Lately, there has been a lot of racket about starting a computer business centre in this website. Questions are posted on this website on a daily basis. In this article you will know exactly the amount you will need to carry out the business, the amount of profit it yields and other factors that relate to the running of the business in Nigeria and other similar African countries where this article is highly applicable such as Ghana, Benin Republic and Kenya.
Photocopy shops widely known as computer business centre are shops that render services relating to documents and office or school work such as scanning, printing, photocopying, laminating and online registration. It produces a good income stream, it is especially profitable if it is located in a busy town or near an educational institution.
Please note it is different from a cyber café, a cyber café is where you pay money to browse the internet, some business centres do however extend their services to cyber cafes and instruct computer courses whereby you will receive a certificate at the end of the course.
Here, we will be talking about business centres where you photocopy documents. The data provided is based on the assumption you will run the shop during normal business hours every day (from 8am – 6pm).
Location: Get a Suitable Place
Location is of utmost importance in this line of business, sufficed to say it is easy to find. It could be located near educational or major government institutions, near a district with office buildings, inside university campuses is also a very good idea.
Computer business centre run successfully in any urban city or suburban town, as far as Nigeria is concerned Abuja and Lagos are the main urban cities of this nation. Others like Kano, Ibadan and Port Harcourt are just in reality really big towns when it comes to computer affairs. So if you live in a modest town there is always the need for these services among the populace, it is scarce in Nigeria except perhaps Lagos mainland where it is saturated there, you have to have an edge to beat off the intense competition, but anywhere else you will be making easy money.
Location is also key in determining shop rent prices, usually for a shop the size of a garage it starts from N50,000 – N150,000 Naira ($149 – $476) annually in some places and even more in Abuja city, but don’t be put off by that.
Although you should take heed, business centres don’t run well inside a market, because as a rule schools and offices are never built in a market. Preferably, it should be located outside the main market area, in a plaza or complex, and right smack in the middle of town.
Products and Services
Here is a complete list of all the services carried out by a computer business centre below;
- Photocopying
- Scanning
- Typing
- Printing
- Spiral binding
- Laminating (optional)
- Online registration (optional)
- Disc burning (optional)
- Digital passports (optional)
These are all the essential services that are expected from a computer business centre. Some of the items listed above are optional means you can start the business without really offering that particular service or you could, maybe at a later date. Also ‘online registration’ is not a cyber café, this requires you to check exam results for people, fill online application forms, etc, and note that taking passports doesn’t mean you are now a photographer, this one implies taking passports and cutting them only, you cannot mix this job with photography.
List of Required Items
There are mainly of two categories of items; the ones that are capital intensive (e.g. printer) and those that need to be restocked every time they are finished. Here’s an estimate of all the items updated this year. Price estimates is sourced from online resources (such as jumia.com) and directly from individuals in the business;
Items: | Model: | Price (Naira): | More Information: |
---|---|---|---|
Generator Set | 1.1KVA Sumec Firman | 48,500 | |
Shop Rent (Annually) | 50,000 -150,000 | ||
Laptop Computer | Acer Aspire Mini | 66,000 | If you prefer a desktop computer, you should get a UPS. |
Printer | Sharp AR-M201 or any similar Sharp AR model series. | 65,000 | All-in-one purpose printer. |
Inkjet Printer | HP Deskjet Ink 115. | 13,000 | |
Sign Post | 5,000 | By arts and prints in your locality. | |
Extension Wire | 1,200 | ||
Furniture | Three plastic stools, one wooden table. | 10,000 | |
Wiring/Electric installation | 8,000 | For the generator input. | |
Laminating Machine | 20,000 | ||
Spiral Binding Machine | For simple plastic binding. | 17,000 | Other models include ones for metal binds. |
Digital Camera | Sony Cybershot model series. | 17,000 – 21,000 | |
Photo Printer | 15,000 | ||
Plain Fabric | White 1 yard | 200 | For passport backgrounds. |
Fuel Container | 500 | ||
External CD Drive | 3,500 | Since the Mini laptop doesn’t have a CD drive. | |
Stapler | 300 | ||
USB Flash | 1,500 | 4GB flash. | |
SIM Card | 250 | For data subscriptions. | |
Internet Dongle | 4,000 | ||
Bio-metric Scanner | 3,000 | You won’t otherwise need it unless you are registering students for JAMB or other similar program. | |
Scissors | 300 | ||
Sum Total = | 349,250 |
The smaller amount was used for the sum total in places where there are alternate prices (e.g. under shop rent, 50k was used). You should choose between the available networks in Nigeria for the internet subscription and decide which data plan will work for you.
You can save a huge amount of the total cost if you salvage some items from the second-hand market (please do not attempt to buy a second-hand printer), and by being creative like using your smart phone’s hotspot capability instead of buying a dongle. It is recommended you have a backup SIM because sometimes one network just seems to vanish but not the other.
Below is a list of items that need restocking:
Items: | Amount | Price (Naira): | More Information: |
---|---|---|---|
A4 Paper | Pack | 3,500 | |
Internet subscription | Monthly data plan | 2,000 | |
Plastic binds | Different sizes and colour | 1,500 | Depends on your needs. |
Laminating film | 3,000 | Depends on your needs. | |
Gen. fuel | Monthly | 8,000 | |
Gen. service | Monthly | 1,500 | Depends on your mechanic. |
Ink Toner cartridge | 15,000 | Contact your dealers. | |
Inkjet printer cartridge | Coloured | 6,000 | Contact your dealers. |
Stapler pins | Small pack | 250 | |
Photo paper | 5,000 | ||
Hired Help | Monthly Full-time | 15,000 – 25,000 | |
PHCN bill | 5,000 | Depends on location. | |
Average monthly expenditure = | 45,450 |
On average, you will be spending a total estimate of N45,000 Naira ($143) each month to run the shop efficiently. If you add basic items like paper from this list to the total capital you will find out you need about N360,000 Naira ($1,143) in capital.
Note that the changing of ink cartridges for the printers is a very delicate exercise, always contact your dealer (the person who sold to you) for its maintenance or learn directly from someone with experience, and knowing the right cartridge size for the right printer is important.
Hired Help for your Computer Business Centre
Usually the work is too much for just one person to handle, besides the fact that you will be doing yourself a favour, an assistant makes you more efficient which is extremely important in this business. Usually you allocate shifts between you and your assistant, or sit through the whole business hours together. The second method is more tiring and not suitable for people with other jobs, but you decide which method works best for you.
Expected Profit Margin
About 66%, that is an average of ninety thousand Naira ($286) monthly in your pocket.
Brief Summary
Capital to start business: approximately N260,000 – N363,250.
Expenditures (monthly): N45,000.
Profit Margin: 66%.
Potential customers: Students and office workers majority, and others.
Potential growth: Business can expand to other branches and/or cyber café.
Suitable location: Cities and suburbs.
Business hours: on average 10 hours daily, 8am – 6pm.
Hafiz is a young designer, that loves anything creative. I dabble in poetry, electronics and graphic design. Enthusiastic about physics and computer-technology, a big fan of blogging. Connect with Hafiz on Facebook.
This is a great eyes opener from Hafiz Mukhtar Mahmud. You really went deep into the business and brought out the best of well articulated information on this business.
Very special is how you break down the prices and cost implications of starting a computer business center. Weldon!
We should be the ones thanking you for creating such a platform Mr CEO. tnx for the encouraging comments
This article is well articulated and a whole lot more informative. This will really help those who are planning to venture into computer business cos it will be a lot easier for them to start. It is really indeed an eye opener.
Well thank you chinwe.
I like your article Hafiz, its enlightening enough but to add to it. The challenge we have in Nigeria is the electricity aspect. The amount (8,000) on fuel will only depend on your location if you are lucky enough. I run a small Business Center and it costs me at least N1,000 to fuel my generator daily and Nepa bills are also not stable. I pay as much as 12k monthly as an estimated bill. Also depending on the volume of work you do in a month, the only fixed expenditure there is the salary of your assistant.
Also, like any other business, your attitude will also make or destroy it. You must be ready to keep your promises to your clients by getting their jobs ready in time so they can keep coming back.
Thanks for this write up, I got a lot from it even though I am already into the business without any experience and I must say I’m not regretting it.
I also appreciate Mr. Darlington for this platform.
Ifeanyi.
Experience is always better than book knowledge. Thank you Ifeanyi for that very helpful addition.
How much should one peg as assistant salary dat will not run down my new start up in jos plateau state?
Hi please can you help me out I would like to know more and how to go about it because I’m really interested in starting my own business centre what are the challenges are what do I have to do I don’t really know much about it
Thank you guys for you are really
Thank you guys, u r really genius and good hearted people to be sharing such a useful information without asking for a penny, and am so happy to join this Nigeria’s proudly platform, once again thank you and God bless you all.
You are welcome Abdulaziz
I love this so much really am good to go
Hello hafiz I say a very big thank you to your inspired talks, I really appreciate but the thing is am in the business already but it seems as if things are not working, although I have competitors around me what can I do to improve more than them and what can I do to be unique. Thank you
You are welcome Oluwadaisi, you can try painting the shop prefarably white it makes you stand out. 2- or put up a sign besides the general sign that lists all your services, this sign should list only one service for example it should say “SCAN YOUR DOCUMENTS N100 HERE” or “WE DO SCHOOL PROJECT” it is informative and very helpful if you havent done that already please try it out. (put up as many signs/billboards/banners as possible). Till I hear from you again.
Thanks a lot, Hafiz. I have plans to start the business. I am so much enlightened, encouraged motivated by your essay. Remain blessed.
You are most welcome. thanks
Hafiz just made my day today in a more detailed and unerstandable way. I have my budget and some items already and wont hesitate to commence by God’s grace but my location is a busy area with schools, churches, and some corporate ventures with many populace who in one way will need the services and fortunately the very close business centre location is a bit far so i wish to grab the opportunity of starting it there.
And this prices are wonderful.
But i have a question to ask. How many systems can this 1.1kva generator power inclusive of the photocopying machine?
Thanks
I am glad I did made your day. The gen could take about one photocopier (the type mentioned in the article) and up to 1 desktop computer with its complete peripherals at the same time, and as many as 10 laptops. its more ideal to get a 2.8kva gen if you are putting a load of more than one desktop computer and photocopier. it costs around 98k naira.
Wish you the best of luck Nessa in this endeavor. please keep us updated on your progress.
Hafiz
That is good
I like you wooo
Please like how much those all the service e.g typing, printing, scanning in Abuja for profit
Pls can someone without computer idea, start up a computer business center.!?
Wow! I have been searching for such courageous tips, I actually intend to venture into this business, but was having little fear in me if i will probably make it or not. Now that you have open to me the secret, I will definitely come out with a Testimony someday in Church and in this platform.
Thanks Mr. Hafiz Mahmud.
I wish to have you in Social Media for mentorship, Pls do not hesitate to share with me your social media linkz Hafiz. Am coming back to get it, once again Thanks so much God bless.
am so much happy with your illustration, of how to start the business, god bless you. my question is were can I get this equipments at this rate as you stated here am living in Enugu state
Very good write up. but can i manager like 250k to start up both the capital and monthly expences?
Impressive write up. Thanks for sharing. Please what is the cost of the services that are being rendered in the business centre?
thanks for the enlightenment.
Thanks brother, really gained a lot from this article of yours. I planned starting one but in a residential area with some few private schools. I intend rendering training programs along with the regular photocopying business, what is your suggestion?
Once again, thanks for the article
I’m intending to run a business center and this you article just made my day. Weldone.