HOW TO START A CEMENT BUSINESS IN NIGERIA
The cement business is one of the most lucrative and easiest businesses anyone can venture into and make good money. A lot of people lack information on how to get started with this business. If you find yourself in this situation, then here is a guide for you to get started without facing much difficulty and inconveniences. This article will explain to you in clear terms, the step-by-step processes you need to implement when starting a cement business.
Today it has become very easy to start the cement business in Nigeria. How can you be sure to make money from this business? You may doubt it. But know that there is a huge demand for cement in Africa. With the construction going on in Africa, you can earn a lot of money in a year by becoming a cement dealer.
Why Become a Cement Dealer?
Nigeria and Africa as a whole are growing rapidly; just the population is increasing. Infrastructures are being built and cement is a fundamental material for construction works such as bridges, roads, houses, monuments, etc.
With the huge population of Nigeria and Africa in general coupled with the housing challenges the government is currently facing; there is present and future demand for cement. The government and private property investors are also attempting to meet housing needs.
The Federal Government of Nigeria is currently implementing a plan to use cement for road construction. If you have foresight, you will know what this means. Remember what happened to flour and cassava prices when the federal government passed a policy that cassava flour should be the composite material used for baking bread, instead of conventional wheat flour?
In view of the above, you can see that the demand for this product is high and will continue to increase in due time. This opens an opportunity for so much profit to be made. There are three ways to venture into the cement business in Nigeria. You can join the distributorship train, the haulage branch or better still you can become a retailer.
The very first thing to do in starting the cement business as a distributor is to choose which brand of the products to purchase. There are many companies that are into the production of cement in Nigeria and across Africa. The various brands of cement products available include LAFARGE, WAPCO, IBETO, BUA, DANGOTE, etc.
In choosing a brand, you need to know the market demand, quality, and performance of the products in your region. This article will advise you to partner with the DANGOTE brand because Dangote is ranked as the biggest (and probably the best) cement producer in West Africa.
Dangote Cement is currently the dominant and leading cement manufacturer in Nigeria. Thanks to the business acumen of its founder “Aliko Dangote”, a formidable management team, and a strong distribution network (Dangote currently has more than 3000 trucks registered under the brand).
For the record, Dangote Cement PLC is currently the largest cement company in the world with factories spread across Africa; and with the future potential for export to the rest of the world. It’s high time to partner with the growing company, backed by strong leadership.
How Much Money Can I Earn as A Dangote Cement Distributor?
At the time of conducting this research and writing this article, a bag of cement straight from the factory costs 3,750 naira; and you are only allowed to purchase a minimum of 600 bags (a cement truck is 600 bags). If you supply the 600 bags at the retail price of 3,900 naira; that’s roughly N2, 340, 000 in a single trip Now how much do you expect to earn if you go 3X in a day!
Now, you might not have the capital to buy 600 bags at once, but that doesn’t stop you from making this trade. You can line up with two or more people, form a corporation or business, become a distributor, buy your cement products and distribute them accordingly among them.
How To Become A Registered Cement Distributor For Dangote Cement PLC
The following documents are required before starting an application:
- A copy of the company registration certificate from the CAC ( Corporate Affairs Company )
- Scanned copy of bank reference letter
- A detailed application letter to become a credible distributor
- Company CEO Passport
- And the minimum purchase of a trailer (600 bags of cement per month with carrying)
You can send your completed applications to cementdistributor@dangote or call the customer support department: 01-4616203, 01-4616206 and 01.-4630569.
You can also contact the group communication manager in Ikoyi:
Union Marble House,
1 Alfred Rewane Road, Falomo,
You Need To Set Up Facilities to Become A Star Distributor For Dangote Cement
- You Need to Write a Business Plan For Your Cement Plant
Market research is the first step to take before setting up your cement business. This will make it possible to determine the commercial potential to better position your business. It is not enough to have the idea and proceed immediately to set up the business activity because you have the required capital. If you do so, the risk of failure is great.
Your business may not receive patronage from customers because you did not know how to set it up in a favorable area. This means that you must first of all carefully study and analyze the offers and the demand available in the region under consideration.
A business plan gives you direction and opens your eyes to the wealth of resources you have at your disposal. Who are your target prospects? How much would it take to start a cement business and transport products to your point of sale? What can you add to make your product perform better than your competitors? These are questions you need to answer in your business plan.
- Study the Competition
Who are you competing against? What are they doing that you can do better? You need to study and understand their strengths and weaknesses. It’s your advantage
- You Need a Warehouse
You will need storage for at least 500-1000 bags of cement. You can also discuss with your neighborhood leaders about allocating space to store your cement. It is advisable to rent a warehouse to prevent unforeseen events
- You Must Have a Vehicle
If you can afford a stock vehicle (possibly a pickup truck or mini-truck), get one. It will help you sell faster and make work more convenient for you. A transport truck will also be needed to transport your cement products from Obajana factory, Kogi state, or Benue state. However, you don’t need to own the truck, a cash-on-delivery contract will suffice.
- Learn From Gurus, Not “GOOROS”
Do you know why there are so many struggling businesses in Africa today? It’s because they listened to “GOOROS.“ To be successful in this business, you need to talk to someone who is already in the game. Learn from someone who operates a cement business outside of your community.
Several people have been deceived and scammed by fraudsters. Many have lost their hard-earned money doing it alone. If you really want to save a lot of time as an entrepreneur, hire a mentor. Not just anyone, but someone with proven results. Copy what they do, not what they ask you to do.
Many established business owners are happy to advise serious entrepreneurs. They like industrious young people and are willing to go the extra mile to help them. Do not be scared. The worst answer you’ll get is “NO.” Rejection is part of the game.
- Do Haulage
Haulage has to do with the act of transporting heavy materials over long distances. Haulage is the simplest way to make money in the cement business. It is not a common aspect in the cement business and it requires a huge amount to start. There are so many cement depots that are not quite close to the factory, and these products need to be transported to their destination within and outside Nigeria.
You can get involved in this by acting as a subsidiary and leasing out trucks to these companies who will pay you a huge sum of money for using your truck to transport their cement products to the required destination.
Ronald Nzimora (copywriter and information marketing strategist ), started a transport company with two trucks; rents it out to Dangote, and earns almost a million naira doing nothing. He still earns millions by renting his trucks to Dangote.
If he could earn close to a million naira by renting his trucks to Dangote, you can earn the same too or even much more than a million naira. Just get your trucks ready and go into partnership with these companies and start earning from the comfort of your bedroom.
The third way you can join the cement business dealers is by retailing the products. A retailer doesn’t need to go through any application process with the company, all you need as a retailer is your capital and a storeroom to stock your consignment.
Then visit any depot nearest to you and placed an order, receive your goods and start recording your sales. You will make an average of N200 from each bag of cement sold. And considering the fact that a single customer who has a building project at hand, can purchase hundreds of bays at a particular time, you are so sure to be enjoying a high turnover rate in the business.
It is very necessary that you locate your storeroom close to the roadside or a construction site in order to promote patronage.
In conclusion, I want to reaffirm that there is so much money to be made as a cement distributor. Even here in Nigeria, you can still function as a cement distributor while continuing to work. Isn’t it amazing? You can make a realistic profit of 300,000 nairas per month by distributing cement. All it takes is ACTION, hard work, and determination!
However, you should keep in mind that no business is hassle-free, so expect some difficulties if you venture into this business. It is your ability to effectively meet the challenges that will make you a successful cement distributor, haulage or retailer.
Finally, I would also like you to know that there are other major cement companies such as LAFARGE WAPCO, IBETO, BUA, CCNN, etc. So, do not hesitate to contact them and become their distributor too.
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