The tiles business in Nigeria falls under the category of building materials. This article aims to provide comprehensive information about the tiles business, covering various aspects such as the capital requirement, potential profits, a step-by-step guide to getting started, and other essential details.
Engaging in the tiles business can be highly profitable in Nigeria, particularly if you choose to operate as a wholesaler. By selling tiles to various individuals, businesses, and companies, you can generate substantial income.
Is the Tiles Business a Lucrative Business?
The demand for tiles in Nigeria has significantly risen as homeowners and office owners strive to beautify their homes and offices respectively. Tiles are not only essential for flooring living rooms and bedrooms, but they are also necessary for kitchen and toilet walls. Consequently, wall tiles are indispensable in enhancing the overall beauty of a house. One of the remarkable aspects of the tiles business is that no part of the product goes to waste. Even broken tiles can be sold to low-income earners who can utilize them for flooring purposes in toilets and kitchens.
Cost of starting a tiles business in Nigeria
The cost of starting a tiles business in Nigeria has experienced an increase due to various factors such as inflation caused by foreign exchange, importation costs, and rental expenses. Additionally, the capital required to start a tiles business depends on whether one intends to operate as a wholesaler or a retailer. To embark on a tiles business venture in Nigeria, a minimum capital of N2,000,000 is necessary.
How to start tiles business in Nigeria
Developing a Business Plan:
A business plan serves as a roadmap in guiding you and providing insight into your business health. It can reveal to you whether you are on the right track, making progress, or in need of adjustments in your business.
Additionally, your business plan should contain your strategies for sourcing funds and include future forecasts for your business.
Learning from an Experienced Individual:
Given the complexity of this business, it is crucial for a novice like yourself to seek help, guidance, or mentorship before diving in.
Even if you have a mentor who possesses extensive knowledge of the business, it is essential for you to thoroughly understand it before venturing into it.
Your mentor or the person you learn from can also assist you by connecting you with valuable contacts that can help your business significantly.
Preparing and Equipping Your Store:
Acquiring a store for selling tiles should not be so challenging. You do not require an expensive shop.
However, it is important to ensure that your store/office is comfortable for customers, providing them with a relaxed environment. This means you need to consider buying chairs, tables, and display shelves.
Buying the Tiles:
Buying the tiles is another crucial step. You can either source them from a supplier or distributor, or directly from the manufacturing company by placing an order. The latter option allows you to acquire tiles at a more affordable bulk rate, which is advantageous for managing business costs.
Choosing the Ideal Location:
Selecting a location near a developing area where significant construction work is taking place, as well as a place close to a roadside for easy accessibility, is highly recommended for your store/office.
Securing Funding:
Starting a tiles business requires financial resources. You can either save money from your salary or apply for a loan. Going for a long-term loan is advisable, as it allows for easier repayment without much pressure.
Business registration:
Every business operates under a governing body and is affiliated with various associations.
Prior to commencing your business operations, it is crucial to identify the relevant governing bodies responsible for overseeing businesses in your area and complete the registration process. This will ensure that you avoid any potential disruptions in the future.
Marketing Tips:
It is important to recognize that in order to establish a successful business, you must attract customers as they will not come to you automatically.
To begin with, obtaining business cards is essential as they can be distributed to individuals you meet, enabling them to easily contact you. Collaborating with professionals in your industry such as building contractors, site managers, painters, laborers, and tilers can also be beneficial as they can connect you with major projects.
Additionally, having a visible display signpost for your business will help potential customers locate you easily.
Expanding your customer base beyond your immediate vicinity is advisable as it will enhance your market reach, sales, and contribute to the growth of your business.
Initially, it may be necessary for you to manage the business on your own to closely monitor its operations. It is crucial to have a thorough understanding of your business before delegating its management to someone else. Once your business reaches a significant growth stage, you can consider hiring a shop assistant to assist you in running the shop.
As your business continues to grow, you may require additional staff to support its operations.
Conclusion
In Nigeria, the tiles business is a lucrative venture within the real estate industry. With the potential to generate substantial profits, this business has the ability to turn you into a millionaire within months of commencing operations, particularly if you secure a significant contract from a reputable real estate company.