Motorcycle spare parts business. How To Start Motorcycle Spare Parts Business In Nigeria This is a business that when done in the right environment devoid of much competitions, a would be making in millions in monthly basis.
We have all kinds of Motorcycle around us popularly known as Okada which many people prefer to take in order to get to their destinations faster. During the late 1980’s Okada used to be for the few jobless youths but today, the story has changed to include some university graduates, teenagers and even elderly men and some women hustling to make ends meet with Motorcycles of various makes.
Days are fast running out when people used to look at patronizing Motorcycles as dangerous mission, which is not but all depends on the operator and sometimes mere accidents that occur everywhere.
So starting your own Motorcycle spare parts business is a very good business with sure returns on investments if well positioned and managed.
Things you need to know About This Lucrative Business And How To Turn Your Initial Investments Onto Unending Opportunities Of Money Making
We will be looking at this together to help you know how best to go into it such as knowing the quality spare parts, who your customers are, and your target markets.
Starting a Motorcycle business is usually in a double folds, it’s either you are dealing on brand new spare parts or used spare parts.
Some parts dealers specializes in one while others choose to combine the two which is not bad on its own, instead it means more business and more customers for them.
The following are what to bear in mind while going into the business.
1. You have to know that there is money there which is the main reason why you ventured into it in the first place. But then you need to have in mind the type of customers or the fans for your business and know how best to treat them for continuous patronages.
2. How you are going to fund your business. Do you have your cash on hand? That is good but if you don’t have enough or simply wish to finance your business through some venture capitalists such as banks or even considering keying into a credit line from major distributors, those are also possible but it largely depends on your bargaining power and what you could stand with; but as for making your money to pay back, you are sure of doing that.
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3. Who are your competitors? This is usually where it all matters most. If you are starting the business in a big way, that usually poses little or no problem as you are sure to have everything in greater quantities at a reduced prices, but if you are starting on a low key, opening a shop in already saturated area may seriously affect your growths in the business. Some times the only way to survive in such areas and grow with time is to conduct some researches and know what most of the existing stalls overlooks which could be any type of spare parts. Create your niche there and use that to stand out among the rest so that before they know what is happening, you may have already accumulated much customers within shortest periods of time for having what people are asking of.
4. Choosing a location. This works like magic if you have the money to do this. Look for an area with much Okada operators, some times bad roads could be advantageous because the needs for spare parts never ends in such places. If you can, open multiple shops within strategic places in the area to capture the market and sell your parts at good prices to discourage your customers from going far to other places, the most important point here is to have at least 95% of the parts if not all. Knowing the brand of Motorcycles there is also very important.
5.Put your customers first by buying genuine parts. They know the parts more than you no matter how you may try to convince them because that’s their line of business. Let them decide what they want and give them just that. Don’t make the mistakes of attracting them with cheaper and inferior quality spare parts. If you do, they will run and you can even get sued to court if you are known to be selling fake products that results in accidents like shoe brakes for example.
6. Know the peak periods. Almost every business in Nigeria has their own peak periods. If you are considering starting your business in the rural area, then know that rainy season is your peak period because parts wears off easily. So know the parts to stock your shop with as against the ones that would tie your money down for a long time.
7. Get the needed permits. You need to have license because your business entails handling of motor oil which is considered a hazardous substance. So back your self up even if you are in an underdeveloped area because you don’t know who is who.
8. Insurance cover is also good because no business is risk free, more so you are dealing with what involves movement of people.
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9. Be professional. Even in this business which some people take to be for taut, some learned people are also there and know when they are treated responsibly and appreciatively. As time permits, organize some free training on how to be smarter with what they do during of peak period. Conduct free training and as you do, more customers will be attracted.
10. Get flyers to promote your business as you go out on regular basis, always go with your flyers.
Motorcycle spare parts business is viable and can be done any where there are Motorcycles. If you are looking for a business that can project you as a reputable person within your locality and make your cool cash from, think about Motorcycle spare parts because there is money to be made from it.
You don’t really need much experience to start this business as most of the needed experiences will be gathered once you start the business.
If you can get a good supplier who would be kind enough to have the selling prices listed for you for a start, you are good to go. The initial requirements costs you between N250k to N400k with shop rent or container space, carpentry works inclusive.
Follow things up adequately and within 8 months to one year, you would be counting in millions. Another secrete to quick growths in the business is to be getting your goods directly from the importers, you should also be on the look out to start importing yourself when your business grows and have others coming to you for both retailing and whole sales prices.
If in a busy place, one big and well stocked shop with a packing store is enough to give you whatever you need in terms of money, but if it’s in the rural areas, it’s always good to have between 2 to 3 shops to have the place secured and make more expansions.
Sales boys or girls is all you need if you want to make money from the business instead of having some boys to serve you for some stipulated number of years and thereafter settling them.
No, that’s an old method of doing business which usually end up with all sorts of stories and often means an end to your business whenever your boy starts his own.
Be wise and have your business done professionally and pay your workers well. It’s up to them to stay for long or not based on their meeting up with their sales agreements. Do this well and you could see yourself flying in and out of the country bringing parts in greater quantities for both small shop owners and bigger ones.