Introduction.
In this article, you will learn how to start a nuts and dry fruits business from home or over a small storefront. If you are thinking of starting a small business and tirelessly searching for easy home businesses which are not like pet care, or home cleaning types of business, then you have landed in the right place. Read This First, a well-stuffed and meaningful business idea.
I find this business Idea apt for the global market hence using the USA context so that NRI can learn about it, however, this business can be started anywhere in India without any changes to the concept. People living in Assam can also try this business to cater entire Northeastern states, …enjoy reading
Starting a business is a huge undertaking, and there are a lot of things you need to consider before taking the plunge.
If you’re thinking of starting a nuts & dry fruits business, there’s a lot you need to know before getting started. In this article, we will highlight some of the key things you need to think about before starting your business, from finding the right supplier to understanding the regulations. By the end of this article, you’ll have a better understanding of what it takes to start a successful nuts & dry fruits business.
Hope you are aware of nuts and dry fruits, still, let me give a brief description. The variety of nuts and dry fruits varies from country to country. In the global context following are the assortments of nuts and fruits that are most popular.
Nuts
- Almond
- Brazil Nuts
- Cashews
- Hazelnuts
- Macadamia
- Peanuts
- Pecans
- Pine nuts
- Pistachios
- Walnuts
Dried Fruits
- Apricot
- Apple
- Banana
- Blueberries
- Cantaloupe
- Cherries
- Coconut
- Cranberries
- Figs
- Kiwi
- Mango
- Papaya
- Pineapple
- Resins
Market for nuts and dry fruits
The global market (Consumption) is dominated by North America and Europe, these two regions account for 46% consumption of overall global dry fruits production. It is estimated that the current 8.9 billion USD market will grow to 16 billion USD by the next ten years. It is obvious North America and Europe will contribute the most.
According to research, the global per capita consumption of dry fruits is low. However, companies involved in this trade are seeing increasing revenue on a year-on-year basis. The growth drivers are rising disposable income, health awareness, and online retailing. Another key factor is snacking on the go, which is acting as a catalyst for changing habits and resulting in increased consumption of dry fruits.
Supply sides
So, now we know the demand side is getting strong gradually. But, what about the supply side? Grocery shops and online platforms are the only routes. And, these two routes are not so efficient for varied reasons, grocery has concerns about variety, and availability, on the other hand, online suffers from its demerits like time and intangibility.
You can source these nuts and dry fruits from various B2B E-commerce business houses, the one I know is Wholesale Nuts and Dried Fruits for USA market, in India one can check with Shreeji Foods
Business Model
Nuts and dry fruits business from home.
Condition 1: You will start the business from home and keep the initial investment on the lower side.
Condition 2: You will venture into the market in two mediums and keep the business activity restricted to a small territory.
Mediums
- Exclusive retail placement
- E-commerce
With this the volume of business will also be limited, be ascertain of your investment capacity and deploy an inventory at 80% of invested capital, the rest you must keep for other activities that I will explain later.
In any retail business, the most important aspect is to gauge the demand. And when it is a food-based venture, the demand will depend on the local food habits. Keeping this logic in mind you need to do a thorough survey to identify the product mix you will keep. To get a fair idea you must visit big retail shops to understand the fast-moving categories. Also, you must talk to your neighbors to understand the same.
Once the product mix is decided, the next step is to procure. As I have already written, you may procure online.
Things you must keep in mind
Before you start a nuts and dry fruits business from home.
For each product, you need to decide a selling price that will allow you to be a competitor in the market (Wrong pricing will through you out of the market). There are a variety of methods to determine the price.
For a new home-based business, the most effective pricing strategy is to consider cost and current market selling price. So, I suggest you apply this methodology to this nuts and dry fruits business from home model.
Let me give an example.
In your research, you find the average retail price of a 15-ounce packet of Pistachios is 20$ per unit (SKU). And you know the cost of goods sold will be 15$ for a unit i.e. raw material, packaging, and direct labor.
[Cost of goods sold does not include rent, advertising, distribution, or management salary. As we are into a home-based business model, considering only the related heads]
Now you have a 5$ margin which is the share of you and the retailer.
You have calculated 1$ as the marketing, rent, and distribution cost per unit. [These are 20% of your investment for 3 months]
Your target is to keep 10% profit per unit, i.e. 2$ on 20$ MRP.
Your competitor gives a 10% margin to retail, i.e. 2$ that you will follow.
Now you are better positioned to decide monthly volume and can easily calculate when your dry fruits business from home will hit break even.
I think the above narratives have given a good enough clue on the dry fruits and nuts business; Keep reading to know how you will bring the model into a reality.
Steps to follow
To start dry fruits business from home.
Let me explain stepwise so that you can understand how you can start a dry fruits business from home. But before that, I must consider that you are done with the following points.
- You have set the target market [Geography and demography]
- You have identified the fruits & nuts that have demand in the targeted market. (Single Item pack + Assorted Items pack)
- You have identified the procurement source.
- You have identified the volume of initial procurement.
- You have decided on the pricing.
Steps to start dry fruits business from home
- Arrange a cool, dry, and out-of-the-sun space in your home (Not less than 100 SqFt floor area).
- Arrange medium size airtight containers that can hold a minimum of 350-ounce fruits and nuts.
- Arrange packaging basis your SKU selection. [There are lot many online suppliers who supply customized packages, like Vista Prints, Printo in India]
- Arrange marketing material for placement in retail shops like standee [These are also available online; you just need to share graphics]
- Decide on digital marketing strategy [Better you outsource this activity unless you are an expert in digital marketing]
- When you are ready with the SKUs place them in retail shops and start digital marketing for home delivery.
- Continue this process for at least 90 days. You may not get an immediate response but if you continue working hard and go on correcting the faults you ought to get a good response by the end of 90 days.
Must know before you start a dry fruits business from home
During these 90 days, you should never fall short of supply. Hence, decide on a re-order point and maintain that precisely.
The benefits of starting a Nuts & Dry Fruits Business
The benefits of starting the nuts & dry fruits business are numerous. For one, the business is relatively easy to start up and requires very little capital. Additionally, there is a large potential customer base for this type of business, as nuts and dry fruits are healthy snacks that are popular with people of all ages. Furthermore, the business can be run from home, which can save on overhead costs. Finally, as the business grows, there is the potential to expand into other cities.
Store guideline [Optional]
This dry fruits business can be started from home as well as with a small storefront, depending upon your investment capacity decide what models suit you best. No doubt, doing it from home can save a lot of money [The cost of setting up a storefront] but having a retail store has its advantages like building awareness quickly, a professional look, and extra sales from walk-in customers.
List of things that will cost you to open a retail store [ Collected from various internet sources]
- Rent per SqFt
- Onetime deposit
- Interior [Decor, Lighting, and Branding]
- Exterior [ Frontage, Branding, and Lighting]
- Permits and Lisense
- Parking renovation [If required]
- Washroom renovation
- Shelves and storage
- Bill desk
- Billing gadgets and software
You may also want to know more about a retail store, read the articles.
Conclusion
There are a few key things you need to keep in mind if you want to successfully run a nuts and dry fruits business. First, you need to have a good understanding of the market and the products you’re selling. You need to know what your customers want and how to reach them. Secondly, you need to have a good business plan. This should include your marketing strategy, your financial projections, and your operations plan. Lastly, you need to be organized and have good communication skills.
Hope you have understood the dry fruits business from home model. If you have any queries, you can write to me.
Best of luck!
