The cost of living in Kenya has shot up in the last decade and continues to be on the rise. This has seen food prices go up everywhere and people are desperately looking for means to sustain themselves. Any means of relief is highly appreciated by Kenyans.
It is no secret that Kenya’s staple food, kales and maize, have also shot up in price. Maize flour prices in the shops are becoming unaffordable as new prices are announced every now and then. There are many factors that contribute to the rise of maize flour which include changes in the transportation sector and regional climate.
Amid all these chaos arise an opportunity that you can capitalize on. Recent research has shown that demand for un-sifted maize flour is high since packed maize flour is proving to be expensive on a commoner’s pockets. You can seize the opportunity and start a posho mill in your local area. Posho milling business can be lucrative if strategically placed. In this article, you will learn on how to set up a successful posho milling business at the lowest cost possible.
Where to start
Every start-up needs to minimize on its spending for the business to grow. When setting up a posho mill, you have to minimize your spending on the machinery.
There are two kinds of posho millers in the market that you can. They both depend on your budget and where your mill will be located.
GM 20” Production of 3–4 bags per an hour 120,000 Electric
GM 20” Production of 3–4 bags per an hour 130,000 Diesel
If the area or spot you plan to set-up your business lacks electricity then it is advisable to buy a diesel powered miller. Electric ones can be used in areas that have electricity. You should survey the area you plan to set up the mill before purchasing a miller. You don’t want to end up with an electrically powered miller in an area that lacks electricity.
It is not advisable trying to install the posho millers by yourself. Let professionals handle this for you. In most cases, the installation is done by the people whom you buy from but in case you find yourself lacking this service, seek help from those who have been in this business before, probably a qualified technician. You might install the miller wrongly which might result in injuries, breakdowns or reduce the space of your premises unnecessarily.
The first step will be identifying a suitable space in the area you intend to set up the posho mill. Make sure the place is well situated near a road for exposure to passersby. Do not go for places where the mill is not visible. If you find a spot that is not next to a road then make sure you put signposts next to a road to direct people to your posho mill.
Space can turn out to be expensive depending on the number of millers and their size you intend to have at the mill. Make sure you look for a place that is strategically placed and affordable. Consider yourself lucky if you nail yourself some space at a junction with busy traffic.
Where posho mills can work greatly
Suburbs — you are likely to run a successful posho mill in the suburbs. Such areas are highly populated and many families living in these areas try to minimize their food expenditure as much as they can. Regulate your price to gain more customers.
Industrial areas — you can set up a profitable posho mill business in an industrial area too. The only disadvantage of setting in such an area is that you will have to source for clients from outside before your business picks. But once people get to know of your posho mill, business will boom.
Up-country — very few people living up-country buy sifted maize flour from shops. Most consume un-sifted maize flour and this makes up-country the best place to set-up a posho mill. The scarcity of posho mills in these areas also makes the market favorable. Expect good business during the time of harvest.
Once the mill is up and running, it is time to add a few things to boost your income. Some of the things you can consider adding in include cereals that you can sell in the front area of your mill. You can as well bring maize to sell to your customers which will see you earn a good profit on every sack of maize sold.
One of the best things about this business is that very little goes to waste. You can still find a market for the left-over from the mill. You can sell the leftovers to animal farmers who can pay a good price for it.
Dealing with competition
If there are is more than one posho mill in your area then create a strategy on how to outsmart your competitors. Delivering good service and charging affordable rates is one way of doing it. The other way is introducing a variety of things. It would be a great idea to have cereals for sale at your mill too.
Originally published at PesaConsult.