Have you decided to start your own export business, but don’t know how to get started?
Read on as we will be sharing with you in today’s article everything you need to know on how to start your own export business.
First and foremost you’ll need to learn about the export market by simply signing up for some business planning courses, which you can easily do online. After this first step then you’ll need to take your time to learn how export business is done Nigeria because the Nigerian export market is vast and complicated, therefore you must not go in unprepared or empty handed. Secondly you’ll need to figure out what legal documents you might need, and this you can get by visiting and registering online business forums to learn from experienced entrepreneurs about the pitfalls of export businesses in Nigeria.
After this, the next step is to decide on what you are going to sell and where you are going to get it because Nigeria is a country rich in so many things you can sell to other continents and the list of some of these things, i.e. the likely products you can export includes but is not limited to:
1. Oils: Palm oil, palm kernel oil, coconut oil, sesame seed oil are products that are always in high demand in countries with a colder climate. Therefore, it is easy to make profits from selling all sorts of oils.
2. Cosmetics: It is only logical to consider cosmetics as a possible product for export because oils that were mentioned before, are great for hair and skin and so many creams, shampoos and other beauty products contain them.
3. Charcoal: Its being said that Nigeria has the best quality charcoal and if you are considering venturing into export of charcoals, countries in Asia, Europe and Americas have a large market for this product.
4. Fruits and juices: It has been confirmed that Nigeria provides plenty of fruits that are considered exotic in countries as United States and UK where Juice concentrates are an even better option, as they have longer shelf life.
5. Textiles and cotton: The cotton business is currently on the rise in Nigeria because people around the world appreciate the African culture, and Nigerian fabrics and garments fascinate foreigners.
After deciding on what and what you’ll be exporting, the next thing to consider is how to source for the product. And there are options for you on this as you can either grow/make it yourself or purchase it from someone else but if you are a first-timer, the second option is best for you because it’s much easier, although you need to have some backup suppliers just in case. You never can tell.
The next step brings us to “Capital”, i.e. finding a way to finance your business but incase you already have a enough financial resources that you don’t know how to utilize, this stage is not for you and you can skip it. But if your idea of starting a business runs solely on your enthusiasm, then you need to consider where you can get the needed funds from the following steps below;
a. You can take out a loan, but be cautious with that because there is no guarantee yet that your business will be profitable as you are a newbie just learning.
b. You can ask your friends and relatives for some money, although sometimes, borrowing money from people close to you for business purpose negatively affects your relationship.
c. Alternatively, find a person with lots of money who is willing to invest in your idea. Just be sure you are on the same page about your financial relationship. They might expect way more profit from your business than you can offer them.
After all this, it’s time to go to the next step which is register your company and your business address because for potential customers and other people to take you seriously, you need to register your company and below is a short checklist of things you need to do in registering your business…
a. Create a UNIQUE name for your export business and register it with the Corporate Affairs Commissions.
b. Register an office for your company but it doesn’t really have to be an actual office, you can just use your own address for this.
c. Register your company with the Nigerian Export Promotion Council (NEXP)because the Nigerian Customs Service demands that all export businesses in Nigeria are to be registered and it’s pretty easy, simply go to their website (nepc.gov.ng) to do this.
d. Additionally, you will need to fill out the Form NXP and you can do this in any bank.
After all this you need proceed to the next very important step which is getting all the required permits and licenses. This step requires you to procure the necessary licenses and permits for the government and potential customers to recognize you as a reliable business because there are particular demands for people that have an export business in Nigeria, so be sure you meet all of these demands. And the same goes for foreign countries where you want to export your product to. So learn what documents your target country wants and obtain them.
Second to the last step is finding your buyer and these days, it is pretty much easy to conduct export business from the comfort of your own home unlike before. In this internet age you don’t even have to leave your couch to find the importers for your product because you can just go on the Internet, register your company on some trade websites and start negotiations with potential clients.
Lastly market your product because after finding your client, you still need to persuade them, convince them of why they should buy your product and not someone else’s. So you need to think of a list of things that make your product worth buying. Also you can show off your product at various expos and fairs so that potential importers can actually see what they are dealing with.
If you can fulfil all of the requirements listed above, then you are set to venture into the world of export business in Nigeria. Best of luck.
Credit: Naij
