Exporting business is one of the most profitable business to ever venture into, and that is most counties are so much interested in it as it serves as a platform for national income.
To decide to start an export business is really a great idea to think of, but before you commence. There are some prerequisites must have and follow to be assured of a successful investment. In this article, we have researched and come about comprehensive steps to opening up your business.
Learn about the export market
Firstly, start by signing up for some business planning courses. After you are done with that, you need to calm down and take your time to study how export business in Nigeria works.
Nigerian export market is broad and complex, and you should not go in unguarded. Figure out what proper documents you might need, visit online business panels and make inquiries from experienced businesspersons about the snares of export businesses in Nigeria.
Conclude on what you are going to sell and where you are going to get it. Nigeria is a country that is richly blessed with things you can sell to other part of the world. Below is the list of possible products for export.
Oils: Coconut oil, palm kernel oil, Palm oil, sesame seed oil, and so on. These stocks are regularly in high demand in countries with a colder climate. In that case, it is pretty easy to make reasonable profits from selling all sorts of oils;
Cosmetics: It is really wise to consider cosmetics as possible produce for export. The oils that were stated before are great for hair and skin, so many lotions, shampoos and other beauty products contain them;
Charcoal: Nations in Asia, Europe, and the Americas have a vast market for this product, and Nigeria has the best quality charcoal;
Fruits and juices: Nigeria can produce lots of fruits that are considered exotic in such countries as the US. Juice concentrates are an even better option to opt for, as they have a longer shelf life.
Textiles and cotton: People around the globe appreciate the African culture, and Nigerian fabrics and garments attract foreigners. Also, the cotton business is presently on the rise in Nigeria.
Once you’ve settled on what you are going to export, you need to reconsider how you are going to get that product. You can either develop/make it yourself or buy it from someone else.
If you are new in the system, the other option is much more comfortable. Although you should have some backup suppliers should in case. You never know.
Source for capital to finance your business
This isn’t applicable to every intending business person, such that If you are buoyant enough but don’t know what to spend the money on, this is not for you.
But for those who have only concluded on starting a business based on your enthusiasm, you must first find where to get enough capital ready for business.
Get credit from any financial institution or traditional(friends and families), mind you, be cautious with that as you can’t predict the outcome of the business.
Besides, if at the end of the end, you will have to borrow from your friends and relatives, be wise with it as it can affect your relationship negatively.
On the other way round, find a partner with a huge amount of money and is willing to invest in your proposition. Just make sure you have an inclined financial relationship with this person. It’s possible they expect more profit from your business than you can provide. With all of these settled, you are more than set to go to the next step.
Register your company and your business address
To make it more official and to attract respect from other people, you need to register your company. Below is a short checklist of requirements you need to meet for that.
- Create an unusual name for your export business and do ensure to register it with the CAC Corporate Affairs Commissions.
- Register an office for your company. You may decide to just put your address for this should you not have an actual office yet.
- Record your business with the Nigerian Export Promotion Council (NEXP). Nigerian Customs Service expects that all export businesses in Nigeria are to be registered, but it is somewhat straightforward. Just log on to their website (nepc.gov.ng) for the whole registration.
- Plus, you will need to fill out the Form NEXP. You can do that in any financial institution (banks). Now, we move on to the next step to setting up an export business.
Get all the Expected licenses and permits
It is expedient that you procure the necessary permits and licenses to be recognized as a real and trusted business by the government and potential clients.
In Nigeria, there are particular demands for export business, in that case, ensure you don’t fail to meet all of them. At the same time, your target country must demand some documents for export businesses in their country, so be sure to get them for a safe business transaction.
You must get buyers
In this present age, starting an export business come a lot easier than before. By going to the internet and registering your company on trade platforms, you can easily meet buyers and start negotiating immediately.
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Advertise your product
As soon as you get clients, give them reasons why should go elsewhere looking for the same product you have to offer.
This way, you can high influx of customers patronizing you. Decide on a list of things that make your product worth purchasing and coming back for.
Nevertheless, you can as well display your products on various visible platforms. This will in no doubt enable potential importers to see what exactly they are dealing with.
Are you done with all the comprehensive requirements explained in this article? Now, you can forge ahead setting up your dream export in Nigeria. It is this simple!
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