You most likely have some money saved up and are considering opening a
grocery store or a provision store in Nigeria.
You've come to the right blog if you have business startup plans but lack
the necessary funding.
In this article, I'll outline how to launch a profitable supply store
from scratch in Nigeria.
Anyone can start a provision store business, regardless of gender. It is
a business that brings you daily income every day and is not just for women. It
also requires a person to be diligent, detail-oriented, and highly analytical,
if you are unable to do any of these things, you will need to pick them up on
the job.
If you sell necessities that people use on a daily basis rather than items
that they hardly need, it can be very profitable.
The business has been stretched too thin, or should I say watered down,
which is its main drawback. Watered down in the sense that an excessive number
of people are entering the industry, which lowers the high profits you are
expected to make.
For instance, I have four provision stores very close to my home on the
street where I live in Lagos. Because of this disadvantage, customers will
always have an advantage over you as a business owner.
Before this article comes to a conclusion, however, I'll show you how you
can still turn a profit in your company even if you have a lot of rivals in the
same market.
How Profitable is the Provision Store Business?
Yes, a grocery store or provision store that meets customers' daily needs
is a profitable business. It makes grocery products accessible to customers
without requiring them to leave their homes. People cannot live without them,
so it is profitable to sell them. If you are in the right location and selling
your provisions at reasonable prices, the provision store business can be
profitable.
You can make an average of 10,000–40,000 dollars per day in sales,
depending on how big your provision store business is and how much inventory
you have.
Here are Complete List of Provisions
In Nigeria, you can sell a wide variety of goods in your provision shop.
We use some of them frequently while others are only used occasionally.
The items from the supply store are listed below.
1. Soaps and detergents
2. Soft drinks and pure water
3. Fruit juice
4. Wine
5. Can drinks
6. Spaghetti and instant noodles
7. Detergents
8. Bleach
9. Cold water starch
10. Toilet soap
11. Liquid soap
12. Toothpaste
13. Baby wipes
14. Pampers
15. Izal
16. Dettol
17. Body cream
18. Facial cream
19. Hair cream
20. Relaxer
21. Shampoo
22. Face mask
23. Sponges
24. Perfume
25. Candles
26. Batteries
27. Insecticides
28. Glue
29. Light bulbs
30. Air freshener
31. Air freshener
32. Shoe polish
33. Chewing gum
34. Chocolate
35. Tissue ﴾toilet
paper﴿
36. Peanut butter
37. Milk
38. Jam
39. Margarine
40. Mayonnaise
41. Custard
42. Bread
43. Cereal
44. Salt
45. Pen
46. Sugar
47. Erasers
48. Milk ﴾tin and
sachet﴿
49. Tea
50. Biscuits etc.
It is impossible to find a provision list with prices in Nigeria online
because the prices of these items fluctuate due to inflation and other factors.
Equipment to Set up Provision Store
Starting a supply store in Nigeria requires a lot of equipment. The tools
used vary. It depends on how much money and how much space you want to dedicate
to your provision store at first.
1. Standby Generator – If you are selling drinks.
2. Electric bulbs
3. Fans or Air Conditioners
4. Display Shelves
Guidelines for Opening a Profitable Supply Store in Nigeria
1. Write a Business Plan
The creation of a business plan is the first step in opening a supply
store in Nigeria. This is crucial because without it, you might not start your
own provision store business because it would not occur to you to consider so
many crucial factors.
The size of the store or container you will rent, the location of the
business, the equipment required for the start of the business, the number of
provision items required to launch the business, and other factors can all be
determined with the aid of a business plan for your provision store business in Nigeria.
No matter the size of your capital or the risk involved, you can never
fail in business if you have a solid business plan because it will make you
aware of the risk and the necessary mitigation measures up front. Unless you
are investing a significant amount of money in your provision business, a
business plan is essential and cannot be overstated.
2. Get your Required Capital
Given that there is no set amount of capital required to launch the
business, your business plan for your provision store business will tell you
how much you need. With 500k, 700k, or even 1M you could launch a provision
store in Nigeria, depending on a variety of different factors.
How much capital is available is the key question?
If you lack any of the funds I mentioned above, you can either start
saving for the business or ask friends and family for financial assistance.
Make sure, in any case, that you do not borrow money from financial
institutions to launch your company because the risk could be too great.
The best course of action in this situation is to either wait until you
have the necessary funding or to launch the business with the capital you
already have and expand it gradually.
3. Get a Container or Rent a Store
The most crucial aspect of running a provision store, unless you operate
from home, is having a space where you can sell your supplies facing the
street. For both the immediate future and the present, you must rent a space or
a container large enough to hold all of your belongings.
Key Factors to Consider when Choosing a Business Location
4. Equip the Store or Container
The next step after finding a shop to rent on a tight budget for your
provision store business is to decorate the space however you like. When
installing display shelves, make sure to paint the walls if necessary.
Installing electric bulbs in the store is another important step.
Especially in the dark, this will make it simple for you to find items.
In order to keep the shop cool, you must also install fans or air conditioners.
All of these are essential for your comfort, the comfort of your staff, and
most importantly, the comfort of your clients.
5. Register your Provisioning Business
You might need to register your provision store with the CAC, or
Corporate Affairs Commission, depending on how big it is. To make sure you stay
out of trouble with the law from the government, do this. You might not need to
register your provision store if it is a small business, such as a
container-sized enterprise or a one-room shop, but you might need to do so if
it is a large establishment, such as a walk-in provision store or "mini
supermarket."
In addition to this, you may need to register for additional things
depending on where in Nigeria you are located or your locality. To find out the
precise registrations and the procedure, you must consult the nearby store
owners. You will be questioned extensively about your business during these
registrations. Your business plan will be of assistance to you in this
situation.
Additionally, the name of your supply store business will be requested.
The term "business name" refers to this name, which is distinctive to
your particular supply store and serves as its "brand.". You'll need
to come up with a name that is special to you and your brand. One benefit of
registering your provision store under the CAC is that your company will be
recognized by the government and turn into a legal entity.
6. Buy your Provision Items
You must take a few factors into account when purchasing supplies for
your provision store business. Some of these include places where you can
purchase your supplies at a discount, while another is the distance from this
location to your store.
You will be well on your way to building a successful business if you can
find a good location or market where you can buy your goods for the lowest
prices and the location is close to your store.
7. Start Selling your Provision Items
Except if you want a grand opening, there shouldn't be a set day when your
store will begin accepting payments. As soon as your customers start coming in
to buy, you can start selling your products. Selling below the asking price is
a common error people make when they first start selling. One of my friends,
who owns a supply store, had this happen to her.
Despite having experience in the industry, she still makes mistakes in
this area. To combat this, you can attach price tags to the items using
sellotape, or even better, have a book where you record the prices of all your
possessions. As a result, you can simply refer to it whenever you forget your
prices.
items.
8. Managing competitors
Competitors are common in this industry because they essentially sell the
same products as you do and, what's worse, they're on the same street as you.
You can deal with them in a variety of ways without actually dealing with them,
if you get what I mean.
How to Handle Competition in the Provision Store Industry
Branding: If your provision store business is a medium-sized
store, this is significant to you. Being distinctive is what I mean when I talk
about branding. This could be how you handle customer service or any other
practice that you know will be popular with your customers but which your
competitors do not practice. Taking a look at what your rivals are not doing
and then doing it yourself is the best course of action.
Holiday Opening Hours and Late Closing: People can tell you are
serious and dependable about your provision store if you keep your grocery
store open 24/7 or stay open late. This will encourage them to purchase from
you more often, particularly when other provision stores are closed when they
need something.
Sell More Affordable Goods: Only if you have achieved balance in
your business and are willing to take calculated risks will this technique
work. Although profits are decreased, they are not significantly decreased.
Simply lowering your product prices will cause customers to switch from your
competitors to you.
9. Profits in Provision Business
In your provision store business, there is only one way to boost profits:
by driving up sales. There should be some things you can do to get more people
to come in and buy from you, increasing profits, if you only get at most 50
customers to buy from you. One of these is to spread the word about your
grocery store. You can inform your family, friends, coworkers, and churchgoers
here.
The combined efforts of all of these individuals will boost foot traffic
and revenue at your business. I previously advised you to confirm that you are
purchasing your supplies for your provision store business from wholesalers.
Because it enables you to generate income as well, doing this is crucial. Let's
say that a sachet of peak milk costs 45 when purchased in bulk.
From wholesalers, it might be much less expensive; it might be sold for
42. If you sell for 50 percent of what retailers would charge, you will make
more money. In addition, I discussed how staying open later and opening on
holidays can boost your revenue.
Final Thought
Aside from the fact that it is a daily income business, the provision
store industry is lucrative for a variety of reasons. Additionally, it attends
to people's daily needs, turning your store into a destination that customers
keep returning to for purchases. Whether or not the economy is doing well, your
provision store business will be profitable.
It is a business that is not frequently impacted by its surroundings.
This article has concluded. Please let me know if I missed anything in
this article, as usual.
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