Nigeria is a thriving nation, with over 220 million people. They have basic everyday needs that have to be met no matter how uncertain the economy. In this article you’ll learn how to set up a wholesale store of provision in Nigeria.
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Does the sale of food items profitable in Nigeria?
Yes that’s right, it’s. Everybody should bathe with soap each morning clean their teeth, drink a cup of coffee, sip some milk, prepare instant noodles, and buy soft drinks later during the day, in addition to other things.
In order for all this to function it is essential that there is no interruptions throughout the entire supply chain. Wholesalers purchase these items in large quantities and then sell them to other retailers and the end-users. In the end, wholesale provision is highly successful in Nigeria.
Which are the most profitable items for a wholesale retailer in Nigeria?
- Bathing and washing soaps
- Soft drinks and drinks
- Body Spray
- Baby Diapers
- Hair cream
- Antiseptic liquid
- Baby food
- Body lotion
- Corn Flakes
- Hair relaxers
- Water Dispenser Bottles
- Instant noodles
- Salt, Maggi, and other kitchen ingredients
- Disposables and plastics for takeaway
- Razor blades
- Batteries and many more
In general, any item that is commonly used by households can be extremely profitable for a wholesale supply retailer in Nigeria.
What’s the price to start a Provision Store in Nigeria?
It depends on the scale you’d like to be operating at. If you’re just starting out you could start a wholesale store that has a capital under N500,000.
If you are able to access to huge capital, it is recommended to start a large or normal wholesale store. It’s going to cost you greater than N1 million, however you’ll earn more for each item.
How can I begin an online store for wholesale in Nigeria?
These steps will help you begin an establishment that sells wholesale in Nigeria:
1. Make a business plan
Business plans are an essential component of every business regardless of how small. Apart from making you appear professional, it can assist you in making decisions. Because you’ve got everything recorded it will ensure that you aren’t missing any crucial decisions.
The business plan of your wholesale store must contain the following elements:
- Costs of starting
- Financial plan
- Analysis of the customer
- Overview of the company
- Competitive analysis
- Market research
- Marketing strategy
- Operations plan
Banks that specialize in microfinance and commercial lending can request a business plan (alongside the proposal) prior to lending your business a loan. Accelerators and incubators for business aren’t left out.
2. Start with the capital you need
The next step following the drafting of your plan for business is get the funds you will need for starting your wholesale distribution company in Nigeria. This is referred to as the cost of starting and should figure into your plan of business.
Beginning a wholesale supply store in Nigeria can cost you small amount of N1 million. If you’d like to start with fewer stocks it is possible to start with just a bit more than N500,000.
Apart from the initial expenses It is also important to prepare cash for operating expenses. This is because you’ll not be able to recover all your initial investment in the first three months, which means you’ll require additional funds to run your business.
Operational expenses include monthly electricity bills, later rent bills, monthly salary for your staff, unexpected expenses, and other such.
There are a variety of ways to raise funds for your wholesale supply store. You could use your savings or money from family members as well as the angel investor. You may also contact entrepreneurs and venture capitalists However, your chances of being approved are low.
You may also make an application for commercial loans. In this case you must make an application to microfinance, thrift cooperative societies commercial banks, and thrift cooperative societies.
3. Buy or rent a shop in a great area
After you have made the initial cost for your wholesale store, you need to begin searching for a suitable location for your store.
Your wholesale provider shop must include the following characteristics:
- In a busy area
- The neighborhood ought to have a low crime rate
- Your shop must be easily accessible via a roads.
- It must be well-structured to withstand storms, rain and other severe weather conditions
Competition is also crucial because you don’t want out of business prior to launching. If there are more than two wholesale stores within your area (selling similar products to yours) It is advisable to look at a different area.
4. Create a brand and register your wholesale company
When you’ve secured a great location for your wholesale store, it is important to establish a brand for your business. Branding is the process of giving your company a name, creating your logo, creating business cards, obtaining an individual uniform for your employees at your store and so on.
It is equally important to make sure that you register your wholesale provider company through the commission for corporate affairs. Customers are more likely to purchase in bulk when they know that your company is registered and also has a an identity, a business card, and other names.
5. Find the equipment you need and furniture
Wholesalers will have items in huge quantities. You’ll need to store these items in a dry and cool space, free of pests.
There will be a need for fridge, shelves, as well as a large space. This tiny space can serve as your tiny warehouse because you’re not able to show all of your inventory in the main store.
6. Store your wholesale supply store and obtain rights as a distributor (where appropriate)
Once you have hired a carpenter to attach shelves to your walls you’ll need to start making your wholesale supply store. It is important to note that certain manufacturers require you to obtain distributor rights. These can cost you 100,000 to N100,000.
Examples of companies that require distributor rights are Coca-Cola and cement instant noodles, as well as other major companies.
7. Employ a shopkeeper or an assistant
There will be a need for an assistant to run your shop, regardless of whether you’re interested or not. Be aware the fact that you’re an wholesaler therefore you’ll be moving containers, big kegs and counting cash, while answering customer inquiries.
If you have customers who want you to deliver their goods to their retail establishments or residences, you might have to purchase/lease delivery vans. Additionally, you will hire drivers who are paid on a daily, weekly, or even monthly.
What do you imagine people feel if they don’t have soap or Instant noodles for eating, or soft drinks to drink? They’ll be miserable as they use these products every day. You could specialize in food products such as noodles, flour, beverages Carbonated drinks, pasta, and so on.
It is also possible to sell kitchen products such as salt and Maggi Baby care products such as diapers and toiletries as well as building materials such as cement, furniture items such as mattresses, and other items.
However bad the economy may be, Nigerians need these products. As a wholesaler within your supply chain will see this as a profitable business opportunity and earn an excellent profit. Begin your wholesale supply store now.