This is a detailed guide on how to start a shoe and bag business in Nigeria, read to the end to gain more insight.
Shoes and bags are accessories that complement our outfits. Without them, our dress would be incomplete.
Everybody wears shoes and uses bags, so the shoe and bag business is a very profitable business.
Although the business is a profitable one, you have to start it the right way if you want it to last and give you the profit you desire.
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How To Start a Shoe And Bag Business In Nigeria
The shoe and bag business is a very lucrative business anybody can venture into. You do not need to be a graduate to do this business, you only need to understand the basic principles of business to kick-start it.
It is not easy to start and maintain a business, even knowledgeable people make mistakes in business and start again from the scratch, but you do not have to be like them.
To avoid failing in business, you must avoid short cut and do things the right way no matter how long it would take, and always learn from the mistakes of others.
Although you would not be 100 percent careful, at least, you would be able to dodge or avoid the most dangerous business problems.
You would not be the first to start a shoe and bag business, this business has been in operation from inception as shoes and bags are necessary human needs.
Everybody cannot do without shoes; from the youngest to the oldest person, we need them to shield our feet from dust and hot and rocky sand and for aesthetic purposes to complement our outfits.
Although some people can do without bags, they are still very important. People carry bags for different purposes, either for aesthetic purposes or to complement their outfits, or to shield their belongings from the public eye.
No matter what purpose people use bags and shoes for, the shoe and bag business in Nigeria is still one of the best businesses in Nigeria.
Furthermore, if you do not know how to start a shoe and bag business, read this article to the end to have a full understanding of how to start a shoe and bag business in Nigeria.
1. Have The Right Mindset
The first thing to do when you want to start a shoe and bag business in Nigeria is to have the right mindset.
Business shouldn’t be something you jump into outrightly either because someone else is doing it or you just want to get busy so that people won’t tag you as being lazy.
Business requires you to think and come up with a well-laid-out plan to run it. Think of business as life, it will not be all rosy, there are times you will have good days and there are times you will have bad days, unlike life, where you would not quit easily, you might decide to quit a business if you do not have the right mindset.
Having the right mindset is being prepared for anything the business would bring and getting ready to tackle challenges as they come because they are inevitable.
When you have the right business mindset, you would know that success in business is a gradual process, and business is not a get-rich-fast scheme.
2. Understand The Fashion Industry
The second thing to do when you want to start a shoe and bag business in Nigeria is to understand the fashion industry.
Fashion is ever-changing, and there are no fashion rules as the rules can be defied at any time. To succeed in the fashion industry, you must understand the fashion industry and follow the daily trend of fashion to stay relevant.
New shoes and bags are introduced in the market daily, so you must be on top of the game to know what people are currently using so you can start selling them before the market becomes saturated.
The fashion industry is a time base industry, new fashion surfaces every day while old ones are relegated to the background to resurface after many years.
Furthermore, you must be creative and have to be a fashion enthusiast to stay relevant in the fashion business, you cannot dress awkwardly and expect to get customers, customers are attracted to you by how you dress and present yourself because they believe you cannot give out what you don’t have.
3. Decide On The Type Of Shoes And Bags To Sell
The third thing to do when you want to start a shoe and bag business in Nigeria is to decide on the type of shoes and bags to sell.
It is not good to venture into every aspect of fashion, you have to deal in one area to create a unique identity and stand out amongst your competitors.
You have to decide on the type of shoes and bags to sell, you have to decide whether you want to sell designer shoes and bags, fairly used shoes and bags, or just ordinary shoes and bags.
Your decision will also depend on the capital you have, if you want to be selling designers shoes and bags, you must have a substantial amount of capital to start, however, if you want to sell fairly used or ordinary shoes and bags, you would not need a substantial amount of money to start.
Also, you will have to decide whether you want to sell female shoes and bags or male shoes and bags, or even both. The decision you make will influence the capital you will use to start the business.
4. Carry Out a Market Survey
The fourth thing to do when you want to start a shoe and bag business in Nigeria is to carry out a market survey.
A market survey is a vital part of business strategy and a primary factor in maintaining competitiveness. It is very important to carry out a market survey on the products you want to sell if you want to succeed in the business.
A market survey is the research of the market for products and services you want to offer to know people’s preferences.
When you carry out market research, you gather information about target markets and customers and also know how to market your products to them.
Conducting a market research survey is important to brands, however, always compare your findings across numerous data points to see absolutely where the value truly lies. Below are the steps to a successful market survey.
1. Set a clear goal
2. Identify and define the problem
3. Know who to survey
4. Establish a budget
5. Get help from people that are knowledgeable in surveys.
6. Design a survey or questionnaire
7. Collect the data
8. Analyze the Data
9. Take Action
5. Draft A Business Plan
The fifth thing to do when you want to start a shoe and bag business in Nigeria is to draft a business plan.
A business plan is a formal written document that contains the goals of a business, the strategies set out to achieve those goals, and the time frame for the accomplishment of the goals.
As a startup business, you can use your business plan to attract outside investors, and it can also be a guide to keeping you focused on your working toward short- and long-term objectives.
Your business plan should include an executive summary and sections on products and services, marketing strategy and analysis, financial planning, and a budget.
6. Source Fund For Business
The sixth thing to do when you want to start a shoe and bag business in Nigeria is to source funds for the business.
Money is very crucial when starting a business. Without money, your plan of starting a business can dwindle, so when thinking of the business to start also think of how to raise capital for the business if you do not have one.
Many people have great business ideas but zero funding, so their business ideas remain in them and are never brought into existence.
There are different ways people raise capital to start businesses including Personal savings/ Owner’s funds/ Owner’s equity, Family and friends, Bank credit, Partnership, etc.
7. Get A Business Name
The seventh thing to do when you want to start a shoe and bag business in Nigeria is to get a business name.
As a new business owner, you need to carve out a name for your brand because your business name will have a huge impact on how customers and investors view you.
Your business name will make it possible for people to refer customers to you easily so do not underestimate the power of a business name.
Your business name must be unique and unforgettable, easy to pronounce and remember, web-friendly, and must not have unusual spellings or be similar to a competitor’s name.
8. Register Your Business Name
The eighth thing to do when you want to start a shoe and bag business in Nigeria is to register your business name.
After choosing your business name, the next thing is to register it with the Corporate Affairs Commission.
Registration of a business name is effortless and straightforward if you meet the given criteria, and you do not need the services of a legal practitioner, chartered Accountant, or Chartered Secretary to get it done.
To get your business name registered from the comfort of your home,
1. Log in to the Corporate Affairs Commission website, and check for the availability of the business name.
2. Complete the pre-registration form – CAC-BNo1 and upload relevant registration documents online using Company Registration Portal.
3. Pay the filing fee.
9. Create A Bank Account For Your Business
The ninth thing to do when you want to start a shoe and bag business in Nigeria is to create a bank account for your business. Creating a bank account will help you manage your income correctly.
10. Search For A Good Location
The tenth thing to do when you want to start a shoe and bag business in Nigeria is to search for a good location.
A good location is necessary for your business growth. If you open your shoes and bags store in a very good area, you would not struggle to sell.
You will not struggle to get customers, customers will be coming to you. When choosing your business location, you will need to consider factors including accessibility, security, competition, cash flow, and potential for growth.
Also read: How To Make Money Online In Nigeria
11. Source For Credible Suppliers
The eleventh thing to do when you want to start a shoe and bag business in Nigeria is to source for credible suppliers to supply quality bags and shoes to your shop.
You have to be careful when choosing your supplier because there are many fake stores that are out to scam people, and there are people who sell fake bags and shoes as the original.
Furthermore, do not be too quick to pay money to any vendor, you have to make sure your goods are brought in in perfect condition and everything delivered to you is what you ordered.
You can buy quality shoes and bags from Balogun market, Idumota, and Yaba. You can also import them from China or any other country that manufactures quality shoes and bags.
12. Market Your Bags And Shoes
After stocking your shop with quality shoes and bags, the next thing is to advertise your bags and shoes to potential clients.
Marketing is an essential strategy to make sales, so make sure everybody knows what you are selling.
You can also market your shoes and bags on social media platforms such as Facebook, Instagram, Twitter, etc.
How To Raise Capital to Start A Business
Below are the ways to raise capital to start a business
1. Personal savings
You can use your personal savings to start a business. Your savings are the money you have been keeping aside either In the bank or saving box for some time.
2. Family and friends
You can get your business capital from your family and friends. This option is possible if they see you as a trustworthy person or if you can convince them that you are genuine and that the business would be able to return their money.
3. Bank \Credit
You can take a loan from the bank to start your shoes and bag business. To do this, you have to prepare collateral because the bank will need it to give you a loan.
You can start your shoe and bag business by going into a partnership with another person who is interested in starting a business too to share the management, profits, and liabilities of the business venture.
5. Money Lenders
Money lenders offer small personal loans at high rates of interest so make sure you completely understand the terms and conditions of the contract before you borrow money from them. You can even involve the services of a lawyer to avoid problems.
5. Angel investors
Angel investors are also called Equity investors. They are individuals with lots of money who provide capital for business start-ups, so you can get your business capital from them.
6. Venture Capitalist
Venture capitalists are a group of wealthy people, government-assisted sources, or major financial organizations who have money set aside to give business owners to expand their businesses.
Grants are non-repayable funds granted by a government or a private non-profit organization/foundation to a qualified recipient. Competition for grants is usually heavy, but you can obtain grants if you sail through the competition.
That is all on how to start a shoe and bag business in Nigeria, I hope it helps you start yours.