How to Start a Fast Moving Consumer Goods Business (FMCG)
Starting a Fast Moving Consumer Goods Business
What is FMCG business?
Do you want to start a FMCG business? Have you been having that urge to become an entrepreneur through consumer packaged goods (CPG)? There are so many FMCG businesses one can go into that is very certain to make one a future millionaire. On the other side, these lucrative FMCG business opportunities can take up to five years before it produces such result.
There are some people who just go into a certain FMCG business startups because they want to and love to trade but after some few months, they are looking for other FMCG distribution business and dealerships to venture into because it seems their business is slow and the income too.
important to take a feasibility study of those FMCG business opportunities before one should go into them. This is because, some FMCG wholesale trading business may seems profitable from the outside but after you have venture into it, you will see that those people selling those goods are actually either selling on credit or at a low profit margin so they can get rid of the stock or force a sale.
Starting a fmcg business is not just about buying goods at low price and selling at a higher price. All FMCG wholesale business does that to make profit. But if you really want to start a FMCG company business that is fast in terms of selling the goods at of your store and make a profit quickly, then you need to start thinking of starting a fast moving consumer goods business.
Fast moving consumer goods are daily consumable products. This goods are always ask of. If you really want to start a business that should keep you busy and selling, then you need to think of FMCG products that human can't stay away for a week.
The Bad Side of Boutique Business
Opening a boutique is a good FMCG business model please don't get me wrong. Read to the end before you conclude. The reason I said a bad side is this. A boutique is a place or store where people go to buy clothes, shoes, belts, caps, perfumes and designer's accessories. Now, how many people do go for shopping every week? Do you? When last did you go for shopping? Was it the same boutique?
Personally, I go for shopping once in a month. Also, let me ask you, do you buy vegetables, tomatoes, pepper, onions once in a month? Am sure you buy it every week. If not twice in a week because you must eat vegetable soup! But the clothes you bought last year you're still wearing them till today.
Now, I am not saying you should not go and start a boutique business if you already have the mind to do so. The fact is, there is profit in the business but it's slow and not predictable. Here is how; Some day you may just open your store, you won't sell anything. The next day, you might sell a few items. The next day again, your FMCG business model will excel as if you use magic on it. The next day again, only one face cap will be bought and so on like that.
But for fast moving consumable goods, you're guaranteed of sale on a daily basis. Prayer or no prayer. Someone must eat biscuit, buy mineral, buy oil, Kerosene, Bread, Pepper or even pure water. And that same person can spend up to N5000 in a month on your store. That's from one person. And you know that in one day, up to 10 different people will come to buy FMCG product from your store.
So, in this post, I want to really discuss on how you can take a proper feasibility study of your environment and start a fast moving consumer goods business in Hyderabad, Bangalore India, Nigeria and other countries of the world.
Here are examples of fast moving consumer goods;
1. Rice 2. Kitchen Spices 3. Beverages 4. Vegetables 5. Oil
6. Drinks 7. Detergent 8. Beans 9. Stationery 10. Bread etc.
HOW TO START FMCG BUSINESS
Take Feasibility Study
Irrespective of where you reside, there is always an array of perfect business opportunities in FMCG sector for every location. In a cool evening, take a walk around your street or better still two streets and look for a good location that will address the issue of selling fast moving goods to the resident in that street and passers by either on foot or car. This will assist in developing a comprehensive FMCG business plan to use.
Now even if there are stores selling consumable items, I mean a long list of FMCG companies near you, don't panic or think of competition. Your job now is to brand yourself in terms of attending to customers in a polite and quick manner. Personally, I wait unattended to when I go buy something or when the seller is always finding it difficult to give me my balance (change).
Have a very attractive store with light, maybe TV (if you choose to sell drinks). FMCG product business is not about competition, it's about domination. Do not think competition, think domination. In your store, you can sell every items I listed above. You may personally choose to focus on selling only drinks both alcohol and non-alcoholic with pepper soup and bush meat. You might also choose to sell food items only. There are also fast moving consumer goods. This is the best business for individual investors and agencies who don't have time having long prayer point list.
Choose which fast consumer goods you prefer and go with it. I know of a lady who focus on selling soft drinks in crates. With this, she has bought a personal car and a truck for carrying the crate of drinks to her customers location.
You too can do it, you have just learnt how to start FCMG distribution business!