Source: spare parts business
Every day, a big number of automobiles in Nigeria are destroyed as a result of bad road conditions. Many drivers find trapped while driving owing to a shortage of spare car components. There is an urgent need to overcome this barrier, especially while traveling.
Starting an auto spare parts business may be an excellent way to get out of the employment market, make a lot of money, and be happy for the rest of your life. The need for automobile components is always expanding, particularly in Nigeria’s major cities such as Lagos, Abuja, and Port Harcourt.
This industry will remain successful as long as car enthusiasts like maintaining their automobiles.
Selling vehicle spare parts in Nigeria or starting a car spare parts company in Nigeria is a great way to achieve financial and personal success.
In Nigeria, where can one sell spare parts?
There is a sizable market for automobile replacement parts in Nigeria, and the company can be based anywhere in the country.
You might start selling auto parts in the city or in the rural. If you’re selling them in a city, make sure your business is on a busy street or somewhere where people can see you.
You may even sell your wares on the edges of town to assist others who have been stranded. Automobiles predominate in several areas of Nigeria. This sort of location will be advantageous to your business. This business would be appropriate in Lagos, Abuja, Kano, Port Harcourt, and other Nigerian state capitals, for example.
There are a lot of individuals in Nigeria that need automobile replacement parts. Some possible consumers that could be interested in doing business with you are as follows:
- Individuals who own own autos
- Automobile salespeople
The Advantages of Selling Spare Parts in Nigeria
1. It is a profitable enterprise.
You have the option of selling to private individuals, corporations, or the government. If you want to sell to a corporate, your firm should be located near them.
2. It provides work security.
If you work for someone, this company will relieve you of any stress caused by your boss. At your workplace, you are the boss.
The purpose of maintaining your business is to be able to live comfortably for the rest of your life. The company will continue to operate as long as you or any of your family members are still alive.
3. There is a significant demand for the industry.
Spare components are usually in short supply. As a consequence, make certain that your product is constantly available, and you will continue to profit on a daily basis.
How to Begin a Spare Parts Business
To get started in the spare component industry, you’ll need a lot of money. However, if you don’t have a lot of money to invest, you may start small.
Begin by working with a recognized vehicle spare parts mega dealer and work your way up before importing your own spare parts from abroad.
1. Education and research:
Regardless matter how much money you have, you cannot enter this sort of business without prior skills and training.
To find out how to launch your firm swiftly and successfully, you’ll need to do some study.
Before starting your own company, you must have a solid grasp of the criteria as well as some past experience in the industry. This will make it easy for you to find out how to start your own business and creatively outwit your competition.
2. A business strategy
This venture demands the creation of a sound business strategy. This will assist you in comprehending the charges of running a business, the methods to use, the ideal business categories to enter, and how to manage your income. This will also contain the administrative framework of your organization.
You’ll need enough money to get your business off the ground. You will not have to spend a lot of money on this. The firm will expand in proportion to the amount of money invested in it.
To store your belongings, you’ll need to buy or rent a store. This warehouse must be safeguarded so that no thief has access to it. Your selections will influence whether you choose a warehouse or a shop.
5. Social media presence/accounts
To connect with people online, you’ll need active profiles on social networking sites like Facebook, Twitter, and Instagram. Involve people in your social media efforts.
How to Bring in Spare Parts
Consider where you’ll get your supplies on a regular basis before getting into the replacement parts company.
The vast majority of spare parts are imported from the United States and European nations such as Germany, Belgium, Denmark, and the Netherlands.
The best technology, vehicles, and spare parts are known to come from these countries, and it is widely assumed that the majority of spare parts originating from these countries are still in good condition because they are typically discarded alongside vehicles that are going out of fashion due to new technology or updated design, rather than damage.
As a result, astute importers get moderately used replacement parts that are still usable for free or near-free. These components are offered at a premium in Nigerian vehicle marketplaces, with many dealers smiling all the way to the bank.
While developing your business strategy, identify popular automobile manufacturers and models in the nation, such as Toyota (Corolla, Camry, Sienna, and others), Honda (Accord, City, Civic, and CR-V), and others. Nissan (Pathfinder, Murano, Maxima, Altima, and other models), BMW, Mercedes-Benz, and other premium manufacturers are available.
Because the replacement parts for these frequently used autos are continually in demand, they’re a gold mine. Side mirrors, bumpers, rims, and other accessories, in addition to engine components, are typically in great demand.
Tyres, air conditioning systems and parts, and other related items are all major industries in their own right. Many people concentrate on brake pads and oil filters since these items must be serviced on a regular basis in autos.
Registration and licensing
Understudying or learning more about the nitty gritty of the sector from professionals would be ideal, especially when it comes to government entities such as the Standards Organization of Nigeria (SON) and licensing.
Check that your firm is registered with the relevant authorities, such as the Standard Organization of Nigeria (SON) and the Auto Spare Parts and Machinery Dealers Association (ASPMDA).
To put it another way, registering your business means acquiring a license and other necessary papers to operate an auto spare parts business in Nigeria.
You must question about a Nigerian auto spare parts business license and how to obtain one for your firm.
Starting a spare parts business costs money.
If you’re in Lagos, you should rent a warehouse, and the Ladipo neighborhood is a popular choice. Depending on the items purchased, a 40-foot container will require between N5m and N12m.
You may, however, buy with much less money, such as N500,000 to N1m, by contacting a reliable importer who would mix your things with his own and deliver to you.
Unless you have a definite order or a clear gap to fill, it is preferable to start small and learn the ropes before developing organically.
Profitable business methods in the spare parts sector
Every organization needs a sound strategy to generate sales. You can use the following strategies to keep your company afloat:
- Photograph your products using a high-quality camera to persuade your consumers that the items they desire are accessible.
- Recognize and respect your clients’ choices. Maintain a great working connection with your customers. Spend a large amount of time and effort (about 75% of your time) cultivating your client relationship.
- Make certain that your firm is distinct and sticks out from the crowd. Your company’s policy must protect the interests of its customers.
- You’ll need some expertise to establish a vehicle spare parts business in Nigeria. You’ll need to know a lot about automobile engineering. This will help your business since your consumers will want to fix the spare component of the automobile they purchased from you, giving you with an additional cash stream.
- Do not turn away customers because you or your personnel are unable to fix their vehicles. An apprenticeship with a firm that sells automobile replacement parts may teach you a lot about the job. An agreement between you and your coach will determine the length of your business training.
Every business requires advertising in order to live and thrive. Displaying vehicle spare parts both inside and outside your store might help you advertise your goods. Find a business with enough outdoor space to accommodate this.
You may also create a social media account to let others learn about your products and services.
When you first start your company, you’ll need to recruit some sales girls or boys to assist you. The number of sales boys helpers needed is decided by the volume of sales and the quantity of capital available.
Suggestions for profitability and long-term viability
It is critical to keep your company running. If you want to maintain your clientele, you must avoid disappointing them. Make certain that you sell them high-quality car components so that they have no cause to complain about your products. There will be no issues after you have put your trust in them.
If you operate a vehicle spare parts company, you are an entrepreneur. You must prepare for the possibility of commercial risk. Make sure you have leadership qualities in order to oversee your sales employees.
You should be able to take on any task at any moment. Every business will experience times of success and loss. It can’t be avoided. As a consequence, be prepared for either. However, be certain that your profits outweigh your losses.
The automotive replacement parts industry in Nigeria is quite profitable. You must choose an appropriate location for your business. The only way to secure this business’s long-term viability is to continually offer high-quality items in your store while keeping a friendly relationship with your clients.