The 6 Most Important Factors to Consider Before Starting a Cooking Oil ATM Business In Kenya

Planning is essential for any successful business. No matter how straightforward it might seem, you must be well-prepared by making sure everything is in order. Even a mama mboga (roadside stall) needs to have a location, inventory, and everything else needed to get the business off the ground successfully. This article is for you if you want to establish a business selling salad cooking oil ATMs. We’ll examine the 6 most important factors to consider before starting a cooking oil ATM business in Kenya.

The 6 most important factors to consider before starting a cooking oil ATM business in Kenya

Business plan

Definition of a business plan

According to Wikipedia, a business plan is a formal written document that includes the objectives of a company, the strategies for achieving them, and the timeline for doing so.

A business plan is a written document that specifically outlines how a company—typically a startup—defines its goals and how it is to go about accomplishing them, according to Investopedia. A business plan outlines a documented strategy for the company’s operations, finances, and marketing.

According to the two definitions, a business plan is a written document that aids in developing a strategy for starting and operating a business. Therefore, be sure to create one.

Target client

Knowing who your target consumer is is crucial for business. Don’t just cast your net into the water and hope to catch something when you go fishing. Market research can help with this. To determine whether your target clients are likely to purchase, you must do a market survey. Find out if they prefer to get cooking oil from a store or if they are more inclined to buy it from an ATM. This makes it easier to decide where to launch a business.

For instance, it’s unlikely that people in leafy suburbs like Kilimani, Karen, Muthaiga, and Lavington would purchase cooking oil from an ATM. They favour purchasing the pricy brands from the grocery store. However, residents of places like Kisumu Ndogo, Kibera, Kiandutu, Kawangware, Mathare, etc will probably use the ATM to make purchases.

Location

Although location is strongly tied to the points mentioned above, you also need to consider how accessible your business’s building is. Even if the rental is less expensive, avoid setting up the business in a difficult-to-access location. With a business that is situated in a location that is more accessible to people, you stand to make more sales.

Competition

You should evaluate whether there are too many competitor businesses in your desired location. Even though there might be numerous businesses in that area, the demand could be so great that not even the ones that are already there can meet it. The benefit of populous neighbourhoods like Kibera, Kwangware, Kayole, Pipeline, etc. is that you can have a substantial customer base even if you only target one or two streets. However, it’s crucial to remember that there is a maximum level beyond which it is unsustainable.

Stock Source

The source of your merchandise is one of the crucial elements of a business that must be well-established because it affects whether it will survive. Who provides the stock to you? To avoid being inconvenienced in the event that one of your stock suppliers is unable to deliver for any reason, you must have multiple stock suppliers. In order to sell customers salad oil that is safe for their health, the supplier must also stock high-quality cooking oil.

Startup expenses

The amount of capital required is a crucial factor to take into account before launching a salad cooking oil business. The expenses you will have are determined by a number of factors. Check them out below:

The price of buying salad oil ATM

This is the major piece of equipment you will be purchasing. You should be very careful to pick a manufacturer who has a track record of producing cooking oil ATMs of the highest calibre. We at Gditech are the top producers of premium salad oil ATMs in Kenya. To examine the prices of our products, you can ask us to send you a catalogue.

Cost of leasing the commercial space

The price of leasing the space should be taken into account as well. The majority of renting spaces in Kenya are paid for monthly, but you must start with at least a two-month deposit, if not more. This could cause a huge increase in the startup costs for the business.

Premises renovating expenses

Sometimes a property has to be renovated. If any renovations are required, think about how much they will cost. You might not need to do many improvements if you’re just planning to sell cooking oil. However, adding additional products would undoubtedly necessitate improvements, which will cost money.

Licensing & permits required

You require licences and permits from the county council to operate a legitimate business in Kenya. The majority of the time, licences and permits for small enterprises are not expensive, but it is still necessary to take the cost into account. To find out what licences are required, how much they cost, and how to pay for them, visit your county offices.

Price of stock

The cost of the stock is a further significant expense that needs careful planning and organization. The salad oil must constantly be kept in sufficient supply to prevent unexpected shortages. To ensure that business operations are unaffected, we propose that you have stock that can last at least a full week. Then make sure you replenish what you are selling on a weekly basis by restocking.

Tip: The 6 most important factors to consider before starting a cooking oil ATM business in Kenya mentioned above apply to practically all other businesses as well, not only a salad cooking oil ATM business. We hope you have the knowledge you need to launch your cooking oil resale business at this point. We hope your new endeavour is a success.

Are you considering starting a cooking oil ATM business? Buy the highest quality salad ATMs in Kenya from Gditech

Get in touch with us right away if you’re interested in beginning a salad cooking oil ATM business and require a high-quality cooking oil ATM. You can contact us by calling, texting, emailing, leaving a comment, or filling out the contact form. If not right away, we will contact you as soon as we can.