How To Start A Successful Phone Business In Nigeria

How To Start A Successful Phone Business In Nigeria
Phone selling is a very lucrative business anyone can venture into in Nigeria and make good money monthly, it has a good turn-over so far you know how to manage it.
Phone selling business is loved by many because of that fact that its simple to set-up and can be handled by anyone with a good business mindset. Getting successful in a cell phone business involves choosing the area of specialisation you want to go into.

There are three different areas of specialisation:

Dealer: These are those that purchase gadgets directly from the manufacturers or importing them. It is capital intensive and the biggest among the three.
Sub -dealer/Wholesaler: Wholesalers buy from the dealers and sell to the retailers. They don't deal with the manufacturers but are also big distributors.
Retailer: Retailers are the most popular phone sellers and deal directly with the consumers. It doesn't require much capital to start and phone sales and profit are on a retailer-consumer basis.
Your choice of the area of specialisation depends on your capital and your target market. You can also handle more than one of them, like importing phones and selling directly to the consumers.

Five Steps Involved In Running A Phone Business In Nigeria

Starting and running a phone shop in Nigeria involves a lo of things, you'll first have to conduct a research on the type of business you want to engage in. The steps involved below are for those that want to venture into phone business as retailers.

Requirements for starting a phone business as a retailer include:

• Capital:

You can start with a minimum of ₦100,000 and invest more as the profit starts rolling in. Also, your capital depends on the type of phones you want to sell, with a capital of ₦100,000 you will have to start with small phones like Tecno, Infinix, Itel, Lenovo, Gionee and other small ones. With time, you can include Huawei, Samsung, iPhone, BlackBerry and Nokia phones to your stock.
The amount started excludes your shop rent, you'll have to include that while planning for your business too.

• Shop:

You can get a shop in a busy part of most Nigerian cities for as cheap as ₦100,000 or even below, the fee varies with location and shop size. Your greatest priority in renting a shop should be an area with a great potential, probably a market place or any other area with enough human traffic.

• Determine how you'll be getting your goods:

Since you'll be starting as a retailer, you can decide to either choose from an approved dealer or a franchise owner. All that matters is getting quality goods, so people won't have to come back with complaints after patronising you.

• Management:

Proper management of your business is necessary for the maximum profit and growth of your business. It'll be best if you write a business plan for before launching the business, it'll help guide you in running it.
Also, as with every business, proper record of every expenses made in the course of running the business and profit gotten should be taken.

• Profit margin:

Phone selling business is very lucrative and with it, you can earn a profit of more than ₦10,000 daily. Let's assume you purchase small devices of ₦4,000, with ₦100,000 you'll be able to get around 25 of such phones.
By selling them at ₦5,000 (with a profit of ₦1,000), you'll be able to make a gain ₦25,000 profit, that is a 25% ROI.

One thing you should know about running a phone business is that many people are already there before you, so building a good customer relationship is very essential.
Also, you shouldn't be limited to only phones, including mobile accessories will help you in maximising profit. Anyone that needs a phone must need a charger and earpiece, so keep it for them. You can read this article on how to start making ₦150,000+ monthly selling phone accessories in Nigeria.
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