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How To Start A Peanut Business

Business, Stories 9/06/2022 by Doosuur Ukula

Starting a business of any kind is one of the most incredibly difficult tasks for many people who are faced with challenges of varying degrees. This can range from lack of requisite start-up capital to execute their business plan and how to place things properly inter alia. It is safe to say that it is very normal for such challenges to loom about, however, you shouldn’t let those challenges become an obstacle or a hindrance to becoming a successful businessman or businesswoman.

Thus, there are many lawful businesses one can successfully venture into, but the focus here will rest firmly on the peanut business. This article would serve as an aid and a guide to those intending to start up their peanut business, no matter how jot their start-up capital may be. Let’s move!

To start up a peanut business, there are a few procedures to follow and they will be listed and discussed appropriately hereinafter.

  1. Understand the basics of peanut making
  2. Do some more research
  3. Prepare a feasibility study
  4. Carry out a market survey
  5. Get your raw materials
  6. Give it a brand name
  7. Be the best
  8. Go ahead, it’s business time!

1. Understand the Basics of Peanut Making

This is the first and most vital aspect anyone intending to start up a peanut business should consider and it doesn’t matter if the business is to be a small or large scale business. What this point emphasizes is that such a person should know/have an idea on peanut making, that is, how is peanut made? You should have good knowledge of how it is made or else, if you ignorantly venture into what you do not know or understand, your business will most probably perish for lack of knowledge. So, have a good grasp of this business you intend to venture into and you will count gains, not losses.

2. Do some more Research 

If you are interested in starting a peanut business and you truly believe that you do not understand the basics properly but you have a fair grasp, this isn’t a problem. Sit down, breathe in and out, take a glass of juice, milk, water or whatever you wish to have at the time and calm your stressed nerves. Then, go online and feed yourself with more knowledge by carrying out proper research, you can also consult those who have been into this same line of business that tickles you (if you know any) and ask them relevant questions. If need be, you can go back and relearn this skill to awaken the success behind it.

 Note that, this tip mentioned here is very suitable for small-scale businesses with minimal start-up capital. However, if it’s a large-scale business or a company with sufficient start-up capital, it would be easier to begin. I know you will ask why. The answer is that small-scale businesses usually have small start-up capital and such an entrepreneur cannot yet employ another who has better knowledge of the business than him/her, such an entrepreneur, therefore, need to be familiar with what he/she is venturing into. However, large businesses or companies that intend to start up this business will find it easy because such a company can afford to employ the services of other(s) who are professionally skilled in peanut making.

So, for you to start up a peanut business, all you need to do is to do more research with your mobile phone by reading about and watching videos that can be helpful or consulting people who know what you are venturing into.

3. Prepare a Feasibility Study

Before one can easily comprehend the essence of this point, such a person needs to understand what a feasibility study means.

 “A feasibility study is an analysis that considers all of a project’s relevant factors— including economic, technical, legal, and scheduling considerations—to ascertain the likelihood of completing the project successfully.”[1]

This feasibility study is prepared to help point out the strength and weaknesses of the proposed business so as to discover and enable the assessment of opportunities and threats and to ensure that the available capital will be sufficient to ensure the smooth running of the business. [2] 

So, this feasibility study is very vital for large-scale businesses and companies who intend to start up this business, however, this may not be necessary for a start for small businesses with minimal capital. What such a small-scale entrepreneur need do is to utilize the capital and do what the next step suggests.

4. Carry out a Market Survey

This step is essential for entrepreneurs of small-scale businesses since the raw materials are most of the time, not bought in bulk (so as to be able to kick-start the business) but in small quantity. To carry out a market survey entails that, whoever intends to start up a peanut business, especially in a country like Nigeria ought to visit the market with an all-written list of the raw materials needed so as to enquire about the prices of all the raw materials. This is to enable the entrepreneur to figure out a way of increasing his start-up capital for the best since inflation has become a constant term in the Nigerian economy, where the prices of goods rise every day without mercy. 

5. Get your Raw Materials

After carrying out a market survey and you are satisfied that you have sufficient capital to give your business that first push, then, you can return to the market with your start-up capital (money) and begin the purchase of your raw materials. You can begin to buy things like your dried raw groundnuts, flour, eggs, sugar inter alia. 

Please note that while going to the market or making an order for your raw materials after your market survey, it is wise that your budget is slightly above that which was earlier suggested by your market survey. This is because the inflation; especially in Nigeria and the deflation of the naira has become a constant thing. You may purchase something in the market or online today for N100 and end up buying the same thing the next day or next week for N150 or even N200.

Now that you have successfully gotten your raw materials, go ahead and make your product. Give it that crunchy satisfying taste that would lure the taste buds of many people to yearn for more crunchy peanuts produced by YOU!

6. Give it a Brand Name

After producing your crunchy peanut, give it a catchy brand name that would make people pause and want to have a taste of that yummy goodness. For example, it could be “merry peanuts” or “eat and smile peanuts”. Type your brand name e.g “merry peanuts” on the peanut leather (packaging) you are producing and selling (if you are the one producing your peanut leathers).

Big companies produce their own packs or leathers, fill them with peanuts and seal them with an industrial sealing machine. However, if yours is for a small business and you are incapable of doing this, cheer up, you can buy a peanut leather from the market and seal it with either a sealing machine (if you have one), a stapler or you can simply tie the tip of the leather after filling it. It’s that easy, isn’t it? Type your brand name e.g “merry peanut” and insert it in the leather before sealing, stapling or tying up your peanut-filled leather. You have done it! Now, give yourself a pat on your back and smile widely. Very good!

7. Be the Best

Even if your peanut business is a small-scale one strive, to be the best at what you are producing. A lot of people are in the habit of adulterating their products subsequently after being known as good in their line of business after a while. For example, some people instead of using sugar later tend to use saccharine to cut costs so as to enhance profit. I have heard people complain tons of times saying “this product was good, but I don’t understand what they are producing now, its absolute garbage.”

Do not reduce the quality of your product for any reason! This would be calamitous for the growth of your business and the drop in quality will lead to a loss of customers and zero recommendations. So, treat your customers with quality and be the best at it, do not lose it.

8. Go ahead, it’s Business Time!

Congratulations! Your peanut business is successful after following the elucidated outlines. Your profit margin will rise and you will smile after all your efforts and hard work and your peanut business will reward you. At this point, your business will spring with growth and you can think of making it a bigger company. Cheers!

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Challenges to Expect Particularly if Your Peanut Business is a Small-Scale One

Going into a peanut business is a sweet affair, however, its success comes with some challenges and they are:

  1. Sometimes friends, family, regular customers etc would buy your peanuts on credit and refuse to pay back. When you ask for the payment, some would abuse you while others will pay and never buy from you again. 
  2. You may encounter losses at some points. Why? Because you may at other times buy inferior products you never intended to purchase. For example, the major ingredient for peanuts is groundnut, you may end up buying spoilt groundnuts which didn’t look spoilt at all and after making your peanuts, will discover that most of the coated nuts have spoilt groundnuts inside. This has happened to me. But do not worry, you can try to avoid this by buying from someone whom you trust to always have good groundnuts.
  3. Sales may be sometimes slow especially if you just started the business and you are not well-known. Some people may not trust you enough to buy from you. Nevertheless, worry not, peanut is not a perishable product because it has a long shelf life. Even if you do not sell immediately, you will definitely sell without it getting spoilt. You can utilize the power of social media where you can advertise your products all the time. The more people see the advertisement for your product, the more they will remember you when they need that product.

References

1. Feasibility https://www.investopedia.com/terms/f/feasibility-study.

2. CFI https://corporatefinanceinstitute.com/resources/knowledge/other/feasibility-study/ 

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