How to Start Export Business in Nigeria: It is a statement of fact that this is a very blessed country.
The country can confidently boast of ample natural resources.
Which have been taken advantage of as well as those that are still largely untouched and have not been used to the advantage of citizens of the country.
The natural resources that are present in the country are very well distributed across every region in the country
They also provide willing investors with the opportunity to make money.
All these investors need to do is to process these natural resources into goods that are suitable for consumption or export.
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These goods could be in form of semi-finished goods or raw materials.
If you are interested in making some money by exporting products from Nigeria.
Then this article is a must read. Contained in this article are tips on how you can start an export business in Nigeria and succeed in it.
Read also: How to Start CNG Business in Nigeria
Are You Interested in Starting an Export Business in the country?, This Tips Will be Help
The country is a very blessed country.
As a matter of fact, it is one of the countries in the world with the highest deposit of natural resources.
Contained in Nigeria are lots of natural resources which are yet to be exploited.
Once exploited, these natural resources can boost the economy of the country and lead to an increase in her citizen’s standard of living.
These natural resources present in the country are not limited to one part of the country alone.
They are found in virtually every part of Nigeria.
The presence of these natural resources is an opportunity of many lucrative businesses to start up.
Those willing to invest can do so by refining the raw materials for the purpose of exporting them or for the sake of consumption.
Reasons you Should Begin Export Business .
If you are not entirely certain why you should start export business in the country, below are some reasons you should.
In the course of running an export business, you will be able to build relationships with foreigners that can be of help to you in the long run.
It is okay if you can make the produce you want to export.
However, you do not need to make the produce.
You can purchase the needed produce from a manufacturer.
To take part in this business, an office space is not compulsory.
You can run this business from your home. All you need is a connection to the internet.
This business is a business that readily grows the Nigerian economy and strengthens the currency of the country.
As a result of this, the federal government is solidly behind it.
Also, this business is still much unexploited, therefore there is room for many investors at the moment.
Steps to Begin Export Business in Nigeria
Just like in the case of every other business, you should get trained.
Usually, training is the first thing you have to go through if you are to take part in an export business.
As a starter in this kind of business, you will need to learn how a lot of things work.
Some of them include how to get licensed, how to get the right documents.
You will also need to know about port procedures and product sourcing.
Learning how this business works is not a very difficult thing to do.
Usually, seminars are organized by different bodies with the aim of making people understand how the export business works.
1. Learn about the export market
First of all, start off by signing up for some business planning courses.
After you are done with that.
You need to sit down and take your time to learn how export business in Nigeria works.
Nigerian export market is vast and complicated, and you should not go in unprepared.
Figure out what legal documents you might need.
Visit online business forums and ask experienced businesspersons about the pitfalls of export businesses inthe country.
Decide on what you are going to sell and where you are going to get it.
Nigeria is a country rich in things you can sell to other continents. The list of possible products for export includes (but is not limited to):
- Oils. Palm oil, palm kernel oil, coconut oil, sesame seed oil, you name it. These products are always in high demand in countries with a colder climate. Therefore, it is easy to make profits from selling all sorts of oils;
- Cosmetics. It is only logical to consider cosmetics as a possible product for export. The oils that were mentioned before, are great for hair and skin, so many creams, shampoos and other beauty products contain them;
- Charcoal. Countries in Asia, Europe and Americas have a large market for this product, and Nigeria has the best quality charcoal;
- Fruits and juices. Nigeria can provide plenty of fruits that are considered exotic in such countries as United States. Juice concentrates are an even better option, as they have longer shelf life.
- Textiles and cotton. People around the world appreciate the African culture, and Nigerian fabrics and garments fascinate foreigners. Also, the cotton business is currently on the rise in Nigeria.
Once you’ve decided on what you are going to export, you need to consider how you are going to get that product. You can either grow/make it yourself or purchase it from someone else.
If you are a first-timer, the second option is much easier. Although you should have some backup suppliers just in case. You never know.
2. Find a way to finance your business
If you have a truckload of money that you don’t know how to spend, you can skip this step.
But if your idea of starting a business runs solely on your enthusiasm, consider where you can get the needed funds.
- Take out a loan, but be cautious with that; there is no guarantee your business will be profitable.
- Ask your friends and relatives for some money, although sometimes, borrowing money from people close to you negatively affects your relationship.
- Alternatively, find a person with lots of money who is willing to invest in your idea. Just be sure you are on the same page about your financial relationship.
- They might expect way more profit from your business than you can offer them.
After you have figured the easiest part, it’s time to go to the next step.
3. Register your company and your business address
For other people to take you seriously, you need to register your company.
Here is a little checklist of things you need to do for that.
- Create a UNIQUE name for your export business and register it with the Corporate Affairs Commissions.
- Register an office for your company. It doesn’t have to be an actual office, you can just use your own address for this.
- Register your company with Export Promotion Council (EXP). The Customs Service demands that all export businesses are to be registered, but it is fairly easy. Just go to their website (nepc.gov.ng) to do that.
- Additionally, you will need to fill out the Form NXP. You can do that in any bank.
All done? Proceed to the next step.
4. Get all the required permits and licenses
This step requires you to procure the necessary licenses and permits for the government and potential customers to recognize you as a reliable business.
There are particular demands for people that have an export business, so be sure you meet all of them.
The same goes for foreign countries where you want to export your product to.
Learn what documents your target country wants and obtain them.
5. Find your buyer
Nowadays, it is very easy to conduct export business from the comfort of your own home.
You don’t even have to leave your couch to find the importers for your product.
You can just go on the Internet, register your company on some trade websites and start negotiations with potential clients.
6. Get a Group of Products
At this phase, you should choose the kind of products you are willing to export.
Before you pick any product, make sure it is a product you can always deliver in very large amounts no matter the time of the year.
Two major ways to get a product are by buying from a producer or making the product yourself.
7.Pick a Particular Product
There are certain products you are sure you can make available with minimal effort on your part.
When you make up your mind on what product this is, stay focused on this product.
nd make sure you always have it each time it is requested for.
Some of the products that can be easily exported from Cocoa, Bitter Kola, Moringa, Cassava, Gum Arabic and Sesame seed.
8. Get Your Business to Become Official
To get official, register your business.
The registration of your business can be done with the Corporate Affairs Commission .
This is the body in charge of registering businesses in the country.
When your business is registered, you appear legal and official to potential clients.
A lot of times, importers from out of the country are weary of being defrauded by businessmen.
As a result of this, getting your business registered will make you have access to the right documents.
Which you can always show to your clients if your credibility is in doubt.
9. Get to Meet Foreign Importers
This phase of this business is the most difficult. It can be likened to a litmus test.
A long time ago, finding importers was extremely difficult.
However, because of the presence of the internet it is now easier than before.
To get to meet importers, you can check on various trade websites.
You do not need to go out of your home or office to do this.
After finding sites that expose you to importers, the next thing to be done is to join these sites.
On these sites, you will get to meet importers and interact with them.
You can get them to know what products you have for sale and even show them samples if the need be.
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10. Get Your Products Exposed
This is the final stage in the exporting business.
At this stage, you must have chosen what products you want to sell and also must have met foreign importers.
This is the stage where you make different videos to make your products know to potential clients.
Also beyond videos and pictures, you can take part in trade fair exhibitions.
Attending trade fare exhibitions and taking your products along is a must if you must progress in this business.
11. Advertise your product
When you have found your client, you need to persuade them. Convince them of why they should buy your product and not someone else’s. Think of a list of things that make your product worth buying. Moreover, you can show off your product at various expos and fairs. That way, potential importers will actually see what they are dealing with.
If you have fulfilled all of the requirements listed here, you can venture into the world of export business in Nigeria. Good luck!
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