How to start a provision store business in Nigeria? Setting up a grocery shop or provision store in Nigeria requires little or no skills. It can be set up anywhere in the part of the country with little capital and necessary business etiquette.
This guide contains steps needed in starting a provision store or successful grocery shop in Nigeria. In case you are wondering the meaning of provision store. It is a shop or store where household consumables and daily materials are sold. Household materials like beverages, seasoning, toiletries, drinks, stationery, soaps, and so on.
Grocery Stores can be found almost everywhere in Nigeria either as kiosks, mini-marts, or even supermarkets.
Is provision store profitable?
Provision store business in Nigeria is one of the profitable businesses you can start with low capitals. Even though the profit margins on a product are usually small but because an average person can buy more than once daily. And huge populations of citizens in the country, provisions stores in neighborhoods make at least N5000 daily for small-scale business.
Also, similar to the foodstuff business, provision stores give daily profit and not seasonal. With adequate knowledge and planning, earning N100,000 or more is possible for grocery stores in Nigeria.
Steps to Set up a Successful Grocery/ Provision Stores in Nigeria
1. Market Research and Business Plan
Market research is one of the most important steps you need to make in setting up a successful provision store in Nigeria. Even though the business requires less experience and skills, you still need to know the type of goods and products people need. To avoid storing up goods that are not easily traded.
You need to make decisions on the type of goods you need to stock up in your stores. Furthermore, you need to check your capability and decide how big your grocery store will be.
After gathering the necessary information, you can then proceed to develop your provision store business plan. This is to prepare you for future challenges as well as help in seeking funds for your business from organizations.
2. Obtain Startup Capital
To establish a provision store in Nigeria, you don’t necessarily need huge capital, except you decided to operate on a large-scale basis. You can decide to start with as low as N100k or less and expand from there. Also, you may decide to establish a medium or large-scale provision store with as high as N500k or more.
There are a lot of things to do with the money in a provision store. Ranging from making shelves, tables, tiles, stocking up of goods, renting shops, painting, and so on. You can also secure loans from family and friends or even bank to finance your grocery store business.
3. Choosing a Good location
Once you can get your capital, the next thing is for you to secure a shop for your provision business. If you do your analysis well, choosing the right location won’t be a problem. Remember your grocery store location determine how much sales you will make.
Situating your provision store in the center of a town/cities or near a busy road or visible corner will be a good decision. You should also consider where your target audience is before renting a shop for your store.
After renting a shop for your business, ensure that you beautify and make it attractive. Your shop appearance will determine the caliber of people that will patronize you.
4. Find Reliable Suppliers
One of the most important things to run a successful provision store in Nigeria is suppliers. Not just only suppliers but reliable ones who can sell to you at a cheaper rate. This is important as you don’t want your products to be too costly or reduce your profits.
If you want to sell to people in your community, you can buy directly from a retailer. But if you plan to run a large-scale grocery store, you may need to buy directly from manufacturers or sometimes wholesalers.
Furthermore, you can negotiate with 3 or more suppliers to compare their prices and choose the best. You may also want to use more than one supplier to avoid any disappointment.
5. Stock up your Goods
After making your research, getting the required capital and reliable suppliers, what next? The next thing is to stock up your provision store with products that can be easily sold.
Don’t focus on buying all types of goods if you don’t have enough funds. You can buy daily consumables that people can’t do without and sell them easily to gain profits. This will help in scaling your grocery store faster rather than buying the latter. Alternatively, if you still have some funds, you can buy 1 or 2 of goods that are not used daily for people who may need them.
Many people planning to set up a provision store in Nigeria are confused about what goods to stock up in their store. It is common to see them asking questions like what can I sell in a provision store? Provision store item list in Nigeria, Items found in provision store in Nigeria, and so on. Below is the list of some goods you can sell in a grocery store in Nigeria.
Items Found in Provision store in Nigeria
What can I sell in a provision store? The truth is there is no item you can not sell in a provision store in Nigeria. So far, your target audience will buy and can afford it.
You can start by selling daily consumables like salt, cubes, biscuits, beverages, milk, caffeinated drinks, toiletries, and so on. Find below the list of items found in a provision store in Nigeria.
- Bathing soaps
- Chin chin
- Sweets and candy
- Tissue papers
- sweets and candy
- toilet roll
- Baby food
- Sponge and so on
6. Register Your Business
Registering your business is not mandatory if you are running a grocery store in Nigeria in a community. As much as it legalizes businesses, small-scale provision stores can do without it and still be successful.
It’s only large provision store owners that should ensure they register their business. It does not only legalize the business, it boosts its image and builds trust with different customers.
7. Promote your Business
There are many ways you can use to promote your business to ensure continuous patronage. The use of fliers, posters, signboards does work effectively. Referral marketing and social media advertising are also there.
Don’t just spend money to start or set up your grocery store. Spend to advertise and promote your business also!
More on Setting up a Provision store business in Nigeria
No doubt, running a provision store in Nigeria is profitable and lucrative especially when done well. We advised you to apply all you have read here and started a successful provision store won’t be a problem.