Do you want to sell foreign products in Nigeria? If yes, then franchising is for you. A Franchise is an agreement or license between two parties, which gives a person or group of persons (The franchisee) the rights to market a product or service using the trademark of another business (the franchisor). Both the franchisor and the franchisee have a strong vested interest in the success of the brand and keeping the customer happy.
Today, Franchising is available to service businesses, manufacturers, retailers, wholesalers, and even professionals services in the medical health care, fast food and beverages hospitality, educational services, training management, business support, estate management, beauty and so on. You can also ‘specialize’ in supermarket and offer ethnic foods, whole foods, or exotic foods. Supermarket business is a large scale business that requires huge capital. This type of business is a big one that demands adequate funding and a proper business plan.
Open And Operate A Successful Supermarket In Nigeria
The Leventis, UAC and Kingsway used to be one of the major contributors to Nigeria’s blooming economy. But foreign franchise has come to take the place of most of these stores today. Supermarkets like Shoprite of South African origin are the more prominent stores that are recognized and have more patronage in our society.
However, to successfully open a supermarket business in Nigeria, just follow these steps.
Source The Best Location
Firstly, You will need to choose a location. Experts say that location can make or break your business. The supermarket should be found near the town and is easily accessible. If you can find one large building at the town center, you should first inquire at building authority in your area if the location is suitable for your business by law. And you also need a place to stock your products or items.
Consider The Cost
The cost of buying a franchise and running it is quite high. Most franchise costs between $50,000 to $200,000 to set up. So, you need to critically weigh the cost and compare the available franchisor before jumping into conclusion on buying any.
Get Documentation From The Franchisor
The next important thing to do is to get the necessary documentations towards starting the business line. To do this, you would need to consult their area office in Nigeria. Lets say for instance, starting up a franchise with Unilever Plc, you need to consult their department of retail marketing in Nigeria before you can get the business rolling. This will help you in signing the contract of franchise with the franchisor.
Have A Good Layout
The construction of the supermarket should be based on the recommendations of the Town Planning department and Ministry of health of the state, or you may end up loosing your investment if you do not involve them. Remember that an inspection will be conducted by NAFDAC also, after the construction is finished. This is to ensure the safely of the lives of the prospective customers who will patronise your store.
Get Necessary Permits
Before the actual operations of the business, you will need to secure the necessary operating permits and licensing from NAFDAC (Nigeria). The required information should be provided and you need to pay the fees as well. If you want to prepare food in the supermarket (e.g. bakery or deli), ask permission first and this should also be divulged to the authorities. The permit should be renewed each year, so make sure that you comply accordingly to avoid closure. You can also seek the license from the ministry of health.
Create Extra Stores For Other Businesses
You can also offer stalls to those who want to sell other food items or accessories in your supermarket, but if you want, you can get suppliers for all the contents of your supermarket. Hiring dedicated and committed employees is very important since you can’t possibly run the supermarket on your own. Also, encourage team work.
Create Your Own Office
Next, you will need to have a small office on site so that you can monitor the day to day operations of the business. Designate tasks and responsibilities to your employees so that you don’t have to carry all the workload. Everything should be set prior to the date of the opening. Invest in advertisement, both in your community and outside it. You can start by offering discounts and special promos on purchases. Have a system that will work for the business.
Start Operation With All Enthusiasm
After you have taken the above steps, start the business with a positive mindset and enthusiasm. Knowing that if you are giving your customers value and satisfaction for their money, they will always come back. Do not entertain mediocrity and pessimism in your day to day running of the business. As the business is just starting up, it is very possible to have loopholes. But always endeavor to minimize your weaknesses.
I have one million naira what kind of business can I do with it ,I have passion for Distributorship ,please I need your advice,I live in Lagos presently ,even if outside Lagos is ok for me
ReplyDeleteHi Prince, Sorry this is coming a bit late. However, it is not an issue we can discuss here...at bizham.com, we have a special team on distributorship business. why don't you come so we can have a chat and give you the right and accurate advice. Or call 07084874404. Thank you.
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