Popcorn making: A business with small beginnings, big potentials
Simple businesses
Any food product, which is freshly-made, hot, sizzling and readily available for consumers any time they need it is usually a money-spinner. Operators of such business often have the capacity to pay their bills and make huge profits. One of such is hot popcorn, which takes about five minutes or less to prepare.
Augustine Ogbor, operating in the Lagos State University, Ojo Campus, is a family man who has been in this popcorn making and sales business for about seven years. He says, before starting this business, he was engaged in a much bigger business, buying the bones of cows from abattoirs in very large quantities and selling to feed milling companies round the country.
But like many ‘big’-businesses owned by one man, controls are not so easy. Ogbor says, “I was duped by someone working with me of a very large amount of money and that eroded the capital for the business.” Then another calamity struck. His late wife became very sick. “With hope that she would live, I spent so much money on her medical bills. So I was left without any capital to run my former business,” he says.
With children to cater for and good-paying jobs hard to come by, Ogbor, fell back on this pop-corn making business which he had learnt and operated some time ago but left for the ‘big’ business. He says, “This popcorn business is a much simpler business to set up. With N80, 000, one can get a very good popcorn vending machine and all the ingredients to start with. This is what I have been using to fend for my family –house rent, feeding for the family, my children’s education and even taking care of my aged mother and other necessities of life.”
Secret
One of the success secrets of this one-spot popcorn business is location- the operator must find a place with a large number of passers-by such as a school environment, a popular bus stop, an amusement park and so on. Ogbor says, “The advantage in this business is that I can start whenever I want in the day and close whenever I want in the afternoon or evening. I can work for four hours or for eight hours. I just ensure that I am on hand during the rush hour period- when workers and students of the university and environs close- that is the peak period of sales. Another advantage is that I can monitor it myself and it is not strenuous.”
Challenges
On challenges, he says, “The strike actions by lecturers leading to closure of the university affects my sales. During that period, sales are very low.”
Future prospects
Speaking on expansion plans, Ogbor says, “I plan to expand. I am already training a girl. If she is able to handle the popcorn making, I can get another vending machine, make popcorn, package and sell to shops in addition to this.”
Expansion
Darlinton Omeh, a blogger – Tech Entrepreneur- who lectures on building businesses from ground zero says there is another strand to this business such as the popcorn sold all over the streets. Omeh says, “Take a stroll around the major roads in Lagos, you will see the type of popcorn packages that is sold on the roads at the hold-ups. It is usually sold for N100 and people are buying it in hundreds of thousands every day. It’s almost selling faster than pure water, maybe due to the convenient packaging.
The popcorns you see on the streets are not made by the sellers. People process them in large quantities and supply to them while they sell and make profit. Pick one of them and you will see the addresses and phone numbers of the maker, that’s the business I’m talking about! You can start processing popcorn in large quantities and be supplying to the retailers (hawkers and supermarkets) in the city.
One thing that makes the business attractive is because the materials involved in the production are not costly; anyone can afford them with little efforts. The product sells fast too because people just enjoy eating popcorn for many reasons. If you produce 10,000 monthly and sell to the retailers at the price of (maybe) N70, the retailers will sell for N100 and make profit of N30 each.
The cost of producing a pack is not more that N40, therefore you will be making profit of N30 each as well. With this projection, 10,000 packs will give you 10,000 x N30 = N300,000 of pure profit in a month!”
Omeh has more insight into the operation of this simple but amazing business on his blog – Constatative.
Chukwuemeka Nkwocha on Home Business Manuals says a popcorn making machine costs between N25,000 and N30,000 but can be made locally. So, one can start with an amount that is even less than N80,000. But getting training on the mixing of corn, sugar, butter or vegetable oil is essential, according to the experts. Some may also add colourants if desired by the consumers.
Nkwocha says to start, one or half a bag of yellow maize, sugar, packaging materials like nylon bags, sealing machine and so on are needed. He says, “You can make your popcorn stand out by packaging it in specially branded nylon bags. Well-packaged popcorn will cost more than the one tied in transparent nylon bags and sold by the roadside. For example, popcorn sold in Mr Biggs or Tantalizers will be more expensive because of its packaging and the environment in which it is sold. So if you want to make good profit, make your packaging standout.”
Marketing
Apart from roadsides, bus stops, pathways, one may also target or situate the business in schools, super markets, restaurants/eateries, churches/mosques, offices. By keeping their ears close to the ground, the operators can also target special events to get massive sales such as carnivals, schools’ inter-house spots, birthday parties, crusades.
OLUYINKA ALAWODE