Top Emerging Distributorship Business Opportunities in Nigeria That is Profitable
With the unpredictable financial climate of the economy, it is quite difficult to get a profitable source of income in Nigeria. Venturing into the right kind of business will put an end to your financial problems. Starting a profitable distributorship business in Nigeria is not really a hard nutshell to crack. But I will be walking you step by step in this post on how to start and how to become a successful distributor in Nigeria. we will be showing you the top emerging distributorship business opportunities in Nigeria that is profitable so stay tuned and pay attention to key details.
Distributorship business in Nigeria is very easy to start. Been that you know the most popularly demanded goods in Nigeria. All you need do to is, look around your environment and see what people consume the most. Try doing an explicit research on the products people make use of the most and try supplying them in wholesale.
Are you looking for more information on starting a profitable distributorship business? Then you have come to the right place. This blog post will show you everything you need, to start your own successful distributorship business in Nigeria.
Distributorship Business Opportunities in Nigeria
Distributorship in Nigeria is a very profitable and lucrative venture, especially if you target the most popularly demanded goods. For example, if you realize that people consume a huge amount of rice in your area, starting a rice wholesale distributorship business isn’t a bad idea.
A lady bought rice for N 12,000 and sold for N 16,000. This makes a profit of N 3000 + per bag, minus transportation fee which is between N 500 – N 1,000 per bag. She sells a minimum of 50 bags per month which is a monthly gain of N 150,000. This is a typical example of what you stand to gain as a wholesale distributor of rice.
You might ask; how is she making so much money? Well, the answer is simple, all she did was follow my simple step by step guideline on how to start a distribution business. Which I listed and explained below in this post. So keep reading if you want to earn like her and even much more.
Who Is A Distributor?
A distributor is a sole entity that purchases noncompeting goods or product lines, warehouse them and then resells them to the retailers or directly to the end users and customers. Every product obviously has a distributor, a typical good purchased from your favorite stores involves distributorship.
For a product to hit the market, it largely requires an efficient marketing channel. The supply chain involves various middlemen between the manufacturer and the consumer. But the most common in the chain of distribution are the: distributors, wholesalers, and retailers.
Some distributor tends to provide strong manpower and monetary support. This is to maximize the manufacturer’s promotional effort. These gift items are motivating factors for business which helps to create consistency and a strong bond in the distributor’s business line.
What is The Distributorship Business About?
Before a manufacturer sells his products to the consumers, he actually needs to go through a certain step or chain before getting to the consumers. The chain of distribution can be very long but the distributor is one of the crucial entities in the chain of distribution. In other words, goods and products coming from the manufacturers will have to go through the distributor first before proceeding to the next chain. The aim of distributorship is to get the goods in large quantity and make it available for consumers. The question is if there were no wholesalers or distributors, how then can consumers get goods and services? .This is where the wholesaler or distributor comes in handy.
The distributor store goods in warehouses for profit in quantity sales. This is the main idea of starting any distributorship business in Nigeria; “to make Profit”. The warehouse will be used to immerse these goods in very large quantity. The warehouse has to be big enough to contain hundreds and thousands of a particular commodity.
Starting a Successful & Profitable Distributorship Business in Nigeria
There are some certain dexterities (Skills) needed for starting a distributorship business in Nigeria. These skills will help you greatly in every aspect of the distributorship business in Nigeria. These skills are very vital in running a successful distribution channel in business. These skills include; bargaining skills, financial skills, and business management and above all networking skills. Below are the necessary easy steps to follow in starting your own successful and Profitable distributorship business in Nigeria.
Easy Step By Step Guide on How to Start a Distributorship Business in Nigeria
Step 1: Training
The routine of a distributorship business is basically buying storing, transporting and selling. Moreover, this can be quite confusing and frustrating as an amateur. For every newbie about to venture into the distributorship business in Nigeria, I’ll advise that he/she takes this first step seriously.
Try to take a little class on the business to broaden your horizon. This will give you a larger scope of the business and your profit margin for every input on the business. The training will also give you an idea of the Fast moving consumer goods (FMCG) in Nigeria to venture into. This first phase will surely give you an explicit overview of the business and how to run a profitable distributorship business.
Step 2: Know & Understand Your Targeted Customers
Before you begin a distributorship business, you have to identify your client’s base. The key to profitability in any distributorship business is to clearly define your targeted market. This is the grass root of your strategy regarding how the business is going to run. This includes the market and people you want to serve. Depending on your business model and business preference, you can supply to retailers around you who in turn sell to local consumers.
Step 3: Decide On a Business Niche
You’ll need to decide on a business niche or a segment you want to venture in. You can decide to venture into the top 10 best-selling fast moving consumer goods in Nigeria. Try to know the products that are consumed frequently by everyone in your environment.
Having the perfect data of the most consumable products in your environment can really bosom your distributorship business. In this case, you don’t have to stress yourself about making sales or marketing. Once you start distributing products that are on high demands, you automatically start making money.
Once you get this right then you can proceed with the next step.
Step 4: Draft out A Business Plan
Outline your business plan and strategy on how you will consistently build your business. Map out your competition and strategy on how well to beat them to the market. Every plan and preparation of yours must be unique and well thought through. Try to fit into the system and dominate the market.
Step 5: Business Name Registration
After making up your mind on the products to distribute, you’ll have to come up with a name for your business and also register that name. Registering your business comes with a lot of legal benefits and also business benefits. Some high paying clients will want to deal with businesses that are legally registered.
Step 6: Rent a Warehouse/ Office Space
The warehouse is the hub of distributorship business. A spacious residence for storing purchased products in large quantity. The warehouse site should be around customers of your business niche and also has great transportation link and easily accessible roods. Having an office in a separate residence with the warehouse is not really a necessity. You can definitely have a little office in your warehouse which is also convenient.
Step 7: Get In-Touch with Manufacturer
The next step in to get in touch with manufacturers or suppliers of products within your niche. Most manufacturers will need distributors to register under their company as well as meeting some demands for acquiring distributorship rights.
Step 8: Get Distribution Equipment
Since you will be dealing with a lot of logistics and movement, a vehicle or motorcycle will be needed for the business. A retailer will order your products and will love you to deliver to them more efficiently. It is not necessary to buy a truck per say, you can hire one if you don’t have enough funds to purchase. This is a quick selling point for you because retailers will prefer distributors that delivery to their doorstep any day with them worrying about logistics.
Step 9: Connect And Build Strong Customer’s Relationship
Ensure to connect with retailers and register as a supplier and sell your products. This is the cornerstone of your business, what will make or mar your distributorship business is your strong ability to continue a long lasting relationship with your customers. For a start try putting customer service as a priority, not profit per-say. This will include adding value during sales conversations and also making fast order fulfillment a priority. Attaining this level in the distributorship business will help you build a long list of constant customers.
A marketing strategy will be very vital if you are venturing into a very competitive niche. This will involve market penetration strategies. In the sense that, you’ll have to reduce your prices to beat competitor’s price in the market. Advertising is also a very powerful tool and you’ll need to let the word out to your customers and the general public. Try to make noise about your products and goods availability. This will surely attract more retailers to your distributorship business.
Congratulations! Guess What We Have For You?
What Do You Need To Know As A Distributor?
- You are to purchase goods directly from manufacturers in large quantity and sell in relatively small quantity to retailers.
- You need to invest a large amount of capital in this business for good returns.
- You’ll need to Provide credit facilities to the retailers.
- You might need to hire a few sales agents for the distribution of goods or products.
- You are required to sell a different variety of a particular production line. For instance, a distributor who deals with soda has to keep all varieties of drinks, coke, Fanta, sprite etc.
Keys to a Successful Distributorship Business in Nigeria
- Always try to reach out to customers in the name of marketing or advertising.
- Build a very strong customer relationship.
- Immerse and build a very large customer base.
- Always try to deliver quality products to retailers.
Top 30 Most Popular Items that are Suitable for Distributorship in Nigeria
The items below are the most popular items you can start distributing in Nigeria.
- Building materials
- Mobile Phone & Gadgets
- Cooking Equipment
- Body care items
- Food spices
- Medical Equipment
- Baby items
- Male Items & Accessories
- Bedding and materials
- Car Parts & Engine
- Cooking Gas
- Article (Paper, pen, cotton bud, toothbrush etc.)
Watch The 13 Profitable Distribution Business Ideas for 2019
Companies That Need Distributors In Nigeria (Update)
Below are the various companies that need distributors ASAP:
- New Al Dhaid Furniture
- Zafco Trading
- Al Muqarram Auto Parts
- Evergrow International
- Al Kamal Shampoo & Cleaning Material International
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