How to Start a DVD Rental Business in Nigeria
1. Create a business plan for your DVD rental business. This step is essential as it helps you evaluate whether this is a viable business option in your area. Do some market research and find out what competition you will be up against. Create some financial projections and determine if you can compete with companies like Netflix and Redbox. Look at some of the other traditional DVD stores in your area and see how they are doing as well.
2. Set up a business entity for your DVD rental business. For example, you could use a limited liability company or a corporation for this purpose. Both of these entities can help you avoid personal liability in case you are sued for a business problem. File articles of incorporation or articles of organization with your state and pay a filing fee to set up one of these entities. You will also need to buy a business license in your city.
3. Secure funding for your DVD business, if necessary. To start this type of business, you may need to put up the majority of the money on your own. Many lenders will be hesitant to get involved in a new DVD rental business because of their decline in market share in recent years. To get funding from a traditional lender, you will need to have a thorough business plan and a large down payment. Another option to consider is to find private investors to put up money for your business.
4. Secure a location for your DVD rental business. With this type of business, you need a location that gets a lot of traffic and is easy to get into from the road. In many cases, you should lease a space so that you can secure a prime retail location in a high-traffic area. Customers may not be willing to go out of their way when other, more convenient options are available.
5. Locate a distributor that you can buy your DVDs from. Video rental stores buy large amounts of DVDs from these distributors and can typically get a discount for them. This will also help you get new release DVDs when they are available.
6. Hire employees for your DVD rental business. When you hire employees, you will have to get their personal information on a W-4 form so that you can withhold money from their pay for taxes.
7. Acquire the equipment and supplies that you need for your video rental business. This will include a computer system that can track inventory, a phone system and other office equipment. You will also need to make a substantial investment to buy the DVDs for your store.
8. Advertise and promote your DVD rental business. Customers need to find out about your business and what you have to offer. Advertise with newspapers, the Internet, radio and TV.
I believe you have read this article through, please don’t hesitate to leave a comment, share your success story and if you have some challenges, feel free to ask question.