Requirements To Start A Cold Store Business In Ghana

Cold Store Business In Ghana

One of the most profitable businesses one can start in Ghana today is the cold store business. As a result of the limited access to electricity suffered by business owners who live in rural areas in Ghana, there is an increase in the demand for cold store storage owners, hence resulting in profitability.

This kind of business involves refrigerating people’s food or consumable items and charging them a particular amount of money for the number of days they were refrigerated. From restaurant owners and food vendors who need to freeze their fish, meat, or chicken to bar owners who need to have their drinks sold in cold form, there are a lot of customers you can get to patronize you as a cold store business owner in Ghana.

You can also sell frozen foods to consumers.

This is why in this article we’ll throw more light on what a cold store business is all about as well as a step-by-step guide on how it can be established and operated successfully.

What Is The Cold Store Business In Ghana?

The cold store business is the type of business that deals with storing and preserving certain products at a cooling temperature to commercialize them. In a layman, it is a business that involves freezing, storing, and trading frozen products.

Meanwhile, some of these products are laboratory products, vegetables, turkey, chicken, prawn, gizzards, meat, fruits, fish, and so on.

Is Cold Store Business Profitable In Ghana?

The cold store business is highly profitable due to the target market being always available, and because the population growth and increased demand for convenience foods are augments.

Also, the cold store business has the potential to grow quickly because of the sophisticated stress-free elite, as well as recurring events like weddings, festivals, convocations, and birthday parties which keep the cold store business owners in the business.

Finally, the cold store business is very profitable in Ghana because the demand for frozen foods is higher than supplies.

What Are The Risks In The Cold Store Business?

Below are some of the risks in the cold store business in Ghana:

1. Equipment Failure: Temperature fluctuations can be caused by malfunctioning refrigeration units and power outages, and if proper maintenance is not taken it will lead to loss of integrity and loss of profit.

2. Transportation Issues: Delays or breakdowns in transporting your frozen items can result in thawing, health risks, spoilage, and compromised product quality.

3. Temperature Control: When it comes to cold store business, temperature control is very important. Meanwhile, if you don’t maintain consistent low temperatures, it can lead to a loss of quality in perishable goods, thawing, and microbial growth.

4. Legal consequences can occur if you fail to comply with the food regulatory bodies in Ghana.

5. Improper packaging of frozen food items can lead to food safety issues.

What Are The Reasons Why Cold Store Owners Close Down?

There are many reasons why cold store business owners are shutting down their business. Some of these reasons are:

1. Cold Store Breakdown: A cold store is meant to function efficiently at an ambient temperature. Also, there should be enough space in the cold room. However, if there is no inspection/maintenance routine, a cold store is more prone to breaking down. And once this starts happening at a constant time, running the business will become difficult.

2. The Location Of Your Business: This is one of the most important factors to consider if you want to start a cold store business in Ghana.

The success of your cold store business largely depends on the location. As the case may be, when you set up a cold store business in a location that is not needed, it will result in less profit and then force you to shut down the business.

3. Food Spoilage: As freezing remains a dominant food preservative method, if care is not taken in terms of preserving perishable items, it solely results in food spoilage or bad quality food. However, if this food spoilage or less in quality of food becomes constant, it will lead to a loss of money to continually maintain the business which in turn leads to the closing down of the business.

4. Unstable Power Supply: The availability of power supply is one of the vital components for running a cold store business. At a point, the constant use of generators to back up the business is often challenging due to the high cost of fuel. And if a proper plan isn’t implemented, shutting down the business might become the next option.

How Much Does It Cost To Start A Cold Store Business In Ghana

The capital requirements for starting a cold store business usually depend on the location, prices of equipment, the size of your business, and so on. However, the cost of starting a cold store business on a small scale will cost you at least GHC 8,000 to GHC 16,000. You should budget more than GHC 40,000 to start a cold store business on a medium scale.

Also, know that the majority of your expenses will be channeled into buying equipment and paying for space. Therefore, all this will determine the actual capital needed to start a cold store business in Ghana.

How Can I Start A Cold Store Business In Ghana?

Here are steps on how to start a cold store business in Ghana:

1. Get Your Capital Ready: There is nothing more important when it comes to starting a business than capital. This is because you will need capital to rent a store, buy equipment, and begin your operation. So when you are planning on starting a cold store business ensure your capital is ready.

2. Create A Cold Store Business Plan: Develop a cold store business plan and choose who your target audience is for the best results. However, with your target audience, you can solely create a solid plan under proper guidance.

3. Find A Good Location: To be successful in the cold store business, it is very important to choose a good location as a location plays a vital role in the success of your business.

Meanwhile, it will be good if you have your cold store business located in the center of the city.

Also, when it comes to renting a shop in such a location make sure that there is no other cold store business close to where your shop will be located. This will make it easier for you to excel as you do not have a competitor in the same location as you.

4. Purchase The Required Equipment For Your Business: Some of the important cold store equipment to buy are: deep freezers, LED lighting, butcher knives, packaging bags, shelves, cutting boards, ceiling unit coolers, humidification, compressors, air cooling condenser, etc.

You may also buy a delivery van if you are starting on a large scale.

5. Register Your Cold Store Business: This step is very crucial especially if you are starting on a medium or large scale. You have to register with the Registrar’s General Department (RGD), Food and Drugs Authority of Ghana, and then acquire the necessary licenses and permits.

6. Buy The Food Items In Bulk: Now that your cold store business is fully ready, the next thing to do is to buy in bulk the product for your business. At this point, you have to stock them and start selling. And don’t forget to keep a daily record of your business, both stocking records and sales to avoid loopholes in the business.

Conclusion

The cold store business is lucrative in Ghana. Nevertheless, you need to understand fully how the business works, and how to avoid the risk involved in the business.

Finally, we believe that after going through this article you have gotten an idea and have known the steps on how to start your own cold store business in Ghana.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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