How to Start an Electronic Store in Nigeria

The electronic store is an important business and size depends on the amount invested. The inventory differs based on the store owner’s preferences.

A small store could cost N250, 000, while mid range ventures N1.5 million. Large stores with lots of inventory could cost over N10 M naira.

The first step is to write a comprehensive business plan, carry out a feasibility study. Then learn the trade and secure credible suppliers. You need a good location, aggressive sales personnel, and stock quality products.

Starting an Electronic Store

Types of Electronics

You have a huge selection of electronics to consider. Common household electronics found in stores are washing machines, television sets, radios. More are standing fans, electric cooker, bulbs, freezer, and refrigerators.

• washing machines
• television sets
• radios
• standing fans
• electric cooker
• bulbs
• freezer
• refrigerators

Carry out a Feasibility Study

You need to carry out a feasibility study and write an electronic store business plan. The study should focus on your business structure, funding, location, competitors.

Electronic business is very competitive with many players. To differentiate yourself you need to offer better prices, use effective marketing strategy. The product should be a popular brand.

Learn the Trade

You can’t venture into a business without learning the rudiments. You can leverage on partnership, become an intern or apprentice. Another way is to hire someone with a good knowledge of the industry.

The learning curve involves how to calculate retail prices, finding good suppliers, knowledge of the devices. Attend a seminar to gain knowledge and consult with experts in the trade. You can network with sales representatives of large store and manufacturers.

• leverage on partnership
• become an intern
• apprentice
• hire someone in the industry
• attend a seminar
• network with sales representatives

Narrow the Field

It is important you narrow the type of electronics you intend selling. You need to specialize in a niche to offer good service.

This also provides opportunity for competitive pricing, branding, and profitability. Focus on the type of electronic you have a deep knowledge. They could be house hold appliances or heavy duty equipment.

The store could stock only one type of item or different items. Offering different electronic devices could provide more revenue streams. While specializing in one item would attract conversions and sales.

Find an Ideal Location

One very important aspect of the business is finding a good location. You find electronic store within residential or commercial areas.

Stores in commercial areas face serious competition. However the huge market guarantees good revenue.

An ideal location should have huge human traffic or close to pedestrian pathways. Densely populated areas offer good business prospects for electronic store owners.

Licensing

The basic license you need is a trade license. You can register the business as a limited liability company. You need tax identification number, insurance cover for your goods.

There are some areas that demand membership of certain associations. Some areas also attract local government levies for shop owners. Finally some of your good may be subjected to value added tax.

• a trade license
• register as a limited liability company
• tax identification number
• insurance cover
• join an associations
• local government levies
• value added tax

Supplies

You need to purchase your goods from wholesalers or manufacturers. This is important to offer your customers competitive prices.

Many electronic dealers purchase the goods from China because they are cheaper than European products. However products from America and Europe are of better quality.

Personnel

It is important you hire aggressive sales personnel. They should be courteous and understand the devices they sell.  A small store can have a sales person, cashier and driver. You need to offer your patrons good customer service.