Dealing on the motorcycle spare parts has been a lucrative business for long in Nigeria.
Many people who started the business from nothing are now literally swimming in wealth, also more people are made millionaires yearly from the motorcycle spare part business.
The motorcycle is one means of commercial transportation used by many Nigerians.
This article is prepared to reveal the profit potential in the business and also enlighten you on the basics.
The Okada business is now adopted by both the literate and the non literate members of the society.
Starting a Motorcycle Spare Part in Nigeria.
Begining a Motorcycle business in Nigeria is of three folds,
1. Brand new spare parts.
2. Fairly used spare parts (tokunbo).
3. Both used and new spare parts.
So you’ll have to make your choice but as a beginner, I think you should begin with a fold, either the brand new or the fairly used, don’t start with both yet.
It is professional to specialize in a particular brand.
Required materials for starting a motorcycle spare part business.
1. Start-up Capital.
Every legit way of making money requires a start-up capital, the first requirement for starting the business is money.
Incase you don’t have enough money, you can raise some by borrowing from banks or other financial institutions.
Most times joining a cooperative society makes it easier for you to get loans from banks or any other financial institution, the Micro Finace bank is a good source of generating loan.
Family and friends can also be of help or you enter into partnership with a trusted individual.
2. Know Your Competitors.
In motorcycle spare part business, this is a very important you are familiar with your competitors especially as a newbie.
Carryout a survey on your locality to discover more about what you do or about to do from them.
Especially if you want to invest much in the business, you should know the brand that is of higher sales, the period when much sales are made, a suitable location for the business, etc.
Also carryout a reserch on the spare parts that are of high demand and incase it is overlooked by them, you can take that as an opportunity.
3. Business Location.
Even if your product is of high quality, lower price and has a promising guarantee, if the location is not easily accessible your profit will be highly affected.
A good place to start the business is an area with many commercial Motorcycle operators.
Places with bad roads could be of great advantage to the business as the motorcycles will keep demanding for a change of spoit parts.
4. Open a Multiple (Chain) Stores.
Another business strategy that works most times is opening the chain store business.
This could be done gradually in respect to the level of returns, open the stores in strategic places and as a newbie reduce prices even if it is by N50 this will attract more sales and turnover.
MAKE SURE YOU HAVE MOST OF THE PARTS PEOPLE IN THAT AREA ARE LOOKING FOR, to achieve that, you need to carryout a research on the type of commercial motorcycle brands used in that area/locality.
5. Get High Quality Spare Parts.
This is where most motorcycle dealers fail, dealing an “inferior” and/or “fake” motorcycle parts popularly called “later come back“, will not only reduce your sales but will also scare away your buyers.
Every buyer wants to get the best out of what they purchase, if they buy a part from you and later notice it did not last long as expected, they may not come back to your shop.
Give them the options (original/inferior), leave them to make the choice and give them what they asked for.
Attracting them with inferior types will be of no help to both you and the customer.
6. Discover the Periods with High Sales.
Almost evey Nigerian business has a particular period when high purchases are made.
The peak period could be as a result of the season (rainy or dry), festive occasions, etc., just discover it and utilize it.
This will also help you know when to stock your shop with a particular good to prevent goods from remain unsold for a long period of time.
7. Register your Business.
Get a lincense that covers your business, because the nature of your business is considered hazardous as you’ll handle brakes, motoroil, etc.
No matter where your business is sited be it rural or urban areas get your business protected.
To get your business covered against future risk that could happen, you need an insurance cover.
8. Create Business Awareness.
Advertisement is very important even as a newbie, you can device a strategy to make your business existence known to the general public.
Give out flyers to Motorcyclist and don’t forget to include incentives that will bring make the patronize you.
You can organize seminars, free training, etc. to draw more riders to your business.
Others are reading:
- How to Begin Bread Supply Business in Nigeria
- How To BECOME A SUCCESSFUL TRADER THIS YEAR
- How To Be Successful Rice Distributor In Nigeria
- How to Make Money in Nigeria 2018 (5 Great Ideas that pay)
- How to Start Recharge Card Printing Business in Nigeria (Wholesale/ Retail)
- How to start a successful goat business in Nigeria