Presidente supermarket: Do away with procrastination and just start it. This is something you can do on your own. But, if you need a consultant to guide you, don’t hesitate to contact us.: This article focuses on the steps and requirements on how to start a supermarket business in Nigeria.
It behooves us at this point to have a clear picture of what a mini supermarket is before we examine the topic proper.
A supermarket is also known as a superstore.
It is ahttp://BusinessHAB.com large self-service retail shop where food and other house hold goods are sold.
The most found items in supermarkets include fresh and meat, packaged food, fruits, snacks, milk and house hold goods like soap, detergents, kitchen utensils, cooking spices etc.
A small supermarket can be seen as a mini super market located in a semi urban or urban area.
Both a small supermarket and large super market have the same qualities.
However, mini supermarket is on a smaller scale.
Sometimes, it can be classified into the type of shops locally referred to as “corner shops” or slightly bigger than the typical corner shop.
The simple idea of a supermarket is a place where personal and house hold goods as well as food items can be bought conveniently in retail quantities, and at an affordable price.
1. Who is qualified to own Mini Super Market in Nigeria?
Anyone can start and operate a mini super market business in Nigeria.
A civil servant and other working class person in need of an extra stream of income can own one.
They have to employ a sales person to take care of the place while he or she is at work.
A jobless person can also take this up as a sole means of livelihood if the capital is available.
It is good for an unemployed person because such a person will have a lot of time to monitor the day to day running of the business.
However, such an owner may or may not need to employ a salesperson.
In fact, full time and part time students in tertiary institutions can also get involved in this business as long as they can afford to run business and school or maybe hire someone to fill in for them.
2. Starting a Supermarket Business
- Irregular power supply: In Nigeria, one of the major challengeis the issue of erratic power supply. Although, a good generator can be used as an alternative to this. It can help to ease the situation but this comes with the associated cost of acquisition, fuelling and maintaining the generating plant.
- Lack of Security: This another most challenging issue facing business owners in Nigeria. A lot of supermarkets have fallen victim to armed robberies, thefts and break-ins.
- Intense competition: There are numerous people already involved in the same line of business which means there will be lots of competition for customers. A business owner should be innovative, driven, committed and determined to thrive in this very lucrative but challenging line of business.
3. Factors to consider before starting a supermarket
If you want to be successful in this business, then you must take into consideration the following while drawing out a viable business plan.
See also:50 Tips for Less Expends in Business
4. Location of the Supermarket:
The importance of location cannot be over-emphasized in starting a business of this nature.
Apart from finance, it can be regarded as the single most important factor that will determine the success or failure of the business.
The mini supermarket business will hardly have the needed fund to afford an elaborate advertisement campaign hence it has to be located where it will be exposed to potential customers.
Again, almost everyone will love to do their shopping in a place that is easily accessible.
So, no one will want to shop in a place where arriving or departing will be hassle-free.
In all, the best place to locate a mini supermarket in Nigeria is along a busy road or junction where your shop will be exposed to a high stream of consumers.
It is desirable to slightly tailor your stock to appeal to the locality where your mini supermarket is located.
Even though most supermarkets usually stock a wide range of items.
For instance, it would pay more to invest in a bit more of stationary like books, pencils, pens, cardboard paper, markers among others, if you are located in a student environment.
Even fast selling and easy to cook items like noodles and pasta.
Maybe, you can add a bit more of personal grooming items like deodorants, body sprays etc.
It’s not a bad idea to add hair products and medium to low-end perfumes.
In this kind of environment, it is better to focus on fast-moving consumer goods (FMCG).
Because most students are relatively low-income earners hence they tend to buy only what they need, and in small quantities.
6. Shop Size and Layout:
The layout that will be adopted depends on the size of the shop.
You do not want to get a shop that is bigger than your need as this will cost you more than necessary in rent.
A supermarket is a small and medium scale business.
Make sure it is not too small else the shop will look disorganized and uninviting to customers.
You must have a very clear picture of what is to be displayed and the scale of the shop in order to pick the right size.
The items on display should be rationally arranged in such a way that it is easy for customers to easily locate their desired items.
A modest clue is to place like items in the same areas.
It is necessary to make provision for the adequate registration of your business with all the local authorities as well as the Corporate Affairs Commission (CAC).
In addition, ensure that all the applicable taxes and levies are settled.
The main reason for this is simply because it would be quite unhealthy for your business to be closed down for even a day not to talk of a permanent closure.
Apart from running an unregistered business is seen as engaging in illegal activities.
8.Sourcing of Stock:
To ensure that your mini supermarket never runs out of items and also secure a good profit margin.
You must have a clear plan on how you will secure a steady flow of stock at an affordable rate.
A good way of securing goods at good prices is to buy goods in Bulk.
Ensure that you purchase directly from the manufacturers who usually give discounts and to eliminate the added middle man cost.
A lot of online stores buys their products directly from Aliexpress in China and get it shipped to their supermarkets here in Nigeria.
They are buying very cheap from there and make serious gains from each item.
9. Power Supply:
This is a very essential factor in the starting of any mini supermarket.
Some of the items to be sold such as meat and fruits need to be preserved in freezers and other items such as drinks also need to be kept cool.
Besides, it is necessary for the supermarket to be kept at a temperature that is convenient and welcoming for customers.
The irregular nature of public power supply means that there will be need to purchase a generating set.
Make sure engage a professional to find out the expected electrical load in the supermarket.
will help the owner to select the right capacity of generator to purchase because the price of generator increases with the capacity.
This is the main factor to consider since all the above factors depend solely on available capital.
A Supermarket business is capital intensive.
Therefore, anyone planning to start a supermarket business must consider the capital involved.
And how to source for it.
breakdown of possible start up requirements for a mini supermarket is given below:
|Cash at Hand||120,000|
Note: more often than not, the capital depends on the location of the business start.
In summary, the nature of goods to be focused on depends largely on the locality where the shop is situated.
As a potential supermarket owner.
You should carry out a small study on the major commodities that are consumed in the area.
So that they can accurately target the intended market.
Having read everything necessary to start a supermarket in Nigeria.
It is time to take action to implement the ideas.
Do away with procrastination and just start it. This is something you can do on your own. But, if you need a consultant to guide you, don’t hesitate to contact us.
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