Are you looking for how to start engine oil business in Nigeria the you are on the right page that will give you all the vital information.
If you’re searching for a business that is not well-known about lubricant or engine oil, this business , it is on the top of the list. it’s a buy-and- sell company, and you don’t have to create everything you purchase in huge quantities, and then sell it to consumers.
It isn’t an issue to be debated It is a clear reality that any industrial machine, automobile , and even a large generators cannot function without oil from engines, they all require it to function efficiently which means that the oil used in engine is always huge demand.
If you’re in business, there isn’t much competition, but you must put your store or area close to the street or a the main traffic route since the engine oil businesses thrive in areas that are crowded with traffic.
Note Engine oil is a street-based business you’ll need to find it at a traffic source
Before we begin to discuss how to begin the your engine oil business, I’d like you to note the following sections.
Niches of the oil business for engines in Nigeria
There are two areas of oil industry in Nigeria and both are
1) Distribution engine for wholesale or distribution oil business
In this field, your task is to find oil from the producer and either offer it for sale, or to distribute to retailers. You will require a large amount of money to begin this however it can be very lucrative and you don’t have to be a high-traffic source for sales.
2) Business selling engine oil
Your role here is to buy wholesalers’ goods and then sell it to a consumers who are the final buyers. You can starting with very little capital but in order to make a good sale , you need to be at a the middle of a busy area like the roadside, the fuel station.
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Different types of engine or oil lubricant to purchase and then sell to Nigeria
1.) Oil for motor engines
Oil for motors is among the top engine oils to sell since it’s popular, so your car is bound to require oil to function efficiently.
If you choose to market engine oils an independent retailer, you must to be closer to the fuel stations and not sell brands that are not good. If you do, as no one will ever buy from you, even if you are now selling a quality brand.
2) Fluid for breaking or clutching
It is within the same category as motor oil. you should get closer to a fuel station , and then follow recommendations on motor oil.
3) Fluid for automatic transmission
The transition from manual to automatic will also change the demand for engine oil to the automatic transmission fluid.
Be cautious when purchasing this item because the amount of vehicles that are automatic in Nigeria is lower than that of manual. You shouldn’t buy more than you could sell, or it could only make your money more expensive.
4) Diesel oil
The majority of entrepreneurs who sell engine oil don’t sell diesel, perhaps due to the expense of buying it. However, If you have enough money, you could purchase and sell it. It is the second highest-profitable product that you can sell in the engines oil industry.
5) Grease
Don’t overlook this as well as a lot of automobiles and machines use grease to stop corrosion, and you’ll always be able to sell your products by using this product.
Others are
Turbine oils
Transmission oils
Marine lubricants
Technical fluids
How do I start an engine Oil business Nigeria
In the present, I’ll assume you’ve chosen your field and the next step is to begin the process of beginning your engine oil business in Nigeria
1) The knowledge that is gathered
We always advise entrepreneurs to find an individual who is already earning money through their engine oil businesses.
This article will provide you with everything you need to know to start your business , but you’ll require an advisor who will guide the way to succeed in the business at your chosen area.
You can gain the knowledge within three to five months. If you’d like it to be fast then you could employ someone to assist you in setting up your business, while learning from them Be cautious with this approach, as it could cause problems and the person you hire will pay your dividends.
When you are gathering knowledge, learn how to get petroleum from the oil producer on credit. Yes, oil producers will loan oil to their dependable customer.
2) Study of feasibility
After gaining knowledge The next step is to verify whether your oil company will succeed in your chosen area, don’t be wrong, the oil industry is lucrative however, not everywhere It is important to look for an area that has a high volume of vehicles and motorcycle traffic if are beginning as a wholesaler or retailer. could also be a possibility, but it is it not required?
Additionally, you must be aware of the number of competitors in the area you are considering. Can you defeat them?
I hope you’re aware that oil is a commodity item You cannot modify or subtract from it, what you require to compete with the other companies is your services Therefore, let your service be superior to the norm.
3) Strategy and business plan
How did you intend to get from A B in your business? record it and supplement it with a plan.
There is a good chance the business plan you have written will become ineffective once you have reached the second year of your business, however you must still make it because you never know when it could be an instrument to be used in the event of a pivot or to expand your company with a an investment or loan in the future, your business plan could be helpful.
Here are the things you need to include in your strategy
- Executive Summary
- Background of business or company
- Analyzing competition
- Marketing strategy analysis and strategies
- Staffing
4.) Capital Source
Don’t use a the bank over draft as a way to begin your company and be cautious about bank loans that do need collateral.
Here are the capital sources you could explore to fund your engine oil company.
- Personal savings
- Family and friends
- Bank credit
- Credit for trade (Buy oil using credit and then pay it back in the future)
- Find investors
5) Create a business
If you’re starting out as a wholesaler, you should create a business registration in order to avoid conflict with government authorities like CAC (Corporate Affairs Commission).
If you are selling then you are able to put it off until your business has becomes large.
6) Create your own store or warehouse
To sell wholesale, you must either build or rent an industrial warehouse to accommodate your oil product.
It is important to purchase a car that you’ll use to deliver oil. However, most times retailers will provide an automobile of their own.
To be a retailer, you must establish your shop in an area of traffic where you are confident that you will be able to sell extremely effectively.
Whatever niche you pick, don’t light a cigarette close to it. Create signs that scare people away.
To prevent catastrophes caused by fire, purchase fire extinguisher, and keep a sound bucket.
7) Stocking
The process of stocking oil isn’t difficult. You don’t need any guideline, but make sure the oil is placed in a safe place. Below are the brands you can purchase oil products from.
- Exon
- Mobil
- Castrol oil
- Tonimas oil
- Total engine oil
- Oil for the engine of the Shell
Lubricant or engine oil distributers from Nigeria
Chucorl Nigeria limited
- Kk internat
- Al trust int.service
- S.C dubinson nig lmtd
- Woopet ogbus
- Elton invests
8) Marketing
Marketing engine oil isn’t difficult since the manufacturer of this oil would have invested an enormous amount of money advertising their products. If the product isn’t selling, you could opt for a different product, however should you wish to make an excellent sales, you must choose a place that has significant demand.
Below are the advertising mediums you can utilize to inform people about your company
Flyers
If you’ve been reading our blog post, you’ll know that flyers are at the top of the list of media for advertising since it’s the most effective option for families and friends to promote your company. Make sure your flyers are neat and attractive.
Signpost
Because the oil industry is place business, you could erect signs at an intersection, it will let passersby know about your company and guide them to you.
Radio and T.V
Wholesalers Do not believe that radio or T.V ads are old news, actually, according to studies they are the top advertising method for local businesses.
Social media
Social media won’t accomplish more, as the oil used in engines is an essential commodity for in the business. You should only use it to inform people of the existence of your company.
Google
Make sure you have a Google business account. You never imagine that someone could enter ” where to buy oil in so so place” and your business will be listed.
Start-up costs for an engine Oil business Nigeria
However, it will depend on the size and location, the minimum capital required to begin a business in engine oil in Nigeria
Total sale
You’ll need between $1,000,000 and $3,000,000
Retail business for engine oil
It is recommended to have between #200,000 and #1,000,000.
What is the profit margin of the engine oil in Nigeria
Oil for engines is profitable, but not as much as cryptocurrency that makes a profit that cryptocurrency can bring. You should earn between 10 to 15 percent of the capital you invest which is good given that you could double it within a one month.
To look at it in a the figure, if you invest $1 million, you will get 100,000 up to $150,000.
The challenges of the oil business in Nigeria
1.) Bad place
If you’ve read this article attentively you will discover that I do harm to the location of traffic sources often, and in the event of setting up in a poor area, you’ll feel bad about yourself not only your friends and family will take advantage of you.
2.) Poor brand
If you are aware that a certain engine oil manufacturer isn’t good Do not offer it. If you do, it could affect sale of the other products.
3.) You are not in control
Since you’re not the creator, and therefore can’t control the way your product will appear and it’s also difficult to create a distinctive selling point that can distinguish you from your competitors.
5) Competition
You’ll definitely have competition when you do not check this area carefully It could be because the location is not as good. The only way to solve this is to establish your shop near a fuel station. If you’re a wholesaler , don’t worry about it.
How do I start an business in engine oil with little capital
For starting engine oil at a low cost, it is necessary to begin as a retailer. You must also have the ability to negotiate well, so that wholesalers can offer you credit for oil while you pay them back after you sell.
Conclusion
It’s a good thing that you have read this information, but it’s wasted time in the absence of action it. Stand up and take on your dream business . Trust me when I say that Nigerian are willing to pay for your solution.