How to start a provision store business in Nigeria (2024)
Are you looking for information on how to start a provision store business in Nigeria?
Starting a provision store business can be rewarding because people buy things daily.
There’s a demand for daily necessities, so establishing a provision store presents a promising opportunity for aspiring entrepreneurs.
I’m a businesswoman in Nigeria, and this guide will provide valuable insights and practical steps to help you embark on this entrepreneurial journey successfully.
Related Post:
- How to Start a Jollof Rice Business in Nigeria
- Snail Farming in Nigeria: The Ultimate Guide
- How to Start a Cyber Cafe Business in Nigeria: A Comprehensive Guide
- How to Start a Shawarma Business in Nigeria
Is the Provision Store Business Profitable?
Yes, the provision store business in Nigeria is profitable, especially with a well-planned approach and strategic management.
I have a man who has sold a provision store business in my street for 8 eight years. I’ve parked out of the area, but he still does it.
The last time I spoke with him, he said he could put his children through University education just from the business.
I don’t know your definition of success, but if you’re looking for something that’ll pay you 10k+ daily, the provision store business will do that.
But you have to understand the profitability of a provision store business in Nigeria depends on location, competition, and your target market.
While this business can be profitable, it is essential to conduct thorough market research to determine the kind of product people want, how much they’ll cost, and how much you’ll look to make daily.
How Lucrative is a Provision Store Business in Nigeria?
The profitability of a provision store business in Nigeria is based on location, the size of your shop and how well you manage your money.
Successful provision store owners have reported monthly profits ranging from ₦50,000 to well over ₦200,000.
But remember, this profit depends on where your business is located and how well you manage this business.
How Much Will it Cost to Open a Provision Store Business in Nigeria?
The cost of opening a provision store business in Nigeria is based on factors like what kind of provision store you are looking to open.
How big will it be? Will it be a supermarket or a roadside kiosk? And of course, how much the shop in your location will cost.
However, with how the country is now, the best startup costs for a provision store business can range from ₦1,000,000 to ₦2,500,000.
This depends on if you have a shop or not.
The rent of a shop can cost as much as 400k Naira.
So with this estimate, you already know what you’re looking at.
But if you have access to a shop already, the cost will range from a few hundred thousand naira to several millions of naira.
Creating a comprehensive business plan and budget is essential to determine the specific costs involved in your situation.
This should include expenses for securing a location, acquiring necessary licenses and permits, purchasing inventory and equipment, and other operational costs
How to Start a Provision Store Business in Nigeria
To start a provision store business in Nigeria, you can follow these general steps:
- Market Research:
Conduct thorough research to assess the demand for provision store products in your target location.
Understand the local market, competition, and potential customers.
Find out the kind of product people in your area are using. Do they go for cheap inferior products or more expensive original ones?
See: 9 Key Steps to Conduct Market Research in Nigeria
- Business Plan:
Develop a comprehensive business plan that outlines your goals.
Your goals should be:
- How much will you spend to open this shop?
- Where will you purchase the products?
- How much are you looking to make monthly?
- Who are the people who will buy your products?
This will serve as a roadmap for your business.
- Capital:
Determine the required capital to start your provision store. This includes expenses such as securing a location, purchasing inventory and equipment, obtaining necessary licenses, and marketing activities.
Inventory and equipment include the shelf in your shop, the cost of staff, and the cost of a CCTV camera if you intend to use that.
Ensure you have the necessary funds or explore financing options if needed.
- Location:
Find a suitable location for your provision store, preferably in a high-traffic area with a target market nearby.
Consider factors like accessibility, visibility, and affordability when choosing a location.
See: 8 Secrets to Find a Good Location for Your Business in Nigeria
- Licenses and Permits:
Obtain the required licenses and permits from relevant government agencies. These may include business registration, tax identification, and local trading permits.
Registering your business with the necessary authorities saves you a lot of headache.
- Suppliers:
Establish relationships with reliable suppliers to ensure a consistent supply of products. Tell them you’re buying to sell. And make sure you get a good product.
Remember also to check the expiry date of these products.
Negotiate favourable terms and discounts to maximize your profit margins.
- Inventory Management:
Implement an efficient inventory management system to monitor stock levels.
Avoid overstocking or understocking to optimize your operations.
Find out the kind of biscuit or products that people in your area like to buy and buy more of those.
- Store Setup:
Create an appealing store layout that maximizes available space and showcases your products attractively.
If you have no idea how to do that, then check out this YouTube video on how to arrange your provision store.
Invest in shelving, signage, lighting, and proper storage facilities.
- Marketing and Promotions:
Develop a marketing strategy to create awareness and attract customers to your provision store.
Use both traditional and digital marketing channels to reach your target audience.
Offer promotions, loyalty programs, or incentives to encourage repeat business.
- Customer Service:
To build a loyal customer base, provide excellent customer service.
Train your staff to provide friendly assistance, resolve customer issues promptly, and maintain a clean and organized store environment.
Remember that these steps are a general guide, and it is essential to adapt them to your specific circumstances and market conditions.
How to Succeed in Provision Store Business
To succeed in a provision store business in Nigeria, consider these tips:
- Choose a strategic location with good foot traffic, preferably in a residential area where people frequently shop for daily necessities.
- Offer a diverse range of products, including essential groceries, toiletries, snacks, and household items to cater to a wide customer base.
- Ensure that the products you stock are of good quality. Building trust with customers is crucial for repeat business.
- Set reasonable and competitive prices to attract customers. Regularly review and adjust your pricing based on market trends.
- Provide excellent customer service to build a positive reputation. Friendly and helpful staff can enhance the shopping experience for customers.
- Keep track of inventory and restock popular items promptly. Avoid stock outs as much as possible to retain customer satisfaction. Nothing hurts more than when a client calls your shop and you say you don’t have what they need.
- Utilize local advertising, social media, and promotions to create awareness about your provision store. Loyalty programs can also encourage repeat business.
- Maintain a clean and organized store. A well-kept environment contributes to a positive shopping experience and reflects on your store’s professionalism.
- Explore digital tools for inventory management, and consider offering online ordering and delivery services to reach a broader customer base.
List of best selling provision store items
| Groceries | Rice (5kg) |
| Beverages | Instant Coffee (200g) |
| Snacks | Potato Chips |
| Toiletries | Toilet Paper (Pack of 4) |
| Cleaning Supplies | Dish Soap |
| Canned Goods | Canned Tomatoes |
| Dairy Products | Milk (1L) |
| Personal Care | Toothpaste |
| Bakery | Bread (Loaf) |
| Frozen Foods | Chicken Nuggets |
| Snacks | Chocolate Bars |
| Beverages | Tea Bags |
| Cleaning Supplies | Laundry Detergent |
| Dairy Products | Eggs (Dozen) |
| Snacks | Popcorn |
| Toiletries | Shampoo |
| Canned Goods | Canned Beans |
| Bakery | Butter |
| Personal Care | Soap Bars |
| Groceries | Pasta |
| Frozen Foods | Ice Cream |
| Beverages | Bottled Water (Pack of 6) |
| Cleaning Supplies | Paper Towels (Roll) |
| Canned Goods | Tuna Cans |
| Snacks | Nuts (Mixed) |
| Toiletries | Deodorant |
| Bakery | Baguette |
| Personal Care | Conditioner |
| Groceries | Flour (2kg) |
| Dairy Products | Cheese |
| Beverages | Juice (1L) |
| Cleaning Supplies | All-Purpose Cleaner |
| Canned Goods | Soup Cans |
| Snacks | Crackers |
| Toiletries | Facial Tissues |
| Bakery | Muffins |
| Frozen Foods | Pizza |
| Beverages | Soft Drinks (2L) |
| Cleaning Supplies | Broom |
| Dairy Products | Yogurt Cups |
| Personal Care | Razor Blades |
| Groceries | Sugar (1kg) |
| Snacks | Pretzels |
| Canned Goods | Corned Beef |
| Bakery | Cookies |
| Frozen Foods | French Fries |
Factors to Consider When Renting a Shop or Container
Renting a shop or a container in Nigeria, like in any other location, involves considering several factors to ensure that the space meets your business needs.
I’ll give you a rundown of what to look out for if you’re looking for a shop.
Location
- Proximity to target customers
- Accessibility for both customers and suppliers.
- Visibility and foot traffic in the area.
Cost
- Rental fees and terms.
- Additional costs such as utilities, maintenance, and security.
Size and Layout
- Adequate space for your business operations.
- Layout that suits your business needs (e.g., storage, display, office space).
Infrastructure and Amenities
- Availability and reliability of utilities such as electricity and water.
- Adequate ventilation and lighting.
- Availability of parking space.
Security
- Safety of the location and surrounding area.
- Security measures in place, such as surveillance cameras or security personnel.
Lease Terms
- Length of the lease.
- Renewal options and conditions.
- Restrictions on modifications or alterations to the property.
Legal Compliance
- Ensure that the property complies with local zoning regulations.
- Verify the legitimacy of the property owner and the lease agreement.
Market Research
- Understand the market conditions and rental rates in the area.
- Research similar properties to ensure you are getting a fair deal.
Tenant Responsibilities
- Clarify responsibilities for repairs, maintenance, and other aspects between the tenant and the landlord.
Challenges of Starting a Provision Store Business in Nigeria
Running a provision store in Nigeria comes with various challenges. These include problems with getting a consistent supply of goods and finding quality products at good prices.
Issues with infrastructure, like unreliable power and poor roads, also affect the business.
On top of that, there’s tough competition from other stores, security worries, and following all the rules and regulations.
- Financial constraints,
- Changes in customer behavior,
- Economic factors,
- Technology use,
- Health and safety concerns,
- Product shelf life,
- Customer loyalty,
- Marketing,
- Employee management, and
- Environmental factors all add to the mix.
Overcoming these challenges needs careful planning, flexibility, and a focus on what customers need,
Where to Get Provision Items
The best places to buy your provision store products depends on the state you’re in.
In Nigeria, provision store owners often source their items from various places, including wholesale markets like Ojuwoye Market in Mushin and Trade Fair Market in Ojo.
Additionally, online platforms like Supermart.ng provide access to a wide range of groceries with same-day delivery services, catering to the needs of provision store owners.
These options offer convenience and access to a diverse selection of products to stock provision stores effectively.
Can I Start a Provision Store Business With 100k?
No, you can’t. 100k is very little money in Nigeria today, so if you’re looking to start a provision store business with this amount, I would advise you don’t.
For one, 100k isn’t enough to rent a shop; neither is it enough to stock your shop.
Registering a business in Nigeria costs 30,000 Naira. So if you take that out of the money you have, you’re left with 70,000 Naira.
This is only enough to buy a few things. Unless you’re looking to sell from the comfort of your home.
Start Selling Your Provision Store Items
You’re all set to start selling your provision store items in Nigeria!
After learning how to kickstart your provision store business, you now have the knowledge to implement your plans.
These options will help you stock your store with a variety of items.
Embrace the challenges and be open to new ideas as you cater to your customers’ needs.
By focusing on what your customers want and finding creative ways to meet those needs, you’re on your way to building a successful provision store business in Nigeria.
Good luck as you start this exciting journey!
FAQs
Can I start a Provision Business With 100k?
No you cannot. With the Naira to Dollar exchange rate at $1 equals N1400 it’s impossible for you to open a Provision store with 100k unless you will be selling on top of a table.
100k is too small to pay for a shop. With it, you’ll be able to buy very little merchandise. If you want to start a provision store, budget 1 million to 5 million.
If you’ll go for a container instead of a shop then N500,000 can get you started.
How Much Does it Cost to Open a Mini Super Market in Nigeria?
You can start a mini supermarket in Nigeria with an estimated cost of 2,000,000.
Additionally, the cost of starting a mini supermarket business in Nigeria is approximately 500,000 NGN, but this may vary depending on the location.
Recommended Articles:
