How to Start Exportation Business In Nigeria

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

How to Start Exportation Business In Nigeria.

How to Start Exportation Business In Nigeria. Importation and exportation are what stabilizes the economy of a nation. Getting into the import and export field will certainly give you an opportunity to tab into the wealth of the nation. Start an exportation Business in Nigeria has been made easy with this guide. Continue reading below to get the full guide.

How to Start Exportation Business In Nigeria.

How to Start Exportation Business In Nigeria

How to Start Exportation Business In Nigeria

In the world we live today, engaging in one form of business or the order has become the daily trend, in other words, we cannot do without it. Coming down to Nigeria today, we see that many businesses have been established such as fashion design, a sale of foodstuffs, etc. More are still on the way. Within the list of businesses people do or can do in Nigeria also is exportation business. Interestingly, so many people have turned multimillionaires doing exportation business in Nigeria within a short period of starting the business. You too can; all that you need is the know-how on how to begin.

One of the many reasons people delve into business especially a personal business (entrepreneurship) is the opportunity it gives for flexibility and exportation business is one of such businesses. In exportation business, for example, the business owner has the privilege of working on his /her own terms thus giving him/her enough time to attend to other things. However, this is only possible when the business has grown to say the level where it has employees to handle the majority of necessary responsibilities.

Also, in exportation business, the business owner gets to set his/her own deadlines, sell how he/she wants to sell and most importantly create his/her own business environment. Another reason why you should go for exportation business is that you get to pursue your passion doing only what makes you happy whilst making money and becoming financially independent.

This article will focus on exportation business and how to establish it in Nigeria.

What is Exportation?

Before you begin the business, you must have a deeper meaning of what exportation entails. It involves conveying or sending commodities abroad or to another country for sale or exchange. It is not new in Nigeria as present and past governments have been known to export products such as cocoa and oil to other foreign countries for the purpose of generating revenue. There are usually two parties involved in the exportation business; the person exporting the products (exporter) and the person receiving such product (importer)

Categories of Exporters

The Exporters are categorized into three namely;

  1. Direct Exporters
  2. Indirect Exporters and;
  3. Middlemen

(1) Direct Exporter

A direct exporter is one who exports goods outside his/her country of residence by having direct contact with the importer either through phone or the internet. In this case, the exporter is saddled with the responsibility of shipping arrangements, methods and means of shipments, mode of payment, etc. IN short, he is involved in all processes in the business. This category requires experience; however, newbies can tag along and get involved through mentorship and training by certified and trusted trainers

(2) Indirect Exporters

On the other hand, the indirect exporters do not have direct contact with clients as there are people who do that on their behalf. This set of people are specially trained as they connect with prospective buyers abroad, make arrangements, and sometimes even get the exportable products from local suppliers to you.

(3) Middlemen

The middlemen are so called because they make up the third segments of exporters. They stay in the middle between exporters and importers. Theirs is to broker deals between the two parties and make their profits after every successful exportation process (i.e., sale).

Steps to starting A Successful Exportation Business in Nigeria

There are certain steps to take when you want to begin an exportation business in Nigeria. These are:

(1) Register A Business Name or Company with the Corporate Affairs Commission of Nigeria (CAC)

Before starting the business, you must first and most importantly register a business name. This is to avoid any legal brouhaha in the future. Once you register a business name, it means that you have alerted the government that you own a business and that the business name is yours. The Corporate Affairs Commission of Nigeria (CAC) is the official agency appointed by the government of Nigeria to handle the registration of business name and companies in Nigeria. They have their offices nationwide. Kindly visit any of their offices to do your business name or company registration here in Nigeria.

It is very important that while doing so, you choose a unique business name that has never been used before or registered with the CAC. This registration process can be done online through the CAC website (cac.gov.ng) or offline, by visiting their various offices and presenting the required documents. Presently, it costs about N10,000 to register the business name or company in Nigeria.

(2) Decide on and Find The Exact Product You Want to Export.

Now that you are done registering your business name, the next step is to find the exact products you want to export. There are various products in Nigeria that can be exported such as ginger, palm kernel oil, Textiles, and garments. Other products that you can import from Nigeria to other countries include Cocoa Butter, Gallstones, sesame seed, honey, shrimps, garlic, yam tubers, charcoal, cotton, cassava flour, cashew nuts, snails, etc. So, pick any of these and process them ready for exports.

(3) Scout for Foreign Buyers And Suppliers Of Your Product(s)

This is a really challenging stage as you have to source a large crop of potential buyers of your product. To achieve this, you can go through the merchant markets one of which is the popular Alibaba. You can also get prospects from trade fairs, by registering with the National Exports Promotion Council (NEPC), by scouting for buyers on online products listing website and merchant platforms like Alibaba, Aliexpress, 1688.com, Amazon, eBay, etc. These are potent places where you are most likely to get a customer for your export products. You can also get your customers through buying agents or by running online ads on social media platforms like Facebook, Twitter, Instagram, etc.

(4) Set A Price For Your Product(s).

Once you are done with the previous steps, you are just a step away from selling your products. However, you need to set the price of your product(s) first. There are many ways to do this. One way is to take an inventory of the total costs you bore in getting the product to the buyer. This includes amongst other things the cost price of the item(s), logistics, shipping fees, etc. This is to ensure that you don’t run at a loss. Another method of determining price is to do market research on such a product i.e. the price at which that particular product is selling presently.

(5) Take Care of Most of the Logistics

Knowledge of how to package and correctly label exported products is very important as far as exportation business is concerned. This will help in ensuring that the goods get to the customer(s) without any damage. Aside from this, you need to know how to properly document the goods, that is, your paper works. To be on the safer side, you can employ the services of professional freight forwarders to take care of all processes involved such packing, labeling, documentation, commercial invoice, bill of lading, consular invoice, inspection certification, dock and warehouse receipt, shipping, etc.

Conclusion

Exportation business is very profitable if undertaken correctly while you are likely to suffer a huge loss of profits if not trod carefully. This guide should serve as a blueprint for you. You can as well consult other materials and sources for further details.

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