How to start Distribution Business In Nigeria With Ease

Picture credit: Qatarmark.com

Distribution business simply means buying from the producer of a product for the purpose of redistribution to retailers for profit. This can be done in whole sale or retail depending on what you want and how strong your pocket is. In Lagos for example, most production companies are situated in the city. These companies require the service of distributors to help take their products to the end users across the city and to other states in the country.
The business of distribution is one of the most profitable SMEs you can venture into and you will never have any regret because distributors make a lot of money on daily basis. A friend of mine who work with a distributor company in Lagos told me he sell an average of 500 to 700 thousands Naira daily within Lagos. They distribute one of the popular beverages in the country. The same goes to people who are into distribution of things like eggs, sanitary pad, sachet water, drinks etc across the country.
I know many people think oh, how can i start when i don’t even have the money. Let me shock you, do you know that you can be a distributor to many companies without having a dime of your own? oh yes, it is possible. All you need to do is to have a well drafted proposal, submit it to the company ,what most of them will do is to request for a guarantor who will stand for you and when you meet up with that, you become their distributor. It is that simple!. A course mate of mine back in the University started that way and today he is a big boys in town. Distribution business is a game of numbers, the most important thing you need is not where to get the products you want to distribute, it is the buyers that you need most.Hence your advertising or marketing skills must be on point. Many new production companies are always looking for distributors who are ready to work. Companies in this category relax their requirements for you to be their distributor because of their desperation to break into the market. They only stiff their requirements after they gain their feet in the market. So you have to take advantage of them when they are new and sign up as a distributor before it is too late.
Below are what you need to be a distributor in Nigeria;
1 warehouse: This is only applicable for big distributors. If you apply for distributorship in a company, the first thing they want to know is how you intend to store their products without them getting spoil.For someone who wants to do it on not so large scale, you can store the products in your house if you have space or leave them in your van/truck if you have one. This truck must be well locked and parked in a gated house to avoid hoodlum from breaking into it and stealing your products.
2 Your Initial deposit: Some companies especially the established ones will require you to deposit some amount of money with the company before giving you their products. But for new companies, you may only need a surety to qualify. As i said before, it is better you start with a not so popular company if you don’t have enough money. The only thing you need to do in that case is to study the products very well and be sure there is a market for it before signing any agreement.
3 Means of transportation: There is no way you can succeed as a big distributor without having either a mini van, truck or space bus. This is what you will use to take the products from the production company to your warehouse and to retail stores across town. Sometimes you may not need a bus if you want to focus on people coming to buy from your warehouse instead of going to them. In these days of competitions, it is advisable you take the products to the retailers than to wait for them to come to you because when they have another company that offer to bring the same products you sell to their shops, they will abandon you , be wise.
4 Certifications: If you deal with sensitive products like drugs, you must get accreditation or be certificated by regulatory bodies in the industry before you will be allowed to be a distributor.This is to be sure that you have the technicalities to handle such products.
5 understanding of the market: You must know who will need your product and how to market it to them. Knowing the product will give you a sense of direction and the focus you need to succeed.
Finally, in this age of internet, you must take advantage of online shops/advertisements. Internet has compressed the world to a very small place. No product is a local brand anymore if you put it online because with just a click, the whole world sees it.

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