Overview of the Building Material Business in Nigeria

When we put the population of Nigeria and her estimated daily growth rate into consideration, we will then come to the realization that building materials business is one of the most lucrative in the country today. Presently, Nigeria is ranked as the most populous black nations in the world with about 200 million individuals. We expect this figure to reach a massive 500 million by 2050 if the present growth rate is maintained.

It is no doubt that any nation like Nigeria that has a persistently growing population will also have a challenge of accommodation on its hands. Therefore, to overcome this challenge, construction of new buildings will be inevitable. This undoubtedly means that the building materials for each construction work to be completed will be required.

It may shock you to note that in spite of the large number of building materials businesses in Nigeria today, there is still room for more. This is as a result of the supply of these building materials being dwarfed by the ever increasing demand. It simply means that the demand of building materials in the country today is higher than the supply it is receiving.

No doubt, this article is here to provide you the relevant information regarding how to start a building materials business in Nigeria and show you how profitable the business is, potentials of the business as well as the skills needed to start up the business. Feel free to read along as I take you through process of starting up a business in building materials.

Potentials of Building Materials Business

There are a whole lot of businesses to venture into in Nigeria, but the best thing is to have ideas of the right business to venture into in the right place and at the right time. To venture into building material business in Nigeria, you must have the ideas of the problem the business solves, opportunities and prospects and how lucrative it is. Therefore, the potentials of building materials business in Nigeria include:

1. The construction industry is diverse. We have different categories of business to venture into in this sector. It varies from cement, roofing materials, plumbing materials, timbers, steel and metal products, glass, painting materials, sand and gravel, as well as electrical materials and accessories.
2. Not all aspects of the industry are capital-intensive.
3. The construction industry is a growing industry as long as there is an increase in population. This is beneficial to the business.
4. Building materials business is not sector-specific.
5. Much academic knowledge or qualification is not really required when starting up a building materials business. All that is required is a sound mind.
6. A building materials business is a way of meeting a fundamental human need.
7. The building materials business is not a suit-and-tie profession.
8. It is very easy to start up.

Requirements to Set Up a Building Material Business in Nigeria

In a bid to set up a building materials business in Nigeria, below is a list of guidelines you need to follow. Please, note that it is not set in a specified order.

Choice Making: When making a choice there are two phases you need to focus on. The first one is, “whether I should invest in this business or not” This is referred to as interest in the business. Having no interest in the business has made the business a failure without even starting already.

The second is the choice of what area to focus your investment. As revealed above, the building materials business is very broad. Your choice will however determine to a large extent how much capital will be required for the business to startup. To cap it all, ensure that your aim for venturing into this business is just the money you will gain. You must focus more on what you can bring to the building materials business sector that will improve it at the end.

1. Write a Business Plan. The importance of a business plan is to give the entrepreneur a roadmap on what direction to go and a prediction of his expectation in the nearest future. It also helps to attract potential investors that the business is truly viable and will be worth investing in. It as well gives you the knowledge of the kind of staff to employ, their attributes and their roles in moving the business forward.
2. Feasibility Study and Inquiries. As the business owner, there is a whole lot you need to learn in terms of your duties, mode of operations, the best kind of materials to deal in, getting the reliable suppliers, customer relationships etc. You must to master the details of the business sector, having such knowledge will determine the success of the business.
3. Location. This determines how profitable the business will be. In starting up a building materials business, you must find a place that has the kind of traffic you need as patronage. You must look out for parts of the areas which are still under construction. Also nearness to suppliers and cost of the building must also be put into consideration. The location of a business is often considered as the mainstay of the business.
4. Capital. This is what will ensure you get the materials to be sold, the facility to house your business, transportation, payment of staff, among others. Your business depends on it for survival. People do complain that they do not have required capital to start up business. There are several ways of raising capital for business. It could be through bank loan, donations from friends and family and source for investors to partner with you. A good business plan will help you to understand the amount you need to start up the business. Register Your Business. Business registration is vital to your business and it plays a main role in its success. Look for a suitable name for your business and visit the CAC to pick up forms.
5. Find a Supplier. Carry out research to ensure that you do not patronize dubious and untrustworthy suppliers so as not to incur debt in your attempts to start up a business in building materials. A supplier that will trust you to give you goods on credit and deliver on time as well is needed. Therefore, you must be a trustworthy entrepreneur in order to make it in any business you venture into.
6. Purchase Building Materials. Since you now have a trustworthy supplier, you can make your purchases and start selling your goods.

Overview of The Template

The Template provides an in-depth financial analysis of everything you need to have in terms of costing and pricing for a successful building materials business venture. Real life costing and pricing is used and the excel template can be modified.

Features

1. Comprehensive Profit and Loss Projection.
2. Sensitivity Analysis.
3. Pre-Operating Equipment Requirements.
4. Operating Expense List.
5. Loan Repayment Plan.
6. Direct Material Cost.
7. Proposed Pricing.
8. Cost Forecast.
9. Sales Forecast.
10. Cash Flow Statement.
11. Viability Analysis.

Use Scenarios

This excel template is most suitable for the following:

1. Organizations and individauls starting a New Start-up Business that need funding in form of grants,loans,partnerships etc. from governement agencies and venture capitalists.
2. Business and Financial Analysts working on viability and feasibility of a building materials business venture in Nigeria.
3. Business Administration and Entrepreneurship students who need a comprehensive financial plan for a Business Plan.
4. Investors and Venture Capitalist who need financial analysis of the building materials business venture for informed decision making.
5. Entrepreneurs who need expansion ideas for their businesses.

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