Cement business is one of the most lucrative business you can venture into in Nigeria.
This is because buildings are been constructed on a daily basis inspire of the low economy status of the country.
Houses, hotels, shopping malls, shopping complex, estate, and so on are built every day of which cement is the major factor.
So starting a cement business at this time is also profitable. However, you don’t jump into the business and start off immediately, you need to follow necessary procedures that will guide you into the business.
This procedure will also help you on how to start small and earn big or start big and make more money whichever one you intend to do.
Steps On How To Start Cement Business In Nigeria
Like I said earlier this business will help you start small and earn big or start big and make more money.
In the light of this, you can either become a distributor or a retailer. To start up your business as a distributor requires that you get registered in any of the cement companies like Dangote, Lafarge, Unicem, Ibeto, or any other cement company.
To get registered you will need the following documents;
• Certificate of incorporation
• Letter of application – it is expected of you to write an application letter to become a distributor to any cement company of your choice
• A copy of your bank reference letter
• Passport photograph of the managing director
• Passport photograph of the company representative
• Capital to buy at least 700 bags of cement for a start.
From the above requirements, this means that your Depot has to be registered.
You also have to open a business account for your business in any bank of your choice.
Other things to put in place are:
You will need to rent a warehouse to house your cements. Of course you will be buying your cements in large quantities and so you will need a warehouse or a big shop to keep your cements.
Truck or Vehicle
This is also very important in this business. This truck will be helpful to reaching to customers when they buy cements in large quantities plus it earns you more as you will be charging them for transport.
However, if you cannot get one at the beginning of your business you can get from a friend or someone else in the business while you make plans to get yours.
Working alone will be very studious and difficult. You will need to employ strong young men who will run errands, attend to customers, offload cements and the rest.
Your business can start off…
How To Start Cement Business As A Retailer
There are so many retailers of different products in the market. However we are dealing with cement business. There are so many difference between being a distributor and being a retailer.
Retailers are those who sales products in small quantities. So if you intend to start your cement business as a retailer, here are vital procedures you will be needing.
- A business plan
A business plan contains every detail of a business. It is the determinant factor of the success of a business.
A business plan for cement business should contain the capital, numbers of bags of cement to start with, type of cement to sell (Dangote, Unicem or Ibeto), how and where to buy your cements, where to start your business.
All these are part of a business plan. A business plan serves as a guide for you. However, if you don’t know how to write a business plan you can meet someone who is good as writing proposals on business to help you with a business plan for your business.
- Rent a shop
The next thing to do is to rent a shop. When getting a shop you need to take this few things into consideration:
- The ceiling – you need to check the ceiling for leakage. Cements are meant to be kept in a friend place at all times.
- The size – well depending on the quantity of cements you will be buying, it is advisable to get a big shop.
- The window – as much as ventilation is needed, cements will be not needing a glass windows. Your window should have protector same with the door.
All these should be considered. The color of the shop should not be too bright if you decide painting the shop.
The location of your business is very important. Your business should be suited in areas where your customers can be easily reached. Like near a construction site or even close to the road.
You will also need to get a specific distributor where you will always buy your cements. Having a specific distributor may earn you some small bonus as you will become a special customer to the distributor.
You will also need to employ a worker or two to help out in the sales. Unless you decide to start all by yourself first.
However, if you don’t have the capital to rent a shop. You can get a container and also get a space for the container. That can serve as a shop. You can also get a space, raise up the ground by using cements or blocks.
Your cements can be places there and covers with tarpaulin after the day’s business. However, the safety of your cements are not guaranteed that’s why a shop or a container is preferable.
You can start your business now.
Starting a cement business in Nigeria is a great idea. One good thing is you can start your business without or without a shop and still be making profits.
I hope this article was useful.