In this post, I will show you the 9 Steps to Start a Rental Business in Nigeria. Here, we will cover the feasibility study of rental business in Nigeria, steps and tools needed to get started.
A lot of businesses do spring up in Nigeria, both small scale, medium scale and large scale. All of them are effective with it’s own profits and losses.
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Just like all of the businesses, Rental Business is a good and viable business which can be done in Nigeria on a small, medium and large scale.
In Nigeria, many things are good for renting; Cars, Halls, Cameras, video equipment, wedding gowns, suits, etc. There are lots of things that are out for renting in Nigeria.
Now ask yourself, why do people rent things like, cars, halls, tables, chairs etc?
This is why:
- The cost of getting a new one is overwhelming. Take for instance getting a new wedding gown for about 70,000-250,000naira, or building a hall for your event at a whooping cost of over #1.5million.
- Once used for that occasion or event, it may not be used again. For example, a wedding gown; no one does a wedding twice.
- There are various costs involved in maintaining most of these properties if you purchase them. Like buying a car for #3.5million, every two days you buy fuel worth of #5,000, you change the tires if any is faulty; you call a mechanic if the engine develops a problem. All this are very tiring in the long run.
Now if we may look at “Why would you prefer renting?”
- Because you only pay the rental fee and that’s all.
- You would not bother about maintenance cost
- Since it’s a one-time usage affair, you use it and after that, you are done with it.
- No heavy cost that would eat into your pocket.
With these little reasons, this is why Rental business is lucrative ad sure to bring in great returns in the long run. One thing to note is that the business is not an overnight millionaire business or a get rich quick scheme. It is a business that grows steady and brings income on a weekly basis.
This Business can also be run from the comfort of your home and it does not affect your main job in any way if you have another job. It serves as a supplement or a booster to your income.
Read Also: How To Start Event Planning In Nigeria
Various Niches in Rental Business
Hall Rental: This niche is very lucrative because especially during weekends, you are sure of someone renting your hall. Weddings always occur on Saturdays and Sundays or other programs or conference meetings
Car Rental: Many individuals who don’t have the luxury of getting a new car or maintaining one prefer to rent one. Either to attend a wedding, Business proposal or just to impress people.
Chairs, Tables and Canopy Rental: This is actually the best niche for me as this is more lucrative and brings more money almost every other week. Because many people do celebrate, organize and host functions ranging from conferences, meetings, burials, wedding receptions, naming ceremonies etc. In all these, they all need chairs, tables and canopies.
Photo/Video Equipment Rental: The cost of getting a new digital camera is outrageously high but you can get a camera for rent at a low price. Besides, some people need a quick time job, so they make use of this opportunity and do their jobs and make their gains.
Bridal/Wedding wears Rental: If you are a popular outfit with good gowns and suits, you would be patronized on a weekend basis. Weddings always take place on Saturdays and Sundays, so you are sure of making additional income on weekends.
How do I Start a Rental Business
1. Choose your Niche
Just as mentioned above, there are many categorises or departments of the rental business. You cannot get involved in all of them at once. You have to select a particular area and focus on it.
Depending on how much you have at hand and willing to invest into the business. Why do you need to choose a niche? Because this helps you carve your name and business into the minds of individuals and customers.
Going into more than one or two of these could lead your customers to confusion and increase work load for you. Also you may not be able to keep track of your activities in the business due to diversifying interests and attention.
2. Do a Research and select a category that is more needed in your area
You have to do a thorough research and feasibility study in this aspect as it is important in knowing what is obtainable in your vicinity in order not to be at a loss or not make reasonable profits. It would be bad for business if you do not do a proper feasibility study.
3. Write down your business plan
Every business that does not have a business plan would surely face some challenges which cannot be curtailed, every business has its plan, how to run it, how to make profits, cost of start up and future projections for the business. All these need to be detailed to help the business as a map to a greater end.
4. Select where to purchase your start up materials
For every business to start, you need to get materials, it is also essential to note that the cost of these materials and their quality is of utmost importance.
Meeting reputable sellers who would sell at a reasonable price and at its best quality is an essential target. Try to get your start up materials at the best rate.
5. Getting a permanent rental fee
This should be contained in your business plan for the business. Though if some people may not draw up a business plan, you should know that having a fixed rental fee, is essential as it helps you make a future projection of how to get your money back and plan ahead. If you do not have a stable rental fee, it would be hard for you to make a future projection for your business.
6. Draw out a projection of how you intend to recover your capital
Many people at the beginning of a business when they seem to be making great and abnormal profits in a month, they feel everything is going well and will continue that way, and then they start making unnecessary expenses and purchases.
That is why you have to take note of how much you spent in starting up the business, so you can weigh it side by side with your income.
7. Advertise your Business
In this 21st century, there is no business that does not need advertisement. As this helps to make people know you and your services. With good advertisement, you can reach a wider range of customers.
8. Make your business Unique
Uniqueness makes one stand out in the crowd. So in case you have many people running the same business with you, your unique style, concept, and customer service would make you preferable to others. Imagine having online booking of services, home delivery of equipments ordered and special discounts; all these and many more would attract more customers to you.
10. Plan to Expand
Finally, this is important after fulfilling all the necessary i.e. recovering your capital and making additional profit. Stagnancy in business is not good, so you have to plan to expand your business as this means more money and more customers.
If you are able to follow all these guidelines, diligently, I assure you, you will be successful in this business.
If you are not yet sure of what niche to delve into, you can reach out to me through the comments section.
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