Building Materials Business Plan in Nigeria
Our Sample building materials business Plan in Nigeria and feasibility study is up to date and can be used to access loans, grants and proposal writing in Nigeria and abroad. Furthermore,this article will be answer the following questions for you:
- The building materials industry in Nigeria
- establishing a building material business in Nigeria
To get your sample Building Materials Business Plan In Nigeria, pay N10,000 to:
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, text your full name, email address and title ( business plan for selling building materials in Nigeria) to 07033378184. Your business plan will be sent to your email within 15 minutes.
When you consider the population of Nigeria and the estimated daily growth rate, it should not amaze you that building materials business is one of the most lucrative in the country. Currently Nigeria sits at the top of the ladder with respect to population among black nations. The estimated population of the country presently is 198 million individuals. This figure is expected to reach a whopping 500 million by 2050 if the present growth rate is maintained.
Any country like ours that has a constantly growing population will also have a problem of accommodation on its hands. To solve this problem construction of new buildings will be the order of the day. This invariably means that there will be a need for building materials for each construction work to be completed.
It may surprise you to note that despite the large number of building materials businesses in Nigeria today, there is still room for more. This is because the supply of these building materials is dwarfed by the ever increasing demand. To this end a lot of people begin to ask the question, “How can I start a building materials business in Nigeria?”
That question is not inappropriate as it just means the individual in question has noticed a need in the society. A need that he believes he can bring solution to. Then again another question begs to be answered. “How profitable is the building materials business in Nigeria?” No one wants to start a business without figuring out how profitable the business will be. Some may call it “counting your eggs before they are hatched,” entrepreneurs call it “business wisdom.”
This article will provide you with relevant information regarding how to start a building materials business in Nigeria, how profitable the business is, measures to set in place, necessary certificates to possess, etc. It promises to be an educative and fun filled read so I advise you grab some popcorn as you read.
Profitability of the building materials business in Nigeria
Anyone seeking to invest in a business look forward to favorable ROI. In case you do not know what ROI means, it means Return On Investment. Which invariably boils down to how much you make after putting a certain amount into a business.
Truth be told not everyone who indulges in the building materials business makes good profit. I am sure you know it is the same with every business. Some gain and some lose. But when you take a good look at those who gain you discover they put in a lot of effort and ethical practices.
With the number of buildings being constructed on a daily basis in Nigeria there is no saying the amount that can be made from investing in this venture. The building materials business is one which is not affected by time or season of the year. People build all year round, both in time of plenty and recession. This is because housing is one of the major needs of man.
The great thing about the building materials industry is that there are several facets to it. The business is so vast that one individual cannot focus on all parts alone. You just need to figure out what aspect catches your interest the most and put in your efforts.
To buttress my point of how profitable the business is I will give the example of a man. This man sold his small car just to raise capital to start his building materials business. In less than a year the business was on its feet and he had gotten another car. Profitable in the building materials business is relative to how the entrepreneur runs the business and how big the individual is willing to grow.
Demand and competition analysis
Africa is regarded as the fastest growing continent on the globe in terms of population. As a result of this there has been a rise in real estate businesses on the continent. This is majorly because in most parts there are not enough buildings to cater for the growing population. In fact most of the existing structures are dilapidated and seeking renovation or reconstruction. These facts alone show that there is a huge demand for building materials all over the continent.
From the above stated facts and what we see around us daily it is evident that building materials businesses are cropping up almost everywhere. They are being setup in their numbers, big, small, multifaceted and unilateral in nature. There is stiff competition in the business but that should not discourage you. What makes a business stand out from the rest is the manner the entrepreneur runs it. You will have to discover the best way to run your building materials business that will make it the most profitable in your environment.
Seek out the successful businesses and find out how they grew their businesses. Also find the ones that failed and look at their model so you do not make the same mistakes. It will sure take a lot of your time and investment as well as thinking outside the box, but you can definitely beat the competition.
Now that you gained insight to all of these, let us take a look at how to start the building materials business in Nigeria.
Steps to follow in starting the building material business in Nigeria
Below is a list of steps or guidelines you may follow in starting your building material business. It is not set in a specified order, this is just the way I believe most businesses will prefer running. Do not also restrict yourself to these alone, go ahead and make some more research. The more knowledge you have, the more successful you are likely to be at what you do.
- Make a choice. In making a choice there are two aspects you need to focus on. The first being, “should I invest in this business?” I believe that if you have read to this point you should have at least a bit of interest in the business. If you do not have interest in the business the business has already failed without even starting. You will need to do some soul searching and pondering here so you do not make the mistake of investing in the wrong venture. The second choice you need to make is the choice of what area to focus your investment. As stated earlier in this article, the building materials business is very vast. There are several fields under the industry. Your choice will determine to a large extent how much capital will be required for the business to kickoff. Finally endeavor that your aim for diving into this business should not be just the money you will gain. It focus more on what you can bring to the table that will improve the sector generally.
- Feasibility study and inquiries. Starting any business takes a lot, especially in terms of knowledge. You must put nose to the ground and gain as much knowledge as possible. As the entrepreneur there is a lot you need to learn about your responsibilities, methods of operation, the best kind of materials to deal in, the reliable suppliers, how to relate with prospective customers , etc. You have to master the intricacies of the industry, gaining such mastery will go a long way in determining how successful the business will be.
- Write a business plan. So many entrepreneurs take this aspect for granted. They believe that to run a business you just need some knowledge of the business, raise capital and you are good to go. We all wish it was that easy, don’t we? What makes it that easy is the business plan. The business plan gives the entrepreneur a map on what direction to go and a forecast of what he is to expect in the nearest future. It also helps to convince investors that the business is viable and will be worth investing in. Asides these, with the business plan you have knowledge of what kind of staff you need to employ, their attributes and what their responsibilities will be when employed.
- Figure out your location. The location of a business determines to large extent how profitable the business will be. When siting a building materials business you must find a place that has the kind of traffic you need as patronage. You do not take your business to a place where traffic is low or where construction is already completed. You must look out for parts of the city which are still under construction. Also consider closeness to suppliers and cost of the building. You might decide to construct or simply rent for the time being. The location of a business is most times considered as the backbone of the business.
- Raise capital. This is unarguably one of the most important steps to take in starting any business. Without the capital you practically cannot do anything. It is the capital that will ensure you get the materials to be sold, the facility to house your business, transportation, payment of staff, etc. Your business depends on it for survival. A lot of people complain that they do not have enough capital to start business. That should not be a problem anymore, there are several ways of raising capital for business. You could get a loan from the bank, from friends and family or from loan apps on your mobile phone. You could also seek investors to partner with you and you can start saving money today. To decipher the amount of capital you need you will need to have a well written business plan.
- Register your business. This is another part of business a lot of entrepreneurs take for granted. Business registration is paramount to your business and it plays a major role in its success. Find a suitable name for your business and visit the CAC to pick up forms. There are several corporate firms that help with business registration to make the process less cumbersome for entrepreneurs. Simply visit anyone of them or go to the CAC official website to begin the process. The registration ensures that the business gains credibility, both to customers and investors. You will also need to get all the other certifications necessary for a building materials business. These are necessary to avoid any form of embarrassment during operations.
- Find a supplier. Regardless of your location there are suppliers for every kind of building material. You will need to carry out research to ensure that you do not patronize dubious and untrustworthy individuals. The credibility of a supplier will definitely affect the business either positively or negatively. For a startup business you need a supplier that can trust you to give you credit facility and deliver on time as well.
- Purchase building materials. Now that you have a reliable supplier you can make your purchases and begin to sell your goods.
Marketing your business
It is not enough to start a building materials business, you will need to carry out aggressive marketing. As earlier stated the competition within the building materials industry is quite stiff. The market is choked so you need to think outside the box so as to attract customers to your business. A lot of building materials merchants visit uncompleted buildings and write their phone numbers as publicity stunts, you need more than that.
We are in an IT age and you can take your marketing a notch further by adopting social media marketing and a website to your arsenal. They will save a lot of money for your business while reaching out to a wider audience.
Below are the most common marketing methods you can use:
- Employ marketers to use word of mouth.
- Print handbills.
- Banners and billboards.
- Social media channels like Facebook, Instagram, Twitter, etc.
- A website.
You could also consider delivering to construction sites at a discounted fee as part of your strategies of attracting new customers.
I believe this article has been helpful in your quest for knowledge regarding how to start a building materials business in Nigeria. Go ahead and make some good cash, good luck!!!
Get your sample Building Materials Business Plan In Nigeria today. To order the business plan, pay N10, 000 to:
BANK NAME: GUARANTY TRUST BANK (GTB)
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 0044056891
BANK NAME: FIRST BANK PLC
ACCOUNT NAME: CHIBUZOR TOCHI ONYEMENAM
ACCOUNT NUMBER: 3066880122
After payment, send your full name, email address and topic (i.e. business plan for selling building materials in Nigeria) to 07033378184. Your business plan will be sent to your email within 15 minutes.
Building Materials Business Plan in Nigeria © www.businessplan.com.ng