How to Start Cement Selling Business

How to start cement selling business in Nigeria: My discussion today will be on the tips to starting a successful cement selling business in Nigeria. Ignorance is one major step to a retrogressive life.

A lot of people have dreamt of owning a cement selling business but they have been discouraged. This is due to the belief that it is a business of big people.

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Cement selling business

Today, I have good news for you. Truth is,  it is not so! You can get your dream fulfilled. Note these following tips. Bearring them in mind will hand over to you your ever desired cement selling business:

• Feasibility Study
• Registering Your Business
• Warehouse For Your Cement
• Location for your cement selling business
• Distribution/Supply Of Your Cement
• The center of focus in your cement selling business establishment
• The Sweetest Part Of Your Cement selling Business

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FEASIBILITY STUDY

FEASIBILITY STUDY ON CEMENT SELLING BUSINESS

Feasibility study is the foundation of any successful business; it is the wheel that will drive the vehicle of your cement selling business to a successful destination. In your feasibility study, there you pen down key things like:

• the location of your business
• the needed equipment
• the cost/document for your business registration
• fund for your first shipment/delivery

The above mentioned are the basic things you need to kick start your cement selling business. Hence, you are good to go.

REGISTERING YOUR CEMENT SELLING BUSINESS

A well registered cement selling business with the appropriate body will automatically open you up to some opportunities in business industry. Registering your business should not take more than two weeks before your business certificate will be ready. To register your business is not as expensive as it has been generally believed, with about N15000 to N20,000 you can get your business registered with corporate affairs commission (CAC).

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Your business name is very important to be carefully selected so as to avoid rejection from the registration body because once the name you chose for your business has been taken by someone else, you will be asked to pick another name and until your business name has not been picked by anyone, the agency will not process your registration.

After you have done this, your certificate will be issued and you are a step higher, with your duly signed business certificate, you can get into the bank to open a current bank account which will give you access to ample opportunities you can benefit from to run your business.

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The current account must be opened with your company name. Also, you need to find out if there is any other cement association you need to register with, go ahead and register with them, this will help you to run an hitch-free cement selling business as the association protects the interest of their members.

Once you have your company registered which is a little bit simple to do and requires just a little amount of money, let’s say N45,000 to N50,000. After you have that sorted out, the next thing to do is to open a corporate account in any Nigerian bank with the company name. After opening your account then you get a reference letter from the bank and proceed to or any other Cement Company to do your registration.

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WAREHOUSE FOR YOUR CEMENT SELLING BUSINESS

You need an adequate store or warehouse where you can store your cement once they come to drop them for you, your pallet must have been well positioned in your store so that the delivery guys will not have to face unnecessary difficulties in loading up your shop with your cement.

LOCATION FOR YOUR CEMENT SELLING BUSINESS

Cement is not an edible substance but the interesting thing about it is that, it is consumed heavily by the rate people, organizations and companies build structures, therefore it is very important for you to know that the location of your cement store/warehouse should be strategically placed in an area where building work is done almost everyday. You should locate new sites where building work is an order of the day.

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DISTRIBUTION/SUPPLY OF YOUR CEMENT

For you to run a smooth and successful cement selling business, you need to consider the followings:

• delivery van
• motor boys
• driver

You will need to cost the above mentioned and be sure you can always meet up with the customers target and expectations.

Do you want to hire a vehicle that will help you deliver cement to your customers or you want to buy one or two for yourself, whatever your financial strength is will determine how you want this done.

To hire motor boys depends on whether you want to hire them as your permanent delivery boys or part time but your driver should be a permanent staff of your business because of the sensitivity of his delegated duty.

In getting your own vehicle, you need to consider the cost based on the type you want, whether you want a fairly used vehicle or new one depends solely on your start-up capital and the decision is up to you.

Cement selling business

THE CENTER OF FOCUS IN YOUR CEMENT SELLING BUSINESS ESTABLISHMENT

This paragraph of this article will help you a great deal to capture all that is entailed in starting up a cement selling business.

The first thing you need to know is that, whether you are venturing into the business as a retailer or as a distributor, it is important for you to know that, you need to find out the latest price operating at the time you want to start.

For example, if a bag of cement cost about N1200 from the factory, you have 600 bags in a trailer load, which means a trailer load of cement will cost around N720, 000, by the time your cement gets into your store or warehouse, you can sell at N1350 at distributor, N1350 multiply by 600 bags will give you N810,000 in a trailer, when you deduct N720,000 from N810, 000 it will in turn give you a profit of N90,000.

If you are going to be selling in retail, a bag of cement is sold for N4000, multiply N4000 by 600 bags will give you N2400000, remove N720,000 from N900,000, that gives you N1680000 profit, waoh!

Cement selling business

This is mind blowing… you can conveniently pay the salary of your driver and your 3 motor boys because you can sell more than a trailer per month and fix the few problems your van may also develop along the line.

Can you imagine how much your profit will be if you are situated in an environment where cement are consumed daily, sincerely, you will be smiling to the bank frequently.

THE SWEETEST PART OF YOUR CEMENT SELLING BUSINESS

Please I need you to pay a rapt attention to this last part of this article, and I have put this up for you from my wealth of experience as someone that has worked in a building material store before, apart from the selling of cement that my boss does, he added the sale of building materials with it, materials like iron rods, nails, binding wire bolts, zinc etc are the other items he sells and I can confidently tell you that, I have not seen a money spinning business like selling building materials.

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The small items don’t cost too much at wholesale or distributor price and there is no building that can be done without using these items, getting these items stocked in your store can drastically increase your profit margin and I can assure you an exciting business adventure. All the best!

If you need a complete business plan, please let us know. Or, you want us to help you set up this business, kindly contact us.

Otherwise, Please check out these other business ideas