How Can I Start A Building Materials Business In Nigeria?
Building materials will always be in demand, hence, the production and sales of building materials is understandably a profitable business venture to start up in Nigeria.
So, to the question; “how can I start a building materials business in Nigeria?”
Well, easier than most…
- To niche or not: The building materials business is quite broad sectored, so you will have to decide whether to work with a particular line or to work with several. Of course, it is always recommended to go with a particular niche so as to gain experience and expertise in it; but then the choice is yours.
Niching simply helps you focus on a particular line; and thus accelerate your experience and expertise in that line, in a way that you can become recognized as an expert in that niche.
- Register your business name: For a building materials business? Yes Sir. You want to appear professional. You see, if you study customer trends, you will understand how people perceive registered brands and get to use it to your advantage. I mean, the benefits of registering your business are numerous. Outside the fact that most businesses will rather do business transactions with registered brands. Number two: there is absolutely no way you can get a government contract if your business is not properly incorporated. The whole process is just a matter of getting to any CAC office nearest to you and having your company registered, or you can just download the form online by visiting www.cac.gov.ng
- Prepare your business plan: Now, to effectively run your business; you must prepare a business plan that will be used to implement your business idea effectively. Your business plan should include a description of your company, its product offering, services ( if any), your marketing strategy, competitor analysis, your goals and objectives, and detailed feasibility studies.
- Choosing a suitable location: A bad location is the bane of every business. Look out for how location will affect your business. And in most cases, the location of your building material business will, to a large extent, determine how successful and profitable your business becomes. You could consider locating your business in a newly developing site as developers will prefer to do business transactions with you than to incur extra costs from getting supplies afar. Nonetheless, it’s a good idea to observe the trends as some building materials are good in certain locations, while some others tend to thrive well in specific locations. For instance; a cement business is best located near a new and developing site. Just observe and follow trends and you’re good to go.
- Getting a shop space: Find a secure space such as a container, an open space, a shop, or even a warehouse to store your merchandise and to operate your business from. Depending on the kind of goods you’re into, getting a shop may not be necessary. An example is a material like rods or iron; which may not require a shop or warehouse, although you may have to get a space for clerical activities and hosting your customers. In any case, you need to be able to weigh your options and decide on the best option to suit your business needs.
- Find a supplier: There are so many building materials suppliers in operation in Nigeria. Although, most building materials dealers often order for their goods from countries like China, due to the fact that it has a higher profit margin. You could look up online sites like Alibaba.com to make orders. Alternatively, you should find out from other businesses from where they source their goods. Just look for a supplier that works for you to negotiate a business deal with them. It is recommended that you stick to and develop a budding business relationship with a particular supplier that you will be partnering with; as the benefits of having a regular supplier are immense.
- Investigate the business: The most important key to succeeding in the building materials business is getting all sorts of information about the running of the business in Nigeria; this should come without saying. Your mastery of the peculiar intricacies of your business will accelerate your success. Work on establishing meaning relationships with other businesses in your niche; ask questions, be submissive; people tend to give out information more readily to people who seem dependent. So over to you.
- Buying and selling your building materials: Once the aspects above have been fully settled, you’re ready to start making your money. A fast way of doing this is always being on the lookout for buyers. Don’t sit around all day expecting people to do business with you. Instead, step out and grab your own share of the market. Trust me, it can both be fun and challenging at the same time. Look at it this way; isn’t it better to have customers in-waiting, than goods in-waiting? You tell me.
- Some other requirements: These other requirements will help cement your business standard.
- A delivery truck. This will serve as another source of revenue for your business. By delivering goods to your customers, you get to charge a token; which works well for both you and your customers
- Hire workers. You simply can’t afford to run this business entirely on your own. Get workers to do specific tasks for you.
- Create an official website.
- Print business cards.
Here are some other factors that need to be considered when setting up your building materials business in Nigeria:
- Whenever a product appears to be low on demand, it should be reduced in your stock, but not completely removed
- Ensure that you work with high-quality suppliers as this will affect the reputation of your business
- Practice effective customer care services
Top building materials to invest in
Here are some top selling materials in the building material industry
- Cement: Currently, 6 billion tonnes of cement are being produced on a daily basis. Cement has proven to be the fastest selling building material so far. You could become a major dealer who buys directly from the manufacturers, or set up as a retailer
- Timber: This is another hot building material you want to try out
- Roofing materials
- Steel and metal products
- Plumbing materials
- Sand, gravel, etc
- Electrical materials and accessories
Hope you enjoy this article?
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