In this free guide, you will learn how to start an electronics business in Nigeria and all that is involved for a beginner in the field. The need for electronic items and gadgets is always in demand. The more digital advancement we take on, the more the need for the use of electronic gadgets.
Every year people are looking to upgrade their phones and laptops trying to keep up with what’s new and the latest in electronic devices.
In this digital era, electronic gadget demands are on the rise daily both for official and domestic use.
Every individual has at least two electronic gadgets, in homes and offices, there’s a variety of electronics ranging from the television set to refrigerators, fans, Air conditioners, washing machines, kitchen appliances such as microwaves, blenders, juicers, etc.
It is impossible to do away with electronics in our society because as life evolves, and individuals get busier, people will demand more comfort and ease and this will encourage the need for more electronic gadgets.
Have you been thinking of starting an electronic business in Nigeria and don’t know to go about it?
Starting an electronic business in Nigeria is one that requires a certain level of knowledge and resources, it requires a lot of work and resources (mental, physical and financial resources ) and a rewarding business venture.
At the end of this article, you will have the necessary knowledge and skill needed to run an effective and productive electronics business in Nigeria.
Steps to Starting an Electronics Business in Nigeria
1. Practice the Mentorship and Apprenticeship Model
This is a model that allows you to learn, observe and understudy the business from an already existing one.
It involves an association with an experienced brand and this association is usually at a close range.
This model will help teach and take you through the nitty-gritty of the business, understand the scope, and learn from the mistakes of the already existing businesses.
2. Study the scope of the Market
Studying the scope of the market involves the ability to make due research about your supposed line of business, and this involves understudying already existing businesses, suppliers, and customers as well.
Studying the scope of the market will give you a better understanding of the market and the work involved in starting and launching the business.
This will also help you in making good decisions that can help ensure continued growth.
A study will also help to understand the nature of risk associated with the electronic business and help you prepare for a better launch.
3. Find a specific niche
Why is it important to find a niche in the electronic business?
The electronic business is so enormous and demands a lot, you may not be able to deal with the many requirements of doing everything at the same time.
There are also a variety of electronic products in circulation and a wide range or dealers locally and internationally, niching will help you channel your energy to a targeted market and also ensure focus in business.
It is possible to deal in a wide range of electronic items but can be overwhelming, niching on a particular brand or class of electronics will help you build your business around a particular target group.
It will also go a long way in ensuring you build expertise in your niche.
Niching also helps you to decide the particular aspect to focus on either as a distributor or an agent to the brand of choice.
4. Identify your competitors
the business terrain is generally competitive and with the increasing demands and daily innovations, the competition keeps getting tougher.
In starting an electronic business in Nigeria, it’s paramount to identify who your competitors are, find out how they go about their business, discover their competitive edge, and what market strategies they employ to ensure sales and profit.
Then get to work, from your discoveries, draw up strategies that will help you build your brand, and find out if there are paths you might want to tour and how you intend go that path to stay in business.
5. Develop your unique strategies
Successful businesses always have something about them, they have something that separates them from the market competition.
In developing your uniqueness, you must be able to answer these questions,
- What will make my business stand out?
- What approach do you want to use in meeting the needs of your customers?
- How will you integrate your solution into the business model?
Your uniqueness will help you maintain customer loyalty, your uniqueness becomes the glue that holds your business together and sets you ahead of your competitors.
Having your unique strategies will help you in developing purchasing, marketing, and sales strategies, etc.
6. Choose reliable suppliers/dealers
Electronic business requires suppliers.
There are so many dealers of electronics in Nigeria. Some of the brands are owned locally and others internationally,
Realizing your niche will help you determine which of the dealers you will register with to do your business.
The registration will help the dealers recognize you as their retail outlet, this will also help you buy electronic goods easily from the suppliers at a discounted price.
If you are able to do this successfully, it will make business easier for you, you will be sure of the quality of goods in your custody and can also be entitled to credit facilities and other direct benefits.
However, dealing with manufacturers directly may not be ideal for small-scale businesses as dealing directly with the manufacturer requires substantial capital.
7. Find a suitable location
Finding a suitable location is very important in running an electronic business, there are several business location factors to consider, such as pricing, accessibility etc.
By locating your business in an ideal location, the chances for success will greatly increase
You may ask, why?
A good location is equal to good business, we earlier established that the demand for electronics is always on the rise because people desire comfort and ease and digitalization also helps in creating increased demand.
Finding a suitable business location takes planning and research and a willingness to thoroughly vet all of your options.
Your location as an electronic brand should be sited around people, find a location that has a steady inflow of people and activities.
Here are some tips you might find helpful in finding a suitable location.
- Consider your brand; taking your brand into consideration is key in getting a business location, you probably wouldn’t want to site your business in a place where the demand will be low.
You would not want to site an electronic business in a small town or in a rural area where people there are not willing to spend so much.
- Go where there’s demand; Look for areas where your product or service is in high demand or where your competition is fairly low.
- Accessibility: You’ll need to secure a location that makes it easy for you to connect with your suppliers and customers, so you don’t experience difficulty in efficiently running your business.
when going for a location, ask yourself this question; which location makes it easier, faster, and cheaper for suppliers to move in and out?.
- Find a safe location; Safety in business is very crucial, besides your own safety and the safety of your employees, also consider your business’s safety as well, and make it a key decision to operate a business where you feel safe and protected.
- Consider a business location within your budget:
Ensure to get a location your business budget can carry.
As much as it’s not certain to fully predict if a new location will be successful, you can do as much research as possible beforehand to ensure it is ideal for your business in terms of budget.
8. Brand your business
Branding is important in any type of business, it is important because not only is it what makes a memorable impression on consumers but it allows your customers and clients to know what to expect from your company, and it gives you a distinguishing outlook.
Many have reduced branding to only getting a business name, logo, designs, packaging, etc but branding has evolved way beyond these to embracing concepts like sales and marketing, advertising, communications, etc.
In your business, branding will require you to set your unique standards, beyond the aesthetic, what impression would you want your brand to have in the minds of the people it comes in contact with, what standards have you set for communications and sales, what story does your business tell? What are your business values and objectives, what approach does your business engage in meeting the needs of your customers? That’s branding.
9. Build a team
Building a team team is essential, your business will require people who align with your core values and objectives for growth to happen.
Your team will be instrumental in determining the extent of sales and growth recorded.
You might also consider extensively training your team to acquire the necessary skills needed to run an electronic business.
10. Develop strategies to engage and retain customers after sales
This is where many businesses fail, the point where you can boldly say you are in business is at this point where your customers feel safe and can trust your brand enough to meet their electronic needs.
Engage after-sales strategies like;
- Sales Warranty
- Free delivery and installation
- Easy-to-use formulations, etc. are important and strategic as it goes a long way in increasing, attracting and stabilizing patronage.