A provision stor. is a business that does not really require a large amount of money since you will be dealing with basic household items that are not really expensive. Here are the steps to follow to start the business in Nigeria.
- 1 What Is a Provision Store?
- 2 Steps to Start Provision store business in Nigeria
- 3 How to Make Money in Provision Store Business
- 4 Conclusion
What Is a Provision Store?
A provision shop is a retail outlet where goods such as food items (like rice, salt, crayfish etc..) and other goods are sold. It is business that involves buying at a wholesale price and selling it in retail.
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 ready market already.
Steps to Start Provision store business in Nigeria
Capital is the number one thing that will determine the category you belong. If you have less than #100,000 you will consider retailing while millions can start distribution business. Any amount can start the business, but on the average you will need about #500,000 as the prices of provision items are sky rocketing
In your capital budget, you have to capture money for:
- Container or shop
- Wood for shelves
- Tables to display some items
- Chairs for you and your customers to sit and wait
- Books for inventory
- Cartons for packaging items bought
- Nylon for wrapping other items.
2. Choose a Location
Your store should be positioned in a strategic place and made visible for all to see. 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 full as people always bypass shops that look scanty because they believe all the items they want to purchase may not be available.
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
You can sell anything apart from perishable goods in your shop ranging from food items, cosmetics, books, gift items alongside with the provision. The prices of provision items are not fixed as they change according to the country’s economy and cost of manufacturing.
3. Write a Business Proposal
To start up any business it is advisable to carry out feasibility study or at least write a business proposal to guide you on the path to success.
4. Get Suppliers
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. The reason being that if one does not have, the other one will have. Once you purchase from them, they will be the ones to be bringing the products to your shop.
5. Register a Business name
It will be an added advantage when you register your business name with CAC as it will help you when you want to get a loan for expansion.
How to Make Money in Provision Store Business
You have to spread your capital to capture almost every fast consumable products. Purchase more of goods that is highly demanded in your area for sale.
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. When you sell these items in bulk you make good profit. For instance, if you add #50 to an item and you sell 100 of it in a day, that will fetch you #5,000 for a day, in a month you will make more than #100,000 as profit.
Provision store business is profitable that is why you see people that started small expanding their business within a short time. If you are interested in this amazing business, you really need to start up immediately. Stop procrastinating and follow the steps in this article to start.
Try purchasing more of what is demanded in the market, be open to give discount to customers who buy in bulk. With these in place, i think you are ready for your provision shop business.
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