Venturing into distribution of
products in Nigeria is really a profitable business. This particular business can
somehow be divided into 2 major categories based on who you really want to serve. We have the retail distributor who buys from the
wholesalers or the manufacturers and then sell directly to the consumers, and
then we have the wholesale distributors who buy from the manufacturers and then
resell the products to the retailers and other distributors.
Furthermore, for you to actually
succeed and be successful in this business you need to really decide and focus
on a particular product or a variety of products. You need to make sure your decision
is on a product that is hard to find, actually this will really give you an
edge over your competitors thereby giving your business a competitive
advantage.
In Nigeria today large companies are
served by large distributors, most distributors really find it a bit
challenging to serve the smaller, more specialized businesses. One of the ways
to actually gain some part of the market share in this business is to try as
much as possible to serve some of these smaller specialized businesses.
This business really offers different
opportunities for anyone who wants to investor into the business. What you just
need to do is to carefully carry out a proper research about your area of
concern, and then look for how to cater for your potential customers and watch
your business grow.
The following are the factors to
consider before starting distribution business in Nigeria;
1. Write a business plan: You need to
draft a business plan that will really lay out the full vision of your new
distribution Business. Make sure the plan includes the type of distributor you
will be, the kind of products you plan to offer, the name of your distribution company,
your target customer base, the shipping method you want to apply, and the
general strategy you want to adopt. The strategy you want to adopt should be as
simple as focusing on fast and effective service, a more complicated, like
mapping out a way to offer specialized products that are not available from
other distributors.
2. You need to estimate your startup
cost: Without been told as a potential distributor, one of your single biggest
expense will be inventory. This actually means that your startup cost will vary
widely depending on what you want to start distributing as a distributor.
3. You need to think about how you will
sell your products: How you will actually sell your products will really depend
largely on your target market and customers and what type of products you
decide to sell. As a distributor your goal should be to let your potential
customers know about your business and what you really offer.
The following are products
you can distribute in Nigeria; Cement, beverages, electrical materials, cars
and car spare parts, cosmetics, food related products, Etc
What you just need to
do is to carry out a proper research and serve your target market well.
Tips on how to start a
distribution business in Nigeria
1. You need to decide what products you
want to distribute.
2. Look for a good Location.
3. Get the business registered.
4. Write a business plan.
5. Make contacts with manufacturers or wholesalers
of your Products.
6. Design a professional website.
7. Lastly, market your product to your potential
customers.
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