Are you looking for a profitable business to start in Nigeria, why not try starting a consumer electronic business.
The Nigerian business landscape holds a lot of promise. This is evident by the growing number of businesses being opened on a daily basis.
However, starting requires a lot of preparation. Adequately planning for the business consumes a lot of time and energy (both mental and physical).
This article focuses on the process of starting one of such businesses; the sale of electronics in electronics store.
At the end of this article, you will have gained the right knowledge on this subject. Also, the insight provided, if followed will certainly pay off.
Consumer electronics are either digital or analogue equipment that are used daily in different homes and offices for entertainment, communication and other activities.
The growing population of those migrating to urban areas in Nigeria leads to the high demand of electronics by consumers. Various consumer electronics equipment includes;
- Audio systems or home audio
- Flat screen TVs
- DVD players
- Video games
- Telephones
- Laptops
- Air conditioners
- Laundry machines
- Desktop computers
- Printers and scanners
- GPS
- Digital cameras
- Electronic musical instruments
- Cam coders
- Wireless devices such as Bluetooth headphones
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Different popular electronic brands includes:
- LG
- Panasonic
- Samsung
- Sony
- Sharp
- Akira
- Haier Thermocool
- Binatone
Consumer electronics have become part of our everyday life as people hardly do without them. Both the rich and poor patronize and have electronics in their various homes.
The consumer electronics business involves buying electronic appliances (or gadgets) from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use
HOW TO START A CONSUMER ELECTRONIC SALES IN NIGERIA
In order to start a consumer electronics business in Nigeria, there are certain steps, planning and preparation that one must take in order for the business to be successful. The procedures include:
Choose a Niche
Electronic business includes a lot of varieties and it is wide.
Before starting a consumer electronic business, one must choose an area that is suitable according to your interest in the electronics business.
There are several kinds of consumer electronics services that one can offer, they include selling:
- TVs, speakers and home theatres
- Fridges
- Personal computers and laptops
- Cookers
- Washing machines
- Electronic musical instruments
You could decide to sell a particular type of electronics or open a multi-purpose store that will accommodate different electronics.
Factor in Your Competition
After choosing a niche, you may want to pay serious attention to your competition. There are several competitors in the electronic business.
Hence, your electronic business may face stiff competition from similar businesses. To outperform your competitors, you may want to consider introducing innovative measures.
Although this may be of great help, it is not enough in itself. A proper implementation of these measures will significantly improve client patronage.
An area you may want to focus on is the product warranty.
Rather than patronizing just any supplier, consider dealing directly with the product manufacturers.
Becoming a distributor or agent of an electronic manufacturer will afford you the opportunity of having a warranty for all your products.
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Register your business name
Registering your business name is very important for your consumer electronics business.
This is because your business will be separate from its owners and customers and clients will not patronize your product if they know that it is not registered with the Corporate Affairs Commission (CAC) in Nigeria.
Depending on the business structure you want to set up for your business, there are different procedures for each structures.
If you are starting as a very small business, you can register as a sole proprietor but if you are starting your business on a large scale, you can register your business as a limited liability company.
Also, Registering your business name with CAC will give your customer and clients the backing that your business is legal and your products are not fake
Location
This goes hand-in-hand with sales. By locating your business in an ideal location, the chances for success will greatly increase.
Therefore, when starting an electronic business, consider densely populated areas as possible locations.
Doing so has the potential of shooting you into the top league of electronic dealers. There has never been a business which thrived in bad locations.
Hence, if you desire to see increased patronage and sales, then you might want to take this very seriously. Getting a good location in Nigeria is never a problem.
It is common knowledge that in every state, apart from the Central Business Districts (CBD’s), there are also big towns and cities.
Consider Contacting the Right Suppliers
Starting an electronic business in Nigeria requires the services of suppliers. These can be wholesale suppliers as well as the electronic companies themselves.
Whatever the situation, it is important that the right choice be made. Dealing directly with the manufacturing companies has a lot of advantages as there are significant discounts that increase the profit margin.
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However, there is a downside here. Dealing directly with the manufacturer requires substantial capital. A bad news for small businesses with little financial strength.
Consult Extensively
While starting an electronic business might seem quite easy from the sidelines, a lot of planning, preparation and sweat goes into the process.
To be on the safer side, it is important that you consult extensively with experts in this field. By experts, we mean people having considerable knowledge and experience in electronic business.
These may include owners of large electronic stores, sales representatives of electronic manufacturing companies, and several other people participating in the value chain of electronic business.
By consulting effectively, your electronic business stands a higher chance of succeeding than not.
After Sales Services
Any serious electronic business will take this seriously. After patronizing your services, especially after making a large purchase, the electronic business is supposed to handle the transportation of the purchased goods (electronics) to the buyers’ destination.
Therefore, the electronic business is expected to have delivery vans to convey/move these purchased goods to the buyer’s destination. After sales services are strategic to increasing and attracting patronage.
A customer will certainly be happy to have the business take care of the transportation of his/her purchased goods.
CONCLUSION
These are the requirements every investor interested in starting an electronic business should consider. Getting these right will place the business on the path of growth.
The electronics business in Nigeria is a booming and profitable business because almost every home uses electronics and newly upgraded electronics are manufactured every day for sales.
Starting a consumer electronic business requires knowing the specifics of electronics you want to sell, having the right amount of capital and selling standard electronics to customers will lead to your business to being successful.
