Setting up a business in Nigeria is very challenging, especially for those just venturing out newly into this line of business. Although very rewarding if one gets it right, but very risky and tasking to say the least.
Although electronic retail stores are numerous in Nigeria, only a handful stand out, and these are due to diligence and hard work and also the right attitude and approach to this line of business.
In answering how to start an electronic retail store in Nigeria, one has to find out several factors which facilitate for the smooth running of an electronic retail business in Nigeria. The following are some of the factors a would-be retail electronic dealer has to consider;
- Investigate Your Competition
This cannot be over-emphasized. Before thinking of establishing one, find out your local competitors. Be sure that gain a good knowledge on how they function and their areas of strength and weaknesses if any.
You have to find out how they were able to position themselves in the Nigerian market and pattern your business in a way that sets you apart from the competition.
This can be started out by first of all locating all the retail electronic shops you can find around you, and asking questions that will answer your objectives.
- Asking for Advice from Established Entrepreneurs
To succeed in starting an electronic retail store in Nigeria, you have to seek for competent advice. That is, benefiting from the wealth of experience garnered over the years by established entrepreneurs.
If you want to get this wealth of experience, you certainly will not go to electronic retail shops around you to make this inquiry. They are your competitors and will certainly will not divulge their business edge or secrets to you because you are seen as a potential threat to profitability.
You will go to established electronic retail shops outside your community and seek for such advice. Here, they will not be under any pressure to discuss their secrets with you, as they do not see you as a competitor due to the location of your intending business.
They are most likely to happily tell you everything about the secrets of starting an electronic retail store in Nigeria and how you can grow fast.
- Population of Market Segment and Demographics
The niche one selects for business is a very important factor in determining how successful one becomes. In learning how to start an electronic retail business in Nigeria, this factor stands tall. It provides the critical insight needed to plan and set the business in motion.
Many businesses in Nigeria go into the broad spectrum of retail, handling everything with just an insignificant number entering into specialized areas.
Businesses which serve a tiny spectrum of the population are likely to be more profitable than those who enter into specialized areas. These businesses are more likely to secure slightly higher profits than general retail stores. As such, in order to gain knowledge on how to start an electronic retail store in Nigeria, one has to take this into serious consideration.
Location is a very important factor in the knowledge on how to start an electronic retail store in Nigeria. This is crucial because the more the population of a particular place, the more patronage is expected.
A Location like Lagos for instance would be considered more suitable to set up shop than a place like Niger state. Why is that so? you may ask, it is simply because the population of Lagos is much and hence, would be more likely to be profitable at the long run that setting up in Niger State.
Similarly, in setting up an electronic retail store in Nigeria, if your target population is the middle class, your electronic retail store should naturally be located in middle class neighbourhoods. This is also same with setting up in lower class neighborhoods or upper class neighborhoods.
Suppliers are also very crucial to the survival of a business. For your business to have a semblance of success, from the very onset, suppliers should be taken into cognizance. How efficient are they? At what price would they supply?
How effective are they and also what is the quality of goods they supply? Are some of the basic questions to ask in order to know how to start an electronic retail store in Nigeria.
- Efficient Service Delivery
Efficient service delivery is crucial in the quest on how to start an electronic retail store in Nigeria. Whenever a customer is treated right, he/she will always come back. When electronics carry a good warranty, it builds more trust and loyalty from the customers.
In providing efficient service delivery, such services as after sales servicing would stand you out among other competitors. This is because electronic dealers offering such services are just a handful and as such, it creates added value to the customer.
- Competitive Pricing
This is a very key segment in making your services unique from your competitors. Once customers discover that competitive prices are offered by you, they are more likely to flock to you because they can still get good quality products for less.
To be successful in this sector, just lower your prices and depend on the power of turnover. The more sales you make, the more your profits and at the long run, you will be selling more electronics, at lower prices than your competitors and still getting more profits due to market turnover.