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How To Start A Successful Supermarket Business In Nigeria

A supermarket is a place where you can get essential and non-essential commodities of all kinds. The supermarket business is not a new kind of business; it’s a lucrative but expensive business to start.

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In a supermarket, you have different types of consumables, household equipment, and appliances that satisfy all kinds of clients.

Basically, it is a place where the elites, middle, and the low-class visit to shop for their needs. Aside from the beautiful and serene environment that is common with some supermarkets, you also have a variety of options and can shop for all your needs in one place without moving from one place to the other.

In a supermarket, goods are placed in a way that appeals to shoppers. Indeed, shopping from a supermarket has become a major part of billions of people in the world.

Are you interested in setting up a supermarket business? Tighten your seatbelt and come on this ride with me.

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Supermarket Business

A supermarket is a large retail shop where all kinds of groceries, household goods, and products are sold. Goods are organised into sections on shelves and aisles in a self-appealing manner for easy identification.

It is a self-service center where customers shop their choice of product, thereafter proceed to the cashier for costing and payment.

The supermarket is becoming the preferred place to shop in Nigeria because it’s seamless and you can find most of the things you need in a place at relatively affordable prices. Also, the flexible payment option is also enticing; you can pay electronically or with cash unlike in the traditional market in Nigeria.

This business is capital intensive, but profitable. The self-service style, where customers can serve themselves until they get to the counter for payment reduces the cost of labour in running the supermarket business.

Let’s take a look at the important steps you need to take to start a successful supermarket business in Nigeria.

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Steps To Starting A Supermarket Business In Nigeria

Although anyone can start a supermarket business, success is guaranteed when you follow some laid down steps. Every business has its unique peculiarities, therefore one has to be prepared and do due diligence before venturing into any kind of business.

I have highlighted the basic steps to take in starting the supermarket business to ensure success.

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Starting any business requires deliberate planning, capital and knowledge about the business. You can’t wake up from the blues and decide to start a supermarket. The chances of failing will be high.

First, conduct a feasibility study of the opportunities and threats in the business venture. This is usually done through your business plan. In the business plan, you will state the aims and objectives of the proposed business, capital required, modus operandi and the possible steps to improve profit. Also, the business plan, will give insights on the market, competitors, pricing, and help you draw up plans to beat the competition.

After conducting your feasibility study and writing your business plan, then, proceed to do a business registration with the Corporate Affairs Commission.

You can register as a sole proprietor or a limited liability company depending on your choice. This process can be a little difficult, that is why companies like ReDahlia exist. ReDahlia makes business registration seamless for businesses.

Next, is to ensure that you comply with your tax obligations. Pay tax to the appropriate authority and ensure to get the proper licenses and permits.

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A supermarket business requires a huge amount of money. For instance, renting or building your store can be quite expensive in Nigeria and can require millions of naira depending on the location.

If you don’t have the capital and you really intend to venture into the business, you can seek funding with your business plan. You can approach banks for a loan or seek out investors that will invest in your business either as debt financing or in return for equity.

There are other ways you can raise capital for your business; through your personal saving or selling of an asset, through friends and family, using crowdfunding sites or even through cooperative societies.

There are different elements in the business that requires huge capital. You have to consider rent, the cost of furnishing and setting up the store, the cost of purchasing goods, deployment, and implementation of technology, cost of buying computers and equipment, the cost of running the business like salaries, etc. All of these require money and from our estimates, you will need around N3Million naira to set up a mini standard supermarket business. Bear in mind that this amount is dependent on your location in Nigeria.

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Location determines the success and failure of a supermarket business. You can’t possibly run a standard supermarket in a rural area, it is best for urban or suburban areas.

Consider locating your supermarket in a busy road, close to a junction, filling stations, or areas that is easily accessible to people. Also, setting up in an environment with a good power supply is ideal so as to minimize fuel expenses.

In addition, ensure you choose a location where the environment is clean and odor-free.

See Also: How To Start A Wholesale Distribution Business  

Build A Store

Once the location has been sorted, the next is to erect the structure or rent a space. After that, you proceed to furnish the supermarket, arrange shelves and display items in a way that they can be seen easily.

Create different sections and categories, use tags or signboards for direction. The supermarket should be spacious for easy movement to avoid customers bumping into each other.

Also, you can place different items like female goods separately, males separately, etc. Related items can be arranged together with price tags.

For comfort, the store should have cooling systems (fans and AC) in different sections. Also for security, the store should be burglary proof and fire alarms should be installed in case of fire outbreak.

The layout of the store should be planned in a way that it’s easy to connect to other adjoining rooms and points like the warehouse, cash points, checkpoint, entry point, toilet, and kitchen (if you intend to bake).

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Except you are running a small shop, a supermarket business is not a business where you have to run to the market every day to stock up finished goods. It requires buying goods in large quantities and storing them so that sold out commodities can be replaced.

The warehouse houses reserve supply and can be at the back or side of the supermarket or in another corner of the building. It should be off bounds to non-staff members. And, it should be easily accessible for restocking goods.

The warehouse manager should take extra precaution in stacking the goods. Every item should be labeled and tagged. Fragile goods should be kept far from heavy items, eatables from non-eatables, non-perishable from perishable. The warehouse should be secured at all times.

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Human Resource

Supermarket business is different from a local store where one person operates the day-to-day activities. Due to the sensitivity of the business, you need to hire experienced staff who are customer-centric and trustworthy. You can organise training and seminars for proper integration.

Some of the personnel you need to run a supermarket are;

General Managers – They oversee the smooth running of operations of the entire business, such as staff coordination and managing the facility.

Cashiers/Accountant– These people are always at the counter ready to process sales and receive payment. They must be tech-savvy, smart, and proactive.

Sales Personnel – They move goods from the warehouse, arrange them on the shelves for shoppers. Also, they guide buyers on where to locate items of different kinds.

Security Personnel – Security personnel ensures the safety of lives and property. They direct drivers where to park their cars and guide incoming customers on how to keep their properties.

Warehouse Manager – He/she managers the warehouse and ensure stocks are well taken.

Cleaners – Ensure the cleanliness of the entire buildings at all times

Drivers – Transport goods and services relating to the business.

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Some Equipment Needed In The Supermarket Business

Generator: Air conditioner, counting machine, refrigerators, and bulbs need to be constantly working. Hence, standby gen is needed in case of a power outage.

Computer and automated cash register: It gives room for proper accounting and quick issuance of receipt.

Refrigerators: Can be as many as you can afford. It is for storing perishable items, drinks, yoghurt, chocolate, ice- cream e.t.c

Cart/Trolley/ shopping basket: To convey purchased items to the counter for payment.

Surveillance Camera: Depending on the size of your market, you might need to install a surveillance camera in every area. This will reduce the rate of pilfering rampant in stores and shops today

Also, install a good burglary system, to avoid burgling at noon and night.

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The supermarket owner should have different reliable sources for the products it sells. As long as you are not selling one particular item, it is important to create links with manufacturers, distributors, wholesalers, importers, and marketers of all kinds of goods.

It is also important to know when to restock, quantity to restock, and how to negotiate and get the best price. You can sell all kinds of product ranging from fresh, frozen, baked, cooked, home utensils, toys, home appliances, etc.

Some of the items you can sell include: cosmetics, biscuit/candies, stationaries, clothes, shoes, phones and accessories, pieces of jewelry, beverage, pharmaceutical items, cream, toiletries, flowers, decoration products, books, baby care products, e.t.c.

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Tools for Inventory

Using software that tracks your inventory will help you discover the fast selling goods, monitor every item that is sold, and the items that needs to be replaced. There are different tools that you can use to track your inventory like Inflow, Odoo etc.

You can use a computer fitted with a barcode scanner and inventory software to monitor your inventory. This way, items are automatically registered into the system just by scanning. Manually tracking your inventory can be tedious but it can be an alternative in case there is downtime with your software.

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Payment for all items are made at the counter. The counter is where people pay for items and receive a receipt. Each item sold must be scanned by the barcode scanner for the computer to process the transaction and update the inventory list.

At the counter, you can employ some marketing gimmicks by placing some irresistible offers at the checkpoint to boost sales. You can place cookies, chocolates, toys, etc, at the counter. This type of strategy works all the time; while a customer is waiting in the queue, they find themselves adding these items to their carts.

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Owing to the number of different supermarkets existing today, you can only stand out if you have a solid marketing and advertising strategy. Start your brand awareness within your vicinity. The people in your locality should know about the existence of your business.

Also, create customized cellophane bags to pack purchased goods with your business name, logo, and contact address visibly printed.

Design, print, and distribute flyers around your locality. Also, invest in billboard advertisements. Offer coupons, bonuses, and discounts. Additionally, it will help you stand out if you have an online department where people can shop online and their goods delivered to their doorstep.

Most importantly, ensure that you offer quality customer service and sell quality goods that are not spoilt or expired. If you sell expired goods, bad word of mouth will spread and customers will not return.

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We have established that the supermarket business is a highly competitive but profitable if done right.

As with every business idea we discuss on this platform, success is not guaranteed by just starting the business. You need to put in the work, be determined, and run a structured business.

Success will not come in a flash, you have to persevere and tweak the business continuously. Also, you need a workable business model that we can help you prepare.

Goodluck. You are on your way to starting your supermarket business.

Do you run a supermarket business, we will like to read your insights in the comments.

As an entrepreneur, your business needs global visibility. Let’s write your business story in a way that resonates with your customers. Contact us today.

To keep track of our activities, follow us on Instagram

The post How To Start A Successful Supermarket Business In Nigeria appeared first on Entrepreneurs In Nigeria.

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Bakery Business – How To Start A Successful Bakery Business In Nigeria

If you’ve ever considered starting a bakery business in Nigeria, gather here. The bakery business is a very lucrative business because it meets the daily needs of people. The food business is one of the fastest-growing industries in the world hence, considering a bakery business is not out of place.

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If you have culinary skills and want to learn how to commercialise it to a large market, you are in the right place. Also, the bakery business is not only for people with culinary backgrounds. There are several people in the industry with no culinary skills and are doing remarkably well.

This article covers all you need to know about starting and running a successful bakery business. To start, you will need some planning and entrepreneurial knowledge, all of which will be covered in this article.

Before starting any business, it is important to have an overview of what you will need and the costs. A standard bakery requires a lot of startup costs when you factor in the equipment, materials, labor, and lease. Generally, when evaluating the startup costs, you should include the cost of the following:

  • Public Utilities
  • Marketing
  • Licenses
  • Lease
  • Furniture
  • Staff
  • Design and Repair
  • Equipment
  • Miscellaneous expenses

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How To Start A Bakery Business In Nigeria

Step One: Decide The Type Of Bakery You Want To Open

Bakery business is broad and you will need to select a niche for yourself. There are bakeries that focus on the sale of baked bread, some focus on cake baking, some sandwiches, etc. You can either start a retail or wholesale bakery.

Learn about the two types of bakeries below.

a. Retail Bakeries

Most bakeries fall under retail bakeries. Just like the name implies, those operating retail bakeries sell baked foods directly to their customers.

Below are some of the retail bakeries you can select from:

i. Traditional Bakeries

These bakeries specialises in the baking of biscuits, bread, etc. For a place like Nigeria, bread is a fast food most people have in their houses. Starting the baking of bread alone can make you millions of Naira in Nigeria. You can make different types and flavours of bread; from coconut to butter or chocolate bread. There’s no limit to the level of creativity you can put into the baking of bread.

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Also, you can make different types of cookies and it will sell because kids and adults love cookies. You can win anytime and any day with a traditional bakery if you can bring your creativity to bear.

ii. Specialty Bakeries

As the name implies, these types of bakeries focuses on a particular type of baked food. A good example of such is cake bakeries. There’s hardly a day of the week without someone celebrating a birthday. And, there’s hardly a weekend in Nigeria without a party or celebration going on.

Over the years, we’ve come to discover that cake symbolizes celebration and most people want to get a cake for their events. Without mincing words, this is a very good niche with a ready-made market. Hence, this is a great way to begin your bakery business.

iii. Pastry Shops

Many people are looking for different types of snacks they can quickly grab in the afternoon. A delicious snack paired with a cold drink is refreshing.

Basically, pastry shops specialise in the baking of different types of snacks; meat pie, egg roll, chicken pie, puff puff, doughnut, sausage roll, etc. With little capital, you can get a brick and mortar shop and set your business up.

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iv. Bakery Food Trucks/Van

You may have come across a bakery van at some point. So, rather than getting a brick and mortar store, you can get a van to sell different types of baked food such as bread, cakes, etc.

This type of bakery is lucrative because you are not stuck at a particular location. You can always drive your van to any location where you can find your target audience.

v. Home Bakeries

This is another type of bakery that is gradually gaining ground. In an era where every business is going online, you can carry out all baking procedures in your kitchen and sell them off online.

This is cheap to start because you don’t need to spend so much on setting up the business. The only thing you need is to purchase the needed ingredients to bake your delicacies.

vi. Bakery Cafe

This bakery offers more than just baked food. They go a little further to add coffee and tea to their offerings. Basically, a bakery cafe offers bread and other pastries with coffee and tea. In this type of bakery, there is a dining table where people can sit to have their meals.

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b. Wholesale Bakeries

The wholesale bakery is another type of bakery and unlike the retail bakeries, they cater to a larger customer base. They sell directly to retailers who in turn sell to the final consumers.

Once you’ve chosen the niche you want to specialise in and the type of product you want to sell, you can then move to the next step

Step Two: Register Your Business With CAC

The first step to structuring your business in Nigeria is to get it registered with CAC. Most times, unregistered businesses find it difficult to build trust with prospective clients. With as low as N20,000, you can get your bakery business registered with CAC.

You can either register it yourself or pay an expert to do it for you. One of the trusted firms that can help with your registration is ReDahlia, regardless of your location, your business will be registered and delivered to you.

See Also: Benefits of Registering Your Business With CAC

Step Three: Draft A Business Plan

The next step is to draft a business plan that highlights the goals and objectives of the business and how to achieve them. Typically, a good business plan should contain the following:

a. Executive Summary
b. Enterprise Description
c. Product or Service Description
d. Industry Analysis
e. SWOT Analysis
f. Market Research
g. Financial Projections
h. Appendix

A solid business plan can help you secure funding from investors or venture capitalists

See Also: How To Write A Business Plan Step By Step For Your Business

Step Four: List Out The Equipment You Need To Start Your Bakery Business

It is highly recommended that you have experience with baking before starting this business. Either you have been trained or have worked in a bakery. You cannot substitute raw knowledge in this business. Otherwise, you can hire someone who is trained in this field.

Usually, a bakery should have the following items:

  1. Mixers
  2. Oven
  3. Dough proofer
  4. Bakeware
  5. Refrigerator
  6. Wood Top Work Table
  7. Proof boxes
  8. Racks and baking sheets
  9. Sinks
  10. Flour Sifters
  11. Trays
  12. Miscellaneous

See Also: How To Start A Wholesale Distribution Business

Step Five: Rent A Space For Your Bakery Business

The type of space you’ll need will largely depend on the type of bakery you are starting. For instance, if you are starting a van bakery, you’ll need to purchase a van and probably hire a driver for it.

On the other hand, if you are starting a home bakery, which is a good way to start, you may not need a large physical space other than your home kitchen. The online space and a delivery company will help to get your product to your customers.

But, if you are starting a traditional bakery or pastry shop, you can go for a commercial space. Rent a property and get the necessary lease agreement signed. Before signing your lease agreement, read through or get the service of a lawyer to ensure that whatever you are signing does not hurt your business in the long run.

In addition, choose a location that brings you closer to your target audience. A busy environment where there is high foot traffic is not a bad idea.

See Also: 12 Eco-Friendly Business Ideas That Can Make You Wealthy.

Other things you need to consider when renting a space include:

  • Accessibility to space
  • Demographics
  • Competition
  • Health regulations
  • Safety and crime rates
  • Size and space requirements
  • Proximity to customers and suppliers

Also take note of the following when choosing a space

  • Your Bakery should be located far away from drainage and high pollution factories
  • It is a requirement for every bakery to have a cloth room where your workers have a change of clothes.
  • Your bakery should have heat extractor to expel heat from the kitchen
  • Space must have a bakery, storage, and administrative section
  • You must have fire extinguishers and emergency exit for safety purposes.
  • Your bakery should also have smoke detectors

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Step Six: Research The Relevant Licenses, Permits And Regulations

Running a bakery business is most times compared to running a fast-food company. Hence, the regulations can be heavy sometimes. Apart from registration with CAC as discussed earlier, you will need to register with relevant associations such as the Association of Master Bread Bakers (AMBB) in your local government area.

Also, thorough inspection of your location will be carried out by the Association of Master Bread Bakers and The National Agency for Food and Drug Administration and Control (NAFDAC).

Usually, the inspection and approval of NAFDAC take between 6 months to one year but the Association of Master Bread Bakers is continuous for as long as the bakery exists.

Additionally, you’ll need to provide the details of your suppliers to
NAFDAC and AMBB because they want to ensure you are using standard equipment for your productions.

Remember to research if there are other regulations aside from the ones mentioned here. This will mostly depend on your location.

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Step Seven: Hire And Train Staff

The size of your bakery will determine the number of staff to employ. If you are running a standard bakery, for instance, you may need to employ a front-end personnel that will accept orders, then two or more persons that have formal training or bakery experience to oversee the actual baking.

In addition, you may want to hire some personnel to handle the dishwashing, mixing of ingredients, product packaging, and other menial jobs in the bakery.

See Also: Business Plan Sample For Small Business Owners To Follow

Step Eight: Market And Grow Your Bakery Business

The aim of every business is to grow and remain profitable. There is a need for a good marketing strategy if you want your business to be discovered by prospective clients. Both new and existing businesses need solid marketing plan to survive.

While drafting your business plan, you must have done your market research and this should serve as a guide for you to follow. Additionally, there are marketing agencies whose job it is to advertise your business to your target audience.

But, if you cannot afford a marketing agency, you can attract your prospective clients through these tested and trusted channels.

a. Word of mouth marketing
b. Social media advertising
c. Sharing of flyers, handbills, and posters
d. Pay-per-click marketing
e. Email marketing
f. Website
g. Referral/affiliate programs
h. Reviews/testimonials collation
i. Get listed on relevant directories

See Also: How To Optimise Your Customer Experience Using Social Media And Boost Revenue

Threat To The Bakery Industry

1. People Are Becoming More Health Conscious

We are in an era where consumers are beginning to be more health conscious, and many are demanding for more gluten-free, low carbohydrate, whole grain, and organic foods.

Many are substituting baked goods with nuts, yoghurt, and fruit bars. Hence, bakers should factor these in their plan. You can have a section for healthy baked foods for health-conscious people or those watching their weight.

See Also: Importance Of Safeguarding Your Health As An Entrepreneur

2. Profit Margin May Be Low

Another threat is that the profit margins are often quite small. When you consider the labor and utility costs of running a bakery, there is a possibility that your profit margins on some products could be under 5%.

See Also: 100 Profitable Business Ideas For Aspiring Entrepreneurs And Investors

3. The Cost Of Ingredients Is High

Baking ingredients are quite expensive and you’ve got to purchase these ingredients before any baked goods can be produced. Meanwhile, there’s no guarantee that you’ll sell all of your baked goods every day. This is why intense marketing is a necessity in this line of business.

See Also: 10 Practical Ways To Reduce Business Expenses

Advantages Of A Bakery Business

1. High Traffic Locations Can Make For Easy Profits

If you can succeed in choosing a good location and can bake delicious food, you are halfway to making huge profits. The aroma of baked food can make anyone feel hungry and subsequently stop to buy.

See Also: Proven Way To Validate Your Business Idea With Customers

2. You Can Start Out From Your Home

To start a bakery business, you don’t necessarily need to own a space. But, you will still have to adhere to regulations and get your license. However, starting from home will allow you to save some money and start with lower startup capital.

See Also: 10 Top Business Ideas For A Stay-At-Home Mom In Nigeria

3. It Is Easy To Gain Customers

Practically, if people try your baked food and they enjoy it, they will return and also tell others about it. As more and more people try your baked foods, the more your customer base will keep increasing.

See Also: 21 Ways To Acquire New Customers For Your Small Business

In conclusion, it is no hidden fact that the bakery business is one of the lucrative businesses anyone can start. Needless to say, the demand for baked products will always be on the rise, and so will the need for bakeries. If you are interested in starting a bakery business, the best time to start is now!

Do you run a bakery business? Are you thinking of starting a bakery business? We will like to read your insights in the comments. Also, reach us if you need to develop your business model for your bakery business.

Are you doing something amazing in your industry and you want the world to hear about it? Reach out to us today to put your business on the world map.

To keep track of our activities, follow us on Instagram

The post Bakery Business – How To Start A Successful Bakery Business In Nigeria appeared first on Entrepreneurs In Nigeria.