How to make Gold Business more profitable: Do you want to start gold business in Nigeria?
If your answer is yes, I am going to show you how to start gold business in Nigeria and make your cool cash.
Gold business is one of the businesses that thrive in odd economic times of any nation, and the reason is obvious.
This is the reason, gold value will continue to appreciate over time Invest in and you.
And you can decide to sell it anytime you so desire for gains.
If you want to make money in this hard times, then you should make up your mind to invest in gold business.
And you will be on your way to making as much money as possible.
I mean absolute return on investment (ROI), because gold is one precious stone that cannot be depreciated in value.
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How to make Gold Business more profitable
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How-to-start-gold-business-in-Nigeria
How to make Gold Business more profitable
Should I remind you, gold is equivalent for money and can be used as a means of exchange.
Or are you forgotten that gold has stood the test of time as one of the legal tenders in the world over time?
Other legal tender for exchange can depreciate in value particularly.
During inflation and or when there are changes, and sometimes.
When the market is somehow manipulated.
How to make Gold Business more profitable
However, starting gold business in Nigeria is a good thing to do in this time of economic crisis.
Because you can buy gold, and then sell them back at profit and attractive prices.
And please note that one of the merit of starting gold business in Nigeria is that.
You can do the business from the comfort of your home.
And in this article, I am going to show you how to do this; how to start your gold business.
It is going to be a step by step approach, all that is involved in starting your gold business in Nigeria.
And make your cool cash, and these are the steps.
See also: How to Invest in Oil and Gas in Nigeria
How to make Gold Business more profitable
1. Get your gold business registered:
In starting your gold business in Nigeria, you have to make sure that you register your gold business.
Get the registration certificate from the relevant authority and other important documents.
Including your license to start and run your gold business in Nigeria.
I recommend that you register your gold business as a corporation with limited liability obligation.
In order to offer you the protection of your company assets from any other business.
Such as Limited Liability Company.
See also: How to Start Palm Oil Investment in Nigeria
2. Know the type of gold you want to deal with:
Having completed your registration requirement of your company.
The next step will be to decide on the type of gold you want to sell or deal with in your business operation.
Decide whether you want to be buying worn out and out of order pieces of gold.
And then work on them and sell them back to your customers.
Or you want to buy new brand, ready-made gold, repackage them and sell or best still.
Whether you want to buy gold and sell them as raw material.
These are some of the decisions you must take into consideration.
Before you venture into starting your gold business in Nigeria.
So you can choose from the below, which set of gold you will love to deal with.
- Buying of coins that are gold, and then sell them to your customers, or
- Buying of new jewelries that are gold and then sell them to your customer, or
- Buying used and outdated jewelries refine them and then sell them to your customers, or
- Buying pieces or scrap of gold and sell to the people who melt gold
From the above list, you can then decide from the most suitable to your passion.
See also: Top 20 Business That Gives Money In Nigeria
How to make Gold Business more profitable
3. Make enquiries about the trends of gold business:
There is more in gold business than just buying gold and reselling them.
Every business is dynamic in nature, and so is gold business.
So what you have to do is to learn about the current trends in gold business.
In order to be on top of the game in the business.
Take for example; there are gold-plated items that are on sale in the market, which you can avail yourself of.
Such as, some wine bottles that are magnificence.
Others include tablet computers and hand phones.
There are also a number of persons out there.
Who are desirous about getting their cell phone customized with gold.
While others will love their dresses to be decorated or designed by gold.
So what you do is to fine these set of persons and strike a deal with them.
Negotiate a deal with them and make your money.
See also: 11 Steps to Start A Business In Nigeria
How to make Gold Business more profitable
4. Know the value
Gold business is a serious business; it is not just anyhow business that you just venture into, in other words.
It is not a business for the novice. To have a top notch in gold business in Nigeria.
You should be able to value gold appropriately.
Do you know how to measure gold or weigh gold?
This is what you have to learn, the measurement of the purity of gold.
Before you can buy gold otherwise.
You are likely to fail in the business of gold selling in Nigeria.
Please note that there are fake gold in the town, there it is in your interest to know how to value gold.
The current price of gold in the market.
As well as the ability to identify which gold is fake gold.
And which one is genuine gold, this is very important.
Should you want to succeed in gold business in Nigeria.
Read also: 23 Tips to Start Cupcake Production business in Nigeria
How to make Gold Business more profitable
5. Get the sources, where you buy your gold from:
What you should have at the back of your mind should be where to buy your products from and how to buy them. You may put machineries in place in your company for those who may want to sell their gold jewelries to walk into your company and sell them to you. You simply buy them with prices you can make profits. Besides, there are people who sell raw gold, source from them and buy from them.
Read also: Top 20 Business That Gives Money In Nigeria
How to make Gold Business more profitable
6.Publicize your business:
The last step I will love to mention is the place of marketing and advertisement of your business.
Every business that tends to succeed must advertise itself to the members of the public to patronize it through radio, TV and/or internet.
7. Ensure you have a business plan.
A business plan is critical to the success of a business and can be seen as a plan that describes your business, products/services, market, and describes how your business will go about expanding for the next three to five years.
8. Determine the legal structure of your business.
Before starting your business and filing the necessary papers, it is important to decide on how your business will be legally structured. Generally speaking, you will be establishing either a sole proprietorship; partnership; corporation; or limited liability company (LLC). There are important legal and tax implications for each.
How to make Gold Business more profitable
9. Obtain a tax identification number.
Also known as an Employee Identification Number (EIN), the EIN is used to identify your business for tax purposes. Applying for an EIN is simple, and can be done within minutes on the IRS website.]
- Note that if you are starting a partnership or a sole proprietorship, it is not necessary to obtain an EIN. However, it can be wise to do so anyway. Without an EIN, your business will be identified by your Social Security Number (SSN) for tax purposes. Keeping your SSN private reduces the odds of identity theft.
10. Register your business name.
Unless you are running the business under your own name, such as “John Smith Painting,” most states require you to register a “Doing Business As” (DBA) name for tax and legal purposes. Registering a DBA is done with your state government or county clerk’s office. Search the specific requirements of your state online.
11. Obtain a business license.
The city or county which you operate within will require a business license. Typically, these forms can be found on the website for your city.
- These forms will require your business type, address, # of employees, EIN, and possibly information regarding revenue (estimations will work fine here).
- Keep in mind that licensing requirements often apply to online and home-based businesses as well as typical brick-and-mortar businesses. Requirements do vary according to location, so be certain to contact your local and state government to determine specific requirements.
How to make Gold Business more profitable
11. Inquire as to other necessary permits.
Unfortunately, each city or county has different permit requirements for businesses. These can include things like “Home Occupation Permits“ for home based businesses, “Alarm Permits“ if your business requires a commercial alarm, or various alcohol and firearm permits.
- Contact your local government’s permitting bureau or similar authority, or seek out the local chamber of commerce or business association for advice.
12. Establish a bank account for your business.
It is very important not to mix business and personal finances, as this can lead to issues with the IRS. Having separate bank accounts for business and personal transaction simplifies accounting and makes tax requirements easier to understand.
- To open a business account, simply contact your local bank or credit union.
How to make Gold Business more profitable
13. Prepare your site.
Whether you have a physical or virtual business site, the impression it makes on your initial customers will go a long way toward determining your chances of success.
14. Consider a “soft” opening.
There is no rule that says your first day of business has to also be your Grand Opening. Give your business a chance to work out the kinks before announcing itself to the world.
15. Start early.
Don’t wait until opening day, or even until you know when opening day will be. Be proactive in establishing brand awareness and generating anticipation. A “coming soon” sign on your in-preparation storefront is a good start, but not enough on its own. Preserve the bulk of your initial marketing budget for the Grand Opening, but before that time utilize budget-friendly options like flyers, targeted direct mail, and a social media presence.
How to make Gold Business more profitable
16. Establish a marketing budget.
The run-up to opening and first few months of operation may very well make or break your new small business, so make sure you give your initial marketing push a strong effort.
17. Use traditional media.
If your marketing budget allows, consider using traditional media like radio or newspaper. If you can manage television advertising as well, it is always a good idea to diversify your ad presence.
18. Use social media.
Even if you don’t know your tweets from your tags, or assume that your tailor shop doesn’t need a social media presence, make use of all avenues to spread the word about your business. Some 80% of your fellow small business owners are using social media, particularly for marketing.
19. Consider when to make your opening “grand.”
As mentioned, there is no requirement to hold your Grand Opening on your first day of business, and it is often advisable to wait even a couple of weeks before staging it.
- Schedule your Grand Opening for a day and time that suits your product or service — a Saturday morning for a diner; a Friday evening for an ice cream parlor; early evening for a martial arts studio.
How to make Gold Business more profitable
20. Make it an event.
Work hard to build excitement in the days and even weeks leading up to your Grand Opening.
- Use the term “Grand Opening” in your marketing — it makes it seem more special than just an “open for business” notice. Create excitement by offering prizes, giveaways, demonstrations, special deals, etc., for visitors that day.
- Hire a photographer to capture the event for media (traditional or social) consumption. Bring in live entertainment, extra staffing, even security if you expect an especially large crowd.
- If your business and/or its location aren’t conducive to a large public Grand Opening, consider having an event more along the lines of a “launch party” at a nearby restaurant, banquet hall, etc.
21. Guarantee a positive customer experience.
Plan ahead and do whatever you can to ensure that attendees walk away from your Grand Opening with a positive first impression of your new business. Oversights as simple as inadequate parking, long food lines, or running out of paper products in the restrooms can sour an otherwise enthusiastic reception.
- Have extra staff on hand to make sure customers don’t have to wait too long for service or attention.
- If parking may be an issue, try to work out arrangements beforehand with other businesses or community groups — perhaps setting up satellite parking at a nearby church, for instance.
- Send attendees home with a token of your appreciation — ideally something with your logo on it — along with a coupon / special deal for a return visit.
How to make Gold Business more profitable
21. Involve the community.
Establish your connection to the local community from the very start of your business. Let people envision your business having a positive community impact for years to come.
- Invite the local press to your event, but also other local business and community leaders. Network with as many as possible and establish yourself as a member of the local team.
- If possible, align your Grand Opening with a community event, when local crowds will already be gathered. Make it seem like a part of that larger celebration. Sponsor the entertainment at the holiday lighting celebration or midsummer festival. Advertise both your business and your deep connection to the community.
22. Gauge the demand for a product.
No matter how much you love something, it will not sell if there is not a real need or desire for it. Do some market research. This will allow you to determine whether or not people will purchase your product.
- Investigate whether people are purchasing a product. Visit online marketplaces like Amazon or eBay. Amazon has a Best Sellers Page that lists products that sell well. On eBay, you can do a search for completed sales within a category. Study how well products did in auctions. If it sold quickly or there was a bidding war for the item, it might be a product worth selling.
- Visit Google Adwords Keyword Planner. Type in keywords related to the products you want to sell, and see how many searches have been done on these terms. This can help you to assess demand for a product.
- Visit retail stores that already sell the product you’re thinking of selling. Evaluate performance by noticing how long the products have been on the shelf and if they sell for full price or only when they’re marked down. Ask proprietors what their bestsellers are.
How to make Gold Business more profitable
23. Read trade magazines and academic journals related to your industry or target market.
These will give you a well-rounded understanding of the market. Learn about trends in the market. Find feedback about the product you want to sell. Evaluate the ads that are displayed in the publications. If someone was willing to purchase ad space for a product, chances are it’s a good seller.
24. Search for actual facts and figures.
25. Estimate your potential profit margin.
Figure out how much it will cost you to produce or procure the product you want to sell. Compare this with the amount for which you can sell it. Determine if the profit margin is enough to make the business worthwhile.
- Get to know suppliers through trade organizations, by attending trade shows or by visiting online platforms like Thomasnet.com. Compare wholesale information, trade prices and minimum order requirements.
- Determine the retail price by researching what other stores are asking for the product. Visit an online marketplace or a brick and mortar store to do this research.
- Compute an estimated direct costs margin. The formula is Direct Costs Margin = Sales Price–Total Direct Costs.
How to make Gold Business more profitable
Conclusion
The big disadvantage to owning gold is that it tends to trade with a wide spread between bid and ask prices.
So there is a tendency that one might not make so much profit from it.
However, gold is usually used to hold value, and since dollars are most likely to rise in value, gold is the best place to preserve value.
Very nice tips