At some point in time, you must have done your shopping in a supermarket. You would have noticed that the products are neatly arranged and displayed, unlike the local markets where goods are displayed poorly with all sorts of insects and flies perching on them. This is why most people prefer getting their daily needs from a supermarket. You can get anything from there, ranging from toiletries, food items, fresh fruits, electronics, clothes, books and all kinds of products needed in our daily activities.
In a supermarket, it is impossible to haggle on price as there is a fixed price already placed on the goods. With the number of people that shop in a supermarket, it is without doubt that the business is very lucrative and its owners are making money from it.
Starting a supermarket business is no doubt highly profitable and not exactly cheap but that’s the heads up you need before you consider starting one. While a lot goes into it, there is no denying that you will be smiling to the bank the moment your business starts running. In this post, we have detailed what is required to start a supermarket in Nigeria.
How To Start a Supermarket Business in Nigeria
Anybody can start a supermarket in Nigeria as long as there is proper planning. In case you want to start your own supermarket, you are in the right place as this article will teach you all you need to know on setting up a supermarket. Before you start, here are the things you need to consider before starting a supermarket business in Nigeria.
1. Location
For any business, location plays an important role. You must have noticed that the popular supermarket you have your shopping done is located in a busy area. This is because they are targeting customers. You need to do the same thing. You can’t locate your supermarket in a local or unmodernized area. Understand that the kind of people that visit a supermarket are city dwellers and so your supermarket has to be located in a city. Ensure that your supermarket is located in a place with high human traffic. You can choose a plaza, filling station or any other place you can find that will attract a lot of customers.
2. Your Preferred Product Types
This has to be considered along with the location. The kind of products you want to sell will determine where your location will be. You cannot plan to sell stationeries near a block industry. You will hardly get patronage because block industries need cement and not pen or pencils. If you decide to sell mother and baby care products, you can choose a location near a hospital because those that need them the most are regular visitors of the hospital.
3. Capital
Once you’ve decided on your location and the kind of products you want to sell, the next thing is to consider your capital. This is the time to source capital if you don’t have it yet. Your capital can come from your personal savings or you can get a loan from banks, family members, cooperative societies and other financial institutions. Take note that starting a supermarket requires a huge amount of money. You should be ready to spend at least 3 million naira on a mini standard supermarket.
4. Planning
At this stage, you need to decide if you will be renting or leasing a shop or if you will be constructing a shop yourself. You also need to mark out the size of the shop to know the length and sizes of shelves that would be needed. You would also need to consider if you would need a warehouse to store your good. The warehouse depends on the size of your supermarket. If you are starting a small supermarket, then you don’t need to worry about having one.
5. Business Registration
Once you have your location and products set out, the next thing you need to do is to register your business. It is very necessary as a business owner in Nigeria. Businesses are usually registered with the Corporate Affairs Commission (CAC). Upon registration, you will be given a registration number that is unique to only your business. Also, you need to ensure that your taxes and other levies are settled.
6. Setting Up Of The Shop
Once you’ve gotten your CAC registration number and completed your paperwork with the appropriate authorities, the next thing is to set up your shop. You might need to repaint and decorate it, divide the shop into sections and categories, place tags for direction, arrange the shelves, set up cooling systems like AC, fan, etc, and computer for easy transactions. Also, perfect the electrification and put proper safety measures in place.
7. Stocking The Store
You can now buy the intended products you plan to sell. Ensure you buy directly from manufacturers as the added prices from middlemen would be avoided and you can make more profit. Also, ensure you tag the goods with prices because this is a necessary feature of supermarkets. Do not forget to record your stock so as to be able to track your goods and profit.
8. Employment Of Workers
You cannot run your supermarket alone. You need the help of assistants and personnel, such as sales representatives, cleaners, security personnel and driver. You can decide on hiring an accountant later when your supermarket has found its footing. Note that you would need about four sales representatives who would exchange shifts to ensure work is evenly distributed.
9. Start Selling
When you finally have everything set up, it is time to start selling. Customers will come into your shop to purchase goods, your sales representatives will attend to them. It is also their duty to scan purchased goods with a bar code scanner and receive payments through any method offered.