Because Nigeria has such a large population of car owners and users, the spare part market is tremendously profitable. These vehicles include automobiles, SUVs, pickup trucks, and even buses.
Nigeria’s automobile population was predicted to be 11,760,871 in 2018, with the country’s total population expected to be 198,000,000.
Aside from that, the country’s population of generator users is on the rise, owing to the epileptic power supply we are currently experiencing.
As long as we have automobiles and generators, we will have to replace their parts at some point.This is one of the main reasons why the spare parts industry is so profitable.
As long as Nigerians use automobiles to get around and generators to power their homes, there will always be a demand for spare parts, whether auto spare parts or generator spare parts.
Are you thinking of starting a business in the auto industry? You want to start a spare parts business in Nigeria maybe the selling of generator parts or vehicle parts? You will found all you the info you need in this article.
Capital Needed to Start Spare Parts Business In Nigeria
The capital needed to start a successful spare parts business is high and this is because the business is a capital intensive business. The profits in the spare parts business runs into millions in Nigeria so this can be a major reason why the profits are also high.
You can either start a small scale, medium or a large scale spare parts business. The kind of parts business you start depends on the capital you have at hand.
To start a small scale spare parts business whether for generators or cars you will need a capital of about #500,000 – #1,000,000 but if you want to start a medium or large scale spare parts business you will need a capital of about #2,000,000 – #10,000.
Spare Parts you can Sell in Nigeria
Many people think the selling of spare parts is only about selling engines but this is not true especially when it comes to vehicles. Every part of the vehicle can be replaced even down to the body.
So here are some auto spare parts you can sell as a spare parts dealer in Nigeria. These are:
2. Car doors
6. Side mirrors
7. Head lights
8. Tail lights and more
There are others. However, these are the major ones people buy the most.
Now that we are done talking about the capital needed, how profitable the business can be, let is now talk about how to start and run the business well.
1. Draw a Business Plan
To start a profitable spare parts business you need to write a spare parts business plan. The business plan you will be writing should be based on the capital you want to use to start the business.
One of the benefits of writing a business plan is being able to predict the success of the business and its profits. Your business plan will inform you on different ways you can actually make money from the business.
2. Get Capital Required
The capital of a spare parts business can be very demanding. For this reason this business is not for everyone especially if you earn a low income or you cannot afford the capital.
You need to source for capital all yourself without the help of anyone so you will know you are not owing anybody or organization. You can proceed with the business as long as you have the minimum or maximum within the capital mentioned.
3. Locate a Wholesaler or Import Directly
You can get your spare parts from local importers or you can simply import it into the country by yourself. Spare parts that are sold in Nigeria are mostly imported from China and America.
If you want to go into the importation and selling all by yourself and you do not know how you can start you can start, start first by buying from a local seller to sell.
4. Rent Shop or Warehouse
As a prospective spare parts dealer you need to rent a shop or warehouse for your goods. There are two major places you can rent a shop for this business.
You can rent a shop in the spare parts markets or simply rent a shop in an area to sell. Most spare parts dealers prefer to sell their goods in the market but the decision as to where you sell yours is on you.
5. Stat Selling Spare Parts
Being at the right position will make you start selling your tokunbo or new spare parts fast.
However, to make sure that there is not a time your sales drops you can visit all mechanic workshops or villages around telling them about your spare parts shop and the quality of the goods you sell. Family and friends can also be useful in advertising and patronizing your business.