HOW TO START A SOFT DRINKS DISTRIBUTION BUSINESS IN NIGERIA
The soft drinks sales business is one of the lucrative businesses in the country today. Soft drinks are very popular in the country and they have a very wide market for their products. They come in glass bottles and also plastic bottles and are quite available almost everywhere. They are commonly served in parties or events and are even taken at home by individuals. Soft drinks are non alcoholic drinks which means they can be taken by literally anyone, both young and old as a means of refreshments or even as a regular drink. The sales are distribution business has been in practice for almost as long as the products have existed in the country.
The sale and distribution of soft drinks, just like the name implies, involves the sale and distribution of the different soft drink brands to customers who are willing to buy the product. The products are gotten from the manufacturers or a local distributor of the product and then they are sold either in large scale or at a retail level. The products are widely accepted and it will almost be no problem getting customers and supplying the products even to big stores or places where they will be needed.
The business comes in two major types and this different types also determines how much capital is required for the business to start successfully. For someone who wants to venture into this kind of business, you can either decide to start as a distributor of the product or choose to be a local retailer of the product, that is, the products will be sold in small quantities in a small retail shop or store. The distribution aspect of the business is a really big one as you’ll definitely need a big place, and of course, a huge amount of capital to start because you’ll be buying and storing the products in large quantities. One of the main advantages of this business is that you are in direct contact with the product base or an even much bigger distributor and the product gets to be sold at cheaper prices. Here, you don’t necessarily have any business with the customers directly as you only deal with people who buy in large quantities.
The retail aspect of the business, however, requires a low amount of capital and also a small space where the business can be operated. You’ll only need a relatively fair amount of money to start as compared to the large scale aspect of the business. This is the small scale part and products are gotten in small quantities. Here, you’re the dealer for the people who want to buy in very small quantities. This aspect doesn’t really require too much as you’ll only need a few things.
One of the main advantages of starting this business is due to the high demands and acceptance of the product in the market today. There are popular and you’ll definitely be able to find customers and make your money provided everything is set up in the right way. Starting the business doesn’t really require too much as long as capital is made available. The capital makes the other aspects of the business look easier to do as it covers the cost of everything needed for the start of the business and also it helps you to properly market your products. The business aspect you’ll be selecting will determine if you’ll need a large capital or a small one and also how important capital will be during the course of the business.
In the next sub heads, I’ll be discussing the steps involved in starting a soft drinks business in Nigeria and some of the factors that would prove important during the course of the business and also to give you a good chance of ensuring the success of the business.
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, business 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 soft drinks sale and distribution 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 or really big 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.
3. SELECT A SPECIALTY
Like I’ve mentioned earlier, you can either decide to start a really big distribution company or just a small scale one as a retailer. After the research, you must have been aware of what each aspect entails, cost of starting and also sustaining the business. Cost and your budget prepared for the business will also help you determine which one is best based on what you have already. You should know that if you want to start a large scale business, you’ll need a huge amount of capital as the mode and methods of operations are quite different from when it will be a small scale setup to be started. Pick something you’re comfortable with and that you’ll be able to manage efficiently without problem.
4. CAPITAL AND LOCATION
The need for capital cannot be overemphasized. It is so important that without it, the business will not be able to start at all. The capital covers the cost of everything you’ll need for the start of the business including the equipments, location and also the product itself. As you might’ve known by now, the business requires a location to start. Go for a low cost place with a high turnout of people in the area. This will give you a good chance of getting customers as your business is in a place where people regularly go through. If it’s a distribution business you want to set up, get a large place where the products will be stored. For a retail drinks shop you’ll only need a small place for it. Always try to position the business in a place where your business can be visibly seen. Also make sure you’re not close to competitors.
5. GETTING THE PRODUCTS AND OTHER MATERIALS
At this point, you’ll need to get the products. There are different soft drink brands in Nigeria today and some are even very popular names in the industry. Brands like Coca Cola, Fanta, Sprite, 7UP, Pepsi and Mirinda are very popular among soft drink lovers. There are other brands too, infact many other brands, but they are just not as popular. If you’re starting the large scale distribution, you can get the major depot for the product in your area and get them from there. You can also get registered with them too so you can be listed as one of their distributors. For the small scale type, you’ll just need to get a local distributor in your area.
5. MARKETING AND SALE
Regardless of whichever one you’ll be starting, you’ll definitely need to advertise your business. One of such easy is by using social media. You can also design a banner and flyers that can be distributed and also put in designated spots around the location of the business. Also, referrals and word of mouth also helps to effectively advertise.
The demand for soft drinks and also its affordability makes it a good business you can venture into as you’ll definitely get customers. It is highly lucrative and one that can generate huge income for entrepreneurs who go into the business.