Author: rusdi123


How to Make Money Making Homemade Yogurt

May 14, 2018

Entrepreneur

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The demand for yoghurt within Kenya has been steadily rising since 2009. Despite this the market still stands under supplied. This is one area if well invested in, can make money plus profits monthly. The best thing about yoghurt is that it can easily be made from home.

There are many ways of making yoghurt at home. If you want to make money from homemade yoghurt you need to consider the different options to coming up with the right product. Starting at home doesn’t need much capital contrary to the belief, with as low as Kshs 15,000 you can start with the first production. You will need to invest in good kitchen ware like high quality sufurias and air tight containers to be used for storing your yoghurt. For packaging you can start with the disposable plastic cups sold in supermarkets that go for Kshs 250. A fridge would play an important role in preserving the yoghurt.

There are two main ingredients used to make yoghurt. Fresh raw milk and yoghurt extract. Fresh milk used to avoid infections. A litre of milk is Kshs 40 at the farm; you need not buy lots of milk because a litre of milk can produce a litre of yoghurt that can be sold at Kshs 220. As for the extract any type of plain yoghurt can be used from the supermarkets after which the leftover yoghurt from your first batch should be used for the next production. Other things needed include an oven or any other source of heat that can be used to keep the yoghurt warm, a whisk, thermometer that can measure up to 50.

First you need to ensure your hands are clean other than your sufuria and storage containers. Pour your milk in your boiling pan and stir continuously using the whisk to prevent the milk from pouring out the pot as is usually the case when milk boils. When the milk has reached 85˚c, you can let it cool to about a temperature of 45˚c before adding the yoghurt extract, preferably three scoops. This specific temperature needs to be achieved because it allows for the activation of bacteria in the extract to work on the fresh milk. Stir the extract into your milk. You can then pour the milk into your storage containers. Yoghurt usually settles best in small containers rather than big ones. Pour the yoghurt in the air tight containers and put them in a big bowl of hot water that reaches the same height as the yoghurt in the containers. This helps to keep stable the temperatures and avoid burning.

The yoghurt should then be kept in the oven for 2-4 hours at about 49 until the culturing process has taken place and achieved the desired taste. If you don’t have an oven then a small cooler box with added warm water can be used to maintain the temperatures for culturing to take place. At this point it needs to be kept in the fridge to allow for settling as it is still too liquid. Let it settle for 4-6 hours and then it would be ready for consuming with the right thickness to it.

The next step would be to get your product out into the market in order to make money. Start by packaging them in 250 ml cups and sell them at Kshs 55. You can decide to walk with your product or advertising it to your neighbours who will in turn tell others and

steadily you will have a stream of customers. If you make 10 litres of yoghurt in a day and sell all of it at Kshs 220 per litre you will be making a profit of above Kshs 1000 in a day. In a month you’ll have profits of up to Kshs 25,000 minus the expenses to reinvest into your business. You can expand your market by delivering your product to neighbouring kindergarten schools and local shops around you.

Family and Friends As a Funding Option

May 14, 2018

Entrepreneur

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The average cost to start a business is $30,000. In addition, starting a business has proven to be a challenge for many; young and old. What are beginning entrepreneurs who face this situation supposed to do? Well, many have utilized “friends and family” as a financial source. Why not; some may ask. Friends and family normally have their best interest at hand; they tend to be very trusting when it comes to lending and investing in the new entrepreneur business venture.

For example, Paul Graham the Vice President of his work on “Lisp” which eventually became the Yahoo Store; raised $10,000 from a close friend. However, Paul Graham really thought about this decision before executing it. His friend not only knew him well; but he was also wealthy and a lawyer. Likewise, Paul received funding and access to free legal advice.

It’s important to research the advantages and disadvantages of accepting a “family and friend” loan. There could definitely be potential risks and/ or blessings when completing this type of transaction.

Let’s begin by discussing the advantages of “Friends and Family” funding

1. Your friends and family know you personally. They are less likely to judge your funding request based on your personal credit rating or business credit score.

2. Your family and friends will give you time to develop the business vision; because they want you to succeed; likewise, their terms maybe more favorable than those offered by financial institutions; most likely will not be as demanding on your financial projections as a professional investor

3. Your family and friends funding will assist you in requesting funding from professionals in more prestigious valuations.

Next discuss the disadvantages of “Friend and Family” funding
1. You may end up in a heated lawsuit and break up family and friend relationships if or when things become challenging.
2. They may not be able to bring wisdom, experience or resources that could enhance your business – they may begin to just be in the way.
3. If you receive a significant amount of funding; you could be potentially putting your “friends and family” at risk of losing everything.
4. You may put the people you love best at risk, if they are giving you a significant portion of your savings

A few great pointers to consider and/ or to keep in mind are:
1. Just as Paul Graham, Vice President of YahooStore did; choose someone with solid business skills; one who understands legal issues as well as any risk and benefits that could affect you.
2. Demonstrate your passion and diligence for your business venture; take the time to research your idea before you present and request funding from family and friends. This will show them that you are serious, thorough and passionate.
3. Create a legal agreement or contract with “family and friends”. This will ensure all expectations are spelled out and everyone is on the same page. It will explain issues such as how funding will be used, how progress will be measured, and how repayment will be made.

4. Be realistic about the amount of funding needed; this is why it is very important to complete research beforehand. You must remember that this is still someone else money; and they deserve and expect to be paid back like the bank would require. Asking yourself questions such as:
a. How much money is needed to implement your vision?
b. How much money do you need to pay employees, buy inventory, and keep the lights on.
c. How much money do you need for your salary
5. You may reduce your funding obligation to any single person by asking multiple people for smaller sums. But, remember to keep track of each person and collaborate consistently with each individual.