Everyday, a huge number of vehicles get damaged in Nigeria because of poor road conditions. A lot of drivers are stranded when travelling due to the lack of replacement parts for their automobiles. It is imperative to get over this issue especially when traveling.
The idea of starting an auto spare part business is a great chance to leave the work market, earn an enormous amount of money and enjoy the duration of your existence. The need for auto parts is constantly growing, particularly in Nigeria’s major cities like Lagos, Abuja, and Port Harcourt.
The business will remain well-known as long as automobile enthusiasts love maintaining their vehicles.
Selling spare car pieces in Nigeria or establishing an auto spare parts business in Nigeria is an important step towards the financial success and also personal satisfaction.
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The places where one can purchase parts to make a pare in Nigeria
In Nigeria there is a large market for car spare parts. And the firm is able to be found anyplace in Nigeria.
You may decide to start selling auto parts in the city or out in the countryside. If you’re selling parts in a city be sure that your business is located on a street or in a location where people are able to see your business.
You can also sell your goods in the city’s outskirts to aid those who are stuck. Certain areas within Nigeria dominate by cars. This kind of place is beneficial for your business. Lagos, Abuja, Kano, Port Harcourt, and other Nigerian state capitals, like Port Harcourt can be a good fit for this kind of business.
In Nigeria there are a lot of individuals who need car spare parts. Here are some possible clients who might be keen to do deal with you
Car owners who own private vehicles
The benefits of selling spare parts in Nigeria
1. It’s a business that is profitable.
You are able to sell your business to businesses, private individuals and even the government. If you are planning to sell your business to a corporation the location of your business should be within their reach.
2. It guarantees stability in the workplace.
If you’re under someone else this company will relieve your of any stress due to your boss. The boss of your office is you. in your workplace.
The aim of maintaining your business running will enable you to be comfortable for the remainder in your lifetime. Your business will continue to function until you or your family members remain engaged.
Parts for spare are always extremely sought after. So, ensure that your item is readily available, then you’ll continue to earn profit on a daily basis.
How to begin a business in spare parts
The business of selling spare parts needs an enormous amount of capital to get started. If you don’t have a lot of cash for investment, then you could start with a small investment.
Start by forming a partnership with a trusted auto spare parts mega dealer and then expand from there, eventually you can import your own spare parts from the world.
1. Education and research:
This type of business should not be established without prior knowledge and education, no matter the amount of money available.
You’ll have do some research to determine the best way to start your business efficiently and quickly.
Before you start your own company it is essential to know the specifics and previous experience in the industry. That will help make it simpler for you to decide how you can build your own company, and also how to compete with your competition in a creative way.
2. A business plan for business
The business requires the creation of solid businessan. This will enable you to comprehend the cost of operating an enterprise, the strategies to utilize, the ideal categories for business and the best way to control your cash. This also includes your organization’s structure for administration.
In order to start your own business, you’ll require enough cash. You don’t need to spend the most amount of money. Based on the amount you invest in the business the company will expand.
You’ll need to buy or lease a space for your items to be stored. The warehouse should be secured so that no burglar can get access to it. Your choice of a warehouse or shop is based on your personal preferences.
5. Social media accounts/digital presence
You’ll need accounts active on social media platforms such as Facebook, Twitter, and Instagram for communicating with people electronically. Inform people of your social media activity.
How do I import spare parts?
Before you enter the field of spare parts consider the place you’ll get your parts from regularly.
The majority of spare parts come out of countries like the United States and European countries like Germany, Belgium, Denmark and the Netherlands and more.
The top technology vehicles, spare parts originate from these countries, and there is a notion that the vast majority of spare parts from these countries are in good working order as they are removed together with vehicles that are fading out of style because of technological advancements or new designs instead of causing the damage.
In the end, clever importers find utilized spare parts useful for little or at a fraction of the cost. In Nigerian auto markets they are offered at a high price with many dealers happy all up to the bank.
When creating the business strategy, it’s essential to find the most popular models and car brands that are available in the country like Toyota (Corolla, Camry, Sienna and more), Honda (Accord, City, Civic, and the CR-V) as well as others. Nissan (Pathfinder, Murano, Maxima, Altima, and other models), BMWs, Mercedes Benz and many other premium models are readily available.
Since these frequently used vehicles spare parts are always sought-after, they’re an excellent source of income. Apart from engine parts bumpers, side mirrors, rims, and various accessories are often extremely sought-after.
Air conditioning units, tyres and components, as well as associated items are large companies on their own. Most people are focused specifically on oil and brake pad filters due to the fact that autos require these parts to be checked regularly.
Registration and Licensing
Learning more about the intricacies of the business from people who are already working in the field would be beneficial, particularly with regard to government agencies such as that of the Standards Organization of Nigeria (SON) and licensing.
Be sure that your business can be registered by the proper authorities, like the Standard Organization of Nigeria (SON) and the Auto Spare Parts and Machinery Dealers Association (ASPMDA).
In other words registration of your business requires the obtaining of a license along with other important documents that will allow you to operate an auto spare parts company in Nigeria.
It is essential to ask about the Nigerian automotive spares license for your business and also how to get one for your business.
Cost of starting a business in spare parts
If you live located in Lagos it is recommended that you get a warehouse to rent, and the Ladipo region is a well-known area to do this. Based on the type of products that you buy, you’ll require between N5m and N12m to fill up a 40-foot container.
But, you can purchase with a smaller amount of money like N500,000 or N1m in the event that you contact an experienced importer who will mix your goods with his own items and then deliver to you.
If you do not have a specific order or a clear gap to fill, it’s best to start by taking it slow and make a few mistakes in order to expand organically.
The best business strategies to make money from the spare parts business
To increase sales, each firm requires a sound strategy. It is possible to employ the strategies listed below to ensure that your business is in good shape:
In order to convince buyers that the products they’re looking for are in stock, take pictures of your product using an impressive camera.
Be aware of your customers preferences. Maintain the positive relationship you have with your customers. You should invest a lot of time (about 75 percent or more of the time) creating a positive relationship with your clients.
You must ensure that your business is distinctive and stands out from other companies. Your policy should protect your customers’ interests.
If you want to begin an auto spare parts business in Nigeria it is necessary to have some understanding. It is necessary to be knowledgeable about the engineering of vehicles. This will be beneficial to your company since customers will be inclined to fix the parts of their vehicle they bought from you, giving you an additional source of income.
Do not turn your customers away simply because either you, or employees aren’t able to fix their car. You can gain much about the job by working as an apprentice in an enterprise that sells replacement parts. The duration of the training will be determined by a deal by you with your instructor.
To be successful and survive Every business needs to advertise. It is possible to promote your products by displaying car spare components both inside and outside your store. Find a place with sufficient outdoor space to do this.
You can also set up an account on social media to market your products or services to other people.
When you begin your business, you’ll have to recruit some sales girls or guys to help out. The number of salesmen assistants you will need will depend on the amount of your sales as well as the amount of capital you’ve got.
Suggestions to increase profitability and sustain sustainability
Maintaining your business is crucial. It is important to avoid disappointing your customers if you wish to retain them. Make sure that you offer quality auto spare parts, so that they do not have any reason to dissatisfy the quality of your product. It will be a breeze once you’ve gained trust in them.
You’re an entrepreneur if you operate an auto spare parts business. It is important to plan for the possibility of risk to your business. To ensure that your sales representatives are under control ensure that you possess the ability to lead.
At any point you must be prepared to face any difficulty. There will be times of loss and profit in every business. It’s inevitable. Therefore, you must be prepared for both. But, make sure your profits outweigh your losses.
In Nigeria the car spare parts industry is very lucrative. You need to locate a good website for your business. The only way to guarantee the longevity of the business is to supply high-quality goods at your retail store and to maintain a the trust of your clients.
Mr Olawale Olokede is a registered loan officer and worked for over 10 years as a senior financial consultant for accounting, finance and business management firms in Nigeria. Mr Olawale Olokede implemented and supervised financial and loan solution to Lagos based small and medium scale businesses after lecturing at the Lagos Business school. He is channeled his writing skills and passion for blogging to set up Lending Naija with over 50 reviews on different loan application and downloads.