Phone selling is the practice of purchasing phones in wholesale from distributors, manufacturers, as well as authorized dealers and then make a profit by reselling the phones. The business is extremely lucrative in Nigeria due to the continuous demand for new phones, particularly in Nigerian youngsters. It is not uncommon to see a Nigerian with several phones. Every year, manufacturers come out with new phones and Nigerians wait in line to purchase the latest models.
I will guide you through how to begin the business, where you can buy the phones that can be resold and the best way to sell the phones. Let’s begin the guide on how to start a phone sales company in Nigeria immediately.
How do I start a phone sales company within Nigeria (iPhone as well as Android)
Take these actions to begin your own phone-selling company in Nigeria:
1. Conduct a feasibility study
Visit your local town and conduct an analysis of the feasibility for this business. There is no need to spend money on this. Visit they areas that are most commercial in your city and figure out what kind of company that is successful there.
You should concentrate on areas which are primarily concerned with phones and their accessories, as that is the potential primary segment of business.
Visit different shops to discover what phones cost take a look at the latest phones and take note of their prices and note down the things you require to outfit your shop.
Talk to the owners of these shops and obtain some estimates on the cost of their phones, costs of rent, the cost of services, how many employees you require, the location they purchase stock, and make an estimate of their viability in any area you choose.
Business mentoring: Before you start the business, you should meet someone who is running the similar type of business that you’re about to start.
Learn about things like distribution, inventory management advertising, and how to recognize the most marketable phones and to figure out the appropriate cost to charge for different models of phones.
Additionally, you should be aware of the capabilities of the phones that you’re about to start selling, and how reliable the brands reputation is and prepared to answer any questions that customers may ask you.
2. Find the best site for your company
The choice of the best area is an essential decision you must make before you begin your phone sales business in Nigeria.
Place your business in the area of potential customers, such as the areas that have more teenagers. Look at your competitors and find your store in the right way and then brand yourself to distinguish your business from others.
It is possible to set up your business near a mall, close to universities, schools as well as close to other private businesses.
Your store can be located in close proximity to a technicians store and also in the heart of your town, which receives lots of foot traffic.
The overall appearance and feeling of the area must be pleasing and not a dismal and damaged area of town.
Consider asking yourself this question: if you’re trading in tablets, smartphones, iPhones and other devices like iPad as well as iPods could those who are within the same environment that you would like to host the shop,can they be able to afford the items you sell in your shop?
If yes, then take other factors like the cost of renting as well as security and security parking, as well as the ease of vehicular access to the location and your budget into consideration.
3. Make a business strategy
The most beneficial methods, when considering the best way to begin a phone selling business in Nigeria is creating a business plan..
In order to build a house it is necessary to create plans for building. Beginning a new business requires having an outline. If you have a strategy it will give you an entire picture of your business.
The business plan should include your vision and mission statement, the idea of a business, the amount you will need to begin and the physical equipment you will need, the rent, the way you’ll raise the capital, your area, staff as well as the salary plan, the budget for each month as well as the profit forecast for the company, Cash Flow Analysis, as well as the year in which you will break even.
4. Source for Capital
The majority of people avoid doing business due to the shortage of capital. You can borrow whatever amount you desire when you’re willing to prove to lenders that you will be able to pay back if they give you an loan.
Capital is the foundation of any company; all else being equal, so give the capital prioritization when you plan to begin a phone-selling business in Nigeria.
There are many ways to earn capital. These comprise:
- Donation:You could get an award from a non-governmental organisation. Grants are not required, however you need to show proof that you have invested the money into the particular sector the donor chooses to representative of your local area for the International Donor.
- Foundation:You may be eligible to receive money through the Tony Elumelu Foundation Entrepreneurship program. The application requirements are to be submitted on the site between January and the beginning of March of each year.
- Personal money: It is possible to begin by saving at least N200,000.
- Family and friends: If you have an excellent credit score and a good relationship with your family and friends, you can receive short-term funds from family and friends. If you’re in search of an additional N300,000 to add to your bank account,you can borrow N10 000 from your 30 friends and relatives. Some will not take it back if you pay it later on.
- You can get an advance from an institution that does not require collateral: This might seem complicated, but it is possible to have the ability to get a loan if you’d like. It’s as simple as give banks the information they need. The process of getting this loan can take anywhere from 6 to 12 months, but you’ll be granted a loan without collateral. In order to begin you must open a Corporate account, submit the required references, and then operate the account. Pay all expenses and then remove funds from it to manage your business. You can continue to operate this account for six months , and then ask your account manager for an loan. Your business must be credit-worthy, and you’ll be able to receive the loan. Banks such as Stanbic PLC, Guaranty Trust Bank PLC along with Wema bank PLC offer small-medium businesses (SME) loan.
5. Start the company
A crucial aspect to consider when starting the phone selling firm within Nigeria is having a registered name for your business. Find an appropriate name for your company by mixing Tech, Phone, and your name to create an unique name. The name will be registered through the Corporate Affairs Commission (CAC).
Engage a lawyer for incorporation of your business on your behalf. There are three options for operating this company. You can be an Sole owner, Partnership, or a Limited Liability Company.
The incorporation of a Limited Liability company allows you to obtain bank loans to grow your business without hassle in the future.
6. Tax registration
Learn more about taxes and receive Tax Identification Number (TIN) for your company from the Federal Inland Revenue Service (FIRS) and prepare to file your tax returns every year to be a responsible corporate citizen.
7. Set up an account at a bank that is a business
Explore your community and discover the banks who are willing to lend to start-ups without collateral. You can also start an account with them.
Deposit money into the account and then pay all business funds in the account. Purchase all your items or pay for expenses with this account. Pay your business partners and others with Cheques in lieu of money.
8. Buy phones
Find out how to obtain supplies for they products you’d like to sell. To sell at an affordable price it is essential to source your goods from manufacturer directly or via online portals.
The co-founder and producer of Techno and Infinix Phone is a Nigerian and has also been the proprietor of SLOT which is a retail phone chain that is located in the village of computer Ikeja Lagos, and spread across the country. It is important to note that Techno and Infinix run on Android.
If you want to purchase wholesale supplies, visit the SLOT’s headquarters in the village of computers, Ikeja to sign up and purchase wholesale from SLOT markets, two brands along with their equipment.
You can also go to your Internet to search the SLOT websites for other details regarding the distribution and appointment of their resellers.
You can observe the above picture, where you should purchase is another important choice to take when setting up a phone sales business in Nigeria.
- Others Makers: Samsung of Galaxy range, Google Android phones, Apple of iPhone brands all are represented by Nigerian representatives in the major urban centers in Nigeria. You can visit the representatives near to the place you live and sign up to purchase straight from them. To find the nearest Apple dealer, click the link.
- Find phone sellers and distributors on the internet:Visit wholesalers like Alibaba.com as well as online retailers such liExpress.com to find out how you can find direct online supplies for your company. These websites are not meant to purchase their products, but to gain an understanding of what you can do to begin to import phone handsets from China. The best way to begin is locally and then gain experience before venturing internationally.
- Owners of franchises:You could choose to buy from franchise owners when you can’t purchase direct from the manufacturers. Find out who holds the franchises for marketing the brands you intend to sell, and then visit their headquarters.
9. Add phones with accessories
The next step is selling products that go with phones. When you begin your business it is essential to sell accessories for phones that are compatible with the kind of phone you sell.
These gadgets are typically popular and include selfie sticks as well as mass storage devices/ memory cards, power banks battery charger, cases and pouches screen savers and many more.
10. Advertise your company
If you are planning to begin a phone selling business in Nigeria be aware that if you don’t sell the phone, there is no way to make money. You should try selling your Phone. Marketing your company is crucial for its success.
The first thing to consider is that your place of business and your environment must be secure, as well as the services you offer to customers. Let customers know that they are valued, and stock-trending products that are inexpensive and durable.
Selling is about making your product appealing to buyers. Set your mobiles in bright glass cabinets to ensure safety and to catch the attention of potential buyers. Make sure the store is well lit with bright fluorescent lights.
Include price tags on phones and accessories to ensure you do not waste a customers time. The phone and accessories should attract them and fulfill the needs of those who purchase.
To find other methods to market take the steps below.
- Price and Marketing for your business:Do not price your product too high, you will drive your company out of the market. Be competitive and flexible.
- Market research:Find out the prices of phones you’re offering by visiting different outlets, conducting online research and finding out about recently launched smartphones that are generating high demand and the amount they are selling them for.
- Digital Marketing:You could think about different ways to market your business , like digital marketing rather than the traditional method of waiting for customers to locate your business. Digital marketing is essential to phone sellers in Nigeria. Most people who purchase your products are using social media.
- Continuously search for more customers on a daily basis: Make use of social Media such as Instagram, Facebook, and Snapchat to promote your phones which are great platforms since they are incredibly powerful and never out of fashion. Create social media posts that are engaging to attract buyers to both your offline and online retail store.
- Discount: Offer discounts to customers online , and also offer delivery to your home for purchases that are large.
- Web-based or blog: If you want to be More adventurous and start a blog for your business and then start writing useful and informative blog posts with photos of these phones in order to increase sales online. Offer discounts and bring phones to the doorsteps of customers within your city.
- Forums:Visit Forums for Tech phones, and write about your phones with attractive offers to entice customers to purchase from you.
- Selling online in stores or affiliate marketing:Visit both of these online shops Jumia or Konga and sign up for an account. After it’s approved, you are able to add your products and begin selling. You can also explore Affiliate marketing on both sites. Check to see if you can get others to market your products at a pre-determined fee to affiliate marketers who sign up to sell your products for you on these selling websites.
Join as an authorized cell phone reseller
Another option you can take regarding your phone selling business in Nigeria is to be an approved reseller. In Nigeria the top GSM service providers are Glo Mobile, 9 mobile, Airtel, and MTN.
Examine their marketing strategies and understand their business model, select one then apply to be an authorized reseller of cell phones.
To increase their visibility as a dealer an application, include your profile of your business, describe how you intend to promote their brand. Then, submit it via their website or at their office close to you.
These GSM companies offer brands-specific phones as well as data packs broadband internet modems,airtime, and more.
Although they would prefer well-capitalized and experienced companies to be appointed as authorized dealers, you can to secure their dealer as an authorized telephone reseller to help expand your business.
Phones are attractive and a highly targeted device for thieves. So, make sure you protect your business. Purchase an insurance policy for your items, as well as your equipment to run the business.
Expansion of Your Outlets
Each big company started with a small scale, so as you consider your options for how to launch a phone sales business in Nigeria don’t forget to consider ways to grow your phone selling business in the near future.
- Commercial areas. In Nigeria commercial locations are Lagos, Port Harcourt, Onitsha, Nnewi, Kano, and the list goes on.Look for areas that are flourishing in the heart of your city. Then put up a store in the area.
In this article I’ve explained how you can start a phone selling enterprise in Nigeria. Learned how to start the business, how to purchase the phones to resell and how to market the phones to clients. These three aspects are the basis for selling any item anywhere around the globe. If you know what steps you need to take to begin your phone business today.
If you have additional details you’d like us to include, please submit it via a comment on this article and we’ll add it in the article.