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Nairaland Forum / Nairaland / General / Business / Start Your F.M.C.G Distribution Business With N20,000 Initial Capital (60219 Views)
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Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 12:52am On Sep 23, 2016 |
I will paint two scenarios here and they will reflect two different approaches in two very seemingly different towns in Nigeria. Lagos will be my first. Now let us assume that I live in somewhere around Oregun,Ikeja. I am unemployed and I have just 20,000 Naira in my account, what would I do? The whole stretch of Oregun road is filled with side streets from the Ojota end right through the Ikosi road axis and down to the Alausa end of the road. There is also a lot of people there both day and night and it closes into a major market at the Alausa end. I will embark on a survey looking around the neighbourhood and checking from shop to shop to see what snacks are available for sale, and in just interacting nicely with the shop keepers/owners I will narrow down the preferences of people as regards snacks especially chin-chin. I will ensure that the chin-chin I want to sell is not predominant in that market, then I will call the chin-chin company of my choice and after negotiating on the phone I will place an order for the product and will insist on paying on delivery. When the product arrives I will first test run the sales in my immediate area without spending too much on transportation. Please note here that this venture may initially not yield any profit. Secondly, it may commence as a credit based transaction because of the fact that the retailer will not want to invest in something they have not bought before. You must not on that account despair because this is just the beginning. Many people will tell you out right that they will not buy since they have too many brands in their shop. Respond to them politely and do not try to push them too hard but make a mental note of the person and her shop you will have to pay repeated visits to that shop until she says yes. And honestly when she begins to buy, she never stops buying. I will then grow the business as much as I can because what will then happen is that the customers discernment will come into play. In the course of sellin or marketing shops, I will not ignore any shop any location at all but will consider every outlet. I used to have two bank staff as neighbours, and they used to buy about 5 bags per week from me and sell it through the cleaners in their office. They were also reselling the jars for their colleagues. I also had a staff in one of the biggest new generation banks selling over 20 bags weekly for me in the Bank HQ and at their training school restaurant. Now imagine that I have a cleaner in all the banks that have branches on Oregun road selling the product, you can imagine what my sales volume will look like not to talk of having a sales vendor reselling for me in Oregun grammar school premises. I would also try to selling on Sunday mornings on Ikosi road by Daystar church. If the customers like the product enough then you are in business because your phone will never stop ringing. Now the company has different pack sizes so what I would do on my second order is to buy a little of all the pack sizes; ten bags of the 50.00 packs, 1 dozen of the 250.00 Naira packs and maybe just 6 packs of the jar types which sell for 500.00 Naira only. You will be pleasantly amazed at how fast you will be selling the 500 Naira jar packs. We will look at it subsequently in more detail. 2 Likes 3 Shares |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 12:57am On Sep 23, 2016 |
Earlier on, a poster asked us to consider those in Ilorin. It will be difficult to consider those who live outside Lagos but I assure you that that problem can and will be solved when we put on our thinking caps subsequently. Now if I were in Ilorin and in the same unemployed circumstances and was resident behind C&S college in Sabo Oke and had just 20,000, I would also order the Chin-chin and supply all the shops in and around C&S, St. Anthony, all the shops/kiosks at the secretariat, the Police HQ, down to Post office and then over to Maraba garage. I will also have customers from Sobi, Emirs Palace, Tanke, Fate, Taiwo and Unity Roads, General Hospital, the University campus, C.O.E down to Saw Mill and Girialimi. I would build my business with commitment and an understanding that it is a fast moving consumer good and it will only make sense when I start doing volumes. A faster way exists for newbies who live outside Lagos in far flung locations like Uyo, Jos and Kano etc. We will examine the options that can be appropriated for their benefit, Always know that where there is a will there is always a way. We will look at these possibilities later in the thread. 2 Likes |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 1:00am On Sep 23, 2016 |
At this stage I will request for comments opinions and suggestions. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 1:07am On Sep 23, 2016 |
To move us into a higher gear, I will suggest that after getting to this stage those who may be interested in participating in this project should indicate with a post that will just mention their area in Lagos and also describe the market as he/she perceives it be as it relates to this project and the product in question. We do not need too many people per area. We must provide enough room for each participant to grow his business into profitability. I suppose we can use this weekend to conclude on the people that will work in the various areas. Please your comments and opinions are welcome at this stage. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by estwhile: 8:01am On Sep 23, 2016 |
Karin001: I'm interested in participating, as earlier stated. My local govt. is Oshodi/isolo which consistitutes areas like Oke-afa Ajao estate Oshodi Mafoluku Cele Isolo Aswani Okota Ejigbo Ikotun Egbe Jakande estate Ijegun .............................Etc I'm not sure I understand how you want the market description to be, but these areas are quite populated and i think would be effective in test running the project. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Allstrasse: 8:12am On Sep 23, 2016 |
estwhile: Can you cover this entire area? It appears quite large to me. Yes, maybe a car could make things easier but I think what Lady Karine wants is a detailed door to door sales approach. Think about it. I understand that the bigger your territory the better for you but it will be a lot of hard work. BTW how many public schools do you have in that neighbourhood and how big are they? 2 Likes |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by lexaydfg(m): 9:36am On Sep 23, 2016 |
Karin001: I'm interested in participating in this project, as earlier stated. My areas are around alimosho LGA... Iyana paja, ikotun, isheri-igando, egbeda, lasu etc. Atleast for now I will start with this areas, starting from my locality. There are lots of schools, banks and shops to visit in this areas. We can use this places to test run the project for now before expanding to other areas in alimosho. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Shakitibob0: 10:14am On Sep 23, 2016 |
Karin What's the margin on a pack of chin-chin? |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 10:23am On Sep 23, 2016 |
Shakitibob0: Between 100.00 and 300,00 Naira depending on volume of purchase and your reselling price. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by MnenaSadiku(f): 11:49am On Sep 23, 2016 |
Karin001: I'm also in the Alimosho axis comprising Egbeda, Gowon, Okunola, Shagari, Abesan, Baruwa, Ayobo and it's environs. Thanks. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by matoxy(m): 12:03pm On Sep 23, 2016 |
Karin001: Seems you are familiar with Ilorin. This is an eye opener. Waiting patiently and still following religiously. Hope won't be too long to reach us here. kudos |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by capnies: 12:14pm On Sep 23, 2016 |
please can u help give me clues where I can get eggs in port Harcourt and environs |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by olutoyiin: 3:28pm On Sep 23, 2016 |
[quote author=estwhile post=49598272] I'm interested in participating, as earlier stated. My local govt. is Oshodi/isolo which consistitutes areas like Oke-afa Ajao estate Oshodi Mafoluku Cele Isolo Aswani Okota Ejigbo Ikotun Egbe Jakande estate Ijegun .............................Etc I'm not sure I understand how you want the market description to be, but these areas are quite populated and i think would be effective in test running the project. [I am also within oshodi/isolo,precisely Ejigbo maybe we can work together ] |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by dosht(f): 4:20pm On Sep 23, 2016 |
My local govt is ibeju lekki Abijo Awoyaya eputu Lakowe Bogije down to Epe There are public schools in these areas and markets. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by mukhcech(m): 6:39pm On Sep 23, 2016 |
Karin001: I am interested in this project but em only participating as replicating the entire project in my location because em currently not in lag and will be rounding up NYSC year by October 6th in sha allah. I will be replicating this project in Kogi/Ibadan region. My preferred product is Chin-Chin and peanuts in kogi state with chin-chin and doughnut in Ibadan. In kogi state, because of the cash crunch brought by the recession, I dont think doughnut would flow in the market. but peanut surely. Garri is a common staple food and from my research there is been a traditional of using peanuts to drink garri to be very common nowadays. All thanks to Kulikuli that became expensive and undesired with package. Thank you Karin. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by rose75(f): 9:11pm On Sep 23, 2016 |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by mukhcech(m): 9:21pm On Sep 23, 2016 |
rose75:Thanks for the response. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by mukhcech(m): 9:22pm On Sep 23, 2016 |
rose75:Thanks for the response. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by mukhcech(m): 9:22pm On Sep 23, 2016 |
rose75:Thanks for the response. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by rose75(f): 9:55pm On Sep 23, 2016 |
Karin001: Action time! I'll colonize Ketu,Ojota, Ogudu, Maryland and Ikeja, by God's grace. -Since I'm still starting small, my focus in the interim will be on roadside shops, hawkers at the bus stops/ Maryland traffic and kiosks, when the products gain acceptance, then I'll hit the schools where there WILL be higher demand. I wish to concentrate first on vendors in public schools 'cos I wouldn't want the private schools' protocols to dampen this awakened spirit of mine. [ b]Target Market (draft).[/b] 1: Ojota Primary School Complex housing: Ojota Primary School Emmanuel high School Estate Primary School 2: Ojota Senior/ Junior Sec. Schools 3: Ogudu Senior/ Junior Grammar Schools 4: Maryland School Complex housing: Immaculate heart Senior/ Junior Sec. Schls Mende High School and others 5: Command Day Sec School Ikeja I will go beyond these on the long run. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Nobody: 11:21pm On Sep 23, 2016 |
Im interested, i will occupy ijegun ijedodo ijagemo and ikotun axis |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 1:10am On Sep 24, 2016 |
The first part of this exercise is gradually coming to a close. The selection exercise will commence very soon and it is my intention that we will be able to select the participants and then ensure that we all have a firm understanding of the territories as delineated. As stated earlier the real action will commence on Tuesday 4th October, 2016. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 1:26am On Sep 24, 2016 |
The response in terms of choosing territories is rather slow. It isn’t nonetheless surprising to me at all. In taking off earlier this today and reading some of the posts between the lines, I knew what to expect in terms of the responses will be getting and indeed I am not disappointed. But typically Nigerian style, what will eventually happen is there will be an upsurge subsequently when there is some evidence of success by the pioneer participants. But territories that have been taken will not be compromised at that time. Secondly some of posters consider this a bit ‘beneath’ them. I completely agree with them. This thread is primarily for people who are almost freshers in the business circuit and others who feel a little desperate. The intention is to start a full-fledged business career in F.M.C.G distribution At this point we have not had commitments filling the all the previously chose areas. I will show in a subsequent post how these territories have been chosen and we will together agree if the territories as delineated should remain as is or should be re-aligned to ensure of performance and effectiveness. Updating new participants will be reviewed daily until we fill all the territories. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 2:04am On Sep 24, 2016 |
At a deeper level, never forget that the purpose of building a business is to create a long term customers who over a 5-10 year period will contribute immensely towards your wealth building efforts. In the future you can sell other products to these same people based on this tried and trusted relationship. Therefore, the most important thing you will do here is to create, sustain and nourish the relationship. 2 Likes |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 2:05am On Sep 24, 2016 |
At this point we have not had commitments filling the all the previously chosen areas. I will show in a subsequent post how these territories have been chosen and we will together agree if the territories as delineated should remain as is or should be re-aligned to ensure of performance and effectiveness 2 Likes |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 2:10am On Sep 24, 2016 |
I was expecting that someone on the thread will ask how we need to lock in our hard work in the chosen territories. imagine how painful it can be that after creating a trade nexus in your territory and growing it phenomenally, some smart Alec with some money just invades the territory and takes over using his deep pockets and mouth watering incentives. I gave it some thought during the week and decided that the preferred company must give us an agreement that gives the individual participants exclusive rights to sales of specific products within that territory at least for specific time frames mutually agreed upon. The exclusivity clause is usually a difficult position and the only way it works is through an understanding. So, a very important decision that we will take regarding this is that we will confer with the management of the company and ensure that each partaker has rights of exclusivity in his specific territory. 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by superbouck(m): 3:53am On Sep 24, 2016 |
I m thinking of going into partnership with a particular lady that makes dounought not too far from my shop, I want to approach the lady to be giving it to me at the rate of forty naira per unit while I sell it for fifty naira. Ladies and gentle men ur advice is needed |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by rose75(f): 9:21am On Sep 24, 2016 |
Karin001: This is a very important issue. But since you earlier mentioned that the Chin chin Company you're partnering with sort of allocated a territory to you exclusively, I therefore assumed it to be part of the bargain in the distributorship deal, hence didn't probe further. The exclusivity is so so necessary. I would like to understand the terms and conditions of the clause to ensure mutual benefit. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by rose75(f): 9:30am On Sep 24, 2016 |
superbouck: Good! Consider the underlisted: 1: quality; 2: 'sellability' of the doughnuts; what's the demand like?. 3: durability; how long can it remain fresh? 4: availability, not after working hard to build your customer base, you'll be disappointing them with stories. 5: Packaging, how attractive? 1 Like |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by dotsdavidson(m): 9:48am On Sep 24, 2016 |
Hello Karin, kindly note my interest in Agege/Ogba/Berger axis. Well done. |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 10:18am On Sep 24, 2016 |
superbouck: This is the very intention of this thread and it is being fulfilled through posters like this. I am really impressed. This is the whole idea; your ability to draw the necessary nuggets from the thread and use it in furthering yourself business-wise irrespective of location. rose75 has already given you what is really required. All you need now is massive action. May I add that you must ensure that the donoughts are of superior quality. You must then set yourself a target to be the sole buyer of this woman's doughnuts sometime in the nearest future. If you work it out well you will eventually get to the level where you make cash-backed orders and at that point your profits will increase significantly and you will have some measure of control over the business. Take this seriously and run with it. 2 Likes 1 Share |
Re: Start Your F.M.C.G Distribution Business With N20,000 Initial Capital by Karin001(f): 10:22am On Sep 24, 2016 |
dotsdavidson: Please revisit other posters that indicated their interest in certain areas and provide us a clearer picture of where you wish to cover. Agege /Ogba/Berger axis is too vague and rather unrealistic. That is a very large area and you couldn't possibly cover the place all by yourself. Concentrate more in your immediate neighbourhood and then expand it gradually. You will thank me later. You would be spread too thin. 1 Like 1 Share |
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