HOW TO START A RETAIL SHOP BUSINESS IN NIGERIA
A retail shop business is actually one of the oldest businesses in Nigeria today. It has been in practice for quite a while and has helped entrepreneurs in making money off the business. The business is one of the fairly easy businesses to set up as it doesn’t really require any hard processes or requirements. In this business, you’re in direct involvement with the final consumers and you’re basically selling to them things that are essential and things they might need. Retail shops comes in different forms depending on the products sold in them but the main point is selling to final consumers. The business is one really profitable business that can fetch entrepreneurs high profits if set up well.
Just like I’ve mentioned, the retail shop is basically a place where consumer goods are sold or a place where most things or some of the major things needed by different consumers are sold. There are variety of products that can be sold in a retail shop and as long as the product is something with a high demand or even maybe a fair demand, then it is a good option and can definitely get in huge amounts of profit for business owners who start this type of business. Generally, retailers are individuals who are specialists in selling goods directly to final consumers. It is the main thing they do. And just like goods can be bought in bulk, it can also be bought in small quantities and this is where retail shops come in.
The retail shops, again depending of the kind of product sold, sometimes eliminate the option of going to the market by the final consumers. There are some products that are usually gotten in markets and sometimes these markets can be far and even the product to be gotten might just be in a really small quantity. With retail shops, you don’t neccesarily need to go to the market as long as they sell what you want. Things like frozen food, food stuff, toiletries, confections and many more that can usually be gotten in the market are now sold in retail shops and individuals can just visit the ones nearest to them rather than go to a large market to get the same products.
One of the major advantages in a business like this is that you get to choose from a variety of options of things to sell and if one doesn’t move well, you can slighty shift to something else in a matter of time. Some products have a very high demand during some specific periods and if you have some of those goods in that period, you’ll definitely make huge success. On the other hand, if the season for such products are gone, you can decide to restock the shop with something else which is also in a period of high demand though you might not totally eliminate the previous product.
Another things is that it is a simple shortcut or alternative to going to the market for individuals. Sometimes, the main markets are really far from the house and it might involve extra stress for some and when they can just get them close to their house in a retail shop, it is always preferable. This makes it a good business option as it provides comfortability for consumers and they’re most likely going to patronize your shop pretty well. Also, the business is not really expensive to start and depending on the product you choose to sell, it might just require a fairly reasonable amount of money to start.
Starting the business is not a difficult thing to do. Once the capital is available, the business is ready to start. You don’t really need too much for the business and it’s something almost anyone with basic skills to run a business can do. It doesn’t require any special skill or educational qualifications before it can be started at all. It is fairly simple to start. In the next sub heads, I’ll be discussing the steps involved in starting a retail shop business in Nigeria and some of the things that might prove useful during the course of the business that will prove useful to ensure that you’re successful at what you do and you’re making profit.
Researching a business you’re about to start is highy recommended regardless of how small or big you plan to start. Research is a fundamental aspect of starting any business and it always helps the entrepreneur determine if they’re actually ready for all the business takes and if they’ll be cut out for the things involved in the business. During the research, certain things are made known to individuals about the business and these things actually become important during the course of the business.
During the research, it is important to go through every detail you can get concerning the business, the market for the product, entry requirements for a starting company, production requirements and cost, risks involved, marketing strategies available for the business, the cost of capital and finally, how to increase your chances of making good amount of profit from the business. Other things like how to also expand if you’re starting small should also be gotten.
The retail shop business is not an entirely new business as there are other individuals who are practicing the business and have even been in the industry for quite a while. You can look to get insights from such individuals who might even already have big shops for wholesale distribution.They will most likely give you the most reliable information you can get on the business aside from the one you’ll probably get on the internet which also can be reliable to some extent.
2. SELECT THE PRODUCT
There are a variety of products that can be sold in a retail shop. They are generally things that are essential to consumers and they’ll mostly get when they also look to visit the market for shopping or something similar. Most retail shops are a mix of almost everything available to sell to consumers. Things like regular food stuff or ingredients are the most popular things used for the business. Together with that, you can add some other things with a high demand and sell it at the shop too. It’s very important that whatever you’re taking or selecting has to have a good demand and it is something that individuals will be willing to buy.
3. CAPITAL AND LOCATION
As always, getting the capital is a very important part of starting a business. It determines when the business can be started. You can draw up a list of things you’ll need for the business, after which you must’ve selected a product or variety of products you’ll be selling, and create a budget to determine the cost of starting the business. The capital is what will be used to get the things needed for the business. You’ll definitely need a location for this business. Make sure you get a place with a high turnout of people and ensure that you check that you don’t have competitors around. One of the mistakes many people make when starting a business is that they position the business too close to a competitor. It’s simply bad for business.
4. GETTING THE PRODUCTS
This is the point where you’ll need to get the products for the business. You can visit the market and check out large stores for the products you want to sell and get them there. Also ensure you’ve got more than one store where you can get the products. Also you might need tables and chairs among other things depending on what you’re selling.
5. MARKETING AND SALE
Two of the most effective methods of advertising this business is through word of mouth and referrals. You’ll need to inform people about your business and also encourage your customers to tell other people in the area about your shop. Also make sure your prices are quite affordable, it’s a pretty easy way to get customers and make sales.
The retail shop business is a really good business option that can bring in huge amounts of profit for individuals as long as the business is well set up and things are put in place.