You are on the street walking around and your attention is caught by a Popcorn vendor outside some shopping mall.
You can’t resist the urge to go get a packet, can you? I know you can’t.
How many other people do you think could not resist the urge while passing by this vendor? So many I tell you.
And that’s not all, people also buy popcorns to munch while watching movies, to munch at birthday parties, or as an alternative for sugary snacks.
In brief, Kenyans are mad in love with popcorns.
The demand is so huge yet some of us trash it for its coins.
But whoa unto them and I tell you… Hahaha… Did you see what I did there? In 2020 this could yet be another profitable business that you start to be counted among profitable business owners of this decade.
Before you jump to it though, here’s some useful information to help you with the ropes.
- Where is the best place to locate your Popcorn business?
- How much capital is exactly needed to start the popcorn business?
- How much profits will you earn?
- What other requirements must you meet? All this and more is covered in this post.
How to start a profitable popcorn business (Location).
A high traffic site like a busy street in town is the most suitable place to locate your business.
Other preferred places include entrances to malls, supermarkets, and major stores because these are places where most people are likely to visit.
People in rural areas may not be so much into snacking as compared to urbaner.
Your Popcorn business would then rather be in town than in a rural setup. You will realize more serious sales in an urban set up than the former.
Popcorn Business Equipment and Other Requirements.
Necessary actions you must intentionally take for the success of your Popcorn Business include the following:-
- If I say Market Research always comes first, you will say it’s a cliché – it actually isn’t. Do your market research and in so doing, spot a market gap that you can fill with your Popcorn Business. If you don’t, you might as well trap yourself in a losing business and you will be to blame for not doing your homework – market research.
- Look for space – along that busy street, you need some space, not necessarily a shop, but some kind of a space which is in the open so that you are visible to everyone passing by. You can partner with a big supermarket, mall, or restaurant so that you will locate your Popcorn Business just close to their entrance so that everyone passing or entering the outlet can spot you and buy. This space may cost you about Ksh.2,000.
- Acquire the necessary licenses – if you are operating independently, you have no option but to get licensed. If you are operating under cover of a bigger business like a supermarket or a mall, licensing may be overlooked but to be safe, get licensed. You need these two licenses: County Council Single Business Permit – Ksh.5,000 or more per year depending on your county. Food handlers’ Certificate – Ksh.3,000 per year.
Acquire the Popcorn Maker – the Popcorn Maker may cost you about Ksh.30,000 – Ksh.40,000 from major outlets like supermarkets and online stores like Jumia and the like.
- Assemble the following necessary equipment:
- Chair / Stool – you may need to sit once in a while.
- Table – for placing the popcorn maker.
- Serving equipment – something for scooping the popcorns because you won’t do that with your bare hand.
- Packaging bags – small and huge bags for packaging popcorns for customers.
- Popcorn seeds – these may cost about Ksh.35,00 for a bag of 25Kg.
Start your Popcorn business:
- Marketing is inevitable for success, so market your Popcorn business both locally and afar.
- Maintain high levels of hygiene because you are handling a food product which can turn out to be a serious health hazard.
- Offer customers a good service and relate well with them to retain and gain more recommended by them.
Interested in Starting this Business? Here’s the Capital Breakdown.
Did you take note of how much was spent in setting up the business? Let us see:
- Space – Ksh.2,000
- Licenses – Ksh.8,000
- Popcorn Maker – Ksh.30,000
- Popcorn Seeds – Ksh.3,500
- Furniture and other equipment – Ksh.5,000
- Marketing and other costs – Ksh.2,000
You realize that you will require about Ksh.50,000 to set up your Popcorn Business.
How Profitable is a Popcorn Business in Kenya?
A small packet of Popcorn goes for Ksh.10 – Ksh.15.
Make and sell 1,000 such packets a day, each going for Ksh.15 and you will make Ksh.15,000 that day.
You will only need 4 such good days to return your invested capital and then go on making more money. You may even consider setting up other Popcorn Businesses in other places as you grow your empire.
In conclusion, Popcorn Business is among the most profitable ventures in Kenya today. It is worth considering your investment options? The decision is yours to make.