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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

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