Detailed Guide on How To Start Export Business in Nigeria From Home Easily & How To Get Finance.
Nigeria’s worsening economy and difficulty in accessing loans, it is glaring that starting any business venture today remains an uphill task. But all hope is not lost as there is ample room to start an export business from home with a low budget.
The guide below provide useful tips for venturing into export business in Nigeria easily from home
Learn about the market
The export market in Nigeria is so complex that you will fail if you take a plunge without having enough knowledge and experience about it. So, before starting out, you need to take your time to learn vital details about the export business such as licensing requirements, port procedures, product sourcing, working with foreign agents and distributors, locating profitable foreign markets, and so on.
In Nigeria, you will find many e-books on how to become a successful exporter. Ironically, most of these e-books are written by people who are not exporters themselves! You need to be wary of these.
The best way to learn about the export business is to contact a seasoned exporter with years of experience in the business and ask him/her to teach you all you need to know before starting your own business. Practical teaching in a face-to-face setting is best.
Figure out what products you will sell
In Nigeria, there are many commodities and resources that can fetch you huge profits in the international market. But you will fail woefully if you try to sell too many items at once.
So, you should focus on only one product from the start. As you gain more experience, you can expand your scope to include other products.
As a recommendation, start with products that you can easily make available in the required quantity whenever there is demand for it. Cassava, cashew nuts, bitter kola, cocoa, charcoal, and kola nuts are very good examples of products to start with.
Decide how to source the products
After deciding which product you would like to export, you need to decide how you will source the product. Basically, you have two options: you can either produce the product yourself or buy from manufacturers or producers in wholesale quantities.
For a start, buying from someone else is the easier and cheaper option, as you might not be able to afford the cost of setting up and maintaining a production point. If you are going for this option, then you need to find suppliers or producers of the product. It is recommended that you have one or two standby suppliers aside your main supplier, so you won’t have much worries if your main supplier suddenly runs out of stock.
Register your business
Legalising your business is one of the most important steps towards starting any business in Nigeria and the export business is no exception. You must register your export business with the Corporate Affairs Commission.
Aside giving you the legal permission to operate your export business, registering your business will boost your credibility. Before doing business with you, most foreign distributors will try to establish your credibility by requesting a Certificate of Incorporation and other documents showing that your business is legally registered in Nigeria.
Find your buyers
With the internet, export business has become easier than ever. You can find buyers for your products and seal trade deals right from the comfort of your room without necessarily holding a face-to-face meeting with the buyers. All you need to do is join trade websites, become an active member, and start sealing trade deals with interested buyers.
Exhibit your products
Trade fairs and missions provide great opportunities for exporters to showcase their products. As your export business grows, you will need to attend more of these events to create awareness about your export products. You have bright chances of meeting with potential buyers and sealing additional lucrative trade deals.
How To Finance Your Exporting Business in Nigeria
When you are planning to start your own export business in Nigeria, there are many things you need to put in place. You need to register your business and obtain certain licenses and permits issued by the Nigerian government. You need to fulfill all legal requirements imposed by the government of your foreign target market.
You need to have a deep understanding of the export market and how the business works. And you need to adequately plan everything about your business: export commodities, target foreign markets, connections, startup costs, and so on.
However, one major factor that stops most aspiring exporters in Nigeria from kick-starting their export business is funding. The cost of starting and running an export business in Nigeria is far more than what most people can afford though this varies depending on the products to be sold and the foreign markets targeted.
If lack of funding is the only challenge preventing you from starting out, here are proven tips on how to finance your export business and get it off the ground:
Ask family and friends
When you are sourcing funds for your export business, do not overlook any possible source. And this is not the time to be an introvert, either. Approach members of your family as well as your friends who you think can afford to lend or give you all or some of the money you need.
The advantage of seeking startup funds from your close ones is that there is little or no protocol or formality involved. And trust won’t be an issue, since they have known you for years. Chances are that they will be willing to help you if they have the money unless you have done something really bad in the past.
So, approach that rich uncle of yours or contact that your good friend. Schedule a meeting with them, and go with a copy of your business plan to show that you are really serious about starting the business. If you are able to get funding from a friend or relative, be sure to clarify if it is a gift or a loan.
Approach angel investors
Angel investors are wealthy individuals and serial entrepreneurs who are willing to invest in business opportunities with huge profit potential. In return for the funds that they invest in your business, angel investors will take a share of your business, hoping to get back their investment with time alongside huge profits.