Are you thinking of starting a phone business in Nigeria? Do you want to be selling android phones, iPhones, or small phones in Nigeria or you want to start a UK used phone business in Nigeria and you do not know how to go about it?
Read this article to the end. In the article, I am going to teach you how to start a mobile phone business in Nigeria and how you can make good profits from the business.
Asides from this, in this article, I am going to let you know how much capital you need to start a phone business in Nigeria whether a small scale, medium scale, or even large scale. Finally, I will be teaching you different channels or methods you can use to sell your phone which will, in turn, increase your profits. Are you ready? Let us go.
Table of Contents
- Is Phone Business Profitable?
- Capital Needed to Start Phone Business
How to Start Phone Business in Nigeria
- 1. Conduct Feasibility Study
- 2. Write a Phone Business Plan
- 3. Get Capital Needed
- 4. Rent Shop, Furnish it for Business
- 5. Buy Mobile Phones in Bulk
- 6. Start Selling Phones
- 7. Profits from Phone Business
- 8. Businesses to do with Phone Business
Is Phone Business Profitable?
Whether used phone business or new phone business, phone business in Nigeria is profitable for so many obvious reasons asides from the fact that the phone business is profitable because 86% of Nigerians use phones. It is also profitable because a high percentage of Nigerians use more than one phone.
The mobile phone market in Nigeria is a very large market whether you are going into the sales of android phones, iPhones, or small phones you can make good money selling phones to low-income and high-income Nigerians.
The third reason why phone business is a lucrative business in Nigeria is that the average Nigerian upgrades their phones regularly whether it has gone bad or it is still good.
Capital Needed to Start Phone Business
The capital needed to start a phone business in Nigeria depends on many factors. It depends on the capital disposed to you, the kind of phone business you want to start selling (whether UK used phone business or new phone business), and how big you want to start the business.
To start a small-scale phone business in Nigeria you will need a capital of N1M. This capital will be used to rent a shop, buy equipment like show glasses, and to buy the phones you are going to sell. To start a medium-scale phone business in Nigeria, you will need a capital of N2M while to start a large-scale phone business you will need a capital of N3M.
It is only when you are not selling android phones or you are not paying for shop rent that you will not need as much as these capitals to start a phone business.
How to Start Phone Business in Nigeria
How to start a profitable phone business in Nigeria whether new or UK used. The step by step guide.
1. Conduct Feasibility Study
The first step to starting a phone business in Nigeria is to conduct your feasibility study. Yes, a feasibility study is very important if you are serious about this business whether used phone business or new phone business and you want to make profits from it not just on the short run but in the long run.
A feasibility study will let you to know so many things about the phone business and consumer reactions to phones generally. For example, a feasibility study of the area you want to start your phone business will let you know which type of phones to sell.
For example, you cannot sell iPhones in rural areas. This is not lucrative because many villagers cannot afford such brands of phones rather they can afford android or button phones.
2. Write a Phone Business Plan
You can either conduct a feasibility study on your phone business or simply write a phone business plan for your mobile phone business. Your phone business plan will let you know how much capital you really need to start your own phone business (UK phone business or new phone business).
It will also guide you on how to use the capital effectively by informing you on everything you need for your phone business and how much it will cost you to get them. With a phone business plan for your mobile phone business, your phone business will not fail no matter what.
A phone business will also guide you on other businesses you can run alongside your phone business in Nigeria.
Read also: How to Write Business Plans in Nigeria
3. Get Capital Needed
After writing your phone business plan for your phone business the next step will be to get the capital needed to start your phone business. Like I said earlier, the capital needed to start a phone business in Nigeria depends on the kind of phone business you want to start and how much capital at hand.
If you are really serious about this business you need to get the capital needed by yourself as it is not advisable to borrow to start a business like this. To get the capital needed to start a phone business in Nigeria you can either save towards the business or simply ask for financial support from your family and friends and pay them gradually when you start making money from the business.
4. Rent Shop, Furnish it for Business
When it comes to renting a shop to start your phone business (used phones or new phones) you need to consider so many factors. Some of these factors will not just ease your phone business if you consider them they will also help you increase the profits in your phone business easily.
One of the things you need to consider when renting a shop for your phone business in Nigeria is location. The location of your shop can determine if you will continue to make huge profits from the business, losses or barely passing the margin.
When renting shop for your phone business you have to rent your shop at a location where thousands of Nigerians pass daily. Locations like roundabouts, bus-stop, t-junctions and other major areas are the perfect locations for your phone business.
Another thing or factor you need to consider is how much you will be renting this shop. You cannot rent a shop at an amount that is more than 30 – 40% of your starting capital doing this will be deadly to your phone business right from the start. The size of the shop also matters and all these factors are very important.
5. Buy Mobile Phones in Bulk
Where you buy your phones in wholesale for phone business in Nigeria is another factor. You need to find out not just the perfect electronic market close to your state in Nigeria and a reliable seller in that market. If you are in Lagos or its environs (other states around Lagos state) you can be buying your phones for your phone business at Alaba market.
There are many suppliers and marketers there. You just need to take your time and do your proper findings before choosing the best phone seller for your business.
6. Start Selling Phones
After buying your phones (button phones, androids or iPhones) you need to take them to your shop, do their inventory, and display the phones in the shows glasses like they are in showrooms. As for how you can get customers for your phone business if your shop is located at the right place, it will be easy for would-be customers to locate you easily.
However, you can also inform your family and friends about your phone business so that they can also come in and buy from you or invite their friends to buy from you. This also increases your chance of increasing your profits easily.
7. Profits from Phone Business
There are other businesses you can go into with your phone business in Nigeria to make profits. I will be sharing some of these in my next point but before we go into that let us quickly talk about simple principles you need to follow in the phone business to increase profits easily.
A. Buy your phones at the cheapest electronics market. It is important to note that where you buy your phones will determine how much profits you make from your phone business. For example, a person that buys a phone at 60k and sold it at 70k cannot be compared with a person that buys a phone at 65k and sold it at 70k.
Obviously, the person that bought the phone at 60k will make more profits than the person who bought it at 65k. Plainly said, the cheaper you buy your phones the more profits you will make from your phone business.
B. Rent a shop for your phone business at a prime spot. I talked about this point earlier too. Renting a shop at a major spot will also determine the profits you will make from the phone business. If you are located at the right place, more customers will be able to find you and buy from you and if they buy from you your profits will increase.
8. Businesses to do with Phone Business
There are other businesses you can do with your mobile phone business in Nigeria. All these businesses are related to the phone business so you do not need to bother yourself with how you can merge them. These other businesses are:
A. Phone Accessories Business
Phone accessories business is when you simply sell accessories of phones like earpiece, earpods, phone chargers, car phone chargers, power banks, phone cases, and more to make money. You can sell phone accessories alongside your phone business in Nigeria. This will increase your profits easily.
B. Phone Charging Business
Another business you can do alongside your phone business is the phone charging business. Due to the power shortage in Nigeria, people will always need alternative sources to charge their phones especially people who cannot afford to buy generators or fuel. Depending on the area or state you live in Nigeria, you can make money charging customers phones for them. The money you make from this business might not look big but it goes a long way.
C. Phone Repair Business
Another business you can do along smartphone business in Nigeria is phone repair business. The phone repair business is a service rendering business in Nigeria. This is when repair phones that have faults to put them back in their functioning state.
With a phone repair business, you can make money repairing people’s phones. Even if you cannot repair phones you can employ phone technicians to repair phones for you and you pay them to commission or salary.
D. Recharge Cards Business
Recharge card business is another business you can go into alongside your UK used phone business in Nigeria or new phone business in Nigeria. All you need is to buy your recharge cards in bulk and sell them to customers to make money.
Phone business in Nigeria is a lucrative business because Nigerians cannot do without phones. You can make millions from this business if your shop is at the right location and you are ready to diversify into other businesses.
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