Has it ever occur to you that building material business is one of the most lucrative business in Nigeria? Most of the successful business men in Africa venture into this business line like Aliko Dangote.
Trading on Building material in Nigeria is a sure guaranteed business that makes plenty of money any time of the year.
This business is not affected by any season or time, it is an all round business venture. Building material sells extremely fast in Nigeria and people are making good money in the business now due to the current boom in real estate business in Nigeria.
Read Also: Cost of Building Materials in Nigeria
Houses are springing up every now and then, at every corners all over the cities and villages in the country because everyone wants to have his own house, a place he can call his own.
This is the major reason building material is selling very fast and with good profit too. Starting a building material business is a very good idea, one that you will never regret. It is a lucrative business.
Building material business is a business that basically deals with selling of materials that can be used for building, for example include cement, gravel, wood, roofing materials, electrical appliances, aggregate, plumbing material, steel and metal products, glass, paints etc.
It is of paramount importance that commitment is needed is this line of business, and it takes an active mind to succeed in this business.
Market Structure Of The Business
Building material business is a crucial business, as its exposure is relevant to the marketing of the business. An awareness need to be created for people to know the availability of the materials.
This can be done by creating websites that can be visited on the internet, billboards stating the type of materials available, creating awareness in TV programs and so on.
Demand Analysis, Competition and Opportunities
Africa is one of the fastest growing economy in the world. Birth rate/fertility rate is high, the question is where will all these people live? thus the need for shelter is put into consideration.
Across Africa, entrepreneurs, investors and governments are spending billions of dollars on real estate projects in a bid to satisfy the huge and growing demand for residential and commercial accommodation.
Basic Steps To Starting A Successful Building Material Business In Nigeria
1. Identify The Target Area
Building material business is a diversified line of business. It is diverse, with many arms and branches. There are too many for any single merchant to deal on all of them at a time, you need to select where you want to focus.
Focus is important because it will enable you get strong and profitable. When you choose any particular niche, you would become expert in that niche and everyone will know you as experienced in that sector.
2. Look for a Suitable Location
Some building materials are extremely good in certain location while others does well in other locations depending on the target market. E.g: Materials like Cements is best located near new and developing sites/area while Paints does better off new sites IMO.
3. Secure a Place
Either an open ground, shop or whale house depending on the type of building material you want to deal on. Materials like Iron doesn’t require a shop or whale house in most cases, though you may get an shop/office for transaction and hosing your customers, not for product storage.
4. Locate a Supplier
There are suppliers for virtually all building materials used in Nigeria. Look for suppliers that works well for you and negotiate deal with them.
The importance of having a regular supplier can not be over emphasized. If you are reliable and trustworthy, your supplier cab supply and come for the money later which is very good in business especially when you are trading with limited funds.
Read Also: The Cost of Building Plan in Nigeria
5. Get the Building Materials and Begin Marketing
The mistakes most building material dealers do is to wait for the buyers to come. Yes, they do come but better if you can reach out to them, that will eliminate chances of going elsewhere, remember you aren’t the only supplier.
It’s not enough to go write on a wall of uncompleted building, you will get ignored many times than you’d get attention.
Seek for time when you can meet the building owner or the contractor and offer him your deal face to face. That way, he’ll be able to see that you are real human being and you would be able to use every marketing skill you have to market your products to him.
Building material supply business is a great money maker for any serious entrepreneur who takes the business serious and get everything right. I have seen people start small and within a short time they are buying supply vehicle and all that.
It depends on the material you are selling. Some materials sell better in developing sites while others don’t.
The basic problem that can be encountered is finance on how to go about the business. Sometimes one is tempted to get loan from the bank due to insufficient capital.
Certification & Licensing
it is of paramount importance that your business is registered to avoid being sanctioned by government body. After giving your business a name, that name should be registered so that business can be conducted legally.
Staffing and Advising
Some business needs experience in order for it to be fruitful and effective, thus, the need to employ workers that has experience so that good and quality advise can be taken into consideration.
Read Also: How To Become An Architect In Nigeria
Summary & Conclusion
Depending on your location and the preferences of home builders and contractors, the types of materials required may differ considerably.
It’s important that you study the existing materials and products in your market before you decide on which ones you will start a business around.
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