Guidelines on How to Start a Milk ATM Side Hustle Business in Kenya in 2023

The last 2 and half years following coivid19 pandemic have taught all of us the need to have an alternative source of income to our day-to-day employment. Many jobs were affected so much that many households were not able to meet their bills. In 2023, we are still faced with so many uncertainties and due to the unpredictable economy that is facing serious inflation and high cost of living, starting a side hustle business has never been more important. This post will share with you important tips/guidelines on how to start a milk ATM side hustle business in Kenya in 2023.

Guidelines on how to start a milk ATM side hustle business in Kenya in 2023- preparations to make

Research

The following topics are covered in further detail below. Good research is essential to any business’s success.

Viability

You should research a business’ viability before investing any money in it. Think about the following:

• Is it feasible to run this business in your target region? For instance, operating a milk ATM business in a village where every residence has high-yielding milk cows would not be ideal.
• Can you obtain funding or can you afford the capital?
• What are the chances of success considering the business environment?

Location

The location of the business is another important factor that you must take into account. Think about the following:

• Are there any customers there?
• Will customers be able to readily access your business?
• Is there space to grow?
• Is the rent there reasonable and appropriate for your type of business? It’s crucial to keep in mind that some firms may not be commercially feasible due to high rent costs.

Competition

It’s critical to research potential competitors’ presence, numbers, and prices before entering any market. A business or place with overcrowded competitors should be avoided.

Unless you are certain that the numerous competitors already cannot satisfy the demand for the product. In this instance, we are discussing milk, and you should be aware that in addition to various milk ATMs, there is also package milk, which is used by many households. 

Suppliers

• Where you obtain the milk from is the other thing you need to consider before starting a milk business. Find out the following:
• What companies now supply?
• What kind of milk do they produce there?
• What do they say? Exists a minimum order quantity with them? What are the necessary payment conditions? For instance, is it cash on delivery? Do you need to pay upfront? Or do you pay after delivery on a weekly or monthly basis?
• Will you have to go pick up the milk yourself or will they deliver it to you?

Premises

You must decide if there are suitable locations for the milk ATM company during the preparatory stage. Find out the following:

• Are the premises in a clean environment?
• Does it have adequate room, even though a large facility is not required for a small milk ATM business? Even a building already used for a business can have it installed.
• Is the location secure enough that your equipment won’t be stolen while you’re away?
• Does the structure or location have installed electricity?
• Is there access to or clean water inside the structure?
• Are you able to properly dispose of the water you use to clean your equipment and the space itself since the building is connected to the sewerage system?
• Does the structure have restrooms?

Guidelines on how to start a milk ATM side hustle business in Kenya in 2023- requirements

Permits and licenses

There are applicable legal licences and permits, just like with any legitimate firm. It’s crucial to be aware of the requirements because they may change from county to county. The simplest method to find out what is needed is to go to the county licencing office and ask. In some circumstances, in addition to the business permit or licence, you could be needed to have a food handling certificate issued by the ministry of health.

Milk ATM

If you’re interested in starting a milk ATM business, the most important piece of equipment you’ll need is the ATM itself. However, it’s not just any ATM that will do – it needs to be approved by the Kenya Dairy Board (KDB). Luckily, we offer KDB-approved milk ATMs that come with a one-year warranty and installation and commissioning at no extra cost.

Our ATMs also have their milk holding tank built-in, so you don’t have to worry about investing in an extra one. However, some clients prefer to store their milk in jerry cans, so you may want to consider investing in one of those.

One of the standout features of our milk ATMs is the digital control unit commonly referred to as PLC. This computerized system allows you to sell milk in any quantity the client desires, and you can set the price per liter to whatever you want. It also keeps records of sales, which you can use for reconciliation later on. And because it’s password protected, you can have someone else run the business for you without worrying about tampering with the records.

Guidelines on how to start a milk ATM side hustle business in Kenya in 2023- implementation

Now that you’ve taken care of the necessary equipment, it’s time to start setting up your business. Begin by renovating your business premises to make it suitable for selling milk and any other products you may want to offer, like snacks, eggs, or pastries. You’ll need shelves, a counter, a locker, and jugs with measurements (these come in handy during power outages when the ATM isn’t working).

 In addition to preparing your physical space, it’s important to create awareness about your business. You can print simple black and white posters and put them in strategic places where potential customers are likely to see them. As you learn more about the business and receive feedback from customers, make improvements and updates as needed.

Guidelines on how to start a milk ATM side hustle business in Kenya in 2023- Final word

To ensure the success of your milk ATM business, it’s important to do thorough research and planning and to follow good business practices. Remember to always keep your business premises clean and your milk fresh. The Kenya Dairy Board requires milk sold from ATMs to be pasteurized, so you’ll need to source your milk from a supplier that sells pasteurized milk.

If you’re planning to sell milk from your farm or source it directly from another farm, you’ll need to invest in a pasteurizer. Gditech makes the best milk pasteurizers in Kenya – if you need one, don’t hesitate to reach out to us for a quotation.

With careful research, planning, and good business practices, you’ll be well on your way to success in the milk ATM business. We hope these guidelines on how to start a milk ATM side hustle business in Kenya in 2023 are helpful, and if you need any dairy equipment – even if you’re looking to start a dairy processing plant – we can provide it for you. Good luck with your new venture!