If you want to start a provision shop in Nigeria, check the items required to start a provision shop
- Shop and paint
- G.S.T Registration fee And Trade license fee
- shelf and cupboard
- light and electrical wiring ,fan and bulb
- Chair and table
- Refrigerator for drinks
- Items to stock the store are daily need
- You need at least #200000 for a start
Watch this if you can not read the material now, it is more detailed in this video.
Are you still considering starting a provision shop in Nigeria, do you have the capital to get what is required yet you’re worried about how to go about it?
Well, we’ve got you covered.
Provision shops are almost in every nook and cranny because of this, most people feel reluctant to give it a try.
Provision shops save a lot of time and energy which would have been used in going to the market.
Before you think of how to start a provision shop in Nigeria, have this in mind that a good provision shop makes a lot of difference since it gives customers the idea of a “one stand shopping” that I mean all you need is available in one place.
Let’s take a look at what shop and provision is
Provision shop as a store
A provision shop or store is a retail outlet where goods such as food items and other consumer goods are sold.
It is one of the lucrative businesses you can engage in out there and make you some money.
It involves the game of buying in bulk, (that is at wholesale) and sells at a retail price which is a bit higher compared to the wholesale price you bought the goods at.
A shop is an establishment that sells goods or services to the public; originally a physical location, but now a virtual establishment as well, while provision is an item of goods or supplies, especially food, obtained for future use.
A provision store business in the country is very profitable especially as our population is ever increasing.
Many families in Nigeria buy provisions almost always and because the demand for grocery products is always on the rise, if you venture into this business, you stand a real chance of making it big.
It’s unthinkable not to have at least one of these stories in a street; they are quick and easy points for obtaining everyday consumables.
How would you describe a situation where you wanted to cook but there is no seasoning cube or salt in your home?
If there are no provision stores around your house, then you will need to go to a market to get the salt, or you might have to forego the cooking altogether.
let us dive into how to start a provision shop in details
Provision shop in nigeria(provision store)
Provision stores as they are called in Nigeria, are in every city in the country.
They come in different sizes, from small roadside kiosks to supermarkets, they are invaluable to everyday living.
A more reasons you should venture into the provision business, I’ve got a whole lot of benefits for you.
why start a provision shop or provision store?
never mind the two words “provision shop” and ” provision store” as they are the same.
The reasons why you need to start a provision shop are below
It is a fact that an average provision store in Nigeria can make profits of up to 7000 Naira in a day.
When you multiply this by the number of days that the store is open in a month you can imagine the profit.
No special skills or experience is required:
To start and operate a provision store so you do not need to have undergone any special training or possess any special business skill. All you need is to know how to make simple calculations and the application of common sense.
Non seasonal :
Unlike white-collar jobs and other business ventures that go on breaks during holidays, provision store owners are not tied by such breaks.
As a store owner, you can decide to open a shop or not which makes it great for making income when others are relaxing.
Easy to start up.
Yes, it’s very easy to start up a provision shop in Nigeria.
As we shall find out later on in this article, starting a provision store in Nigeria is not as capital intensive as some other ventures.
You don’t need to be a millionaire before you can set up a provision store in Nigeria.
Provision store business is not dependent on location.
Irrespective of the location of a provision store, it will always be profitable as far as people are living there. Moreover, everywhere you go and find people, they will always need everyday products like toothpaste and toiletries.
This makes the provision shop business a very lucrative one.
What are the things we can find in a provision shop
Basic items found in a Nigerian provision shop includes detergents and soaps, beverages, kitchen ingredients, sugar, confectionery, and electronics.
Other products found in a provision store include soft drinks, matches, cosmetics, and packaged foods.
How to start a provision shop in Nigeria
By following the steps outlined below, you will have a good understanding of how to go about starting the business
1.Decide on the products that you want to deal in.
Look out for products that are self-selling and stock up your shop with them.
Irrespective of how many companies produce similar products, go for the one that sells the most.
Also, you can buy other similar products in lower quantities for you to understand consumer behaviour and the buying preferences of your customers better.
This will help you to understand what quantities to purchase for your provision store business in the future.
There is a variety of provision items that you can choose from to begin your business.
To aid your decision-making process, you will have to make research on the best-selling products in the area where you want to do business.
To put into perspective, you will benefit from the sale of sachet water in a low-income neighbourhood than when you decide to retail bottled water.
2.Get a business name
It’s important to have a shop with a name that way, one can send others in their absence not only that but it also makes your business stand out among others.
If you have not read my article on how to get a business name, you might want to do that here.
Or you can follow the corporate affairs commission
Ensure you get your provision business registered with the Cooperate Affairs Commission.
This part is sometimes avoided but it has advantages whether your provision shop is big or small there’s a need for it to be registered with the CAC.
Most government funds and loans that ate given yearly is accessible When you register with the CAC Same applies to individuals loans.
3.Have a business plan
A business plan gives the totality of what you want to do at a glance.
A good business plan should contain the mission and vision of the business, the proposed business model, profit and loss records, among other things which will help facilitate the business.
4.Choose a location
Where you decide for your business to situate matters a lot.
The success of any business is always traced to its location, at least in most cases.
Have you wondered why businesses located in urban centres are more profitable than those in the hinterland?
Sitting your provision shop or supermarket in a densely populated area will yield more returns than locating it in a low populated area or an inaccessible area.
After getting to the store, get a carpenter to construct the shelves, tables and chairs you will need.
Ensure quality woodS are used to save you the problem of replacement in the future. The location basically has to do with the shop itself.
The success of your business depends on how much you buy your goods.
You have to research well on the goods that will help make a profit for the store and locate the market where you can get these goods at a relatively cheap price.
5.Ensure that you do record keeping
You need to keep a record of everything from what you buy, to what you sell, down to how much you spent out of the money and how much you are investing or reinvesting.
This will make you know if you are making a profit or not.
some questions you might want to ask us
1.How much do I need to start a provision business in Nigeria
Nigeria is a country with 36 states; it’s a big place.
You should have a specific location of choice to start your provision store business.
Irrespective of your area of choice to start your business, you need to consider some factors.
They’ll answer your question- how much do I need to start a provision shop in Nigeria?
You need to do a feasibility study of an area before making it a choice of location.
Ensure that the people there need you, and if there is an existing store, be sure to have a good plan to guarantee a reasonable ROI.
I will list out some important factors and their take on how much you need to start a provision store in Nigeria.
The cost of living in different states in Nigeria differs.
The cost of rent/lease/sale of stores varies by location.
You need a place for your store, and the cost of getting it adds up to the starting capital required.
Type of provision:
I will presume you have an insight into this.
The size of your provision store business matters.
The number of goods to match the size of your business.
Location of your store to your house, the cost of transporting your goods from where you buy them, and the likes are things to consider.
Starting a wholesale provision store in Nigeria could mean you becoming an agent to most FMCG’s, take, for instance, Nestle or Peak, if you want to be their agent, you need to have at least #3–5m minimum deposit, be it Dufill or any other FMCG company.
Each has its minimum deposit requirements.
Theoretically, if you have N10m at hand, you can become an agent for at least three major FMCG companies.
If you have at least a million, you can start small, business growth is spontaneous, your dedication to it, tenacity and perseverance is all it takes to have a breakthrough or break even
At least with 3m, you can start, out of the 3m you’ll be using N500k to N1m for shop/warehouse, furnishing and business registration.
After that the remaining N2m remains to have something in account to be able to pay your staff for the first 3 months and as well as advertising/marketing before the business finally gains its stand.
As for the company/supplier nowadays most of the big company doesn’t need more from you, all they want is to see your bank statement to know you have something authentic in the account, a guarantor and collateral.
Some might requests a bank manager as well.
After processing your proposal and your shop is being inspected and they signed an agreement with you, they’ll start supplier you instantly and that’s the go.
Less I forgot, you’ll need a van/truck too to serve as a means of easy distribution/delivery for some of your customers (which is as well part of your marketing strategy).
How profitable are supermarkets?
I’m a regular employee at a grocery store. I fill the products. But at the same time, I’ve been able to get some more responsibility at the place I work at.
We have a service where customers can do a special order that all their needs are prepared for them and they only have to pick it up. That’s my job.
This job requires some paperwork to be done. I have to keep track of all the payments being done.
So at the end of the evening when I have to put all the files on a big map, I see another map with all the revenue files.
And from time to time, I can’t stop myself from looking at it.
The grocery store I work at is quite small (it does do pretty well, however), but it is part of a large chain supermarket.
The weekly revenue is roughly $100,000. That’s a lot. Revenue does not mean profit, I know that.
So let’s do some calculations:
N100,000 a week means N400,000 a month
About 100 employees are working at the supermarket.
I think the average monthly loan is N250 a person (it’s mostly teenagers working there).
Meaning that it pays N25,000 a month for all the loans.
Of course, the products have a price for the supermarket to sell.
I guess at my place they do pretty well and make roughly 40% profit from every product. Meaning another N240,000 to buy all the products
There is an exceptional bill for our supermarket as the owner pays the supermarket chain to be part of the chain.
He has to pay a yearly fee of roughly N1 million. That means a monthly price of N85,000.
All of this combined leaves a monthly profit of N50,000. I think that’s pretty good for the size of our supermarket.
If you mean how profitable the whole supermarket chain is, it is beyond our imagination.
The supermarket chain I work at is without a doubt the biggest in the Netherlands.
In the canteen at work, there is television where they show statistics of the chain. A few hours ago it said: “N6.7 billion is the yearly revenue”.
Without a doubt, it is very profitable.
By following the steps outlined below, you will have a good understanding of how to go about starting the business.
Endeavour to look out for products that are self-selling and stock up your shop with them.
Irrespective of how many companies produce similar products, go for the one that sells the most and buy other similar products in lower quantities for you to understand consumer behaviour and the buying preferences of your customers better.
This will help you to understand what quantities to purchase for your provision store business in the future.
if you have more questions, ask in the comment section below and I will answer ASAP!!