How To Start Mini Exportation Trade Business In Nigeria and Make Money In 2023
Wondering how people get their goods exported abroad? Particularly how people really make money from it. You need not worry much again, this article is an eye-opener that teaches how to start a mini exportation trade business in Nigeria successfully.
You might not know this; the Exportation business in Nigeria began as far back as the year 1960s when Nigeria gained her independence and became a member of the international community.
Agriculture is the backbone of the country’s economy.
Therefore, it is not surprising that the first exports from Nigeria were agricultural products such as cocoa, yam, grains, palm oil, rubber, groundnut, and a lot more.
Over the years, Nigeria has diversified its export portfolio to include other products such as crude oil, solid minerals, and manufactured goods.
The government of Nigeria has also implemented policies and incentives to encourage exportation, such as the Export Expansion Grant (EEG) and the establishment of export processing zones.
Benefits Of Starting A Mini Exportation Trade Business In Nigeria
Before you could be determined to start a business of any type, you must have seen either one, two, or more benefits, the same applies to the Mini Exportation business.
There are several benefits you would enjoy starting Mini Exportation Business In Nigeria, However, out of the many, below are some of the benefits of starting a mini exportation trade business in Nigeria today:
Foreign Exchange Earnings
Exporting products can earn foreign exchange for the country, and individuals can benefit from this by earning foreign exchange income.
Diversification Of Income
Starting a mini-exportation business can provide an additional source of income for you as an individual, especially if you reside in rural areas where opportunities for income generation may be limited.
Increased Demand For Local Products
Exporting products can create a demand for locally made goods, which can boost the local economy and create employment opportunities for both young and adults in the country.
You Get Exposed To Global Markets
Exporting products provides access to a global market, which can increase the potential for sales and profits.
Expansion of business
Exporting products from Nigeria abroad can lead to the expansion of your business and increase its competitiveness in the local market.
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However, it’s important you stick to the fact that starting a Mini exportation business trade in Nigeria requires extra careful planning and research.
Also, it is essential to understand the export regulations and requirements, market demand, quality standards, and logistics involved in exporting products.
Additionally, funding and access to financing may be a challenge, and it is essential to have a solid business plan and financial projections before getting started.
How Much Can You Make In Mini Exportation Trade Business In Nigeria
Before you proceed to learn how to start a mini exportation trade business in Nigeria, it’s quite essential you have an understanding of how much you can make in the business.
The first thing you must know is that the amount of money you can make from mini exportation business trade in Nigeria varies depending on several factors such as:
- Product being exported
- Market demand,
- Export volumes,
- Pricing strategy,
- Products exportation expenses and costs.
However, starting a mini exportation business in Nigeria can be profitable if done correctly and can earn you thousands to as much as millions of naira in the first year.
How To Start Mini Exportation Trade Business In Nigeria In 2023
The following steps will teach you how to start mini exportation business trade in Nigeria easily and successfully.
Research And Select A Product You Wish To Start With
The very first and the right step to follow on how to start a mini exportation trade business in Nigeria is to “research and select a product you wish to start with”.
Whether you’re starting small or large, every business needs thorough research before setting a determination on a particular one to start.
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For instance, if you’re going to start with cocoa exportation, you need enough research, you may need to get closer to experience people in the business to learn from them.
Note: Not all Nigerian products can be exported abroad, select a product that can be exported abroad and has a competitive advantage in the global market.
Source For Funds (Capital)
We all know funds are essential to every business start-up, without capital, there’s absolutely no business.
Even if you have the right plans and strategies, without capital, such a business cannot work.
Register Your Business
Register your exportation business with the Corporate Affairs Commission (CAC) and obtain relevant business permits and licenses.
Obtain Quality Certification
You must also obtain quality certification for the product being exported from relevant government agencies purposely to ensure the product meets international standards.
Source For Suppliers
Another step on how to start Mini exportation business trade in Nigeria is to Source reliable suppliers of the product you want to export and negotiate pricing and terms of supply.
Develop A Marketing Strategy
Develop a marketing strategy to target potential customers and create awareness of the product being exported, your strategies should be superior to that of your competitors purposely to gain more customers.
Arrange Logistics Services
Arrange logistics for the transportation of the product from Nigeria to the international market, including shipping, customs clearance, and insurance.
Some of the best logistics service providers in Nigeria are the following:
- IFEX etc.
All these logistics services are great but FEDEX is commonly used by exporters.
Building relationships with buyers and agents in the international market will establish a network that will give your sales s boosts.
Frequently Asked Questions On How To Start Mini Exportation Trade Business In Nigeria
The following are the people most asked questions that are related to the topic- how to start a mini exportation trade business in Nigeria:
What Products Can Be Exported From Nigeria?
Nigeria exports a wide range of products, including agricultural products such as cocoa, palm oil, rubber, and groundnut, solid minerals, crude oil, and manufactured goods such as textiles, leathers and a lot more.
What Are The Challenges Of Starting A Mini Exportation Business In Nigeria?
Challenges of starting a mini exportation trade business in Nigeria include funding and access to financing, regulatory requirements, quality standards, logistics, competition, and market demand.
How Can I Access Funding For My Mini Exportation Business In Nigeria?
Funding for mini-exportation businesses in Nigeria can be accessed through personal savings, loans, grants, venture capital, and government programs such as the Export Expansion Grant (EEG) etc.
What Are The Regulations And Requirements For Exporting Products From Nigeria?
Export regulations and requirements in Nigeria vary depending on the product being exported and the destination country.
However, It is essential to research and understands the regulations and requirements for the specific product and destination country before starting an exportation business.