One of the most important factors to consider while establishing a business agency or organization is the environment. The environment has a significant influence on promoting your business. The primary goal of any enterprise is to be validated and profitable. This is why you should think about the environment with which you will be interacting. You must determine whether you are required in that specific place and observe the reactions of your consumers/customers inside that geographical area.
For example, when it comes to how to establish a spare part business in Nigeria, several standards and factors must be taken into account. You’ve already decided to start a business in Nigeria. The next question to address is where to begin. In this article, we will discuss strategies on how to start spare parts business in Nigeria.
How to Start Spare Parts Business in Nigeria
1. Determine which spare part is mostly sought after
A proverb states that a “jack of all crafts is a master at none.” Determine the type/kind of spare part you will focus on when you want to establish a spare part business. Spare parts are duplicate parts that are used to replace broken cars or machinery. Knowing which one interests you the most can help you stay focused in business.
2. Conduct research
Before you can fully enter this industry, make sure you have done adequate study from people who are already in it. You cannot enter this type of business without prior experience and training, regardless of how much money you have.
Having a thorough understanding of standards, specs, and some prior industry experience can help you go far in this profession. Making enough research will also make it easy to get knowledge and approaches on how to expand your firm and outsmart your rivals creatively.
3. Create a business strategy
The spare parts industry necessitates the development of a complete company plan. This will help you understand the costs of running the firm as well as the strategies to employ. It will also assist you in determining the best company divisions to enter and how to manage your revenue. Ensure that your business strategy includes your organization’s administrative architecture.
4. Scout out the ideal location
After you’ve drafted your business plan, you’ll need to select a retail location that suits your company’s strategy. You must select a suitable location for your storage space. However, if your sales and advertising strategies are adequate, you won’t need to spend much money on the location. However, keep in mind that you will want a large enough room to store and appropriately catalogue a wide range of duplicate parts for all of the car or machine types your service.
5. Get Enough Funds
You will need enough money to start your spare part business. The best that you can do is to get enough money to start so that you won’t run into problems when you start. Get enough funds and put everything you need in place. This will also give you peace of mind about your business.
6. Advertise on Social Media
As you know, social media platforms are the best way to advertise your business or brand these days. Get professional social media platforms that will advertise your business. You can employ a social media manager who will manage your digital presence and make sure that your business is known. This will connect you to even customers that are not in your vicinity.
Cost of starting a spare part business
If you are thinking of starting small, you can decide to start your spare part business with ₦500,000 to ₦1million by collaborating with an importer who has been in the business. However, in order to start your business on a large scale, you might have to spend about ₦5 million to ₦12 million. However, it is advisable that you start small and expand as you understand the business. Don’t rush to get most things when you don’t understand the business yet.
Benefits of Selling Spare parts
Here are some of the benefits of starting your own spare parts business in Nigeria.
It is highly profitable.
Having a spare part business is one of the most highly profitable businesses you can get involved in Nigeria right now. You can sell to the government, private individuals, companies, businesses, etc. This is why your location needs to be strategic if you want to reach as many people and business corporations as possible.
There is always demand for spare parts
Spare parts will always be in high demand. As long as people use cars, vehicles, and other means of transportation, there will always be a demand for spare parts which means that you will always make money from it as long as your products are available and you know what you are doing.
It provides stability
Selling spare parts provides a form of job stability that sometimes not all businesses give. It is more stable than working for an organization where your job is not secured at all and you could be laid off at any time for any reason. This business, as long as it keeps running well, will give you peace and assurance for yourself and your family even when you are no longer there.
License and Registration
Getting your license and registration is very key when you want to start your spare part business. It is advisable that you learn from people who are already experts in the business to know what they know and the necessary steps to take for this registration.
No matter what you do, ensure that your company is registered appropriately with the right authorities in charge of registration such as the Standard Organization of Nigeria(SON) and the Auto Spare Parts and Machinery Dealers Association (ASPMDA).
Starting a spare business in Nigeria requires patience, learning and understanding of the business. There are factors like location, funds and where to export from that you will need to also pay attention to if you want a successful business. Once you get the hang of it, it gets easier and you can make your money.