How to Start Cement Sales and Distribution Business in Nigeria. : Study Driller

How to Start Cement Sales and Distribution Business in Nigeria.

Filed in Information Guide by on January 30, 2019 0 Comments

How to Start Cement Sales and Distribution Business in Nigeria.

How to Start Cement Sales and Distribution Business in Nigeria…Selling and distribution of cement business in Nigeria is big-time business. If you are interested in this field, this article has been crafted for you. To become a successful cement dealer in Nigeria, You need some keys and principles which is exactly what we have created for you.

As underdeveloped a country as Nigeria is with its many poor citizens, the fact still remains that real estate is a serious matter that Nigerians don’t play with. We love buildings and property and acquiring a house is usually seen as a symbol of wealth and success as far as Nigeria is concerned. We cannot talk about buildings without mentioning cement. So, the more Nigerians get attracted to buildings, the more lucrative cement sales become even to the tune of billions of naira.

How to Start Cement Sales and Distribution Business in Nigeria

How to Start Cement Sales and Distribution Business in Nigeria

Cement is a vital material used at construction sites and its high demand in Nigeria has made it a very hot and profitable product to sell. Some good dealers are making as much as N400, 000 per day just from sales and distribution of cement. To start cement business, you have to first determine which aspect you would like to operate. This will help you to focus and to know what and how to go about the business.

Key Areas in Cement Sales and Distribution

There are two key ways to start your cement business in Nigeria:

  1. Become a Cement Distributor

You can decide to start as a cement distributor in Nigeria. This is cost effective because it implies that you will have to register with already established and readily available cement manufacturers like Dangote Cement, Lafarge Cement, Elephant Cement, UNICEM, etc.

Some of the requirements becoming a cement distributor or for registering as a cement distributor include:

  1. Your letter of application
  2. Your Certificate of Incorporation
  3. Passport Photographs of the company’s director and the company representatives.
  4. A scanned copy of Bank reference letter
  5. Capital to buy at least 600 bags of cement for a start.

Of course, to get all of the above, you need some money, in fact, a lot of money. As such, it takes only people with big bucks (i.e., the big players) to operate this business.

  1. Become A Cement Retailer

The second aspect of cement sales business is to operate as a retailer, in which case you sell small quantities of the product in your shop. This is not as costly as being a distributor. If you want to avoid the process of registering with a cement manufacturing company and the huge financial requirement involved in it, then you can just buy cement directly from the wholesalers and resell them to the end users. There is no need for any special documents or any requirements for this.

Why You Should Start Cement Sales And Distribution Business?

  1. Nigeria is a fast-growing nation; the population keeps rising by the month. The Federal government, the private sector, and individuals are building houses, structures, etc. and cement is a key material for building these. Yes, you need cement to construct infrastructures like roads, bridges, stadium, houses, etc.
  2. As the population of Nigeria continues to increase, the government is faced with housing challenges. It implies, therefore, that there is a serious demand for cement as the housing needs must be met.
  3. Recently, the Nigerian government is working out plans to make sure that cement can be used to construct roads. If you can add up, you will realize what this implies. You will recall what happened to the price of flour and cassava when the Nigerian government made a policy that cassava flour should be the composite material used for baking bread, instead of the widely used wheat flour. It was a massive business boom for those in the Nigerian agro-industry. The same is about to hit cement sales and distribution business if what the government has in mind ever comes to fruition.

How to Starting Cement Sales and Distribution Business in Nigeria

When you finally decide on which aspect of cement sales and distribution business that you wish to plunge into, the next thing to do is to map out a game plan. This includes where and how to source for your goods at a considerable price and other things you will see soon.

You need to do the following to start and run cement sales and distribution business in Nigeria successfully:

(1) Write a Business Plan

Your cement sales and distribution business plans will tell you where you are going and will open your eyes to see the available wealth of resources which you can use at your disposal. You must include in your business plan your targets prospects and/or how to scout for them. Your business plan will tell you the cost of starting a cement business in Nigeria and other logistics such as the cost of transporting the products to your point of sale (i.e., warehouse, shop, etc.). So, if you are ready to venture into cement sales business in Nigeria, start by writing your business plan.

(2) Rent a Warehouse/Store/Shop 

After you must have bought your cements, you would need to keep them somewhere, yes somewhere devoid of damage or theft. This is where you will store the products and preserve them from the elements. So, it important that you get a warehouse or a shop where you will store the goods. The most popular and arguably the more preferred option is to rent (and not build a store or ware house) for this, expect you have other long-term plans for the business.

(3) Get A Vehicle (i.e., a Truck)

You need to get yourself a vehicle to aid the sales and distribution of the product. You must understand that not every customer that buys from you would own a vehicle. Therefore, to add more value to your business and attract more clients, you would need a vehicle to move the cement to where it is needed after purchase. Apart from sales, the vehicle would be needed when you want to re-stock too.

(4) Source for Customers (Advertisement and Marketing)

Having done your feasibility study and you have chosen a good location for your business, it should be easier to get customers to patronize you. However, you should still be creative enough to do a bit of marketing to get more customers.

You should map out a strategy to meet and get building contractors, foreman, procurement officers, and construction companies etc. to patronize you. Yes, these are obviously the largest target market players that you must reach if you must excel in this business within a short period.

Remember also that building block manufacturers make use of cement. So, they should be part of your target customers. You will have to do business with Individual builders too because they also buy cement for their personal house building projects.

Conclusion

I want to reemphasize here that the sales and distribution of cement are very lucrative.  As far as Nigeria is concerned, you can still operate as a cement distributor or retailer while doing your normal daily job. Quite amazing, isn’t it? In this line of business, it is possible to make as much as a whopping returns to the tune of N400, 000 per month. What you must now do is to take ACTION, work hard, and be determined to succeed!

However, you must also note that no business is without its ups and down. So, prepare your mind because some challenges will spring up while venturing into this business. It is your ability to properly handle these challenges effectively that will determine your success in the cement sales and distribution business.

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