Guidelines to Starting and Succeeding in Milk ATM Business in Kenya

Guidelines to Starting and Succeeding in Milk ATM Business in Kenya

Guidelines to Starting and Succeeding in Milk ATM Business in Kenya

The idea of starting a business is always exciting until you have to put it into action. Many people want to get into a particular business but don’t know how to go about it. Unfortunately many just leap into it without preparations and find themselves frustrated to the point of giving up. Don’t be part of this statistic. The good news is that you have come to the right place. If you have been desiring to start a milk ATM business you are at home. We will be looking at guidelines to starting and succeeding in milk ATM business in Kenya in this post.

Guidelines to starting and succeeding in milk ATM business in Kenya- prepare first

Success in any venture requires preparation. It’s said preparation meets opportunity but I say preparation leads to success. It’s also said failure to plan is planning to fail and that is so true. In business you need to plan and prepare well. So what preparations do you need to do before starting a milk ATM business?

Do a market research

A market research is one of the most important exercises if not the most important in the preparation stage. A market research or market survey is the process of analysing the prevailing market conditions of your product to help you know if you stand a chance of succeeding. This is one of the most important steps many people fail to do and end up failing. It determines all the succeeding processes.

You need to do a comprehensive market research because of the following:

  1. To determine competition by similar products- a market survey helps you know how much completion is there for fresh unpackaged milk. Because you will not be reselling branded packed milk, you are able to tell if there are others offering the same.
  2. To determine competition by similar businesses- it also helps you determine how many milk ATM business are around your target location and if they are meeting the demand. It could be possible there are similar businesses but due to the big population, there is a big demand. You can therefore venture into the business and still manage to sell all your milk and even have clients missing out.
  • To determine if the target market is suited for your product- don’t just assume that your target market will be interested in milk sold from an ATM. In some upmarket locations there could be no milk ATMs and you may think you have found a suitable location with no competition but in reality it’s because those people prefer to buy packed milk from the supermarket or the shop.
  1. To determine if there is enough population in your target area- a market research is also a good way of doing a census to know if your target location is well populated. The bigger the population that is densely scattered, the more the market. Densely populated places like pipeline, Kayole, Dagorreti, Mathare, Kibra etc give you a good market because even one street is sufficient for you.
  2. To minimize risks- when you do a market survey, you are able to know the risks involved and how you can minimize them. Some of the risks might include but not limited to: security, lack of physical amenities, inaccessibility etc.
  3. To determine what gaps are there you can exploit that your competitors haven’t filled– a market research also helps you know the gaps that are there that you can exploit to your advantage. For example you may find opening early and closing late as opposed to the existing businesses is something you can exploit. Others may include but not limited to: freshness, selling milk of any amount because you have an ATM and the competition doesn’t have, offering milk that is not adulterated as opposed to those in the market etc.
  • To help you plan ahead- another advantage of doing a market research is it helps you know in advance what you will require, how much money you need, how to scale up the business etc.
  • To help you come up with a persuasive promise– a persuasive promise is what you promise to offer your clients that your completions isn’t offering or delivering on as the clients would expect. For example if it could be offering unadulterated milk or milk milked not more than 10 hour prior etc.

Identify a suitable location and premises

Another step in the preparation stage is identifying a suitable location and potential premises that would be ideal for your business. After doing a market research and the results are favourable, now find the right location and identify the best premises that will serve your needs.

Come up with a business plan

A business plan is a very important document even in a milk ATM business. It is a written document that puts down the objectives/goals and strategies of running and scaling up the business. It also indicates how you will fund the start-up.

Guidelines to starting and succeeding in milk ATM business in Kenya- requirements

  • A high quality milk ATM

This is the most important piece of equipment you will be investing in. It is your main business machine and one you must get it right. Which means you must get it from a reliable manufacturer. When it comes to making top quality milk ATMs, we are second to none. This is not just a cliché but the reality. We have been in this business since 2015 and we are arguably the biggest sellers of milk ATMs in Kenya in terms of numbers.

The client referrals and return customers is proof that we are the market leaders in the manufacturing of milk ATMs in Kenya.

  • Food handling certificate from the ministry of health

This is a key requirement for you to operate this business. You can get it from your local government health center approved by your county government.

  • Kenya Dairy Board milk vending certificate/licence

This is also another requirement. It can be gotten from Kenya Dairy Board KDB offices in your county.

  • Business permit/licence

Another must have licence is the 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 current business permit and just add the aforementioned 2 only.

  • A reliable milk supplier

This is also one of the most important aspects that can make or break your business. Ensure you identify a reliable supplier who will be supplying you with good quality milk i.e. Uncontaminated and unadulterated milk and one who delivers on a timely manner. Failing on this aspect has one sure result; failure.

Clean water source

Clean water is very important in this business. You need clean water for washing the ATM, storage tanks, containers you may use to handle the milk and also for washing the premises. The water has to be very clean and that which is safe to drink. This ensures that the milk will not be contaminated.

Optional

There are other optional items you may need but sometimes might be necessary:

Milk pasteurizer- this is helpful if you source your milk directly from the farmers or a dairy cooperative. Since the milk is directly sourced and transported, it’s usually not pasteurized and since it’s a requirement by KDB for milk sold in an ATM to be pasteurized, you will need one instead of boiling the milk in the traditional way which has its own disadvantages.

Milk chiller- a chiller helps in storing excess milk at very low temperatures that prevent the bacteria that makes it go bad from being active. This is only necessary if you have excess milk that cannot fit in the ATM’s own storage tank which is usually cooled by the ATM’s own cooling system.

How to Start a Milk ATM Business in KenyaGuidelines to starting and succeeding in milk ATM business in Kenya- growth and expansion

Now that you have started and established your business you need to know how you can grow it. There are a few ways of enhancing growth and expansion:

  1. Adding milk related by-products like mala or yoghurt. You can decide to be using some of the milk to ferment it to mala and also make flavoured yoghurt if you have the skills or hire someone to do it or teach you how to do it.
  2. Another option is to add more products like bread, cakes and other pastry products. These are items most likely to be bought by those coming to buy the milk.
  • When it comes to expansion, you can add more branches. It will be much easier for you this time because you have experience and good knowledge of how this business works therefore adding a few more branches in different locations will be a great direction to take. I have seen some businesses do this and succeed because they built a good name for themselves.

Final word

It’s our hope that the above tips on Guidelines to starting and succeeding in milk ATM business in Kenya will help you start and succeed in this business. The guide is not the most comprehensive and there’s always room for more research to know how you can go about it.

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. We are the market leaders in this business. Get in touch with us today to place an order. You can reach via WhatsApp, call, email, filling out the contact form or leaving your comment on the comment box. We always respond promptly.

You can also visit us at Ruiru, Kimbo toll bus stage next to Rubis petrol station. Check out the google map below or search Saset on google to find us. We look forward to serving you.