Every day, a large number of cars are damaged in Nigeria due to poor road conditions. Many drivers become stranded while traveling due to a lack of spare components for their vehicles. There is a pressing need to overcome this obstacle, particularly while traveling.
Starting an auto spare parts business can be a fantastic opportunity to get off the job market, make a lot of money, and be content for the rest of your life. The need for car components is always increasing, especially in Nigeria’s main cities such as Lagos, Abuja, and Port Harcourt.
This business will always be popular as long as automotive enthusiasts enjoy maintaining their vehicles.
Selling vehicle spare parts in Nigeria or beginning a car spare parts business in Nigeria is a step toward financial and personal success.
Places one can sell pare parts in Nigeria
In Nigeria, there is a significant market for automotive spare parts, and the firm can be located anywhere in the country.
You might choose to start selling car components in the city or in the countryside. If you’re selling them in a city, make sure your shop is on a road or somewhere where people can easily see you.
You can even sell your items on the outskirts of town to help folks who have become trapped. Some locations in Nigeria are dominated by automobiles. This type of location will be beneficial to your company. Lagos, Abuja, Kano, Port Harcourt, and other Nigerian state capitals, for example, are suitable for this business.
In Nigeria, there are many people that require car spare parts. The following are some potential customers who will be interested in doing business with you:
- Owners of private automobiles
- Automobile dealers
Benefits of selling spare parts in Nigeria
1. It’s a profitable business.
You can sell to private individuals, businesses, and the government. If you want to sell to a corporation, your business location should be close to them.
2. It ensures job stability.
If you work under someone, this business will relieve you of any anxiety that may arise from your supervisor. You are the boss at your office.
The goal of keeping your business will allow you to live comfortably for the rest of your life. The business continues to run as long as you or any of your family members are still active.
3. The industry is in high demand.
Spare parts are always is in high demand. As a result, make sure your product is always available, then you will continue to make money on a daily basis.
Steps to start a spare parts business
The spare part business requires a lot of money to start. However, if you do not have a large sum of money to invest, you can start modestly.
You can start by partnering with a reputable car spare parts mega dealer and grow from there before importing your own spare parts from overseas.
1. Research and education:
This type of business cannot be entered without prior expertise and training, regardless of how much money you have.
You’ll need to conduct some research to figure out how to launch your business quickly and effectively.
Before launching your own business, you must have a thorough understanding of specifications as well as some prior expertise in the sector. This will make it easier for you to figure out how to develop your own business and how to outsmart your competitors creatively.
2. A business plan
This business necessitates the development of a solid business plan. This will help you understand the costs of running a business, the methods to employ, the best business categories to enter, and how to manage your cash. This will also include your company’s administrative structure.
To start your business, you’ll need enough money. You won’t have to spend much money on this. Depending on how much money you put into the company, it will grow.
Also Read: How to start pig farming business in Nigeria
You’ll need to own or rent a store to store your stuff. This warehouse must be protected so that no thief may gain access to it. Your choice of warehouse or shop will be determined by your preferences.
5. Social media accounts/digital presence
You’ll need active accounts on social media sites like Facebook, Twitter, and Instagram to communicate with people electronically. Inform others about your social media activities.
How to import spare parts
Before entering into the spare parts business, think about where you’ll receive your supplies from on a regular basis.
The majority of the spare parts are imported from the United States and European countries such as Germany, Belgium, Denmark, the Netherlands, and others.
The best technology, vehicles, and spare parts are known to come from these countries, and there is a belief that the majority of spare parts originating from these countries are still in good condition because they are typically discarded along with vehicles that are going out of fashion due to new technology or updated design, rather than damage.
As a result, smart importers obtain reasonably used spare parts that are still useable for free or next to nothing. In Nigerian car markets, these parts are sold at a premium, with many dealers smiling all the way to the bank.
While putting out your business plan, it’s also crucial to identify popular car manufacturers and models in the country, such as Toyota (Corolla, Camry, Sienna, and others), Honda (Accord, City, Civic, and CR-V), and others. Nissan (Pathfinder, Murano, Maxima, Altima, and others), BMWs, Mercedes Benz, and other luxury brands are available.
Because these regularly used cars’ spare components are always in demand, they’re a money mine. Aside from engine components, side mirrors, bumpers, rims, and other accessories are frequently in high demand.
Tyres, air conditioning units and parts, and other related things are big businesses by themselves. Many people focus on brake pads and oil filters because automobiles require these parts to be serviced on a regular basis.
Licensing and registration
Understudying or learning more about the nitty gritty of the industry from individuals already in the profession would be great, especially when it comes to government bodies like the Standards Organization of Nigeria (SON) and licensing.
Make sure your company is registered with the appropriate authorities, such as, Standard Organization of Nigeria (SON) and the Auto Spare Parts and Machinery Dealers Association (ASPMDA).
To put it another way, registering your business entails obtaining a license and other crucial documentation that will enable you to run an auto spare parts business in Nigeria.
You have to inquire about a Nigerian car spare parts business license as well as how to go about getting one for your company.
Cost of starting spare parts business
If you are in Lagos, you should rent a warehouse, and the Ladipo area is a popular location for this. Depending on the products you buy, you will need between N5m and N12m to fill a 40-foot container.
However, you can still buy with a much smaller sum of money, such as N500,000 to N1m, by contacting a reputable importer who will combine your items with his own and deliver to you.
Unless you have a confirmed order or an obvious gap to fill, it is better to start small and learn the ropes before expanding organically.
Also Read: How to start rice farming in Nigeria
Best business strategies for making money in the spare parts industry
To increase sales, every company requires a solid strategy. You can utilize the following tactics to keep your firm afloat:
- To persuade your buyers that the things they want are available, photograph your merchandise with an excellent camera.
- Recognize your clients’ preferences. Maintain a positive relationship with your clients. Spend a significant amount of effort (about 75% of your time) developing your customer relationship.
- Be sure that your company is unique and stands out among others. Your company’s policy must safeguard your consumers’ interests.
- In order to start a car spare parts business in Nigeria, you’ll need some knowledge. You’ll have to learn enough about vehicle engineering. This will benefit your business since your customers will want to repair the spare part of the car they purchased from you, providing you with another source of revenue.
- Do not drive your clients away because you or your employees are unable to repair their cars. You can learn a lot about the work by doing an apprenticeship in a business that sells automotive replacement parts. The duration of this business training will be established by an agreement between you and your coach.
To survive and perform successfully, every business requires advertising. You can promote your product by displaying automobile spare parts both inside and outside your shop. Find a shop with adequate outside area to accomplish this.
You can also build a social media account to promote your products and services to others.
When you first start your firm, you’ll need to hire some sales ladies or boys to help you out. The number of sales boys assistants you require is determined by the volume of your sales and the amount of capital you have.
Suggestions for profitability and sustainability
Maintaining your business is essential. You must avoid disappointing your clients if you want to keep them. Make sure you sell them high-quality auto spare parts so they have no reason to complain about your goods. There will be no problem after you have gained faith in them.
You are an entrepreneur if you own a car spare parts business. You must plan for the possibility of business risk. To control your sales associates, make sure you have leadership skills.
At any time, you should be able to take on any challenge. There will be periods of profit and loss in every firm. It is unavoidable. As a result, be ready for both. However, be sure that your gains outnumber your losses.
In Nigeria, the car spare parts industry is quite profitable. You must find a suitable site for your company. The only way to ensure the long-term viability of this business is to consistently offer high-quality products in your store and maintaining a cordial relationship with your customers.