How To Make Money In Provision Business

how to start a lucrative provision business in Nigeria

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The question truly is, is provision business really lucrative in Nigeria?

Tell me, is provision business really hard? Does it worth your time and sweat?

Will your effort ever be rewarded? How can you sell what people will buy?

In fact, that are damn questions.

I know a lot is running over your mind right now and that you need it.

However, should we say a provision business is the same as the supermarket business?

Or what do you think makes the difference?

Or what do you think is the difference?

Maybe,

The store outlets
An attribution model of the customers
The kind of distribution model initiated
The prices at which you sell
The location
Management inventories
The business KPIs
Working hours
Staff management and many more.

There're many reasons for what makes the difference but they still almost work in the same pattern.

Here's the epic thing.

For a supermarket business, of course, you have to stay more greedy in terms of prices.

Just for reaching the business revenue goals and managing other inventories in terms of staff payment, shop outlet management, and many more.

In that case, it doesn't really have to work with a provision business because you have fewer inventories to cover.

I mean in terms of staff, electricity bids like generator here it doesn't have to be a compulsory thing for you but a must-have for a supermarket business.

For that reason, a provision business really doesn't need a long-scale business plan but having the business idea is okay to succeed in Nigeria.

I know of many who their passion only turn into their success without scaling a long-term business plan but their passion and idea really grew them big.

A provision business like any other business isn't similar nearly 80% of people running a provision business in Nigeria are roughly over 30 years.

And 60% goes to the demographic fold over 40 years.

Hardly will you see young ladies doing the business in Nigeria.

So, it's hard to see them having a long-term business plan because they're not the type that really knows what it is.

It's just their ideas that lead them there not for any reason you can tell why almost 40% of them are illiterate.

Yet, they're better than any graduate out there and their business is doing well.

So, if you're the young fold that really wants to invest in a business like this be ready to join the fold of mamas because sooner they'll record you a unique name.

For example, sister milo, sister Indomie, sister yellow, sister black, sister Igbo, Iyawo wa, and many more.

But don't ever get carried away by that it's just nature.

Remember, what you do determine who follows you.

But, the epic thing to talk about is how can you stand out and how lucrative a provision business is?

For this reason, let's talk about how you can start a lucrative provision business that turns into a sales gem in Nigeria.

Here's how to start a lucrative wholesale provision business in Nigeria:

Invest in your passion
Know your provision business budget
Be customer price friendly
Offer a great user experience
Get a converting location
Sell what consumers are demanding
Network with a distributor

1. Invest in your passion

I remember at that time my sister started out she left her banking job and invest in her passion.

My mum wasn't a big fan of that anyway but here's her journey, not anyone's journey.

Right from when she was small she always has a passion for a business like provision but my mum denied her a shop then.

Who knows if she has actually started then maybe by now she would have grown bigger.

This story was almost 13 years ago.

That was indeed years and story gone by.

At the moment, she realized she already has capital then she told me she wants to fulfill her dreams and go for her passion.

Read here: Catering Business - How To Start One Everyone Would Convert For in Nigeria

Even though she was still contemplating on picking either a school or a provision business.

Yet, she decided to invest in her passion to make her dream a reality.

Now, she's a woman of her dream as she fulfilled her purpose.

Well, what I'm actually drafting out here is that having a passion is what works for a provision business.

Because I could remember the stress she actually passed through as a lady.

It wasn't easy the way you might think it is I can actually testify this because I'm a testifier of one.

But what keeps her toes moving to success is the passion she ever had and the determination of no turning back.

A provision business is hard because there's a rise in monopolistic competition and to gain customers having a reason for them to believe is the strategy that works.

For this reason, you got to invest in your passion and drive it into success before thinking of starting one.

2. Know your provision business budget

I remember then my lovely sister started out her provision business with just 300,000 nairas excluding the shop rent.

And now she has grown big buying three shops within the space of three years.

So having a budget will set you up with a focus on what you want to achieve.

Just don't stay timid but respect the decision to spend.

For example, you can invest almost 1 million nairas in a wholesale provision business which seems to be a lot of money.

But as the process goes on your focus will be on the Return On Investment and that matters.

But how can you get that when competitions grow every day?

So, tell me, how do you want to buy your shop outlet store within the space of 1 year?

3. Be customer price friendly

One marketing tactic I ever learned from my sister is the initiation of customer price-friendly she threw up to her provision business.

Even till now she still does that to attract new customers.

Here's the epic thing to talk about.

She initiated a marketing strategy, for example, for each of her first customers they have a discount for a whole month.

Yeah. she might be losing with this strategy and truly she is really missing out in revenue but she isn't missing out in two things.

Opportunities
Word of mouth marketing

I can tell how this strategy skyrockets her customers within a month.

Why that happens was because she instantly flares up her unique selling point that anyone can resonate with.

She is quite losing in profit but that tactic grows her leads over time.

Just because people don't remember what you do but how you ever solve their needs.

The needs of people that she was solving was the price discount to enable them to buy more.

And that grew her popularity and customer fan base.

4. Offer a great user experience

My sister often smiles a lot and that's her way of life.

But she often uses that(lovely smiles) to attract human connections and emotions

Once she realized you're new she tape into offering good customer service in order to keep you consistent for her business.

She used her gift to improve customer acquisition and retention.

And that has ever made her provision business grew than ever.

So, what customer experience do you have to offer?

Are you the un-friendly type?

What gift do you have to make your business stand out but not blending in?

This way, you need to think about the elements that could make your business stand out in your niche.

If that you're so blessed with good communication skills leverage that to attract new customers and don't forget to turn them into your loyal customers.

5. Get a converting Location

If you're selling a wholesale provision business don't make a mistake renting a shop where your folds already are.

Avoid such a mistake. It can hit you really hard because of the reason that it will take you time to build authority.

So to compete with other provision sellers who already have grown their authority and customer fan base can take you years or even forever just to grow big.

Be wise with such a decision.

This way, try to get a location where people of your kind are scarce that way it's easier to attract new customers.

You know how Nigerians behave, you know that.

One day, consumers might just feel like trying your provision business out and weigh things in terms of prices.

But remember, keep the prices flexible, you're new and just growing.

What you should keep in mind is to build your customer fan base and trust before you can start working on Return On Investment.

6. Sell what consumers are demanding

Is provision business lucrative in Nigeria?

I can tell you that a provision business is lucrative in Nigeria and what makes it more lucrative is when you have commodities consumers are demanding and consuming every day.

This way, you've to think of the future trend and what's next you think consumers will demand for.

Having that marketing insight can grow your provision business into a conversion gem.

And to get that marketing tactic right, use the following hack:

Do social listening
Hack on a one-on-one conversation
Give out some surveys for your customers to fill.
Check out the best selling product.

So, here's the list of provision items in Nigeria:

Corn flakes
Golden morn
Soap - canoe, sunlight, Dettol, Magik
Baby Food - NAN1, NAN2
Macleans
Matches
Indomie
Candle
Milo
Bournvita
Peak milk
Shaving stick
Ovaltine - Tin or sachet
Nigerian peak milk
Hollandia milk
Oat
Mini chin chin

7. Network with a distributor

Networking with distributors will give you an edge over others.

If you can bargain with a credible or trustworthy distributor who's ready to stay worthly.

It means your business will not only experience an increase in sales but also attract new lead intent.

For that reason, you've got a uniqueness and a purchasing power.

And that's what my sister actually did in the Ikotun market, she bargains with a distributor which makes her become the only one selling such products in the whole of the Ikotun market.

That's just a marketing strategy.

Conclusion

If you're just starting out in this business environment there're places where you can buy wholesale provisions like Lagos island, Ikotun market, Idumota Lagos also sells in wholesale.

So, over to you, how do you want to start a provision business store that's lucrative in Nigeria?

I'm Destined boy, a certified digital and inbound marketer.

You can follow me on Twitter.

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