EASY TO START DISTRIBUTION BUSINESSES.......In Nigeria

INTRODUCTION:

Many people started their businesses without much money and without knowing what to expect, the only thing they knew was that they wanted to survive on that business, take care of their family and other needs.

Many years ago, a friend of mine started with few Provisions in a little store, then he expanded into a grocery store and as time went on, he divested all his funds from the grocery store business and invested into Generator repairs and servicing. I asked him why, and he told me he had studied it from a close neighbor of his and he was confident the business has a lot of turnovers. 

He told me that almost every family in Lagos has one generator or another and even if they are not repairing too often, one can make a living by servicing them.  That assertion was true and within a few months, he got almost all the relevant generator parts in his shop.  He got some two apprentice boys to help him. He started looking for generator and standing Fan junks to display around the shop as a means of advertising his new business.

He got some un-serviceable generator junks into his shop and a 'New business' started.  He later realized that the un-serviceable junks were helpful in fixing similar equipment either as a guide to how to fix the equipment or you can lose apart from it to repair similar equipment.  This he told me explained why you see a lot of broken-down machines with Technicians of all kinds.  They are valuable for repair works.

Before long, he bought a car and got married …all from generator service and repairs business and he is still doing that business to date.

Today, I am delighted to share with you some simple businesses you can use to launch yourself into a distributorship business. I am sure you know that distributors are money men and women. Distributorship requires huge capital to start, in terms of infrastructure like getting a warehouse and an office, distribution van(s) and cash to order the first set of a trailer load of goods from the producer.

INSIGHT - Before You start your own Business:

I will recommend the following to people interested in business, especially young entrepreneurs.

1. Choose a business you understand a little bit

2. Choose a business you love to do, so you have the confidence to carry on.

3. If your desire is quick money, research for quick money business that may not be glamorous and key into it. 

For instance, the man selling Car as a business is respected by many, even if it takes him two months to sell a single car, while the man Cooking Indomie with tea, soft drinks and snacks make about N20,000 - N30,000 daily and nobody respects him.

4. Those man selling fruit - watermelon, Carrot and Cucumber at major bus-stops and markets especially take home close to N20,000 - N30,000 on a good day, yet you don’t know. But check them, they look fresh and robust.  I have monitored them. Location matters in this particular business.

5. When you start a business, please endure a little while to try out the business in different ways and methods before you go into another line of business. Exhaust all known options on a particular business before you move into another line, because anyone you enter, you will still learn and understand before you start making it.

6. Try to understand a business and the secret behind it.  Every business has a secret and until you understand the secret of a business, you cannot make big money from it yet.

7. Finally, before I introduce you to the businesses, learn fast on any business. Pay all your attention to the business, focus on it and understand its secrets - for there lies the key to your success.

Here are the businesses: - 15 lucrative distribution businesses:

1. Homemade Catering Supplies Business

People all over the world love good food. In fact, last week, recently, we published the story of celebrities who lost it to food. They ended up becoming fat because they could not control their appetite for good food.

Good food is a hot cake any day and you can start catering supplies business right from your kitchen. You decide to open a Restaurant when you have made enough money cooking and delivering to School, companies and big events. 

People love specially crafted meals, and since you already have a kitchen, you just need cooking supplies, packaging, and basic marketing materials to get started.  Be rest assured of good business once you get the cooking and price right. 

2. Casual wear business: You can start a second-hand clothing business with N5,000 or more.  What is important is that you identify where bails of cloth are opened for sale, usually early in the market days. You get there on time and select quality clothes. 

You may choose to concentrate on children's wear, but insists on the good quality clothes for children and make a name as one that stocks quality children second-hand clothes.  You may also pick some good blouses for women and conclude your picking with a few cheap children and women that are still good. The definition of good is one that is not worn out or turn. You can sell in the evenings at a popular bus-stop or around your house.

3. Palm oil or vegetable oil business:  If you want to seek high returns from investment, maybe you need to start it with N200, 000 as an authorized distributor by buying cheap in bulk and sell it to palm oil female traders. Depending on where you live, you will need to go to the markets and arrange for market women who will buy from you.  

As a necessity, you may have to give them some discount if you intend to dislodge their regular supplier of the product, else it will take you time to penetrate the market. The market women are in charge of this business as you will only sell little at home. If you have money, then you can own a shop in a busy market right in front where almost everyone that comes to the market will see you, then you can sell to the people and the market women at the same time.

4. Fan milk business: you can make money as a depot distributor if you have enough money to start. You can become a Fan milk retailer by buying what you have and selling it to high-speed routes during the dry and rainy season. 

This is a favorite with children and so, you need to ideally locate your trade around a neighborhood that has schools, (Primary and Secondary). It is always in high demand because of people’s thirst.

5. Yogurt business: You can start it with less than N10,000 or N20,000 by grilling the ingredient of yogurt, packaging, and selling as a retailer or distributor. This supposes that you have a deep freezer at home to store the product to a good extent before it is sold. The challenges of the business are not with producing Yoghurt, but with storing and keeping the Yogurt fresh. The packaging and taste must be gotten right, once this is done, you are in good business.  

  

6. Household business: If you understand what household business is, then you can do it by starting with any capital you have and grow into your big distribution business. With a small capital, your best bet will be to look for second household equipment - Furniture and other equipment, buy them cheaply, refurbish them and then resale for a big sum of money. 

In Abuja, people who do the second-hand household business are into two categories; the carpenters that buy them and refurbish and the other guys who buy and resale it without doing anything to them.

7. Minerals business: I know it requires you a heavy investment for distribution business, but if you really have passion for business, you can do it by starting with less capital no matter what and grow into a big distribution company by replacing each time you sell. 

You need a cooler or a small fridge or deep freezer. You can start at home, rent a shop or position your business at a busy market or Bus stop and serve the drinks chilled.

8. Bakery business: You can start it with N10,000 at home as a test and make N2000 or N3500 as quick turnover daily by labeling, packaging, marketing and distribution to bread sellers. Many working-class have joined this business by buying from big bakers from their office and selling in their cars around their environment. 

There is so much to be learned from any business you may start that will help you in the future. You can start by distributing bread and migrate into a baker in a matter of months or years, once you have understood the business and its secrets.  Its better for a person remain an apprentice for four years and understands the secrets of the business than starting on your own, without deep knowledge of the business and its secrets.  

For instance, you need to know:
1. Where the best quality goods are purchased at fair prices.
2. You need to know the Importers of the goods you sell.
3. You need to know which Importers give discounts and those that allow you to take the goods and pay later.
4. You need to know distributors of fake and adulterated products, so they will not deceive you with low prices.
All these are known when you stay longer in a place. Even after knowing the secrets of a business, you need to understand its management.  How to handle everyday challenges that will arise in the course of the business.

9. Sweet food business: If you sell sweet food products to high secondary students, big boys and girls you buy with just N5000 start-up capital, you make a fortune daily from this business. When you start this business, you will discover how much mothers buy sweets for their children. Don’t forget to have packets to sell as a whole to rich mothers who would want to buy a whole pack. You will surprise to discover you are making between N1,000 to N3,000 daily selling sweets.

10. Raw foodstuff business: You can start it with N50, 000 as a food distributor and make a good profit daily only if you locate your warehouse at a busy street or a market. One thing that will help you in this business is to locate your store in a fruit market, where fruit from other places will berth daily.  

Once that is done, then you must be on time to the market because the fruit is an early morning market as traders buy early to return to their location within the city. Another factor is to be able to identify fruits that are fresh and others to be avoided as the wrong judgment will lead to a loss. You also need to understand the market and know when to sell-off and avoid losses.

11. Pesticide and insecticide business: I think it is not lucrative, but it is profitable because people still use it. You can start it with N3000 or N5000 as a producer and market it to high popular marketers. We are researching these Pesticides as we don’t have viable native alternatives. It's just that people avoid it because of cost. Most local producers now combine it with air-freshener, liquid soap and bar soaps and disinfectants like izal and Dettol production. Also, we have up-to-date production process for Dettol. Please read it up.

12. Book Seller / Book Distributor: The business of selling or distributing books is very profitable.  This is the business where Bible sales and distribution is involved, professional books, scientific books, primary, secondary and University books.

If you have money, then you make adequate contact with Importers of books into Nigeria and get books directly from them.  But if you don’t have much money, then do market research on a niche group of people and their book needs, so that you buy those books your target people need and supply to them. This is what many big Bookshops do regularly.  They have people that demand religious books, inspirational books, and others regularly and deliver to them

13.Frozen fish Business: You can do it by starting with any capital you can afford as a distributor. It is profitable because some people in Nigeria can not afford cost meat, while many people have actually stopped eating red meat for good. Its either fish or chicken. If you live in Lagos, you would have noticed that the Cold room business can be started without much. Once you have a deep freezer and a small generator, you are ready to do business and people are turning to fish today instead of meat.

14. Detergent and soap business: I guaranteed you can be a millionaire in less than a year if you are into this venture at a popular market as a distributor or a producer. Household and female trading consumers still hunt it every day and every year. We have a comprehensive piece on this subject, please read it up.

  

15. Flour business: You can start this business with N50,000 or any other capital you can afford as a distributor or retailer and make a good turnover because bakery business owners and puff-puff businesses still buy it for their business. 

Flour business can be done on a small scale level - as a retailer of flour, If on a small scale, you must open shop as a Flour businessman selling flour in bags as well as retail.  You can start with three or four bags, open one bags and pour out into different basins with different measures while the remaining two or three bags could be sold directly to customers. 

   

CONCLUSION:

If you decide to enter the business, you have not done before, caution must be exercised by you. Start with little money and learn the ropes. Understand the business, the risks inherent, opportunities and threat as well as the secrets like where you buy the commodity cheapest, the time form such sales, the ways and means to sell the product and make a profit.

How to package it, market and sell it and who are the people that need the goods and those that buy them. If there are issues with any of the product(s), how is it resolved, who understands the product or service more than others?. There are many more deep secrets you need to know about the business before your millions begin to flow.  Without knowing these secrets, you will face challenges after your investment.

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