Guidelines to Starting and Succeeding in Milk ATM Business in Kenya
Starting a business is always an exciting prospect until you have to put it into action. Many people want to start a business but are unsure how to get started. Unfortunately, many people rush into it without any preparation and become frustrated to the point of giving up. Do not become a statistic. The good news is that you have arrived at the correct location. You have come to the right place if you want to start a milk ATM business. In this post, we will look at some Guidelines to Starting and Succeeding in Milk ATM Business in Kenya.
Guidelines to starting and succeeding in milk ATM business in Kenya- prepare first
Preparation is essential for success in any endeavor. It has been said that preparation meets opportunity, but I believe that preparation leads to success. It is also said that failing to plan is planning to fail, and this is very true. In business, you must plan and prepare thoroughly. So, what steps should you take before starting a milk ATM business? Here are some essential Guidelines to Starting and Succeeding in Milk ATM Business in Kenya.
Do a market research
A market research is one of the most important exercises in the preparation stage, if not the most important. A market research or market survey is the process of analyzing the current market conditions of your product to determine whether you have a chance of success. This is one of the most important steps that many people overlook and thus fail to complete. It determines all subsequent processes.
Because of the following, you must conduct extensive market research:
- Determine competition from similar products- a market survey can tell you how much competition there is for fresh unpackaged milk. Because you will not be reselling branded packed milk, you can tell if others are doing the same.
- To determine competition from similar businesses– it also helps you determine how many milk ATM businesses are near your target location and whether or not they are meeting demand. It is possible that similar businesses exist, but due to the large population, there is a high demand. As a result, you can start a business and still sell all of your milk while having clients miss out.
- To determine whether your target market is a good fit for your product- don’t just assume that they’ll be interested in milk sold from an ATM. There may be no milk ATMs in some upmarket areas, and you may believe you have found a suitable location with no competition, but this is because those people prefer to buy packed milk from the supermarket or shop.
- To determine if your target area has a sufficient population- a market research is also a good way to conduct a census to determine if your target location is well populated. The greater the population density, the greater the market. Pipeline, Kayole, Dagorreti, Mathare, Kibra, and other densely populated areas provide you with a good market because even one street is sufficient for you.
- To reduce risks- When you conduct a market survey, you can learn about the risks involved and how to reduce them. Some of the risks include, but are not limited to: security, a lack of physical amenities, inaccessibility, and so on.
- To determine what gaps exist that you can exploit that your competitors haven’t filled- market research can also help you identify gaps that you can exploit to your advantage. For example, you may discover that opening early and closing late, as opposed to existing businesses, is something you can capitalize on. Others may include, but are not limited to: freshness, selling milk in any amount because you have an ATM and the competition does not, offering non-adulterated milk as opposed to those in the market, and so on.
- To help you plan ahead- Another advantage of conducting market research is that it allows you to know in advance what you will need, how much money you will need, how to scale up the business, and so on.
- To assist you in developing a persuasive promise- a persuasive promise is what you promise to offer your clients that your completions aren’t offering or delivering on as expected. For example, if it is offering unadulterated milk or milk that has been milked within the last 10 hours, etc.
Identify a suitable location and premises
Identifying a suitable location and potential premises that would be ideal for your business is another step in the preparation stage. After conducting market research and obtaining favorable results, locate the best location and identify the best premises that will meet your needs.
Create a business plan.
Even in the milk ATM business, a business plan is essential. It is a written document that outlines the business’s objectives/goals and strategies for running and growing it. It also indicates how you intend to fund the venture.
Guidelines to starting and succeeding in milk ATM business in Kenya- requirements
- A high quality milk ATM
This is the most crucial piece of equipment you will purchase. It is your primary business machine, and it must function properly. That is, you must obtain it from a reputable manufacturer. One of the best milk ATM manufacturers that we recommend without reservations whosoever is Saset Ltd. They are unrivaled in the production of high-quality milk ATMs. This is not a cliche, but rather the truth. They’ve been in business since 2015 and are arguably the largest sellers of milk ATMs in Kenya in terms of volume.
Client referrals and repeat business demonstrate that they are the market leaders in the manufacture of milk ATMs in Kenya.
- Ministry of Health food handling certificate
This is a critical requirement for you to run this business. You can obtain it from a health center that has been approved by your county government.
- Kenya Dairy Board milk vending license/certificate
This is an additional requirement. It is available from Kenya Dairy Board (KDB) offices in your county.
- Business license/permit
Another license that you must have is a business permit, especially if you are starting a new business of selling milk. However, if you are installing a milk ATM in an existing business, you can use the existing business permit and only add the two items listed above.
- A dependable milk supplier
This is also one of the most crucial factors that can make or break your company. Make sure you find a dependable supplier who will provide you with high-quality milk, i.e. uncontaminated and unadulterated milk, and who will deliver on time. Failure is the unavoidable result of failing in this area.
Clean water source
In this industry, clean water is critical. Clean water is required for washing the ATM, storage tanks, containers used to handle the milk, and the premises. The water must be extremely clean and safe to drink. This ensures that the milk is not contaminated.
Optional
Other optional items that you may require but are not always required:
Milk pasteurizer- this is useful if you get your milk from farmers or a dairy cooperative since the milk is usually not pasteurized because it is sourced and transported directly. On the other hand, it is a requirement by KDB for milk sold in an ATM to be pasteurized. You will therefore need one instead of boiling the milk in the traditional way, which has its own drawbacks.
Milk chiller- A milk chiller stores excess milk at very low temperatures, preventing the bacteria that causes it to spoil from becoming active. This is only required if you have too much milk that will not fit in the ATM’s own storage tank, which is usually cooled by the ATM’s own cooling system.
Growth and expansion guidelines for starting and succeeding in the milk ATM business in Kenya
You need to know how to grow your business now that you’ve started and established it. There are several ways to boost growth and expansion:
- Including milk by-products such as mala or yoghurt. You can use some of the milk to ferment mala or make flavoured yoghurt if you have the skills, or you can hire someone to do it or learn how to do it.
- Another option is to add more products such as bread, cakes, and other pastries. These are the items that are most likely to be purchased by those who come to buy milk.
- You can add more branches if you want to expand. Because you have experience and a good understanding of how this business works, adding a few more branches in different locations will be a great direction to take this time. Some businesses have done this and succeed because they established a good reputation.
Final word
It is our hope that the above guidelines on how to start and succeed in the milk ATM business in Kenya will assist you in starting and succeeding in this business. The guide is not exhaustive, and there is always room for additional research to determine how to proceed.
Get a high quality milk ATM from us
If you are in the market for a good quality milk ATM then you don’t need to look any further. Get in touch with Saset Ltd. They are the market leaders in making milk and salad ATMs. Their website is www.saset.co.ke.
You can also visit them at Ruiru, Kimbo toll bus stage next to Rubis petrol station. Check them out on google maps for directions.