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Friday, June 14, 2013

How to set up a Mini Supermarket Business in Nigeria

At one point in time we’ve had cause to visit a supermarket to buy various consumables for our domestic needs whether or not they were edible. As we speak there are more than 10,000 registered supermarkets or grocery shops in Nigeria. However here in Nigeria when we talk about supermarkets we often times mean a corner shop where we can buy whatever we need.

The Business Opportunity

There are many people in Nigeria who don’t buy household consumables in bulk, that’s often because they live at subsistence level – leaving from hand to mouth or don’t have the time to go to the open market or big supermarkets where they can order for goods in bulk. That explains why there are so many kiosks selling ‘provisions’ and household items in many corners of streets in big cities and towns in Nigeria. In some corner shops, business is so brisk that daily sales could be as high as N200,000 with sales margin being 3% gross profit could be N6000 or more daily.

Challenges of Owning and Running A Supermarket in Nigeria

There are too many people doing this business that means to really overcome the competition and make great sales you have to do something really spectacular that will beat your competition hands down. Robbery incidents are common in some corner shops at night and being a product based business theft from staff is also common. Add the problem of erratic electricity supply. Also for this business to succeed you need to get a good location for your shop which isn't easy.

Who is A Supermarket Business Suited For?

If you have a regular job, you can set up this business and employ a sales person to manage it while you’re at work. A small scale business person can also embark on this business as a starting point to bigger things. Students in higher institutions can set it up so too unemployed people.

Start-up Requirements

Stock – N 2,000,000
Cash at hand - N 500,000
Furniture – N 150,000
Generator set – N150,000
2 years Rent - N600,000
Others – N 1,000,000

Total – N 4,400,000

If you need a well written business plan but don’t have the time or expertise you can contact a specialist business plan writer to do a detailed analysis of a business opportunity or market survey. Simply call: 0803 206 4106

Wednesday, June 5, 2013

How to Set up a JAMB/UTME Tutorial/Prep Classes Center in Nigeria

There is this prestige that many Nigerians have with being called graduates. Most young Nigerians who want to build a career only think of white collar jobs and you can’t secure one if you don’t have a university degree or a Higher National Diploma from a recognized polytechnic in Nigeria. The examination body responsible for preparing students to gain admission into Universities and Polytechnics in Nigeria is the Joint Admission and Matriculation board (JAMB) while the various Universities and Polytechnics conduct separate examinations to admit deserving students into various department through an aptitude test known as Universities/Polytechnics Matriculations Exam also known as Post UME.

Market Opportunity

There are at least 1.7 million Nigerians who would want to take the 2014 Jamb/UTME examination and majority of them lack sufficient experience or knowledge on how to prepare for these examinations. An experienced tutor/instructor who understands how the process works from time of registration till admissions and eventual matriculation stands to gain a lot especially in the big towns and cities all over Nigeria. In some cases intending JAMB takers (JAMBITES) pay as much as N5000 per month to prepare for 4 subjects, imagine if you had 40 students to teach per month, that would be N200,000 to say the least.

Challenges

But it a good idea always sounds good until it’s tested. There are many challenges you’ll face such as suitable location as many students tend to judge a prep center by its location which is not easy to find. If you’re using under a tree or behind someone’s house it makes you look like a quick buck. Also you’ll have to deal with examination touts and mercenaries as some of them might want to poach your students into patronizing them. It’s common these days to have people waiting for already answered questions sent to their phones in the exam halls thanks to touts who may give your business a bad name if you’re not careful.

Business Strategy

There are several strategies you can adopt to make money for yourself apart from charging fees. You can sell handouts, JAMB scratch cards and key points for your students to study at their own leisure time. Another strategy will be to have both morning and evening classes. Morning classes could start by 9 am and end by noon Mondays to Fridays and 10 am till noon on Saturdays while evening classes could run from 4 pm till 7 pm Mondays to Fridays and 4 pm till 6 pm on Saturdays or probably give Saturdays off for evening classes depending on your capacity. As stated earlier you’ll also need a good location like a shop space in a busy neighbourhood or very close to a university/polytechnic area or where there are many secondary schools. This is just a marketing strategy to put you close to the students.

Requirements

You’ll need to have one subject teacher who is really good at each subject. For instance someone can specialize in chemistry and physics, another teacher may take biology and geography, another might take Maths, while literature and English can go to another teacher. You pay your teachers per class taught like say N500 per class with each class lasting for 1 hour.

Start-Up Capital

Rent – N60,000
Stationery (Marker board, pens, textbooks etc) – N50,000
Furniture (10 benches and desks) – N80,000
Generator set – N20,000
Others – N20,000
Total – N230,000

Conclusion

The business is not for everyone as you need to have a passion for teaching and an eye to hire good teachers. There are many graduates of colleges of Education who are unemployed and many of them would be glad to teach for a small fee. Overall it’s your reputation that will sell your business for you so strive hard to make it work well for you.