How to Start a Milk ATM Side Hustle Business in Kenya
The coivid19 pandemic taught us all the importance of having a secondary source of income in addition to our jobs. Few people ever imagined that their secure jobs would become so insecure that they could no longer be relied on to provide food on the table. However, many people found themselves in this situation in 2020. You’re probably one of them, and you’ve been wondering what side hustle you can start that will guarantee you daily clients. We’re going to show you how to start a milk ATM side hustle business in Kenya. The information provided below will assist you in doing so correctly.
How to start a milk ATM side hustle business in Kenya- preparations
Research
Good research on a few topics, as discussed below, is critical to the success of any business.
- Viability
Before starting any business, you should conduct research to determine its viability. Consider the following questions:
- Is it a viable business in your country or region? A milk ATM business, for example, would not be appropriate in a village where every home has high-yielding milk cows.
- Is it legal in your country or in the location you want to visit?
- Can you afford the capital, or can you obtain financing?
- Will it be financially successful?
- Location
Another important factor to consider is the business’s location. Consider the following questions:
- Are there any clients in that area?
- Will clients be able to find your company easily?
- Is there room for growth?
- Is the rent in that area reasonable and long-term for your type of business? It is important to note that some businesses may not be economically viable due to high rent costs.
- Competition
Before starting any business, it is critical to determine whether or not there are other competitors, how many there are, and what their prices are. Avoid entering an overcrowded industry or location with overcrowded competitors.
Unless you are convinced that, despite the many competitors already present, they are unable to meet the product’s demand. In this case, we’re talking about milk, and you should know that, in addition to other milk ATMs, there’s packet milk, which is used by many households.
- Suppliers
Another thing to consider before getting into the milk vending business is where you will get your milk. Ascertain the following:
- Who are the current suppliers?
- How good is the milk they produce?
- What are their jargons? Is there a minimum order amount? What are the payment terms that you must be aware of? Is it, for example, cash on delivery? Do you have to pay in advance? Or do you pay after delivery on a weekly or monthly basis?
- Do they deliver or do you have to go pick up the milk yourself?
- Premises
During the planning stage, you must also determine whether there are suitable premises for the milk ATM business. Ascertain the following:
- Is the location clean and sanitary?
- Is it large enough, but for a small milk ATM business, a large space is not required? It can even be installed in an existing business location.
- Is the premises secure enough that your equipment will be safe from theft while you are away?
- Is there electricity in the building/premises?
- Is there clean water in the building, or can you get it?
- Is the building connected to the sewerage system, allowing you to dispose of the water used to clean your equipment and the premises responsibly?
- Does the building have a washroom?
How to start a milk ATM side hustle business in Kenya- requirements
- Permits and licenses
There are legal licences and permits required, as with any legal business. These may differ from county to county, so it is critical to understand what is required. The best way to find out what is required is to go to the county licensing office and ask. In some cases, in addition to the business permit/licence, you may be required to have a food handling certificate from the Ministry of Health.
- Milk ATM
The ATM is the primary piece of equipment for the milk ATM business. However, not just any ATM will suffice. It must be approved by the Kenya Dairy Board. We can provide you with a KDB-approved milk ATM. All of our ATMs have a one-year warranty. We also install and commission the business at no additional charge.
There is no need to purchase an additional milk holding tank because our ATMs include one. However, some customers prefer to keep their milk in a jerrycan, so you may need to purchase one.
The digital control unit is another feature of our milk ATMs. This is a computerized unit that allows you to sell milk in any amount the customer has. You can adjust the prices to get the desired price per litre.
It also keeps sales records, which you can refer to later when doing sales reconciliation. No one can tamper with the records unless they have the password because it is password protected. As a result, you can confidently hire someone to run the business without your presence.
How to start a milk ATM side hustle business in Kenya- implementation
Now that you’ve completed the preceding tasks, it’s time to get the business up and running. Begin by renovating the business premises to be suitable for selling milk and anything else you might want to add such as snacks, eggs, pastry products such as cakes and bread, and so on. You’ll need shelves, a counter, a locker, and measuring jugs (for when the power goes out and the ATM doesn’t work). Instead of not selling, you can go back to measuring with a jug, for example).
Another thing you should do is raise awareness about your company. You can print simple black-and-white posters and place them in strategic locations where potential clients can see them.
Continue to improve over time as you learn more about the business and receive feedback from clients.
How to start a milk ATM side hustle business in Kenya- Final word
You will undoubtedly succeed in the business of selling milk through an ATM with careful research, planning, and good business practices. Always keep your business premises clean and your milk in good condition.
The Kenya Dairy Board requires that milk purchased from an ATM be pasteurized. This is why you must obtain milk from a supplier who sells pasteurized milk. If you intend to sell milk from your own farm or source it directly from the farm, you must purchase a pasteurizer.
You can begin with a small one and see if it is necessary to invest in a larger one as the business grows. In Kenya, Saset makes the best milk pasteurizers. If you require one these are the manufacturers we recommend. Check out their website www.saset.co.ke or search them on google. You can also visit them in Kimbo Ruiru next to Rubis petrol station.
We hope these tips on how to start a milk ATM side hustle in Kenya above will assist you in starting one today. All the best!