Homemade Peanut Butter Production and Sales Business
Type: Production/Sales
Key product/s for sale: Homemade peanut butter in various flavors, packaged in 100gm, 250gm, and 500gm jars.
Technology considerations: Utilize basic kitchen appliances such as food processors and packaging equipment.
Market for the product/s: Targeting low to middle-income earners, focusing on affordability and quality.
Key inputs into the business:
Raw peanuts
Salt, sugar
Cooking oil
Jars for packaging
Product preparation process: Roast raw peanuts, blend until a creamy texture, add oil, salt, and sugar, package, and label.
Quality considerations: Consistent product quality is essential for building trust among consumers and ensuring repeat purchases.
Cost of investment:
Raw materials (peanuts, salt, sugar, oil): Variable cost depending on market prices
Packaging materials (jars): Cost varies based on quantity and size
Labor: Initial investment in labor training and ongoing wages
Equipment: Food processor, packaging equipment
Total Initial Investment: Variable, depending on scale and equipment quality
Required operational infrastructure:
Production area with access to electricity and water
Storage space for raw materials and finished products
Most suitable or viable location of the business: Accessible location for production and distribution, considering proximity to target market and supply chain efficiency.
Potential sources of investment capital: Personal savings, microloans, grants, or investors interested in food production businesses.
Requirements for effective management:
Efficient supply chain management to ensure timely access to raw materials
Proper inventory management to meet demand fluctuations
Marketing and sales strategies to maximize product reach and profitability
Role of mobile phone and ICT in the business: Utilize mobile phones for communication, order management, and customer feedback collection, and explore digital marketing channels for promotion.
Statutory regulations and licenses: Obtain necessary licenses for food production and adhere to food safety regulations to ensure compliance and consumer safety.
Pricing: Competitive pricing is based on production costs and market demand, with considerations for affordability and profit margin.
500gm jar priced at Ksh450, 100gm jar priced at Ksh80 minimum.
Profitability: Profitability depends on production costs, pricing strategy, and market demand, with potential for growth and expansion based on effective management and market penetration.
Next steps to take:
Register the business and obtain the necessary licenses.
Purchase equipment and raw materials.
Set up production area and commence operations.
Implement marketing and sales strategies to reach target customers and achieve profitability