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How to Setup Ice Block Making Business in Nigeria

Ice block making

The other day I was in Lagos traffic under this scorching hot sun and anyone staying in Lagos knows how frustrating this can be.

I was very thirsty and my face was turning left and right looking for water to buy. Sweat was all over my body.

At last, I heard “water here” and as I was about to call the boy, two other passengers called him first.

About five of us on the bus bought water from the boy and the water was cold and chilled.

Now imagine how terrible it would be if the water was not cold but the ice block did the magic.

So in this post, you will learn how to set up an ice block-making business here in Nigeria.

Let’s jump into it.

Contents

  • Why you should set up an ice block making business
  • Steps of setting up the business
  • Profitability in running an ice block business
  • Conclusion

Chapter 1: Why You Should Setup Ice Block Making Business

The ice block business can generate a lot of money monthly if done and managed well. It involves the producing and selling of ice blocks to customers for their daily business or use.

However, due to the unstable power supply in the country, the following set of people are in constant need of ice block and that should be why you set up the business:

  • Event planners: Those that can’t afford to own a cooling van will need an ice block to chill drinks at events.
  • Traffic drink sellers need ice blocks to keep the drinks chilled for customers.
  • For home use: Used by those who can’t afford big generators to preserve their food, drinks, meats, etc.
  • Medical stores that want to preserve some drugs.

Chapter 2: Steps of Setting up the Business

1: Planning

To start this kind of business you have to carry out a feasibility study to have an insight into the market. This entails asking questions if possible, potential customers who use ice blocks daily for their business how much they buy.

This study will make you more knowledgeable about the market, your competitors, pricing, and help on how to be the top player in the business.

2: Capital

You need money to venture into the business to be able to purchase some machines and other equipment needed for the business.

You can raise the capital with your savings, if possible ask family and friends for a loan.

You need this money for rent and to run the business. However, bear in mind that the amount depends on your location as well.

3: Location

Location matters in every business. You need to set up the business in an area that has your potential customers and where there’s a reasonable power supply to minimize the money you’ll spend on fuel.

Also, the place must be easily accessible by people. Where anyone, especially street hawkers can dash in to buy ice blocks for their drinks on sunny days.

You will be able to know all these after a detailed feasibility study, so don’t overlook it. Because that’s where the success or failure of a business starts from.

4: Equipment

You need the following equipment:

  • Generator (leister): For a steady power supply to produce the ice blocks.
  • Water: A source of water or if possible dig a borehole.
  • Nylon for ice block: You can buy a nylon cutting machine to process the nylon yourself. Or you meet those into the business and negotiate with them to supply you at a reduced price.
  • Block making machine
  • 2.5kva stabilizers
  • At least 2 compressors

TIP: I recommend you use slow defrost freezers such as thermocool HTF-319H freezer or 300-liter size West Ministers. These two can preserve ice blocks much better, making them stay longer without melting.

Also, know that block-making machines freeze much faster in cold weather, especially during the rainy season. Install them in a shaded airy place to help in freezing the water faster.

If the machines are installed in an enclosed space, make sure that the space is well ventilated to afford them developing a fault.

5: Marketing

To succeed in this business, you must be in the art of marketing. Marketing will help create more awareness for your business.

I recommend the following strategies:

  • Print banners and hang them in strategic places where people will see them. These banners must have your business name, address, phone number printed on them.
  • Distribute flyers around the environment.
  • Offer excellent customer services and sell quality ice blocks.

TIP: You can be doing home and shop delivery. This is a strategy to boost your sales.

Chapter 3: Profitability in Running an Ice Block Business

The business is a profitable one that you can do and be earning reasonable income daily and can also be an employer of labor.

Let’s do these little mathematics for you to know how profitable the business is:

Let’s assume you produce 400 ice blocks daily.

One ice block = N100

In a day you sell 300 out of the 400 ice blocks produced.

Now 300 (sold) × 100 (one ice block)

= N30,000

Let’s say that N10,000 is for expenses such as buying fuel, nylon, transportation, and miscellaneous expenses.

You’re left with N20,000 in a day as profit.

You sell to customers from Monday to Saturday

In a month, you’re left with 25 days

20,000 × 25 days

= N500,000 in a month.

However, understand that in some months you might make more sales than what we analyzed above, especially during the dry season. And sales usually drop in the rainy season as well.

Conclusion

In this post, you have seen how to set up an ice block business and the equipment to purchase for it.

So I’d like to hear your thoughts about starting this business and how you plan to grow it in the comment section.

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