How to Start Provision Store Business in Nigeria


How to Start Provision Store Business in Nigeria

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

How to Start Provision Store Business 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.



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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