Here in this post, we will take the time to list out and explain10 best distributorship opportunities in Nigeria. We hope you find this article informative.
Right now in Nigeria, a lot of businesses are coming up every day and still some people are looking for the right business which they can venture into for profits.
Most people prefer to be self-employed, doing the business of their choice without any disturbance from a boss. Being a distributor is one of those job opportunities that can help you be an employer of others and depend on your own self for sustenance.
There are many goods in the market which one can indulge in and decide to sell to make a living. Lots of people that have gone into this business have never regretted their decision.
It has proved successful. But this is due to some good decisions which they took towards the business. Going into distributorship, has its own good sides and bad sides.
Although the good sides outweigh the bad sides, yet it is necessary to take caution in your business so as to be perfectly successful in it.
This business involves you buying goods from a particular producer or manufacturer and being the one to sell to the retailers at your own price.
In a town or city, you could be the distributor of a particular good which is popular in the market. If you become the only distributor of such a good, you are bound to make extra double profits on what you sell, because you will have Monopoly of the business.
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Is The Business Profitable?
Of course yes. Being a distributor pays. There are lots of people out there who have spent some money on being a distributor and have been making it big from the business.
The key point of this business is quick turnovers. When you have quick turnovers, you have quick profits. That is why you have to choose goods that are sought after in your location, because that is the best way to approach this business to make profits.
Opportunities for a Distributor:
Various goods in the market are in need of a distributor so they can gain entry into the market. Even already existing producers are looking for more distributors in areas that their goods have not reached.
So there are opportunities that exist for any a new distributor of whatever goods, so long as it is popular in your vicinity but requires some distributors to help the product gain entry into the market. What you have to do is to approach producer and you will find out that they need your services.
What you need to know before going into the business:
- You will be expected to buy the goods of the producers in large quantities and sell in smaller quantities.
- You will also need to have their various products. (If they do have other products as a company).
- Your direct suppliers are the companies or manufacturer. You cannot buy from anywhere else.
- A lot of capital will be involved for you to start this business. Ranging from 400,000 naira upwards.
- You will need the help of some sales agents or just employees to help you deliver your goods to the retailers.
This not a business where you will start without cash or promise to pay after sales,
you will need to have your money at reach to be able to pay for your start up goods. There is no such thing as promising to pay later. You have to show a level of financial commitment before you can be entrusted with the goods.
In order for you to be successful in this business, you need to have some basic skills which will help you in running this business,
- Being good at negotiation
- Good understanding of finance workings
- Being proficient in Business Management
- Knowing the basics of establishing a great networking of distribution.
- Ability to retain customers.
How to start a Distributorship Business:
1. Get the required business training and skill
There are skills and some little business trainings which will help you grow your business and be a top notch distributor.
There are various skills and techniques which distributors use to boost sales and get quick turnovers. Try to get trainings on Supply Chain Management, Business Management and Marketing and Sales Management. These skills will help you stand out in this business
2. Select your choice of specialization
You cannot be jack of all trades so you need to make a pick of where you prefer to push your money into. Be careful to select a niche that people do need regularly, so you will be able to get quick turnovers.
3. Get Target Market and Customers
Getting to know your customer base and target market is essential as this will help you understand and plan on how to get your goods to all of them effectively.
4. Develop a Business Plan
Just like every other business, you need a business plan to help you plan and arrange your business operations and dealings. It will also act as a map for your business.
5. Get your Warehouse
This is a key part of your business, where you will operate from. Get a big enough space to contain your goods. You can also operate from here as your office. The warehouse is where you get to store your goods and keep them for supply to the retailers.
6. Register your business name
It is essential to get your business registered so as to clear doubts of the legality. Most manufacturers will ask if your business is registered, so it is good to register your business.
7. Get in touch with your Producer or Manufacturer
After you must have done the rest, now you can then get your desired manufacturer or Producer. This is where you have to show your negotiation skills and your knowledge of the business for them to trust doing business with you.
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8. Get a vehicle to help convey your goods
Now where you will need this is if you have some other distributors in the business, you may have to get a vehicle to help you move your goods to your customers and also sometimes to get them from the manufacturer. This will endear more customers to you and even make your delivery easy to your customers.
9. Get Sales Agents or Extra hands to help build your distribution network
You alone will not be able to go about all the engagements and moving up and down needed for the business. But if you have a couple of sales agents to help you out and deliver goods appropriately, you will be developing a strong distribution network which your customers will like because you will be efficient and timely in delivery.
10. Get your customers and develop a relationship them
Now this is the part that makes you stay strong in the business over time. Once you are able to get your customers, then you are in business. But the best part is maintaining a good relationship with your customers so they can be your stable customers and also help you get more customers. Customer retention is a vital part towards holding your business together.
Best Opportunities in Distributorship Business:
This refers to the best products which you can go for as a distributor. There are over 10, but these ones are really good and more accepted in the market than others.
The consumption of beverages is a daily routine in Nigerian homes and even offices. So going into the distribution of beverages drinks from a particular company is a good opportunity for you.
As easy as it sounds in the mouth, it is not a business to be overlooked. Lots of people use water daily for drinking purposes. Churches, homes, eateries, restaurants, offices, they all drink water daily. So being a water distributor is a good idea, whether it is Table water or Sachet water.
3. Building Materials
Every day in Nigeria, building work goes on at different site locations in Nigeria, all the different materials needed for a building are in need for every house, especially tiles, Cement and Paint. Cement and Paint especially, these two bring a lot of money for its distributors.
4. Toiletries/Body care Products
Just as beverages serve a daily purpose, so do toiletries and body care products, the best method to go about this niche is to be a distributor to a particular company that makes these products, so you can have all the varieties of their products in your warehouse.
5. Phone Gadgets and Accessories
We all know the way people love to get new phones. Even phones that get repaired daily have accessories to be bought to replace them. This is another great opportunity for an intending distributor.
Hospitals, Pharmacists, Individuals take drugs most of the time whenever they are sick. Being a top distributor of a drug company can help you grow a stable income.
Every lady loves to put on anything that makes her face stand out. It modifies and brings out the beauty in a lady. Hence women love to use make up powders and other kits, cream and lotion, lipstick etc just to look outstanding. So going into this niche will make you an outstanding money maker within a short time.
8. Alcoholic and Soft Drinks
Guys love to have a drink or two at their own leisure time. Ladies too love to have something soft whenever they go out. On a daily basis over thousands of people consume drinks daily. Surely there is a lot of gain in the business as you are likely to sell every day.
9. Processed Food
People cannot do without food every day, so there are a lot of food items one can take into consideration to distribute; noodles, spaghetti, tomato pastes etc. They all need the help of a distributor to get into the market.
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10. Electronic/Home Appliances
Electronic companies like Thermocool, Samsung and the rest provide a lot of electronic appliances both for offices and homes.
Imagine being a distributor for Haier Thermocool in your area and you have all the necessary Appliances needed, people will only purchase from you when they need any sort of electronics.
If you have ever thought of going into distribution, think of any of these 10 niches and take a bold step into it. But if you have not thought of it before, then you can see insights to this successful venture.
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