How to Make Money With a Cooking Oil ATM
Have you been researching for ways to make extra money with a low risk business that is less involving? Many people in Kenya have been going through difficult financial challenges because of the ever increasing standards of living but income isn’t increasing with same rate. One of the main reasons for this struggle is because our economic growth does not correlate with the increasing standards of living. This has weakened Kenyans spending power because the situation has left many Kenyans with little disposable cash.
To overcome this challenge many have desired to have an extra source of income and that’s where we come in. In this post we will be sharing how to make money with a cooking oil ATM. Let us see how you can go about it below.
How to make money with a cooking oil ATM- preparations
Before venturing into any business, it is highly advisable you do a market research. A market research is meant to help you know whether it is a viable business to venture into or not. It has several advantages:
- Helps you identify if there is need/ready market for your product or service. Here you are trying to identify if the target market are the right people to target. For example in a upmarket residence of well-to-do residents like those living in the leafy suburbs of Lavington, Karen, Muthaiga etc. would not be an ideal location for setting up a cooking oil ATM business. These are people who buy expensive brands in bulk in the supermarket. You are better off setting such a business in estates like Kayole, Pipeline, Kawangware, Githurai etc. These are areas where you are likely to find the right clients.
- Helps you learn about the existing competition. The other advantage of doing a market research is that it helps you know about the existing similar businesses strengths and weaknesses. You will be able to evaluate whether you stand a chance or even if it’s worth setting up in the same location or would you rather go somewhere else where there’s less competition.
- Learn about unexploited opportunities you can leverage on. A market research helps you gain insight about the current state of the market and in doing so you can identify unexploited opportunities you can leverage on.
- Helps you know if there’s enough client base. When doing a market survey, analyse how well the target area is populated. A densely populated location like the aforementioned areas is what you should target. It gives you a large pool of potential clients within a small geographical area. This means even if you were to set up in a location where there are already existing similar businesses, you stand a chance because the existing businesses might not be satisfying the market. Also with a densely populated area you still get clients who might not be satisfied with the services of existing businesses or those who just prefer to buy from businesses nearest to them.
After doing a market research and you are confident that your business stands a chance of good success, it’s now time to come up with a business plan. A business plan is a written roadmap showing the objectives and strategies of operating your business and fulfilling those objectives. It shows sources of funds, marketing strategy, goals like breakeven point, growth and expansion etc.
Business location identification
This is a major determinant of business success. It can mean the success or failure of your business. Identify the right location giving the following great importance:
- Visibility- it’s simple; if your business is not visible no one will come to buy your products even if you sell the best and most affordable. Be at a place where it’s very conspicuous.
- Accessibility- visibility isn’t enough if no one can’t access it. For example you could be visible from a busy street but either your shop is on top of a residential building or people have to use a back door that is a long distance away. That will not help you in any way.
- Foot traffic- for any shop that sells consumer goods like cooking oil, you should be located where there is good foot traffic. This helps you attract people on their way home or when going to shop for other items like groceries and/or daily house consumables.
- Public amenities- the location should also be well served with public amenities like roads, electricity, water, good drainage etc. These ensure smooth running of the business and attracts both clients as well as other businesses. Clients tend to frequent where businesses are concentrated.
Business premises renovation/modification- optional
This is optional because you could be moving to a premises that is well set up for your cooking oil ATM operations. Alternatively you could be just adding the ATM to an existing business that needs no more modifications. However if it’s a new building or the premises is just open space, you will need to do some renovation/modification to enable you serve the clients well.
How to make money with a cooking oil ATM- requirements
Now that you have done the necessary preparations, you need to get the requirements. The following are some of the things you require:
Any legal business in Kenya must have a business permit\licence. If you are starting out from scratch with the cooking oil ATM you definitely need a business permit because operating unlicensed business in Kenya is a criminal offence.
However if you are adding the salad oil ATM to an existing business like a shop you don’t need an extra licence for that. Of course there are other businesses that might require an extra licence like adding a milk ATM.
Cooking oil ATM
This is the most important equipment you need for this business and one you will be investing most money in compared to the other requirements. However it’s a very affordable equipment. Phymac Ltd sells best quality KEBS approved salad cooking oil ATMs.
Another aspect of your business you need to get well is your suppliers who can also make or break your business. Find a reliable supplier who can always supply you on time and also gives you good quality cooking oil. As a rule of thumb, always have enough buffer stock to caution you even if there’s delay in supply. However as experts’ advice; cash flow is more important than profits so make sure you haven’t tied so much of your money in stock and are unable to take care of the day to day overheads of your business.
How to make money with a cooking oil ATM- final word
Starting a salad cooking oil ATM business is not a complicated or capital intensive undertaking. Anyone with less than Ksh 100,000 can start from scratch and if in the right location be making at least Ksh 15,000 profit per month after expenses. This is a good extra income that can go a long way in reducing pressure on your main income source.
We hope the above guide on how to make money with a cooking oil ATM will be of great help to you. It might not be the most comprehensive guide and you can always add to it. As you gain more insight when operating the business you can use the experience to expand your business by opening more branches.
Buy a cooking oil ATM from us
As said earlier, Phymac Ltd is a KEBS approved manufacturer of salad cooking oil ATMs. If you are looking for a top quality cooking oil ATM get in touch with us today. You can call us, WhatsApp us, email us, fill the contact us form or leave a comment here below.
Alternatively you can visit our showroom in Ruiru Kihunguro bust stop next to Shell petrol station Kihunguro. Follow the google map pin at the footer of this page or search Phymac Limited on Google.