We will talk about the following How to arrange a provision store, How much do I need to start a provision store in Nigeria, List of provision store items, How much to start a provision store, How to start a wholesale provision store
How to Start Provision Store Business in Nigeria Retail & Wholesale
This article covers both the retail and wholesale of the business the steps to take in opening provision store business. Take a look around your area I am sure you have people who are selling provisions under umbrella, kiosk, wheelbarrow etc. This is to tell you that you can actually start this business with any available capital.
However, to start provision business and be consistent in growing it you have to put some things into considerations. It may interest you to know that there is no item you display for sale that won’t get buyers. Almost every home make use of one item or another on a daily basis, ranging from toiletries, beverages, snacks etc. So you have a market already.
But the way you set up your store will attract certain caliber of customers to your shop. I’m sure you understand what I mean if it looks shabby and disorganized you will welcome few persons that don’t care as your customers. But make it pouch hot and standar attractive you will get sophisticated customers. Do you know why some provision stores are considered as mini supermarkets it is because of the settings.
Like any other commercial business you have to write a provision store business plan in other to succeed. But first determine how you want to start the business. Is it as a retailer, wholesaler or distributor? Its your capital that will determine this.
Steps to Start Provision store business in Nigeria
- Source for Capital
- Get a shop
- Write a business plan
- Identify where to purchase provision items
- Register for a business name
Starting a grocery shop business require steps and here are the steps to start provision shop business.
Capital is the money that you will use to start a business, If you have less than #300,000 you will consider retailing, more than #800,000 you can do wholesale, millions can start distribution business. That bring us to the question often asked, ‘how much does it cost to start a provision store in Nigeria’?
Any amount can start the business even if it is #20,000 you stock your shop according to that amount. But to start averagely, you will need about #800,000 but to start big time 1.5 million and above. The prices of provision items are sky rocketing so write a provision store business plan before starting in other to succeed.
In your capital you have to capture money for:
- Container or shop,
- Wood for shelves, you will pay furniture man to do it for you the woods should be good quality so that ants will not raise them down easily.
- Tables to display some items
- Chairs for you and your customers to sit and wait
- Books for inventory
- Cartons for packaging items bought
- Your company and bland imprinted on Nylon for wrapping other items.
- Wheelbarrow, For big provision store to convey customers goods
Your store should be positioned in a strategic place and made visible for all to see. There are some places you go to except you ask you will not be able to locate where a provision store is simply because it is opened to capture only the people residing in that area.
The provision shop design will depend on the capital and the type of provision store you are starting with. You need a small shop if your capital is small so that the few items you showcase in the shop will appear plenty. Its funny but People naturally bypass shops that look scanty because they believe it will not have all the items they want to purchase.
List of Items in a Provision Shop in Nigeria
- Soaps for bathing and washing,
- Chin chin
- Sweets and candy,
- Tissue papers
- Super glue
- Baby food. Etc
You can sell anything buy-able in your shop ranging from food items, cosmetics, books, gift items alongside with the provision.
The prices of provision items are not fixed, the change according to the countries economy and cost of manufacturing. For instance peak powder Milk that used to go for #1,500 is ńow #2,200 because there is an embargo on their importation. The same apply to many other provision items.
3. Write Business Proposal for Provision Store Business
To start up any business it is advisable to carry out feasibility study or at least write a business proposal. Don’t take provision business idea for granted make sure you write a provision store business plan. It will guide you on the path to success.
4. Identify where you will be buying the provision Items
You should be able to get more than 5 distributors or wholesalers on ground as the case maybe; so you can always purchase your items from them at a very cheap price. The reason being that if this one does not have they other one will have. Once you purchase from them, they will be the ones to be bringing the products to your shop. And some will drop the items for you to sale, then come back later for the money.
In kanu street in Onitsha main market are known for provision wholesale and distribution business. There are provision distributors in Nigeria that are in all the states. Find out the one closer to you from the people already in the business.
Register a Business name
It will be an added advantage when you register your business name with CAC, it will help you when you want to get a loan for expansion.
Do not procrastinate, if you have the money start provision business immediately. My sister was looking around for shop to start a supermarket for more than 3 months she couldn’t find a good place. And her capital kept on depleting every day until I found a place for her inside the market. She is doing fine in the business.
How to Make Money in Provision Store Business
You have to spread your capital to capture almost every fast consumable products. Purchase more of what is highly demanded in your area for sale. Don’t in the name of trying to buy everything you think will be bought go and buy the things that will take a long time to sale. You can keep those kind of items one or two for customers who will need them.
Reduce price especially if a customers ask you to do so, by so doing you will get that customer to yourself. You can use another item to make up for the one you deducted.
Provision business is very profitable even though the profit for one item is very small, #10, #20, #30, #50, highest #100. When you sell these items in bulk you make good profit. For instance, if you add #50 to an item and you sale like 100 items in a day that will fetch you #5,000 for a day, in a month you will make more than #100,000 as profit.
That is why I like wholesale provision business in Nigeria although retailers make more gain in an item than wholesalers. An item that a wholesaler makes like #10 a retailer will make about #50. The difference is just how fast a product is sold.
Items that Sales very Fast
Indomie, biscuits, snacks, beverages, tissue papers, soaps, detergents, insectivides etc. To make money in provision store business you have to be skillful.
What are your thoughts about this, please drop it in the comments section so that this post will be interactive. I’ll answer all your questions as soon as I can in my next post I’ll be sharing a business plan on how to keep stocks of provision in case you are hiring a sales rep use the share button to share this post to family and friends