This article will answer question of how much does it cost to start spare parts business.
Spare parts business is a very lucrative business venture both in Nigeria and beyond.
This is because cars and vehicles has become a necessity and their costs which is considerably high has made users to embrace after sale services for longevity.
Spare parts business in Nigeria is a business venture that deals with sale of automobile parts which is geared towards providing quality after sales services for vehicles and cars.
It is one of the most lucrative business venture in Nigeria which requires some expertise and special knowledge.
Despite financial potential of spare parts business in Nigeria, not all who venture into the business come out as a success.
This is owing to factors such as inadequate capital, technical know-how and location too.
In this post we will be discussing issues pertaining to spare parts business such as how to start a successful motor spare part business in Nigeria.
Also, the question of how much do I need to start motor spare parts business in Nigeria will be answered in this article too.
The above makes this write up all important for those who are nursing interest or ambition of venturing into spare parts business in Nigeria.
How To Start Successful Motor Spare Parts Business in Nigeria
Unlike other business ideas and ventures which requires mostly knowing of pricing and specifications of brands and models, spare parts business is so technical that more than having knowledge of products price is required.
It doesn’t matter your level of education or exposure, to successfully start and operate spare parts business, some level of apprenticeship are required.
This will not only enquip you with the knowledge about the trade but give you the necessary connection which can make a difference for you in the business.
Being a good driver doesn’t make one a good mechanic neither does being able to drive numerous car brands makes one expert in knowledge of vehicles spare parts.
To start successful motor spare parts business, certain considerations, logistics and more will need to be worked out.
Here are some of the best tips for starting successful car spare parts business in Nigeria.
As stated earlier in the post, car spare parts dealership demand expertise which makes it imperative that apprenticeship should be considered before starting out spare parts business.
Apprenticeship will enquip you with the knowledge of the business such as locations for sourcing of your stock and other major dealers in the business as well as the fast moving sector of the business.
It will keep you knowledgeable of all or most nitty gritty that’s associated with spare parts business.
It does not matter your level of education or exposure in automobile industry, apprenticeship will do you lots of good in giving you the needed skills to drive spare parts business.
Best Location for Spare Parts Business
Another successful tip for spare parts business in Nigeria is the location for siting the business.
This is one business that hardly thrives in rural areas or semi urban areas.
If you want to invest in auto spare parts business in Nigeria, you must site the business in a city or urban center.
This is because over 80% of cars in Nigeria are clustered in the cities and urban centers.
Hence,the business has its best potential in the city or urban centers.
In siting the auto spare parts business in the city, it is imperative to move to well known auto spare parts market.
This is because demand within these recognised markets are very high and can aid your growth in the business fast too.
How Much Capital is Needed or Enough for Starting Auto Spare Parts Business in Nigeria?
Capital is another important factor that helps shape the success of car spare parts business in Nigeria.
Oftentimes, prospective investors in auto spare parts business ask how much capital is needed to start motor spare parts business in Nigeria?.
The answer to this question isn’t definite because capital is the soul of every business and no amount can be too much for a business.
For starting auto spare parts business in Nigeria, a minimum capital of 2 million will be considered the lowest amount one can use to venture into auto parts business in Nigeria.
This capital will cover both shop or warehouse rents as well as stock.
However, the bigger your capital the better, as you will enjoy the opportunity of having varieties in stock and brands too.
So, the least or minimum capital that is needed to start car spare parts business in Nigeria is N2 million.
This is the minimum cost of starting auto spare parts business in Nigeria.