How to Start a Drink Distribution Business in Nigeria
Drink distribution business has been one of the leading businesses in Nigeria. It has been established that average Nigeria consumes at least a bottle of drink every week. However, there are also Nigerians who consume drinks in large quantity on daily basis.
Apart from individuals who consume these products, it is highly patronised during social gathering such as traditional marriage, wedding, birthday parties, survival party, and coronation to mention but a few.
There is no doubt that reasonable amount of money is generated by the sellers as a result of the demand for these products. Most of the time, individuals who want to invest in drink distribution business are discouraged due to fear of the unknown. The tips below give an idea of how to operate a drink distribution business in Nigeria successfully.
Though people may view drinks distribution business as an easy buy and sell business, it is however not as easy as they think. A lot of times, those who lack the knowledge of how to manage the business suffer huge financial loss. You need to learn the business for at least six months for there are secrets that guarantee the success of every business.
Since the location of a business to a great extent determines its success. Consider locating your business in a good environment with little or no competition. Remember that you may not have enough resources to compete with the wealthy in the business; therefore site your business in a location that is not close to theirs.
Rent a warehouse with enough parking space in the frontage for vehicles to load or offload goods.
Make enquiries on where to get the product at the cheaper price in other to beat or stand the competition at least. You may consider dealing with a particular company’s product or a combination of two. For instance, some distributors deal with coca-cola products only while others deal with a mixture of brands. However, it is more beneficial to deal with a well-known brand as there are lots of benefits that are given to the dealer.
Since drinks distribution business cannot be managed by one person, there is a need to employ staff who will work with you.
It is always good to register your business with a relevant government agency to avert possible legal action.
A good citizen will always pay his tax. Pay your drink distribution license and other federal, state or local government tax and when due. Also, ensure you pay other government levies such as sanitation fee.
Open a business account with any of the commercial banks in the city you are living in. This will make it easy for you to pay in money realised from sales at intervals.
Always ensure that proper account is rendered at the end of each day. You can use the stock card or a computer with modern accounting software to do that.
Drink distribution is a business that if well managed generates a huge sum of money. One with little or no business idea may follow the directives or ideas in this write up to be successful in the business.