With the current economic crisis in Nigeria, it is bad for any Nigerian to depend on one source of income to sustain himself and his family. This is not to say that everybody should have different businesses or look for multiple sources of income for themselves but having the right type of business which suits the Nigerian market structure can help to eliminate your financial and monetary challenges.
The Distributorship business has gathered attraction and publicity for some obvious reasons. Handling and managing a distribution business in Nigeria would be a hit because of some certain items, goods and commodities which are highly demanded by consumers. In this post, you will be educated on how to start a distribution business in Nigeria even with little or no experience.
A distributor is a person who maintains business relationships and affiliation with manufacturers; the distributor sells the manufacturers good directly to the consumers. At times, not all distributors in Nigeria sell goods directly to the consumer instead most distributors have a hand in the sale of manufacturer’s goods simply by selling or supplying the manufacturer’s goods to wholesalers and retailers who in turn sell the products to buyers.
Before starting out a distributorship business outfit in Nigeria, there are many factors to consider. Firstly, as a distributor, you must think as a manufacturer and come up with a way by which you can channel the goods to prospective buyers and make quick sales.
Most manufacturers in the production industry desire to have their finished goods in the market at large supply and quantities. But they can’t do it on their own, this is why they require a distributor who will help them accomplish their desired goal or objective of channeling their commodities to buyers and consumers.
A distributor purchases goods & commodities in bulk and resell in bulk; or they break the goods into smaller units and further resell them to retailers or they sell directly to the consumers of that product. As a distributor who demand and buy goods in large quantities, you will need a warehouse to store the goods which you bought; a truck or a storage room is an alternative for people without a warehouse.
Also, you must be ready for business by sketching out a business plan which will define the type of business you do and how you plan to rake in sales to a product and what you intend to do to resist competition and challenges in that line of business. Also, still on the area of business, it is recommended that you register your business name. A lot of companies require their distributors to have registered and acquired a business name.
Before starting out, you must understand the market to which you are driving at. Do not just start the business because you have money to start up any business. Best selling products for distributorship business are beverages, skin care products, cosmetics, bottle water, toiletries etc
You can make as much as N200,000 and above on monthly basis, due to the kind of product you are distributing. Lastly, keep good contacts with the manufacturers and have a good relationship with the consumers.