Ice block business in Nigeria is a very lucrative one to look into. The business moves fast in many parts of the country due to the poor power supply.
Ice block business is a good source of daily income, it is easy to start, and the profit margin is massive. Although you can make money producing and selling ice blocks throughout the year, the most money is made in the dry season.
This is because the rate of dehydration is high, so people would need cool water and drinks to quench their thirst. You can start an ice block production business anywhere in Nigeria regardless of your gender.
However, you need to understand what the business entails, and how to succeed with it. That is why we’ve come up with this post to show you exactly how to start an ice block business in Nigeria. Not just that, but you’ll also discover the cost of starting, how to approach the business and the profitability.
Are you ready to know all that? Let’s go then!
Starting Ice Block Business in Nigeria
Ice block business involves the sales of ice blocks to make money. A lot of Nigerians get involved in this business because it is easy to operate, and has a massive profit margin, although the cost of starting may be a little bit high.
Although higher in the dry season, there’s always demand for ice blocks throughout the year, as they are used by soft drinks sellers, pure water and bottled water sellers, hospitals, and so on.
You can start an ice block business both on a small scale and a large scale. That is, while the business may be capital-intensive, you can also start with relatively low capital. Although it depends on how you approach the business.
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Ice Block Business Ideas in Nigeria
You can start an ice block production in two ways in Nigeria, and they include:
Ice Block Production Business
The ice block production business involves freezing water to ice, packaging, and selling them to distributors and final consumers. Ice block production business costs a lot of money to start, as you’ll need to invest in lots of equipment.
This is the most profitable way of approaching the ice block business in Nigeria especially if you live in areas where there’s a good power supply. Also, the profit margin of producing ice blocks is high if you can get access to free water (well or borehole).
Ice Block Distribution Business
Ice block distribution is another way of approaching this business in Nigeria. It involves buying ice blocks in bulk from the manufacturers and selling them to final consumers.
You can start the ice block distribution business with small money, as all you need is a means of transportation, and access to a manufacturer. With good marketing skills, you can make a lot of money as an ice block distributor in Nigeria.
See Also: How to Start a Profitable Frozen Food Business in Nigeria
Is Ice Block Business Profitable in Nigeria?
Yes, the ice block business is very profitable in Nigeria. This is because of the high demand for the product.
With usually high temperatures in Nigeria, day-to-day workers usually get dehydrated and need chilled drinks to quench their thirst. However, due to poor power supply, it could be hard to get something cold, making ice blocks the only option to freeze water and drinks.
You can make a lot of money selling ice blocks in Nigeria. However, the profitability depends on your approach. Approaching the business as a manufacturer, you’ll experience a great profit margin since after starting, the only continuous investment needed is the cost of purchasing water and packaging materials.
As a distributor, you can also make a lot of money, as the profits here are based on the amount of sales you make.
Check Out: The 25 Most Profitable Untapped Businesses in Nigeria
How Much Does it Cost to Start an Ice Block Production Business?
Just like every other business, you need money to start. However, the capital required to start an ice block business in Nigeria depends on your mode of operation.
Starting an ice block production business in Nigeria, you would need millions of naira to start, and most of the money will account for the equipment needed which is usually expensive. On the other hand, you would need anything from 50,000 and above to start an ice block distribution business in Nigeria.
Although, depending on how big or small you want to start, whether as a manufacturer, or distributor, you may need more or even less. This is because factors such as location also determine the startup capital needed for an ice block business in Nigeria.
Related: 19 Lucrative Businesses to Start with 150K in Nigeria and Make Millions
How to Start an Ice Block Business in Nigeria
1. Decide on The Ice Block Business Idea to Go With
The first step in starting an ice block business in Nigeria is deciding on the type of ice block business you want to start. As listed above, there are two types – becoming a manufacturer and becoming a distributor.
Here, your decision will be based mainly on the capital you have to start with and also your location. If you have enough money to start and manage an ice block factory, it will be great to start that way. However, with little startup capital, settling for the distribution of ice blocks would be better.
2. Do Your Research
Knowing the type of ice block business you want to start, the next thing is to carry out some research. Before starting, you’ll need to know how the business works in your area, find out about your target audience, know the best marketing strategies, and also get to understand the day-to-day activities of the business.
In doing this, you’ll need to find and create a business rapport with someone already in the business, and let them guide you. As a distributor, you’ll also need to find out the best place to buy at cheap prices.
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3. Draft a Detailed Business Plan
Based on the type you want to start and your market research result, the next thing to do is to draft a simple but detailed business plan. Here, you’ll need to outline your objectives and goals both short-term and long-term.
In your plan, you’ll need to go into detail on how you’ll run the business. If you’re good at drafting a business plan, there’s still lots more to be covered. If not, you can hire professionals to draft a detailed business plan for you.
4. Arrange for Funding
After drafting your business plan, the next thing is to arrange for your startup capital. Depending on your mode of operation, and how big or small you want to start, the money you’ll need may differ.
Starting as a manufacturer, unless you already have all the money needed to start, you can source your funding from family and friends through loans or partnerships. As a distributor, if you want to start extremely small, you can source your capital from your personal savings.
5. Get The Required Equipment and Materials
With your capital now ready, the next thing is to start investing in the business by getting all the required equipment and materials. Once again, the equipment needed to start an ice block business differs based on your mode of operation.
As a manufacturer, you’ll need to start by getting or building a factory, warehouse, or a big ship, buying a freezer, generator, or truck, and sourcing water, and packaging materials. You’ll also need to invest in employees if you want to run an ice block production business.
As a distributor, your first investment would be a means of transportation from manufacturers to your shop or customers. You also need a shop, and a truck to run the ice block distribution business in Nigeria.
6. Source Supplier (Mainly for Distributors)
As a distributor, you’ll need to find a manufacturer whom you can work with and get huge quantities of ice blocks at wholesale prices. While sourcing a manufacturer, make sure to go with the one that is not just cheap, but one that will reduce your expenses and cut costs.
It is ideal to work with manufacturers near you, so as to reduce the cost of transportation. As a manufacturer, only if you can drill a borehole or have access to free water, your supplier would be a water supply company.
7. Get Started & Get Working
With everything from step one to six now in place, the next thing is to get started producing, packaging and selling. In getting started, marketing shouldn’t be underestimated.
To drive sales, you need to market your ice block business, and this can be done in many ways including:
Whether you’re a manufacturer or distributor, branding is a good way of marketing your business. Here, you’ll need to print some promotional materials like banners, posters, flyers, etc. You can place them outside your shop, or on walls to create awareness. Also, if you have a truck, it is a smart move to customize it with your business name.
Word of Mouth
Word of mouth advertisements is another great way to market an ice block business. This involves telling people such as friends, family, neighbours, and the like, and also encouraging them to tell their friends and family too about your business.
This will help you grow fast, especially if your product is great and you offer cheap prices.
Ice block business in Nigeria is a good source of daily income, and if done the right way, there is no limit to the amount of money you could make. With this post on how to start an ice block business in Nigeria, I believe you’ve gotten the beginner guide and tips to get started!