How To Start Ofada Rice Retailing & Distribution Business In Nigeria
Are you planning to start rice business in Nigeria? Have you made findings about which steps you’re to take first before you can start this business and prosper easily? This article will serve as a useful guide for any Nigerian woman or man who is currently planning or about to start planning to venture into rice business in Nigeria.
The business of selling rice in large or small quantities has been considered so far as one of the most lucrative and profitable businesses in Nigeria, whereas, so many people are yet to discover this secret.
If you’re about to start selling rice in whatever quantities you might be capable of, be rest assured that you’re venturing into a highly-profitable business in Nigeria. How is the rice business more profitable than most of the lucrative businesses in Nigeria? Rice is known as the most commonly-consumed food item in Nigeria.
It’s the choice of the generality of children. Adults too find it so easy to prepare rice for the family as breakfast. It’s regarded as a soft food item and is commonly prepared at most of the occasions in Nigeria such wedding, naming, funeral, birthday ceremonies and so many others.
Let’s go into discussion taking the necessary steps to follow while preparing to start rice business in Nigeria one after the other:
- Set aside a certain sum of money as the start-up capital
- Link to other rice dealers and sellers in your locality to get better exposure
- Get a suitable location for the business in a marketable area
- Make room for expansion by re-investing a good part of the sales proceeds
- Employ a sales agent to increase patronage
- Give credit facilities to retailers if you’re operating as a wholesaler
- Never sell on credit to customers if you’re operating as a retailer
Set Aside a Certain Sum of Money as the Start-Up Capital
While starting up rice business in Nigeria, you’re expected to have set aside a certain sum of money as the initial capital with which you’re getting started. This could be as much as you’re capable. Your capital determines your level of operation compared to other rice dealers in the market. No matter how little your initial capital might be, you can start somewhere and later upgrade your level when money starts rolling in.
There are dealers in Nigeria who order trailer loads of rice, whereas, there are others who don’t have the financial capacity to order trailer loads but order rice in bags. The most important thing about starting this business in Nigeria is that it’s highly promising as it’s almost the most essential food item in market.
At wedding, funeral and other likely occasions in Nigeria, people prepare several bags of rice to entertain their guests and no other food items can serve the same purpose rice can serve in such occasions. This is a further proof showing that rice is the most essential food commodity in Nigeria.
Link to Other Rice Dealers and Sellers in Your Locality to Get Better Exposure
When it comes to dealing in rice, the most important thing is to get exposed by linking to other dealers who have been in the business for some time. These are the best set of people who help you get connected to the right market. You’ll get connected to the right people who will give you the right exposure to step up in the business of selling rice in Nigeria.
For instance, as a starter, you’ll need to connect to those in the business who will show you where you can order at the cheapest possible prices even with better quality.
Get a Suitable Location for the Business in a Marketable Area
When starting the rice business or any other similar business in Nigeria, location is a determinant factor when it comes to selling and stepping up on time. Once you’re able to get a suitable location for the business in a marketable area, you’ll easily get connections with potential customers and that will help you step up fast in the business.
It’s good to apply wisdom when you’re starting a business rather than just doing things anyhow. If you don’t even know what to do with the start-up, then you should rather consult with those who have been in the same business for quite some time. They’ll be the right persons to share with you from their own selling experience what can benefit you and make you step up fast in your business.
Make Room for Expansion by Re-Investing a Good Part of the Sales Proceeds
By re-investing a good part of the sales proceeds, you’ll be able to make room for expansion and your business will skyrocket with time.
The secret of success in any business is making room for expansion. And to make room for expansion, you need to make sure you set aside a good part of the sales proceeds to re-invest. By consistently doing this, survival and continuity are guaranteed.
Employ a Sales Agent to Increase Patronage
If you’re ready to watch your business skyrocket on time, consider getting a sales agent who will help you stay at the shop whenever you have reasons to outreach.
As the business grows, you’ll be getting busier and you won’t be able to handle everything all alone. At that time, you’ll be left with no option other than to employ some sales representatives who will stand in for you whenever you’re absent.
Give Credit Facilities to Retailers if You are Operating as a Wholesaler
As a wholesaler, you’ll need to give credit facilities to those who retail rice to the final consumers. One crucial thing is that you’ll need to be careful with whoever you’ll release these opportunities to lest you get frustrated in the long-run.
Never Sell on Credits to Customers if You are Operating as a Retailer
If you’re a retailer, you’ll need to avoid selling on credits to customers as you may be frustrated by so many people. You should place trust on any customer to sell rice on credit except the ones you know as government workers who will remit back to you whenever they receive their monthly salaries.
The idea of selling on credit to the people has caused many rice sellers to fall in Nigeria and some people have become so bankrupt that they hardly step up again.