Manufacturing promotes the economy of any country and Nigeria is not an exception hence it promotes a nation’s Gross Domestic Product (GDP) and that is why therefore countries like China and the United States are the richest countries in the world and however Nigeria as a country is very much in need of indigenous manufacturing companies and this article explains how to start.
Factors To Consider Before Opening A Manufacturing Company
Nevertheless, there are certain things to consider and this is before you go into manufacturing:
1. Do the SWOT Analysis
SWOT analysis helps in evaluating threats, opportunities and weaknesses and strengths.
a. Strength (S) in SWOT analysis
Here questions like the ones below come up:
i. What factors determine sale and distribution and what are the advantages and prospects of your organization and also what are the unique attributes and characteristics of your company, hence the questions above and some others are part of the Strength (S) analysis.
b. Weaknesses (W)
i. What are the things you can avoid or prevent and what things do marketers and sellers see as weaknesses hence questions like this and some others belong to the weakness (W) category.
c. Opportunities (O) in SWOT analysis
i. What opportunities and chances do you see and what trending interests and features do you know and another is what are the changes in market and technology both in narrow and broad scale and what are the government policy changes and transformations?
i. What are the obstacles and challenges that you are facing and what activities and events do your competitors do and also are there changes in specifications and standard quality hence these questions belong to the threat category.
2. Consider branding strategy
How do you make your products unique and this is branding and there are many products out there in the market and you need to brand your products hence this will help customers know which one is your product and which one is not and branding is an important part of manufacturing and brand accordingly.
3. Trending markets
Do some research and find out the marketing techniques and trends and knowing the marketing trends and factors will help you to prepare your manufacturing company.
4. Knowing the target customers
You have to know your target customers and also what your customers need and bringing products with much need from customers will promote the manufacturing business and meet the needs of your customers and see your company flourish.
5. Demographics of your customer
The population and location of your customers has something to do with the demographics.
6. Selling strategy
Marketing strategies and techniques that appeal to your customers should be the ones you need to implement.
7. Distribution methods
Make provisions on how you can distribute and market your products and proper distribution channels should be put in place and this will promote product sales.
8. Technology and e-commerce
Your manufacturing company should have a website because this is the 21st century and you have to be online and many manufacturing companies now need more audience and make more sales online.
9. Positioning and pricing
Your price should not be too high for your customers and proper positioning applies here.
10. Promoting and advertising
Options exist for different forms of advertising and you can utilise them for product promotion and advertising both online and offline and tell people what you do.
11. Risk management
How do you manage the risks and how do you implement management strategies?
What Are The Items You Can Manufacture?
Manufacture items that are legal and user friendly hence fake drugs manufacturing and contraband goods are not what this article is talking about and you can also manufacture something unique and sell them in the Nigerian market and also ensure that what you are manufacturing is legitimate and perhaps exportable and some goods are not legal and healthy.
List of Items You Can Choose And Manufacture
The list below is from the Nigeria Entrepreneurship Program and it is below:
i) Soap and detergent products, paint and polishing products and others cleaning products.
ii) Foam products, textile and garment products
iii) Plywood and saw mill products, lamination and particle brand
iv) Packaging, body lotion, cream and cosmetics, ginger processing products and packaging
v) Leather and shoe products and ice blocks
vi) Printing products, fishes and fisheries
vii) Poultry and diary products, filling, gas and cylinder (LPG)
viii) PVC plant for manufacturing and production processes
ix) Poles and pillars, blocks, concrete and pillars
x) Blending products of oil and gas and other petroleum products.
xi) Candle making and wax production
More on the list
xii) Sachet and bottle water making and packaging and processing and packaging of popcorns
xiii) Packaging and processing of plantains and processing and packaging of potatoes
xiv) Processing and milling of palm kernel and packaging and processing of feed mill
xv) Making of citrus juice a fruit and packaging and production of confectioneries and bakeries
xvi) Packaging and milling of rice and processing and milling of garri and packaging
xvii) Making of corn chips and packaging and production of maize flour and packaging
What Are The Promotional Factors Of Manufacturing In Nigeria?
Manufacturing in Nigeria has certain contingencies and inefficiencies.
1. Electricity shortage
Most manufacturing companies make use of electricity and some areas in Nigeria don’t have enough of that and this is one of the reasons why many foreign companies are not in Nigeria and also go for some alternatives like generators and solar panels.
Road, electricity and other infrastructures enhance production and transportation and this have effect on manufacturing and production and more infrastructures are necessary for manufacturing in Nigeria since the ones available are not efficient.
3. Loans and security
There are many scammers and people who would rather produce something fake and market to Nigerians and some are into fake drugs and illegal arms and all these are not good for the health and security of Nigerians however many people do this to make money and this article is not for such people and some Nigerians manufacture contraband goods and also better loans are necessary to promote manufacturing.
4. Need for indigenous production
Nigeria still imports more than they export and this is not good for the Nigerian economy hence manufacturing genuine and original products will help Nigerian customers and the Nigerian economy.
5. Low innovation
The mindset of many Nigerians is not how to make things but rather otherwise and youths and the rest of the population in other countries focus much on the art of making things and innovation hence many products we use today started from an innovative idea and ideas are the starting point of innovation and lack of ideas is lack of innovation.
Read Also: 10 Functions of Nigeria Bank of Industry
Manufacturing does much good to the economy of Nigeria and many manufacturing companies are needed in this country and this is a sure way of promoting the Gross Domestic Product (GDP) of any nation however manufacturing is not only good for the manufacturer but is also good for the country and explanations and guidelines on how to start are in this article.Click here to see the latest Jobs opportunities in Nigeria.
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