The phone selling business is indeed a very lucrative business. You will soon find out. But first, let see the potential opportunities in mobile phone selling in Nigeria in particular.
First of all, understand that the population of Nigeria is over 200 million and almost everybody has or wish to have a phone no matter how small it might be.
Secondly, most people in Nigeria are using China-made phones which means they don’t last for a long time. They will likely come back and buy a new one soon, trust me.
If you start a mobile phone business, obviously, you will become your own boss.
Financial freedom will be gain as soon as your mobile phone business grow,
The profit in the cell phone business is huge. I will give you more details about that later.
2. The skill needed
Mobile phone business does not require a great skill in particular. It is all about selling something and most of us know how to sell. At least the basic approach.
Here is what you need in mobile phone selling business, that is the marketing skill. How to sell better than any other person. Obviously, the more sales, you get, the more the gain.
There are tones of tutorials on Youtube that you can use to improve yourself. If you feel that those ones are not enough, usually, most of those marketing guru do offer a higher level of training which is not free.
3. Get a shop
The next thing is to get a shop. Obviously not anyhow shop. et us talk about that.
The better your shop the best you make sales. What does that mean? Don’t get a shop where there are less traffic. Get a busy place preferably. It might be expensive but if you have the money, invest you will rip it back.
How much can a good shop cost? It is all depend on your area and the complex or plaza you wish to stay. So, check that out with an agent in your area. To my knowledge, it might cost you anything from 100.000 naira for a good location.
4. Importance of a good location
You have probably heard this before “The way you dress is how people will address you”, what it means in this context is that the more clean, better position and attractive your shop is the more sales you are going to make.
Look out for the following while you are searching for a shop:
- The location: Is the place popular
- The rent: Is it just too expensive or it worth it?
- Competition: Are there many out there doing the same thing already? Are you ready to face the competition? Or would you rather find another location that is less competitive?
- Accessibility: Will the shop be easy to access by people like car owners or bike men?
- Security: Easy to break?
5. The capital needed
How much is needed to start a mobile phone business? Well it all depends on your pocket as no amount is too big for the mobile phone selling business.
But let say, you want to start small and scale the business later on as everyone wishes. You can start with 100.000 naira. That means you can’t start selling smartphones right away. You may have to start with those small Chinese phones called “touch light phone”. They will cost around 3500 naira each. With that, you can get 28 phones.
But if you have enough money to start, invest like 1 million just for the phone.
Regarding the shop, it may cost you 100.000 but if you want o start small, you can get a shop of 50.000 naira.
You will need other accessories, like the stand, show-glass, chairs etc … Let us say, they cost you 50000 naira. To recap, you will need like 200.000 naira if you are starting on a small scale.
But if you some thing big, you do the math.
6. How much can you make in profit
I am assuming with are starting on a small scale. For the sake this post, let us say each phone cost 4000 naira, that is 25 phones if you have 100.000 naira. You can sell each on at 5.000 which mean you will be getting 125000.
How many phones can you sell in a day. Again it all depends on your skill of selling, the art of persuasion, the location etc … Let us assume you have a good location with a good skill you can sell up to 10 phones a day that is 10.000 in profit.
Even if things are not equal, you can sell 5 phones in day which is 5000 naira gain on a daily basis.
Since you are starting on a small scale, I am assuming you don’t have any sale girl and your gain remain untouched expect utility bills like light, maintenance.
In this section, we will be trying to answer this question: “How long do we want to be in the market”. This section is important because most start-up fail easily in their first 5 years for some reasons detailed in this post. One of the points mentioned is pour management.
If you want to make a living from your mobile phone selling business, you need to manage the shop properly.
8. Business registration
This is also important to be clean with government. It gives you more credibility as well and so banks can give you a little bit of trust in case you need loan from them.
9. How to get your first sales
start by telling your friends and anybody you know about your business, it does not kill rather it help you to grow. Even if they are not ready to buy right away, definitively the words have entered their ears and when someone needs it, they will call on you.
If your shop is close to the main road, a passerby will surely come to you. That is another way of getting your first sales. Remember to be nice and kind to your customers.
The way you treat them will determine if they will come back or not. Remember, it is like handwork, if they are well treated, they will likely come back with their friends and that is how you make the money.
10. How to promote your business
Here are some ways of promoting your business:
- Give flyers to people that visit your shop.
- If you have the means, scale your business to an online platform. That is where the magic happens because you have more control over who you are targeting.
- Referral: Set a program that rewards anybody that refers someone to buy from you.
11. Extra income
You can join you mobile phone selling business with accessories like pouch, screen guard, charger, memory card etc …
Another great way of making extra cash is buy buying cracked phones, fix them and sell them in return. It is very profitable. We will talk about this in another post.
In conclusion, as you can see from the about write up, mobile phone selling is indeed profitable. It needs good management. Avoid involving family members. like any other business, consistency and hard work is required to grow your business, are you willing to invest that time and energy? If yes, be sure you are going to reap from it for a long time.