76 34 21 21 34 44 34 59 0 14 -18 113 -40 219 -37 178 -43 195 -70 221 -36 32 -101 37 -139 11z\"\/><path d=\"M1163 3073 c-36 -7 -73 -59 -73 -102 0 -56 133 -378 171 -413 34 -32 83 -37 129 -13 70 36 67 87 -16 290 -86 209 -89 214 -129 231 -35 14 -42 15 -82 7z\"\/><path d=\"M3689 3066 c-15 -9 -33 -30 -42 -48 -48 -103 -147 -355 -147 -375 0 -98 131 -148 192 -74 13 15 57 108 97 206 80 196 84 226 37 273 -30 30 -99 39 -137 18z\"\/><path d=\"M583 2784 c-38 -19 -67 -74 -58 -113 9 -42 211 -354 242 -373 16 -10 45 -18 66 -18 51 0 107 52 107 100 0 39 -1 41 -124 234 -80 126 -108 162 -133 173 -41 17 -61 16 -100 -3z\"\/><path d=\"M4250 2784 c-14 -9 -74 -91 -133 -183 -95 -150 -107 -173 -107 -213 0 -55 33 -94 87 -104 67 -13 90 8 211 198 130 202 137 225 78 284 -27 27 -42 34 -72 34 -22 0 -50 -8 -64 -16z\"\/><path d=\"M2275 2693 c-553 -48 -1095 -270 -1585 -649 -135 -104 -459 -423 -483 -476 -23 -49 -22 -139 2 -186 73 -142 361 -457 571 -626 285 -228 642 -407 990 -497 242 -63 336 -73 660 -74 310 0 370 5 595 52 535 111 1045 392 1455 803 122 121 250 273 275 326 19 41 19 137 0 174 -41 79 -309 363 -465 492 -447 370 -946 591 -1479 653 -113 14 -422 18 -536 8z m395 -428 c171 -34 330 -124 456 -258 112 -119 167 -219 211 -378 27 -96 24 -300 -5 -401 -72 -255 -236 -447 -474 -557 -132 -62 -201 -76 -368 -76 -167 0 -236 14 -368 76 -213 98 -373 271 -451 485 -162 444 86 934 547 1084 153 49 292 57 452 25z m909 -232 c222 -123 408 -262 593 -441 76 -74 138 -139 138 -144 0 -16 -233 -242 -330 -319 -155 -123 -309 -223 -461 -299 l-81 -41 32 46 c18 26 49 83 70 128 143 306 141 649 -6 957 -25 52 -61 116 -79 142 l-34 47 45 -20 c26 -10 76 -36 113 -56z m-2057 25 c-40 -58 -105 -190 -130 -263 -110 -324 -59 -707 132 -981 25 -35 42 -64 37 -64 -19 0 -241 119 -326 174 -188 122 -406 314 -532 468 l-58 71 108 103 c185 178 428 349 672 473 66 33 121 60 123 61 2 0 -10 -19 -26 -42z\"\/><path d=\"M2375 1950 c-198 -44 -350 -190 -395 -379 -18 -76 -8 -221 19 -290 114 -284 457 -406 731 -260 98 52 188 154 231 260 27 69 37 214 19 290 -38 163 -166 304 -326 360 -67 23 -215 33 -279 19z\"\/><\/g><\/svg><\/i> <img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxIDEiIHdpZHRoPSIxIiBoZWlnaHQ9IjEiIGRhdGEtdT0iaHR0cHMlM0ElMkYlMkZpMC53cC5jb20lMkZrb2JvdGFsay5jb20lMkZCTE9HJTJGd3AtY29udGVudCUyRnBsdWdpbnMlMkZwYWdlLXZpZXdzLWNvdW50JTJGYWpheC1sb2FkZXItMnguZ2lmJTNGcmVzaXplJTNEMTYlMjUyQzE2JTI2c3NsJTNEMSIgZGF0YS13PSIxIiBkYXRhLWg9IjEiIGRhdGEtYmlwPSIiPjwvc3ZnPg==\" data-spai=\"1\" border=0 \/><noscript data-spai=\"1\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif?resize=16%2C16&ssl=1\" data-spai-egr=\"1\" border=0 \/><\/noscript><\/p>\n<div class=\"pvc_clear\"><\/div>\n<p>Are you searching for a small business to start with minimal investment? Consider egg supply business. It is an evergreen and profitable business any one can do.\u00a0 By evergreen, I mean this business never fades.<\/p>\n\n<p>Interestingly, the business is scalable; so you can start small and grow it big with time.<\/p>\n<p>So in this post, I&#8217;ll show you how to start this business.<\/p>\n<h2>What Egg Supply Business is About<\/h2>\n<p>The egg supply business is about sourcing and buying table eggs in bulk from poultry farmers and selling to retailers.\u00a0 The retailers in turn sell to final consumers.\u00a0 Thus, your market as an egg supply business owner include the corner shops around you, supermarkets of all sizes, restaurants and hotels, bakers and confectionary makers, etc.<\/p>\n<p>You are more or less a wholesaler.<\/p>\n<h2>About the Egg Market<\/h2>\n<p>There are two segments of the\u00a0 egg market , namely: table egg and hatching eggs.\u00a0 Table eggs are what you see around you at corner shops and supermarket.\u00a0 That is the egg you eat.\u00a0 \u00a0Hatching eggs,\u00a0 on the other hand are are used to produce chicks for the poultry industry.<\/p>\n<p>This business idea is about table egg and in Nigeria this sector constitute ghe major segment of the egg market.\u00a0 The Nigerian table egg market is huge for obvious reasons.\u00a0 The country is Africa&#8217;s largest in terms of population with about 212 million people and growing at approximately 3 percent per annum.\u00a0 This huge population need good nuitrition which egg provides.<\/p>\n<p>Thus the demand for eggs in Nigeria is driven by the growing population, increasing urbanization, and changing dietary habits of the population.\u00a0 In addition, eggs are a good source of protein, and are used in a variety of dishes in Nigerian cuisine, including breakfast foods, stews, and snacks.<\/p>\n<p>With an annual production of over 1.3 billion eggs, Nigeria is Africa&#8217;s biggest egg producer\u00a0 and 20th largest in the world.\u00a0 However, this production level hardly meet demand which is estimated at about 3.6 billion pieces of eggs annually; resulting to a supply gap of of about 2.33 billion eggs annually.<\/p>\n<p>The importation of egg is prohibited in Nigeria.\u00a0 Hence, to close this huge gap, the government has at various times attempted to provide policy incentives to encourage investment in commercial poultry farming.\u00a0 However, the widening gap is increasingly incentivising the illegal economy through smuggling of bird eggs into Nigeria.<\/p>\n<p>From the foregoing, you can easily see why egg supply and distribution is a business in Nigeria. Inspite of increasing cost of food, egg is almost a staple item in most homes, hence you will never lack patronage.<\/p>\n<h2>What You Need to Start Egg Supply Business<\/h2>\n<p>To start and run a successful egg supply business, you will need the following:<\/p>\n<h3>#1. Capital:<\/h3>\n<p>Of course, you need money to start any business.\u00a0 Egg supply and distribution business is not an exception.\u00a0 But how much do you really need?\u00a0 It will depend on the scale you intend to operate.\u00a0 The good thing is that there is always an opportunity to make money in this business irrespective of the scale you are operating.<\/p>\n<p>For a small scale operation, an initial investment of N500,000 will easily get you strarted.\u00a0 As at the time of writing this post, this level of investment will provide you with the essential things and a working capital to buy at least 50 crates of table egg to start with.<\/p>\n<h3>#2. Shop:<\/h3>\n<p>You will need a business premises: a place to store your eggs before supplying to your customers.\u00a0 Also to keep empty crates before replinishing your stocks.\u00a0 For a small starter, a corner shop will serve your purpose.\u00a0 At the time of writing, a shop can be rented for between N60,000 and N120,000 in most commercial cities in Nigeria.<\/p>\n<h3>#3. Crates:<\/h3>\n<p>Crates are the primary physical asset or equipment you need to run your egg supply business.\u00a0 They come in plastic and paper types.\u00a0 The plastic crates are more common now because they are more durable than paper crates<\/p>\n<h3>#4. Source of supply:<\/h3>\n<p>Having a steady source of supply or a collection of sources of supply is the very first step to running a successful egg supply and distribution business.\u00a0 Therefore, a critical part of your planing is to identify and establish relationship with a poultry farm where you will be buying table eggs in bulk.<\/p>\n<p>To enable you deal with scarcity, have a relationship with two or three frams or more.\u00a0 Also build your relationship in such a way that you have their confidence. This will enable you get supplies on credit.\u00a0 Such gestures help you manage your cashflow and can also help you scale quickly.<\/p>\n<h3>#5. Delivery Vehicle:<\/h3>\n<p>In this business, mobility is very key.\u00a0 So it is important that you invest in a vehicle to serve as your delivery van.\u00a0 If you already have a vehicle, put it to use here.\u00a0 If not, work towards having one if you are operating on a tight budget.<\/p>\n<p>For instance, our estimate of N500,000 cannot set up if you are considering acquiring a deliverying vehicle from the onset.\u00a0 For such budget start up, you wil have to make arrangement with a vehicle owner untill you are able to acquire your own vehicle.<\/p>\n<h3>#6. Record keeping.<\/h3>\n<p>Keeping proper records is very important in any\u00a0 business that you do.\u00a0 Many\u00a0 businesses fail early due to lack of record keeping.\u00a0 These days there are <a href=\"https:\/\/kobotalk.com\/BLOG\/accounting-software-for-small-businesses\/\">free online tools<\/a> you can explore to keep your business records.<\/p>\n<h2>Steps to Starting Your Egg Supply Business<\/h2>\n<p>Now that you know the things you need to start and run your egg supply business successfuly; how do you go about starting one.\u00a0 Here&#8217;s how:<\/p>\n<h3>#1. Do Your Research<\/h3>\n<p>A very important first step you must take in setting up your egg supply business is to conduct a market research.\u00a0 The purpose of this study is to make sure that there is market for your business in the area you want to operate.<\/p>\n<p>Critical questions you must find answers to are: who will buy from you? how many suppliers already exist in the area? where will you be buying from? what price will you sell?\u00a0 How are you going to carry the eggs from the poultry farm to your customers, etc?<\/p>\n<p>Providing honest answers to these and more questions will help you decide if this business will be feasible and viable in the location .<\/p>\n<h3>#2.\u00a0 Prepare a Business Plan<\/h3>\n<p>The information you gathered in step one becomes very useful in the preparation of a business plan.\u00a0 Many aspiring entreprenuers are often confronted with the question of whether or not <a href=\"https:\/\/kobotalk.com\/BLOG\/business-plan-2\/\">it is necessary to write a business plan<\/a>.<\/p>\n<p>However, the benefits you get from writing one are many.<\/p>\n<p>The thing is that many think a business plan should be long and complicated.\u00a0 No. it doesn&#8217;t have to be.\u00a0 It is all about putting together in\u00a0 one piece of paper, all the elements that are important for you to set up and run your business.<\/p>\n<p>Things like, how much you need to start. How you will raise that money. Where your buyers are.\u00a0 How you will reach them. Where your suppliers are. What kind of arrangment will you be developing with them.\u00a0 How much will you sell?\u00a0 What are the possible challenges and how will you mitigate them when and if they occur.<\/p>\n<p>A business plan is a roadmap that defines the strategic direction for your business.\u00a0 If you will be raising external funding, getting a bank loan or investors&#8217; support; writing a business becomes even more critical.\u00a0 In this case, you may have to seek the help of experts to write the business plan for you; otherwise do it yourself in your own way.<\/p>\n<h3>#3. Register Your Business<\/h3>\n<p>True, you can do this egg supply business without registering a business name or incorporating a company.\u00a0 However, I recommend you <a href=\"https:\/\/kobotalk.com\/BLOG\/easy-steps-to-register-a-business-in-nigeria\/\">register your business<\/a>, at least as a sole proprietor.\u00a0 A lot of benefits comes with and you may never know when the opportunity will come calling and not having a registered business becomes a hindrance.\u00a0 You will not want that to happen, would you?<\/p>\n<p>Fortunately, the Corporate Affairs Commission (CAC), the body in charge company adminstration in Nigeria, now have a window that allows entrepreneurs register businesses by themselves.\u00a0 In other words, you don&#8217;t have to use a lawyer or other professionals to register your business if you don&#8217;t want to.\u00a0 All you need do is create an account on the CAC portal and follow through a simple process to register your business.<\/p>\n<p>It will not cost you more than N12,000 to register your busness if you chose the self registration option.<\/p>\n<h3>#4.\u00a0 Raise your start up capital<\/h3>\n<p>In the course of researching and preparing your business plan, you&#8217;ll easily know the exact amount of money you need to start your business.\u00a0 As I have highlighted above, the sum of N500,000 can get you started in this business on a budget scale.\u00a0 However, if you are adding a vehicle to the bucket, then yu will be requiring a much more higher amount.<\/p>\n<p>Do your research, identify all possible costs to know the exact amount you will need to start your egg supply and distribution business.<\/p>\n<h3>#5. Secure a Shop<\/h3>\n<p>A shop will serve number of purposes.\u00a0 It is your business premises.\u00a0 It also serve as storage facility for the eggs.\u00a0 Your shop has to be accessible to your customers, so pay attention to the location.\u00a0 At this stage, you should also consider buying the necessary equipment you need.\u00a0 For this business, egg crates are your primary equipment.<\/p>\n<h3>#6. Establish relationship with a poultry farm<\/h3>\n<p>You get your eggs from a poultry farm so it is important you look around and develop a relationship with a couple of farms.\u00a0 Discuss details and agree on terms\u00a0 before you start.\u00a0 This will ensure you get steady supply of products.<\/p>\n<p>You can also purchase from egg distributors but this doesnt have to be your primary source.\u00a0 Another source of supply available to you is the open-air markets where eggs are sold at wholesale prices.\u00a0 Discover one around you and explore it.<\/p>\n<p>When sourcing eggs, it is important to ensure that the eggs are fresh and of good quality. You can verify the freshness of eggs by checking the expiration date or by performing a float test. A float test involves placing an egg in a bowl of water; if it sinks to the bottom, it is fresh, but if it floats to the top, it is likely spoiled.<\/p>\n<p>It is also important to establish a good relationship with your suppliers and ensure that they are reliable and consistent in their supply. This will help to ensure a steady supply of eggs and maintain the quality of your product.<\/p>\n<h2>How Much Can You Make?<\/h2>\n<p>The profit potential for this business is very high.\u00a0 But how much you make is a function of your scale of operations, the competition in your environment, how you are able to manage your costs amongst other factors.<\/p>\n<p>Let&#8217;s do a little general calculation here for a guide:<\/p>\n<p>From the information I gathered in the course of preparing this report, table eggs are sold at farm gates to bulk buyers at N1,300 per crate.\u00a0 It is supplied to retailers and intermediate users at N2,000 per crate on the average.\u00a0 This leaves you with a profit margin of N700 per crate.<\/p>\n<p>Let&#8217;s assume you incur expenses of N300 per crate (i.e transportation, wages, rent, etc), including provision for breakages and spoilages;\u00a0 you will be making N400 per crate in net profit. If you, conservatively, did a turnover of 1000 crates of eggs in a month, this gives you a profit of N400,000 net of all expenses.\u00a0 The truth is that if you work hard enpugh and get your processes right, you can actually make this money in a week or two.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 7<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Are you searching for a small business to start with minimal investment? Consider egg supply business. It is an evergreen and profitable business any one can do.\u00a0 By evergreen, I mean this business never fades. Interestingly, the business is scalable;&#8230;<\/p>\n","protected":false},"author":1,"featured_media":4839,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[3],"tags":[],"class_list":["post-4788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-ideas"],"a3_pvc":{"activated":true,"total_views":265,"today_views":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Egg Supply Business: A Lucrative Small Business to Start Right Now - KOBOTALK BLOG<\/title>\n<meta name=\"description\" content=\"Egg supply business is one that is highly recommended if you are looking for a lucrative business to do in the retail sector.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kobotalk.com\/BLOG\/egg-supply-business-a-lucrative-small-business-to-start-right-now\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egg Supply Business: A Lucrative Small Business to Start Right Now - 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