The building materials business in Nigeria is a significant sector that involves the production, distribution, lease, and sale of various materials and products used in the construction and development of buildings and infrastructure.
This industry plays a crucial role in the country’s rapidly growing urbanization and development, as Nigeria continues to experience population growth and urban expansion.
In this article, we will explore how you can start the sales of building material business in Nigeria.
Below are the steps required to start selling building materials business in Nigeria.
Table of Contents
1. Market Research and Business Plan
Market research involves gathering information about the market where you plan to start your building materials business. It helps you understand the needs and preferences of potential customers, the competition you’ll face, and the overall business environment if it is the right place for your business or not.
When you are done with the research, you document your findings in a document called a business plan. It should be as simple as 2-3pages.
The business plan outlines the details of the business and strategies to excel in your building materials business.
2. Choose the Building Materials that your business will offer for sale
There are various building materials that can be sold in the building material business. It is left for you to decide which one will your business be known for selling.
I know you desire to sell all, it is possible but it will require a lot of capital to attain success doing that.
But if you focus on a few and complement other building materials as your business expand, it will be easy for your business to succeed in this industry.
Among many building materials that your business can sell, here are the most profitable building materials in Nigeria:
- Concrete Blocks
- Roofing Sheets
- Sand and Aggregates
- Wood and Timber
- Paints and Coatings
- Floor Tiles
- Electrical and Plumbing Materials
- Aluminum Products
Which ever you decide to settle on they are all profitable.
You can always complement your choice with a range of building workman tools like; Nails, Shovels, Headpan, Hammer, Screwdriver Set, Measuring Tape, Level, Chalk Line, Circular Saw, Handsaw, Pliers, Wrench SetCrowbar, Utility Knife, Power Drill, Angle Grinder, Trowel, Safety Gear, Scaffolding or Ladder, Wheelbarrow, Masonry Tools, Paint Brushes and Rollers, and other Carpentry Tools (such as chisels, planes, saws etc).
3. Legal Requirements
The two legal requirements for selling building materials in Nigeria are; Business name registration and Tax Identification Number (TIN).
Register your building material business with the Corporate Affairs Commission and obtain your TIN from the Internal Revenue Service.
Registering your business with the CAC formalizes your business as a legal entity and gives it a recognized status. It provides legal protection and establishes the ownership and structure of the business.
Adhering to legal and regulatory requirements not only keeps your business compliant with the law but also builds trust with customers, partners, and suppliers.
4. Secure Your Business Location
Location is key, it should be part of your market research. If you end up in the wrong location, maybe because it is cheap, It will be difficult to get customers and little to no customers means little to no sales.
Likewise if you setup your building material business in the right direction, it means easy access to customers and more sales.
Here are the two major attributes to look out for when finding the perfect location for your building material business:
1. Easy to Get to: Your store should be in a spot that’s not hard for your customers to reach. They shouldn’t have to travel a long way to find your store. This way, more people will come to buy things from you.
2. Space for Stuff: You’ll have a lot of building materials to keep – things like bricks, cement, and other supplies depending on your niche. So, you need a place with enough room or land space to store all of these things. Plus, you need space to show off the products to customers so they can see what they’re buying.
When you have a business that sells building materials, you need to work with the companies that make or supply those materials. These companies are your suppliers. Building good relationships with them is important.
Apart from building a good relationship, you also need to be able to negotiate favorable terms and take advantage of bulk purchasing discounts.
And in sourcing for the perfect suppliers for inventory, make sure to partner only with reliable partners that you can trust to deliver inventory on time without compromising on their quality.
6. Delivery and Logistics:
When you’re running a business that sells building materials, it’s not just about having things in your store. You also need to make sure those things get to your customers. That’s where delivery and logistics come in.
Normally, some customers do come with their own means of transporting their items if what they will be purchasing is not much.
But when they are buying bulk items, it is ideal for your business to take care of the transportation of the items to their destination.
Taking care of the delivery and logistics enhances customers’ satisfaction. By so doing your business keep having repeated sales and word-of-mouth recommendation.
A truck or lorry is normally the best vehicle for logistics and delivery in the build materials business.
7. Marketing and Promtion
This step focuses on creating awareness for your building material business. Normally, this business is self-advertising if you are perfectly located with a signboard at the front of your business.
But if you are a big dealer and part of your target market is to become a dealer to small retailers, then you should add some marketing effort to sell your business in the eyes of the public in that manner.
The most effective marketing strategies for a building material business are word of mouth, through billboards, television, radio, and by writing your company’s phone number on all your delivery vehicles.
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Final Thought on Starting the sales of Building Materials business
By following these seven steps; Market research and business plan, choose the building materials that your business will offer for sale, legal requirements, secure your business location, inventory, delivery and logistics, and marketing and promotion, you can establish a successful building materials business in Nigeria. Remember that attention to detail, customer satisfaction, and consistent effort are key to thriving in this dynamic industry.
That’s all about “How To Start Building Materials Business In Nigeria”.
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How much can start a building materials business in Nigeria?
The only challenge in starting a building materials business is that it is capital-intensive. It will cost you between N2,000,000 to N18,000,000 to start a profitable building materials business in Nigeria.