Consumer electronics or home electronics are electronic (analog or digital) equipment intended for everyday use, typically in private homes. Consumer electronics include devices used for entertainment (flat-screen TVs, DVD players, video games, remote control cars, etc.), housekeeping tasks, such as washing machines and refrigerators, communications (telephones, cell phones, e-mail-capable laptops, etc.), and home-office activities (e.g., desktop computers, printers, paper shredders, etc.).
The consumer electronic retail industry provides an exciting way of life for a lot of young men and women in Nigeria. Although setting up a consumer electronic store is no easy task, but you can build it into your livelihood with hard work and determination. This retailing business involves buying electronic appliances (or gadgets) from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use.
A consumer electronics shop involves retailing and selling items like flat screen TVs, radios, woofers, DVD players, refrigerators, freezers, cameras, washing machines, etc.
How to setup a consumer electronic retail business:
- Decision Time and Apprenticeship:
Electronic retail business is a very large area. As a small business startup, you can’t serve all of the electronics market. Therefore it is of utmost importance that you choose an area that is agreeable and familiar to you, beginning with an honest assessment of your core competencies. You’ll need to differentiate your business by pursuing a niche market strategy that you will be comfortable and happy with; this is critical for the success of your business. Next undergo sales apprenticeship training with a notable and established electronic retail shop (or have a discussion with those already in the business) to learn the nitty-gritty of the business.
You will face stiff competition from similar business in your area. And there are several competitors in retail electronic business. It is important and necessary that you check out these competitors, plan and device strategies to compete with them effectively.
3. Business Plan:
Write a business plan. A business plan will assist you in knowing and projecting the following: How much and how fast the business can be expected to grow, project and articulate where your finance will come from, and what the operational expenses will be, record of Initial and recurring costs, as well as a loan repayment plan level of profits that are expected each month, forecast these figures for the first three years after opening,
A business plan will also give you anticipated customer projections to determine revenue estimates. Establish a “break-even” point. This is the point at which the business will be generating revenue, as opposed to spending money. And the time it takes to “break even” in your line of business.
7. Startup Cost:
Your list of startup costs will include
- Licensing/permitting fees,
- Store fixtures,
- Initial inventory,
- Equipment and technology,
- Power and other services,
- Business insurance (optional),
- Interior decor and aesthetics,
- Professional services,
- Miscellaneous expense,
Other cost should include:
- Operating Expenses
You will need to cover the operating expenses until your business reaches the break-even point.
- Borrowing Costs
Business loans as any other loan are accompanied by interest payments.
You may then establish a legal entity for your company by registering your business with the Corporate Affairs Commission – CAC. Obtain all necessary licenses and permits from state or local government.
Find a busy location, and your chances for success will greatly increase; consider densely populated areas as possible locations. Therefore, if you desire to see increased patronage and sales, then you must take this advice very seriously because no business thrives in a bad location. Getting a good location is never really a problem in Nigeria because in every state, there are the central business districts, densely populated towns and cities that will need your business.
It is important that the right choice be made here. The services of suppliers are required in this business. Wholesale suppliers, as well as manufacturers and its representatives abound. Dealing directly with the manufacturing companies has a lot of advantages, as significant discounts given by the manufacturers will increase your profit margin. The downside side is that dealing directly with the manufacturer requires substantial capital.
Find financing for your business. In addition to your personal savings you may solicit for bank loans, lenders or investors. Remember that loans are accompanied by interest payments. One effective way of raising the needed funds would be by entering into a partnership with an investor in which you are the general partner and he/she is the limited partner.
Advertise and tell everyone who cares to listen by radio television and print media. Print and distribute flyers that contain details of your business, tell people about your business on social media.
Note: You must know what to buy, where to buy and how to buy in order to be profitable in this business. And always remember that “Patience, Optimism and Perseverance” contribute significantly to your success.