Getting conversant with how to start a phone accessories business in Nigeria is the first step if you intend to start up a successful phone accessories business in Nigeria.
The phone accessories business is fast becoming a very lucrative business in Nigeria presently and seems to have a very mind-blowing profit margin and also easy to start hence being the reason why a lot of people are venturing into the business recently.
This article brings you up to speed with detailed information on how much it costs to start a phone business in Nigeria, the profit margin of a phone accessory business, and a step-by-step guide on how to start a phone accessory business in Nigeria successfully.
How To Start A Phone Accessories Business In Nigeria
1. Conduct a Feasibility Study
Before you go take a step towards starting a phone accessories business, you’d first conduct a thorough feasibility study around the area you wish to establish the business.
A feasibility study entails accessing your environment in order to know the likely buying interest of your potential customers, the possible challenges, and the overall potential of the business within the environment.
2. Write A Detailed Business Plan
Having a solid and well-detailed business plan is the life wire of a successful business.
A business plan serves as a blueprint of a business and should contain the capital required to start the business, where and how to buy your products, the equipment needed, how to scale up the business, the expected profit margin, and the possible challenges, among others.
Having a detailed business plan would not only help you during the start of the business but also throughout the lifetime of the business as it serves as a blueprint of the business.
A good business plan helps to run a routine check of the business from time to time in order to make sure that the objectives of the business are still in check and would also help you to make necessary adjustments if need be.
3. Conduct A SWOT Analysis
SWOT is an acronym that stands for Strength, Weakness, Opportunity, and Threat.
SWOT analysis entails analyzing your strengths in the business, possible weaknesses in the business and how to tackle them, your best opportunities and how to optimize and take full advantage of them, and finally the potential threats of the business.
Conducting this SWOT analysis would help you make informed decisions ahead of time and position yourself for the best opportunities and challenges that you’d encounter in the business.
4. Raise Capital For The Business
After you’ve written down your business plan, the next step is to raise the required capital for the business.
The capital you’d be needing is dependent on if you wish to start up a retail phone accessory store, wholesaler, or distributor.
You could raise capital through personal savings, profit from other businesses, from investors, or loans.
However, the last two options are not advisable when you’re starting up a business unless you’ve already started the business and you want to scale up.
5. Rent A Shop
Renting a shop is the next step in establishing a phone accessory business in Nigeria after you’ve raised the required capital.
Your shop should be well furnished with showcases and enough lighting to display and test some of your accessories.
It’s also pertinent to note that your shop should be located at an accessible and strategic location where there’s a concentration of potential buyers.
6. Get A Reliable Supplier
Getting a good and reliable supplier is one of the major challenges you’d likely face at the early stage of the business.
You could either source for a local supplier here in Nigeria which could either be a wholesaler or distributor or import from China, Ali Express, etc.
However, it would be easier for you to use a local wholesaler or distributor at the infant stage of the business before you decide if it’d be more convenient and profitable to import as you scale up.
7. Stock Your Shop
After you’ve gotten a reliable supplier and have set up your shop, the next thing to do is to go ahead and import the accessories.
Arrange your products accordingly in racks and in showcases in your shops in an attractive manner as it would help to draw the attention of customers.
Also, ensure to sell the accessories at moderate prices as you’re just starting out and are yet to build a customer base.
8. Publicity
Publicity is the livewire of every business and should be paid more attention to at the initial stage of the business.
You should bear in mind that you’re just starting out and there’re people within that are already doing the same business you just started hence, you need to take publicity seriously.
You could start by telling your friends and people by the word of mouth, you could also print fliers, banners, posters, etc. depending on your budget.
What Is The Profit Margin Of Mobile Phone Accessories?
As stated previously, the phone accessories business is one of the businesses in Nigeria that have a good profit margin.
There’s no fixed profit margin for mobile phone accessories as it’s dependent on how much profit you wish to add to the selling price of each product and also your turnover.
However, on the average, the profit margin of mobile phone accessories is between 20% to 50% depending on the type of accessory, and the profit added per unit product, among other factors.
How Much Does It Cost To Start A Phone Business In Nigeria?
How much it costs to start a phone accessories business in Nigeria is largely dependent on if you wish to start up on a wholesale, distributor, or retail scale.
How much you’d need to start would encompass your rent, cost of buying shop equipment, cost of furnishing the shop, cost of buying the accessories, and other accessories.
However, starting a retail or medium-scale phone accessory business in Nigeria would cost around N500,000 to N1,000,000 depending on the factors discussed above.
On the other hand, starting a phone accessory business on a wholesale scale or as a distributor could cost over N5,000,000 or even more or less depending on several factors.
Submission
Phone accessory business is fast becoming a very lucrative business in Nigeria in recent times due to the rapid advancement and adoption of technology in this part of the world.
Furthermore, the phone accessories business seems to be among the businesses that offer the best profit margin hence the reason why a lot of people are venturing into it.
This article extensively discusses a step by step details on how to start a phone accessories business in Nigeria, How much does it cost to start a phone business in Nigeria, and What is the profit margin of mobile phone accessories, among other relevant information about starting a phone accessory business in Nigeria.
