Dogs are largely kept as an assurance of security in Nigeria. Aside from this, they’re kept by humans for companionship. The adorable faces, acts and fur of some dogs make them irresistible and craved for by their onlookers.
Dog breeding businesses are highly sought after due to the huge demand for dogs.
And this business can make you rich.
Now, although there’s profit in dog breeding, it must not be the major goal. The health, genetic makeup, and proper care for these animals are highly important.
For every business that booms, you need strategy and you need knowledge.
Why dog breeding business is profitable, how much you can make as a dog breeder, how dog breeding business works, how to start your business, the best dog breeds, among others are outlined in this article.
Let’s dive in.
Why Start a Dog Breeding Business
● You get an opportunity to make a career out of your adoration for dogs.
● You get to provide dogs for families, individuals, for security, cosy hugs, hunting and other differing purposes. You help someone who needs a guard dog get them. Soft, warm and furry companions exist in our homes because of you and people like you.
● You help prevent a species or more from going extinct, preserving their distinct features, characteristics and the purposes they primarily serve.
The targets vary with the breeds; athletic breeds for sports, cute and furry breeds for homes, muscular and fierce breeds for security.
How To Start a Dog Breeding Business
● Knowledge of dog breeding: how to cater for dogs; care for puppies, pregnant dogs, sick dogs; recognizing sick dogs and dogs in the heat period.
● Know genetics: this will help you as a breeder in choosing dogs to be paired for breeding. You will also understand their traits and qualities and avoid hereditary disorders in puppies.
● Dog coaching: puppies especially need to be given some basic training to prepare them for their new owner.
● First aid knowledge: just like humans, pets also have accidents and get injured. Knowledge of first aid before the appearance of a vet is very important.
Vets, dog breeders are useful relations that would help you out in this business with their knowledge, tips and experience. Build relationships with them. Get help from them, also, help them when you can.
✅A business Plan
It is never enough to have an idea in your head, especially a business idea.
Write out your business plan. Studies have shown that there’s a greater likelihood for a business idea to morph into a prospering business when there is a business plan.
✅A Business Name
This is what would be used to refer to your dog breeding business by people. Create a name that would stick to the mouths of people like a piece of blown-out chewing gum.
A place where the puppies and dogs would be cared for. The neighbourhood where the kennel would be situated should agree with the noise that would be produced. It should also have enough space for them to roam about and play.
✅Set Up The Business
Acquire the starting or founding dogs- the starters of the breeding business. Make the necessary equipment available.
✅A business Account
This puts your business name upfront. The business account carries the business name and all the money for business goes into it, preventing your money from getting mixed up with that of your business.
It also offers the protection of your assets in a case where your business is sued.
This helps you study the performance of your business. It involves the detailed calculation of income and expenditure for your business.
✅A Business Website
A business website helps put your dog breeding business out. It displays your business as legit and trustworthy and attracts customers to your business.
✅Build Your Brand
What your business stands for is your brand.
The quality and health of the breeds showcase your brand. If the breeds are weak, your brand is affected and people would hesitate to refer you or come back.
A website helps with the brand building too.
Regular training and exercise for the dogs to keep them active and alert are of great importance . Not doing this would lead to a weak immune system, restlessness, tiredness, among others in the dogs.
Regular checkups by a vet ensure that the dogs are healthy. You should have a veterinary doctor who you recognize as a vet for your dogs.
To find customers, relationships built with other dog breeders and vets would come in handy.
Your website, social media and referrals are also ways to market your dogs.
Best Dog Breeds for Business
They have a lifespan of about 14 years. Siberian Husky breeds are active and have low possibilities of health issues. They are amongst the best selling dogs.
The Rottweiler breed is among the most famous dog breeds. It is playful to the core with familiar people and defensive against strangers. Rottweilers are not susceptible to many diseases.
Otterhounds can swim. They have thick fur and a calm appearance. The Otterhound’s coat is waterproof, keeping its body temperature stable while it’s in the water.
This breed of dogs is among easy-to-breed dogs. They are smart and courageous dogs (I’ve read a story where a child was saved by a German Shepherd). They are one of the popularly bred dogs in Nigeria.
French Bulldogs are adorable, small-sized breeds. They need much care and maintenance.
They are prone to defects like dwarfism and respiratory disorders. These defects can be countered by acquiring healthy starting dogs to produce equally healthy puppies.
Tibetan Mastiffs live as long as 16 years and more. They are guard dogs and are extremely intimidating to strangers.
They have a muscular build.
This breed is one of the swift dog breeds. They would thrive in competitions and hunting. They are also homely dogs for families and individuals.
Best Dog Foods for Breeders
7 best dog foods recommended by Vets:
● Royal canin dog food
● Taste of the wild
Housing Provision For Dogs
● The kennel must be warm and comfortable, a home for the dogs and puppies. There must be absence of fear and discomfort for the dogs.
● Equipment for feeding, warmth, cleaning, disinfecting should be available as well.
● The location of the kennel should also be in close range to vets, pet shops and customers.
How Much Can You Sell Your Dogs
The prices differ with dog breeds, age and sex. After checking in on the cost of feeding among others, study the market before you set your price.
Don’t try to breed after every litter. Give the dog time and space to recover and care for the puppies.
This would allow you to care for each litter sufficiently.
Did this article clear your doubts on whether dog breeding is a good business in Nigeria?
If you live outside Nigeria these may interest you so much. Every Nigerian living abroad wants to invest back home. So, I have packaged the best 10 businesses Nigerians in Diaspora can start while living abroad.
Yes, I have carefully looked into how some of these businesses can be done without constant supervision. For those living abroad, you may have experienced how family members or friends squander investment you put them over to manage for you.
So, I’m not going to put you in that situation at all. These businesses are carefully chosen for Nigerians in Diaspora. You can monitor them successfully while still at your based abroad.
How To Start Business As A Nigerian In Diaspora
That you are living abroad doesn’t mean you can’t invest and make extra income in Nigeria. Most of you can’t even return home because you may not be able to finance your trip back to base. But now, I’m showing how you can ensure you live abroad and still make money at home.
The exchange rate is highest in history now. Don’t think it’s ever going to go down. This is your opportunity to earn little abroad and invest better here taking advantage of the high exchange rate.
According to a PWC document, Nigerians in Diaspora would send a total of US$25.5bn, US$29.8bn and US$34.8bn in 2019, 2021 and 2023 respectively. That’s huge money coming back home. And with CBN new policy on forex transaction for Diaspora remittances, you can be sure your money exchange rate is fine.
So, you have the money, it’s time to plan how to invest it securely back home. I’m also going to discourage you from doing investments through family and friends, unless they have experience in investment. Stop giving your money to people who are in financial needs or lack requirement investment experience.
Steps To Create A Diaspora Business
As you plan to invest back home, don’t do it ignorantly. Don’t jump on any offer that looks good. While every business is good enough, there is always secrets how each business works successfully.
Do not neglect the services of experts. Pay good money to get the best guide when starting your business. It’s worth every penny than losing millions in investment. You know the value of using consultants abroad, don’t come back home and be trying to get free information. You are only preparing to invest your money with less professional help. That’s failure in disguise.
I have put together some steps to guide you. Take them seriously, avoid trying to cut corners or do over-sabi.
Do Your Research
Hire A Consultant to help out
Write A Business Plan
Plan Your Finances
Choose A Business Structure
Pick And Register Your Business Name
Get Licence And Permits
Choose Your Accounting System
Setup Your Business Location
Get Your Team Ready
Promote Your Startup Business
How Nigerians In Diaspora Business Works
I want to assume that you will still live abroad but be operating your business in Nigeria. So, I will devise you that you consider the business ideas carefully and select only what is applicable and suitable for you to do from abroad.
The reason for these Diaspora Business Ideas is to help Nigerians in Diaspora to invest back home in Nigeria without returning to help run or manage the business. The ideas advanced in this article are practically businesses that can be better managed or have the Diaspora investor control important aspect of the business from their base.
Another reason is to get you involved in the daily operation of the business. For example, operating a gas plant may look like something you can’t manage remotely. But being the one to handle the purchase of the gas whenever you need supply helps you control sales as well.
List Of Diaspora Business Ideas
Below is the list of carefully selected businesses you can do as a Nigerian in Diaspora. Make no mistakes, don’t go into any of these business unless you have better information to guide you or hire the services of an expert.
Bitcoin Exchange Business
LPG Gas Plant Refill Business
Built To Rent Real Estate
Build To Sell Rea Estate
Car Wash Business
Product Supply Business
Hair Barbing Salon Hub
Fashion Design Business Hub
IT Engineering Business Hub
Bitcoin Exchange Business
Bitcoin is becoming popular in Nigeria now but every transaction is done from sites domicile abroad. Nigerians in Diaspora can tap into this huge potential to provide a trusted exchange for Nigeria on Bitcoin and other virtual currencies.
This business is practically online. That gives you the advantage to operate it from your based abroad.
However, I also strongly recommend that hire a gas consultant. Doing business blindly is the cause of most business failures. There are basic principles that must be followed during startup and if you miss those basics the possibility of the business failure could be higher.
Since the business deals with specific volume and measurements, you can control gas supply from your based, while monitoring daily sales lodgments through your online banking.
Built To Rent Real Estate
This one is not new to Nigerians in Diaspora. It’s been done over the years. I’m only going to add a twist to it to adopt it properly for Nigerians in Diaspora best interest. One other thing that I advocating for Nigerians in Diaspora to do when investing in build to rent business is to develop rental spaces that’s irresistible to the target market.
As a Diaspora investor, creating a little rental app could give you the power of your tenancy agreements and renewal dates. That way you can monitor and know exactly when rents are due, whose rent was due, how much are expected and which tenants have defaulted in their payment.
Instead of giving your building to your family members to manage, get a real estate lawyer to manage your buildings.
Build To Sell Real Estate
Still on real estate business that Nigerians in Diaspora can invest into without running risks of family interference and liabilities. You can build to sell properties. You can build apartments to sell. It’s just the usual but having your own special designs.
Car Wash Business
Car wash is a very lucrative business if done well. Although, the challenge is usually managing it properly with people being in control while you are based abroad. But a friend of mine shared with me his secret of running his multiple car wash business.
You don’t even need to return from the Diaspora to run your car wash business. Nobody does that, believe me. I have explained the new management secret for car wash business. It works for anyone whether you live in Nigeria or abroad. You can’t wait to read more about that HERE.
The current eCommerce business in Nigeria needs more investors. The Nigerian market is in dire need of quality and trusted products. Nigerians in Diaspora have access to these foreign goods that would sell in Nigeria.
There’s a huge market for demand for quality products. You can create an eCommerce DropShipping store to sell anything from overseas, from diapers, soap, creams, etc. All you need is to offer it in bulk purchase to make the offer what the shipping cost. Then, you arrange local delivery partnership.
If this is done better it will be a huge market for basic foreign goods.
Product Supply Business
This one is similar to the Diaspora eCommerce business. The only difference is that it might not be online based. You just find potential bulk buyers of any quality product abroad and supply it. My cousin brings foreign version of some popular soaps in Nigeria.
As long as people can trust your source that’s it quality and foreign you have a business.
Hair Barbing Salon Hub
Now, let me come back to fully home grown option again. This time, it’s not just an ordinary salon. You are not starting a salon business. You are going to rent big shop in a major location in the city, build a standard salon and rent out either the entire salon or per space or seat, as the case maybe.
You are collecting rent as a landlord, while the head dressers and barbers are your tenants. You don’t have to worry about how many hair done per day. You just calculate rent per day.
Fashion Design Business Hub
This fashion Hub works the same way with salon Hub. It’s just for the fashion designers. You also build a well equipped fashion hub with all the fashion machines required to start a cloth and finish it in the Hub without going outside to get any extra help.
IT Engineering Business Hub
This IT Hub is slightly different but works in similar way with all the other hubs. n IT Hub now is mostly targeted at the highly demand handset market. There’s huge demand for handset repairs.
An IT Hub can have its own service parts store and rent out space to technicians who does the phone repairs. That way, you earn money from the space rent and also from parts sold.
Nigerians in Diaspora has suffered so much loses trying to invest back home. They either fall into the hands of family members or trusted friends, who only aim is to extort money from their Diaspora relatives.
It has helped build discouragement and cold feet among Diaspora Nigerians who would have been a large source of direct foreign investment into Nigeria. Most Nigerians in Diaspora has resorted to waiting till when they are ready to return back to Nigeria to fully setup and manage their businesses themselves.
But, I’m not even the only one who feels Diaspora Nigerians shouldn’t relent in trying to build multiply source of income back home while still living abroad. I have also stumbled on a website (HELPMEWAKA.COM) that helps Nigerians in Diaspora to do anything they want to do back home without using their family members.
This year, unemployment in Nigeria has surged again. Due to the pandemic, many residents have been deprived of their usual sources of income. Losing your job is a nightmare, but there are still ways to become self-employed, even with very little or no investment. I’m going to show you how you can start a company with zero capital.
These ideas can help you succeed despite the saddening turn of economic events. Discover five occupations that pay enough to cover typical expenses and make savings at the same time. You can earn money in one of the following ways.
1. Website Design
You can start a company to create websites, using free online courses to acquire web design skills. In this realm, practice makes perfect, so all you really need is a good eye and perseverance. Instead of spending hours on social media, do something that will pay off in the long term. Then, you may spread the word among your friends, place ads on social media, and gradually grow your clientele along with your portfolio.
2. Fitness Training
Being fit is trendy, so why not leverage this trend? People are still crazy about six-packs and athletic figures. Education is also accessible through the Internet. Begin by toning your own body and offer services to other people. Many Nigerians would like to train, but they have no time to visit the gym or no discipline to work out at home. With home services, you will grow your network quickly, as people will be referring you to their friends.
You can also become a fitness blogger on Instagram and make videos for YouTube. This opens up a world of opportunities in terms of advertising. First, if you have many followers, brands will reach out to you with paid promotion offers. Secondly, you may join the YouTube partner program and to get money for every thousand views. Thirdly, you may open side businesses like the production of sportswear. Overall, if you start small and work hard, there are many possible money flow directions.
3. Online Trading
This year, the popularity of trading online has soared. Skilled traders can make money wherever they are using computers or mobile devices. In 2019, Nigeria had the second-largest volume of FX trading on the continent. Now, it is poised to surpass South Africa. Education is free, and global brokers register demo accounts for risk-free practice on terminals like MetaTrader 4.
The idea of trading in the largest financial markets may sound daunting, but most instruments follow the same logic. Your goal is to buy low and sell high. All operations, from initial analysis to trading and withdrawal of funds are done online. All you need is the right software, reliable brokerage, knowledge, and a sound plan.
Entry into the live market is more affordable than ever, and you may open an account with just two thousand nairas (or $10). Forextime offers accounts denominated in the Nigerian currency, so you will save on conversion fees. Discover what is copy trading and delegate decision-making to professionals.
Start with currency pairs like USD/ZAR or EUR/USD. Subsequently, you will add more assets, which boosts profit and lowers overall risks. Beyond Forex trading, there are precious metals, stocks, and assorted derivatives. CFDs allow holders to profit from changes in different markets without owning any physical assets. There are CFDs on stocks, commodities like oil, market indices like FTSE 100, Bitcoin, and other cryptocurrencies, etc.
4. Private Tutoring
Is there a subject you know really well? Why not monetize your knowledge by teaching others? Young students and kids are not the only audiences. Adult schooling is also in demand, as there are older people who have not studied before due to a lack of time or opportunities. The third avenue is preparation for important exams like WAEC, NECO, GCE, and JAMB.
2020 has changed the education industry as distant learning is the new norm. This means you may not even need to leave your home to work. Register on tutoring platforms and conduct online webinars for groups or one-on-ones. Alternatively, you may build your own brand on social media and get clients from there.
5. Freelance Writing
The written word is still in great demand. You may become a copywriter and create marketing materials for companies, as the Internet is the main conduit for advertising today. Alternatively, you start your own blog and monetize it through Google AdSense. Finally, you can become a proofreader and check other people’s work without the need to write anything new.
Look Beyond the Familiar
Despite its rampant unemployment, Nigeria offers many opportunities for those who want to start their business. These five ideas require little or no capital, and education is free. Build your own brand, and it will help you earn money for years to come.
If you want to start a retail cosmetics shop this year, this could be your best chance of learning very insightful secrets of starting a cosmetics shop. This guide is written to help you from scratch.
I will also answer the most common questions anyone who desire to setup a retail cosmetics shops would ask. Like, is this business profitable? What does it cost to start a retail cosmetics shop? Where can one buy cosmetics at bulk prices for a retail shop?
I have provided you with the right answers and the best advise you can follow to achieve success. As a consultant, I’m also available for enquiries if you have questions. But also know that some enquiries may attract consultation fee – just tokens to help me help you better.
How Retail Cosmetics Shop Works
A retail cosmetics shop is the last line of the cosmetics business before the products ends up in the hands of the end users. There are different lines of action in cosmetics business, from manufacturers, importers, distributors, wholesalers, to retailers. The retail shops is the end-point for cosmetics products.
In a nutshell, a retail cosmetics shop buys products at a hugely discounted price from either the manufacturers, importers, distributors, or wholesalers and sell at retail prices to end users.
Apart from retailing cosmetics products, a retailer should have a better understanding of both the products and the needs of the consumers. That way you can prescribe the right cosmetics to help your customers solve their beauty problems.
Is Cosmetics Shop Profitable?
The first question you must find answer to when starting a retail cosmetics shop is how profitable can the business be? And also how you can make it profitable for yourself. It’s one thing to know if a business is profitable, which in most case is usually the situation. Like, every business is profitable, but a business may not be profitable for someone for some reasons.
So, finding how to make the business profitable for you, should be the right question that you must find answers to. That is one of the things I have provided you answers within this guide.
Cosmetics business is profitable generally. How profitable it can be for you depends largely on certain factors, your location, target market, product efficacy, and price point. The best way to understand the profit potential of retail cosmetics shop is the markup, which is between 30 percent to 300 percent. I will explain it well in my conclusion. Now, let’s finish with the steps first.
Be An Apprentice For Few Months
Make no mistakes, what you know about cosmetics business will be the only reason you will start off successfully or not. And it’s not this article that will teach you that. What you will get from here is the know-how, but it won’t be dealing with the current market realities of the business at the time you are setting up your retail cosmetics shop.
So, I recommend you become an apprentice to another retail cosmetics shop to learn more about the business, especially regarding the location you want to start the business. What you will learn as an apprentice will help you understand the business dynamics much better.
You may need to pay to become an apprentice for just a few months, like 3 to 6 months period. But know that the mentor may not want to teach you everything he or she knows about the business. Be smart to learn even when no one is teaching you. Also be aware that most of what you learn as an apprentice is based on what you saw or experienced. Take note of these two events as you learn.
Make A List Of Suppliers
While you are learning as an apprentice, one of the things you must endeavor to do is find where your boss is buying cosmetics products from. These contacts would help you when you want to start. It will also help you to learn how much your boss buys and how much he’s selling to make profit. It gives you an idea of the profitability of the business based on markup.
Your boss may not want to give you these contacts, but pay attention to details, listen in into phone calls when he is ordering or enquiring from suppliers. Ask others who are in the business to know where they buy from too. And visits some of the markets listed in this articles to meet with suppliers.
Write A Business Plan
Now that you have undergone apprentice for some months, you should have a grasp of how this business works and how you can make your cosmetics shop profitable. So, it’s time to write how you want to do your business differently.
Your business plan should address important aspects of your retail cosmetics shop. It should help you articulate the types of cosmetics you want to retail, who your target customers should be, where to locate your shop, how much you require to get started, what your retail prices should be like, how you intend to market your products, etcetera.
Pick Your Niche
If you have decided almost everything in your business plan, it’s time to take the plunge. Define your cosmetics shop niche. As a startup, don’t make business complicated for you. Pick a niche to start and add more as your grow, or as market demands.
For example, you can choose to start with a particular brand or with just creams and soaps, or with perfumes, or makeup kits, etcetera. Start with the one you know and understand the most. Once you are in the business you will learn more and be able to move to what sells the most for you.
Plan Your Setup Cost
Your setup cost is a product of your plan. This cost is personal to you. You must put it together. Nobody knows what you want to do more than yourself. But this is how I can help you know what your setup cost should be.
Start by inquiring on the cost of shops in your target location. That’s your first cost. Write it down as cost one.
Also, you should have made a list of cosmetics products, based on the products that are either selling more during your apprentice days or have better market potentials. In your list you should have both their retail prices and cost prices. Add carton orders to each product to get the total. And that’s your second important cost.
Other things you need to put into your cost consideration includes:
Interior decor cost
Power supply generator cost
Marketing and advertisements cost
Staff requirement cost
These things you can find out and at a cost prevalent at the time of starting your retail cosmetics shop.
Find A Shop
Once all the cost have been put together. You know what all that’s required would cost, it’s time to start implementing each of them. The first step here is finding a shop in the target location defined in your business plan.
Your shop will be where most of the sales take place. Retail cosmetics shop is a location based business. So, the best location must be your goal when looking for a shop. Here are a few tips to help you pick the right location for your retail domestics shop.
Know your target customers too well
Pick a location that’s easily accessible to them
Pick a shop that’s visible from the road
Buy Products In Bulk
For a retail shop, you will be buying stocks in bulk to sell at a good profit margin. That means you should know the contacts of either the importers or wholesale distributors. These are suppliers to buy your cosmetics products from.
However, if you know the distributors in your city that might be helpful to save you cost and time, try to connect with them. If you did the apprentice I advised you to do, this would have been sorted out while you were an apprentice. If you didn’t, then you have to do it the hard way.
Trade fair complex in Lagos is a major business hub for cosmetics importers and wholesale distributors. You can start your search from there. Other major markets for cosmetics are Onitsha main market and Cemetry road in Aba. Suppliers abound in these markets.
Most Profitable Cosmetics Products
No matter what products you stock, there are those that would make you profit and there will be those who would just seat on your shelf and gather dust. Pick your products wisely.
During your apprentice, make the list of the best top 10 or 20 selling cosmetics in your target market. They should be among the products in your list for startup. It’s not the wisest decision but a good place to start.
Another thing to consider when buying cosmetics products is the product and the retail margin. It’s okay to just stock every well known products, but it’s smarter to pick some unknown products that can deliver on their promise. New products have higher profit potentials than already known products.
Marketing And Advertising
Sometimes it’s difficult to try promoting a retail cosmetics shop, if you sell the same products with other competing shops. But you should not discount advertising from your business. I built my retail cosmetics shop on Facebook advertising.
My secret is simple, I have a new cosmetics products, and I was also the distributor in the city. I leverage on it. Although, it wasn’t the idea from the beginning. My target customers, which are other retail shops were not patronizing me because the product was new. I had no choice than to try to sell directly to the end users.
Advertising worked best for me. From no sells I moved to 3 customers per day, and then 5 per day, until I started seeing much customers per day.
Don’t discount marketing and advertising. Find a way to leverage it for your retail cosmetics shop.
If you subscribed to apprentice you would be well informed about the profitability of retail cosmetics shop. When I started cosmetics, my best idea was to become a distributor for a cosmetics company in my city. But when I got one, I realized while I was making N1,000 per carton of cosmetics I sold, the retail shops were making as much as N20,000 from the same carton.
Although, it takes me little time to sell a carton, but until those retail shops sell off the carton they won’t be coming back for more. So, I wasn’t in a better position than them.
Also, your shop location is a major key. If you make this mistake, the business will struggle until it will eventually shut down.
If you want to setup a bakery business, even if you don’t know how to bake, here’s your step by step guide as a Beginner. In Nigeria, bread is one of the staple foods. That goes for all the bakery products. They are now staple in our lifestyle.
Sometimes the challenge is the thinking you should know how to bake before you can venture into bakery business. To start a bakery business, you only need to think like an investor. However, having the knowledge of baking is an advantage.
The market for bakery products is very huge and competitive as well. But you can choose to stand out with your own delicious recipes. Anyone can win in the bakery market. It’s not a first come takes all. A new entrant can sweep the entire market to its favour if you know what to do.
Understanding Bakery Business
Bakery business involves the production and sale of food made out of flour and prepared in an oven. These foods include bread, cake, pies, cookies, biscuits and pizza.
The bakery business is interesting. It involves a wide variety of products. Some bakery industries specialise in a collection of flour-based products while some only specialise in just one, for example, a bread bakery.
As a beginner, bakery business is lucrative and gives you a certain freedom to an extent to work from your home. If you’re a huge fan of baking and work-at-home jobs, you can start a bakery business at home even as an online business.
You can also transform your kitchen or garage to a mini bakery and shop with tables and chairs to accommodate those who want to sit and eat.
Tips On Setting Up Your Own Bakery
#1 – Get started with the kind of shop and business you want. Take your time with this. This step involves your view and the idea of your bakery. What does it look like in your head? Sketch it out.
Do you want to work from home?
Do you think a shop is the best for you?
What are your preferences?
What are your ideas?
How do you want your bakery business to be?
Answer these questions yourself to help you figure things out.
#2 – Make a plan, like every house before it’s built, and every business before it starts, a plan must be drawn. If you can do it yourself, get a business consultant to do it for you. Once you have figured out your strengths, weaknesses and preferences, write them down. Draw it out. More than keeping them in your head, it’s better to have a sketch on paper.
This plan should include your start-up cost, the amount needed to start your business. Also, include the specificities of your business. These include the products you’ll be making, their prices or price range of you don’t know it yet and all the equipment you need to start your business.
#3 – Map out your pricing plan. Formulate a plan you’ll use to figure out the price of each of your products. The factors to consider when choosing a price should include the time spent preparing the product, the price of ingredients, the time spent publicizing your business, and packaging.
Time is money. The time spent on a baked food or a batch of baked foods should be accounted for.
#4 – Find a space. Your space is your kitchen or garage if you’re working from home. If you would be owning a shop, be patient and be selective in your search for the perfect one. The right space should pay for itself overtime.
#5 – Marketing: Before you start baking, especially if you’re home-based, announce your business to the world. Or your community at least.
Use mouth to mouth and person to person mechanisms to inform people of your new bakery and the kind of goodies you make. Make sure you accompany your talk with beautiful pictures of your goods or printed flyers.
You can also spread the word via social media platforms like Facebook, Instagram and WhatsApp.. Send digital flyers to your friends, family and followers and make them send it to their friends and followers too. To further brand your bakery and increase your publicity, open social media accounts for your business.
#6 – Storage: A fridge or freezer is important in your bakery business. Baked products need to be preserved because they have a short lifespan which can only be extended by freezing them.
Buy the right cooling storage system. The regular home fridge may not be most ideal. But if that’s what you have , ensure it’s the type that has temperature control. Baked products have their proper cooling temperature for storage. Avoid letting them freeze above the required temperature.
Startup Cost And Requirements
The start-up cost of a bakery business is required to cover the necessary pieces of equipment, ingredients and the cost of a shop (if you would be getting one). The start-up cost depends on how large you’re starting. If it’s a small in-house business, it would cost less and the opposite for a larger business.
Pick your cost level based on the size of the bakery business you. If you are starting small, know what’s needed and invest only on such equipments for a small startup. You can upgrade as the business grows.
Types of Bakery Equipment
There are several pieces of equipment used in bakeries. The following are five classes of bakery equipment:
Cleaning Equipment: These includes equipment used to clean used and dirty equipment. Examples are dishwasher, soap and sponges.
Preparation Equipment: The equipment in this class are the ones implemented in the preparation of the baked goods. Examples are mixing bowls, cookie cutters, electric whisks, spatula and tables or boards for kneading.
Baking Equipment: This includes equipment used in the baking process. They include baking tins and trays.
Exhibition Equipment: These equipment are used to exhibit baked goods. They include display containers or boxes and display racks.
Storage Equipment: These are equipment used to store ingredients and baked products. They include freezers for perishable items and shelves for non-perishable ones.
Types of Bakery Products
The number of bakery products is inexhaustible. More new pastry ideas are being created everyday. You too can create yours. However, you can also explore some popular local pastries around the world and give your customers something new.
There are many types of bakery products but below are just a few popular ones.
Highest Demand Bakery Products
The bakery products with the highest demand are bread and cake. Bread is a popular choice of food eaten all over the world. Bread can be served in different ways and with a variety of accompaniments.
Cakes are consumed as desserts, breakfast and during celebrations. But depending on your target customers, the best products might not be bread or cake. For example, if your target customers are people planning events, pastries like small chops, buns and cakes may just be what is best offered to them.
You just have to identify your own best bakery products based on your target customers.
Challenges of Bakery Business
There are many challenges of bakery business, from setup cost to picking the right location, and creating the best user experience. But the top three challenges that stands out are about staffing, waste management and customers knowledge-base.
Getting The Right Staff:
The staff of a bakery is as important as that of any business. The staff is needed to serve customers, produce baked products and do deliveries. A bakery business with few staffs than needed would need to source for more.
Waste is one of the major challenges in a bakery business. Scrapings from cakes, leftover pastries and dough are some examples. To prevent wastage, cake scrapings can be sprinkled as toppings on cakes and the leftover dough can be collected and used to make an additional baked product or frozen for later.
Customers with little knowledge of gluten-free products:
This may come as a challenge to a bakery since most people wouldn’t buy what they know nothing about. This challenge can be curbed by letting the staff (waiters) briefly explain what it means to the customers.
Digital Marketing For Baked Products
It’s more easier to promote your bakery business using digital platforms. It creates even the best word of mouth of publicity that you need. Moreover, with location based advertising you can reach only those who are within reach to buy your bakery product.
You can find a lot of bakery marketing ideas online. Most bakery businesses explore the potentials of Instagram, Facebook and WhatsApp. You can also expand it with a website for quick ordering.
Selling baked products online makes it easier and faster for customers to make a choice of what they really want from the collection of finished bakery products you post online.
Starting a bakery business is profitable, interesting and satisfying. If baking is something you love to do, owning a bakery business means you get to do what you love every day.
However, whether you can bake or you just invest in bakery ideas, horn your skills well and create mouth-watering baked goods with varieties. Customers love to change their taste. Create bake products that doesn’t exist before.
Finally, don’t be afraid to venture into unknown territories of the baking world. You can create eating areas for customers who would love to just take a seat and enjoy some pastries and a chilled soft drink. You can’t go wrong with great ideas for your bakery business.
Do you want to start a blog? I would recommend you start a successful niche blog. In case you don’t fully know the benefits of a niche blog and how you can grow this type of blogs faster than general blogs, I will be showing you things you need to focus on more.
Starting a blog today is no longer an easy job as it was some decade ago. A lot of Nigerian bloggers are struggling with generating traffic for their blogs. The reason is not that blogging no longer works, but the game has changed. Even the SEO techniques has shifted from on-page to more of off-Page.
It takes a lot now to grow a blog. And the way search engines treat blogs now, it’s difficult for general blogs to grow their traffic faster than a niche blog would. That’s why it’s in your interest to narrow your niche and help Google understand your blog and help you grow faster.
There are many reasons you should start a niche blog instead of general blogs. I know most startup bloggers think that writing on every topic increases your traffic. That’s a farce.
Having a general content makes it difficult for Google to properly rank your site under one topic. It would rather treats each post as a single topic, reducing the impact each post could have on the entire blog, since the contents are not directly related. That affects the traffic you get from the search engine too.
I’m going to break it down for you, in a way you will understand and take advantage. Most importantly, I will also remove the fears many have in starting a blog. Yes, blogs are still the fastest way to gain online relevance, as social media networks are now censoring and reducing the reach of users posts.
What’s A Successful Niche Blog?
Niche blogs are specialized blogs that addresses only a particular niche. It’s like a question and answer approach. So, a niche is the problem you want to solve with your blog. This gives you advantage with search engines.
Your blog is easily categorized in search engines and that shoots it up through the page-rank faster than general blogs. Your blog is only competing with other blogs in the same niche, which is limited, and not with all the billion blogs on the internet.
Examples of a niche blog are too many to ignore them. There are countless niche blogs online that you won’t have a problem finding your kind of niche to learn what other Before have done.
And you can easily know what niche would flow with you by knowing what natural type of intelligence God gifted you with. If you have a hard time figuring it out, I recommend you read this: 9 Types Of Intelligence In Smart Entrepreneurs.
A niche blog is an information resource targeting at a particular audience with a focused need. It deals on a specific topic or content. Although, everybody has a different idea of what a niche should be, but that doesn’t change the fact that a niche is addressing a specific topic.
So, choosing the topic of your niche and focusing on that topic, by addressing every sub topic that exist in that niche is what makes a niche blog powerful. It’s like a compendium of specific information.
For example, football is a type of sports. It’s a niche in the sports arena. Doing a football blog is a niche. However, a football blog can also be a general blog when you now look at blogs that deals with only players transfer market, or fan clubs, or betting, etcetera.
Finding A Niche For Your Blog
In picking a niche for your blog, it’s not entirely a straightforward approach. Even after you select your niche, you still need to calculate the traffic volume, the revenue model and conversion funnel.
However, you don’t have to be a pro blogger to figure it all out. You can follow what existing blogs are doing well, and you will be just fine. The first step is in finding a profitable niche is finding your niche. It matters what you have enough motivation for.
Don’t do news blog if you don’t have the flare for news media. The same goes for gossip blog, etcetera. Remember, blogging is like teaching, you stay with the subject you are best at. That’s the only way you can create the best content and win the best endorsements from sites with higher domain authority.
Avoid trying to jump into niches that seemed to be attractive or profitable. The game of search engine traffic is changing everyday. It takes more efforts now to win in the online traffic war than was possible in the past.
Tips On Profitable Niche Blog?
To find a lucrative niche would largely depend on your target audience. The most profitable niche blog is that blog that provide answers to problems most people have in a way that’s helpful and easy to access to their benefits.
Nigeria is a complex online community. Most of what drives blog growth are freebie blogs. That’s why blogs like free music download sites are gaining momentum. But the real problem is also how to monetize them since bloggers don’t usually have copyright to those songs.
If you are to go by Google standard of a profitable niche, then you can just add problem with number of people who are looking for solutions online. Also know that it’s not every problem have large number of people looking for its solution online. But generally, any problem with large number of victims would make a profitable niche blog, and finding such problems won’t be difficult.
For a profitable niche blog, your concern should be to find the problem that the victims are capable of paying for solutions. Google search is built as a way for people to find solution or answer to their question. If your solution is worth money that’s a way to gauge the power of your content with search engine approval rating.
A comprehensive answers on a blog to a niche problem would get more searches than those in a general blog. You don’t need to start looking for a profitable blog in a niche you know nothing about. There are problems everywhere and you can find one that you are qualified to solve.
Focus On The Right SEO Techniques
In SEO, it’s a give and take kind of thing. You give the best solution and you get rewarded with more traffic. But there’s a lot that helps make that transaction possible. It’s not just about the best content wins. The battle is now beyond the cliche ‘content is king’.
That phrase ‘content is king’ is getting a new definition. Your blog also needs to be endorsed by top internet sites. Yet, it’s more so like how it operates in the real world. If you get endorsement from the big companies you can get virtually anything done in the business world. Google thinks that way with its search algorithm.
You can do your best in on-page SEO, but if your off page SEO sucks, you still can’t get much of a traffic from search engines. I made this mistake for over 2 years, working mostly to perfect my on-page SEO. But when traffic stagnates at the same level for more than one year, I knew something else has to be done. You don’t have to wait that long to find out the truth.
However, most of what you do to optimized for on-page SEO is now being done for you by Google algorithm. The search engine understands your content now more than even your keyword is trying to make it see. And because there are billions of other sites competing, Google pays more attention to site endorsed than your on page SEO.
How To Do Off Page SEO Right
The reason for off page SEO is to get the much needed endorsements from other sites. Think of it this way, that you have a book and CNN, BBC, Bloomberg, New York Times, etcetera are reviewing it on their networks. That’s a huge endorsement that your book is a best seller, and that would translates to more sales.
That’s pretty much what happens to your search traffic when big sites link back to you. Although, some are still thinking backlinks as in quantity. But Google values the site quality more than the number of backlinks you get from many sites. If you get more high quality backlinks that’s a huge win over your competitors. That’s how fast to get to the first page of Google ranking.
The theory of backlinks is based on MOZ domain authority ranking, which rate sites from zero (0) to hundred (100). The higher the number the more authority that domain commands. One backlinks from a site with DA 80 is more valuable to your site SEO than hundreds of backlinks from sites with DA 20.
How To Get High DA Backlinks
If you understand the power of backlinks, you will also know that it doesn’t come so easily. You are not going to get backlinks from sites like Amazon, CNN or New York Times just by asking. Don’t listen to the gurus. Those theories they preach doesn’t always apply to everyone.
Think of backlinks as a growth formula. If your site is still low in domain authority, start by attracting backlinks from site with much higher DA than yours. It’s a journey you are undertaking. So be patient to follow the routes.
Alternatively, don’t ignore this one as well, pay to get backlinks. I know it’s not something to say openly. But it’s a common thing happening online. People are selling backlinks. It’s a huge business. As Google tries to limit the use of paid backlinks, sellers are getting smarter and successful.
There are so many sellers on Fiverr where you can buy backlinks. Okay, don’t fret, follow this link to Fiverr site. I don’t recommend any other platform because it’s also so easy to get conned by spammers who sell bad backlinks.
Blogs don’t just grow online. It requires a lot of online traffic to grow. Unless you are willing to Invest enormously in advertising, then your best source of traffic is the search engines. To get search engines to trust you and send you traffic you have to play the search engine game.
While niche blog gets approval from search engines as authentic resource for that particular niche, you also need to prove that your blog overall content can be trusted. That’s why you need backlinks as online endorsement from high domain authority sites.
If you get things right fast enough, your blog grows. The idea that if you have many blog posts it’s faster way to grow traffic is not entirely true, but it does help. One blog post can get you more traffic if it has highest DA rating than all the entire traffic from Washington Post.
If you are thinking of investing in Nigeria this year, you will need to know how the market works now and be guided on your investment. This year is gone, over half of the year and a lot has happened already, with the pandemic still ravaging the economy. There’s so much to understand about the state of the economy in the first ever startup Nigerian Investment guide.
Nigerian investment Guide for this half of 2020 is to look at what the CoronaVirus pandemic has reduced the economy to and how investors can maneuver themselves through this stormy waters.
There’s hopelessness in the country right now, coupled with government reckless display of inability to tackle the pandemic or pilot the country out of the economic woes that’s staring it in the face.
New startups may have serious challenges taking off this year, even into next year. And that’s not good for the economy. In a time more businesses closed up in history, startups should be a reviving steps, but that’s not even happening now.
However, the marketplace is not shut down. There’s still growth, even though small. Investors can look in the direction of this growth and still maintain cash flow.
How Startup Investment Guide Works
As a business review site, we are determined to guide both local and foreign investors who are interested in investing in Nigeria. The idea is to explore new growth areas and show investors where there maybe hope for their survival in the economy.
Nigerian Investment guide is no a political tool. Although we may look at what government is doing right or wrong, but that’s usually not mandatory in this report. We try as much as possible to stay clear of politics. And when we do, it’s not a smear campaign or to boost party affiliation.
The primary focus is always to protect the Nigeria investment environment, and to help startups and small businesses navigate the stormy waters of our economy. Everyone knows how bad the Nigeria economy was before this pandemic. So, not much is expected from this government, in terms of handling the situation.
If there’s any good development from the government, it would come as a surprise. However, much of what NCDC has been up to seems like a televised script. There’s little or no Nigerian content in it to help it overcome the pandemic. NCDC should be looking at our cultural, religious and tribal characteristics of an average Nigerian.
But what has happened is NCDC making decisions in the morning and changing it by noon. So, there’s no particular proven approach being implemented since this pandemic.
What Is Happening In Nigeria Now
The Nigerian economy is facing its worst challenge in history. That’s why investors should be careful. The stock market will keep crashing, because there’s no real market developments to sustain stock growth. Any investment in stocks now would be to amass share volume to be held till when the market would rebound.
Import business is also suffering under this pandemic, with dollar rates spiraling almost out of control, even now that consumer spending is waning. People will not be able to keep up with increase prices of imported goods. That would result to lower demand.
Generally, money will be in short supply, and government would attempt to horde cash flow by awarding fewer contracts and suspending salaries of workers. A dangerous twist, but due to lack of an economic policy, government will seek to horde more money than spend more.
Navigating the slum of the riverine community
If you look at what the United States government and other European governments like Germany had been doing, is to increase liquidity of the economy by pushing more money into circulation. But Nigerian government will do the opposite or push large monies into some private pockets instead.
Consumer Spending Power
If there’s anything that is grossly affected now, it’s consumer spending power. This power is important in any economy, and Nigeria shouldn’t be losing it now. The government should be focused on how to sustain this power from waning out.
It’s not only the people that would be affected, the government would become poorer, unproductivity would increase and people’s needs would outstrip supply. And that would lead to a higher negative GDP as well.
I once advised a state government on the need to pay salaries regularly and as at when due. They are killing their state economy when they don’t pay salaries. It’s even wiser to borrow to pay salaries. But not many people in government understands the economics of paying salaries.
They think it’s wisdom to hold onto workers salaries. It’s the worst policy of any government. That’s why the Nigerian economy or any state for that matter is not growing. There’s no mystery in economic growth than in consumer purchasing power. Every level of government in Nigeria should focus on that.
Sometimes it’s erroneous to think that creating new jobs is the only solution. But how would new jobs be created when consumer purchasing power is low or non existent? State governments in particular should stop making excuses for payment of salaries if they want their state economy to grow.
How Money Is Circulating Now
For any economy to be growing, money must be exchanging hands. Currently, there are just few means through which money is being exchanged in this country. And that’s a major problem. The economy won’t show signs of any improvement until these area is reversed.
Government needs to reopen the country fully. There’s so much ignorance on the virus. And until government stops playing politics and starts growing the economy back, it’s too risky to invest in Nigeria now.
If you take a look at some of the biggest drivers of cash flow in our economy, you will see that they are all dormant. Almost a quarter of the population is in the educational sector. The money that circulates in that sector is a big part of our cash flow economy.
The other sector is workers, both in private and public sectors. Government being the largest employer of labour in the country still has more than two-third of its workforce at home. And since no impactful palliatives was given to these workers, majority of them may never get salaries paid during these period.
You can see, and it’s not just these two sectors. There are many other sectors having the same issues. If money is not circulating from the consumer to businesses, how can the economy grow back?
Nigerian Employment Percentage
The number one investment in Nigerian is employment. I consider employment as an investment because it’s a major source of income for most families. The percentage of Nigerians in employment is over 76 percent of the 200 million population.
You can’t ignore that large percentage. It’s huge and it means that more Nigerians are in dire financial circumstances that could crash our economy. While the remaining unemployed 23 percentage plus depends on the employed ones for survival.
Imperatively, if these percentage are now under salary scare, what’s the hope of the economy? We are indeed in a middle of a pandemic that’s worst than CoronaVirus. The only thing defending our economy is our local market structure and small businesses.
The Diaspora Challenge
One major Nigerian Investment that’s suffering as well is our Diaspora imports. International flights are shut down and not more Nigerians could be sent abroad.
Nigerians living outside the country are a major revenue earner for the country. So much cash flow coming from Nigerians all over the world into the country has been a sustaining power for our economy.
Although, this time it was affected but we saw the power of Diaspora economy as many communities got palliatives from their people overseas. Billions of naira flowed into this country. But guess where most of it went, food.
However, there will be less inflow from Diaspora economy this year. Nigeria is not the only country facing this pandemic. Our diaspora economy is also facing CoronaVirus pandemic. There are job issues where they live too. And less income is expected to be generated as well by Nigerians in Diaspora.
Most families in Nigeria depends on this inflow from the Diaspora, especially in the rural areas, where our parents live. And since there’s a cut in Diaspora money, money is going to be in short supply in our rural areas.
Making Purchasing Decisions
As this trend continues, consumer wants would become regulated. Not by choice, because of their limited financial resources. Even for those whose income may not be affected would also regulate their purchases.
One thing that’s present in a situation like this, is the penchant for fear. There’s perplexity of nations, and so, many will lose hope in the present and even in the future expectation for market rebound.
Consumers are going to be making purchasing decisions that only addresses their most important and urgent needs. Things like food, health and shelter would remain paramount in the list of preference.
The scale of preference won’t favour luxury goods. There would be major reduction in tourism and entertainment. And consumers would resort to self help where necessary.
How Investors Should Be Thinking
In Nigerian investment guide, I try to look at investors both as individuals, corporate and government. In this special COVID-19 guide, my main focus will be on how government investors should be thinking.
Every state government should be looking at ways to grow its state economy. And the best way is to increase employment in the state. But there’s a way investors think, and government need to think like investors to attract growth.
For a big company like Nestle to invest in any location, it’s primary focus is the consumer spending power and not just population. Sometimes, smaller states think they don’t have anything to attract big investors. While investors don’t just look at one state, they also see the neighboring states markets.
If you grow your consumer spending power you will attract the big investors who would use your state as a launchpad to target neighboring states markets. The key is for a state government to ensure that a larger percentage of its employed workforce get paid regularly to increase is consumer spending power.
Who’s not thinking about Nigeria
Retail Industry Will Continue Booming
One good news in this whole pandemic is the retail industry. It has a sustained growth than any other sector. People will continue buying and selling. Although, the volume may not be higher compared to pre-COVID era, but the margin will be sustainable for businesses.
The visits to the markets would increase as well. More consumers would consider buying from the main markets as a means of saving cost of living, while the online market would suffer as a result.
Almost every product on the market has increased its retail price. While value may be affected, as companies struggle to compete over the available consumer expenditure. The kind of value that would be affected won’t be quality but quantity of what the old price offered.
Investors should focus on these markets to push their products into the hands of consumers. These markets still remains as Nigerians offline network for buyer’s and sellers. Take advantage of them to sell more products.
You can use the distribution network system of networking your goods across the country, using other people’s money and leverage on their existing retail network and customer base.
How And What To Be Advertising
I have read some experts asking businesses to increase their online advertising budget and not reduce it. That’s a big deception if I must say. If there’s any reason to increase your advertising budget it would be to build hope in the marketplace.
Advertising is majorly a tool to increase awareness and sales. The majority of the consumers are prioritizing their meager income now. Most online users now resort to using Facebook free mode. They won’t even see your product picture or video ads.
The only thing consumers wants to hear now is how to get out of this quagmire. Do you have any solution, now is when to try it. MTN did something interesting. They gave their subscribers 10 free sms daily to help them connect with love ones. That’s a noble idea. It can increase sms usage and revenue for MTN like it did with me.
Imagine if Nigerian banks decided to give back some cash to their customers during this period. I don’t think our organizations know how to perform social responsibility marketing. They believe so much in lobbying government than winning over the consuming public.
In this first review of startup Nigeria investment guide, I made it easier to understand Nigerian market outlook in a pandemic era. What’s happening now in the market was never expected. No one saw 2020 as a year of the virus, but that’s everyone’s experience now.
The markets are crashing for most stocks. Consumer purchasing power is failing rapidly and without restraint. Supply is also drying up for most needed items, even as the global market is experiencing its worst production cut ever.
Most factories are shut down, including businesses, worship and entertainment centers. International tournaments and events were either postponed or taken online were its applicable. And the world changed this year, but not just the Nigerian investment outlook for startups.
Hotel business is profitable when you start it well. And it starts from knowing how to build a hotel that works. You need to understand what are more important if you must get it right. I have outlined some of the most important steps for you to take.
One thing you must avoid when you want to build a hotel is taking advise from your friends who are not experts in hotel building. A lot of young investors do this often. They listen to what their friends, old school classmates, neighbors and beer parlor friends has to say.
It’s not every advise that’s useful when you are investing millions into a project. Especially for business that may not be corrected when the mistake has been made.
Think of how to build a hotel as treating a patient who’s sick of a contagious aliment. You have to follow a particular prescription to get the right result. Also, only a trained physician should handle such sick person. The same way, when you want to build a hotel, use only qualified professionals.
For example, in building construction, their are construction engineers that specializes and understand how to build hotels. You should not use just any engineer to build a hotel.
Hotel Market In Nigeria
When building a hotel, the first consideration is to know how big is your hotel market. How many hotels are already operating there? Who are their target customers? How well are they serving the market? Could you find an untapped customer segment there?
No matter what type of hotel you want to build the approach is the same. If you don’t apply the right approach your result maybe skewed. And in this article, I have laid out in a simple way how you can build a hotel from scratch.
However, the concern of most people who want to venture into hotel business is that there are too many hotels already. How true is that? Let’s have a look at some of statistics of some of the states and topmost destinations hotels in the country. I have the top five below:
Lagos has 25 five star hotels and 2,500 other hotels
Abuja has about 10 five star hotels and 700 plus other hotels
Port Harcourt has about 5 five star hotels and over 400 other hotels
Ibadan has about 3 five star hotels and over 350 other hotels
Calabar has about 3 five star hotels with over 250 other hotels
You can see that Lagos has the highest, with over 25 five star hotels, and about 2,500 other hotels in the state. If you pitch that to the over 20 million population in Lagos state, then, we still have huge gap for hotel business in the state.
5 star Sharaton Hotel, Ikeja-Nigeria
The same goes for the other top four destinations for hotel business. And if we review all the other states in the country you will realize that there are actually less hotels in the country than most people think. There’s still huge investment potential in hotel business.
Tips To Start Your Own Hotel
If you intend to invest in hotel business, don’t listen to side talks. Build a hotel if you want to. The business is still very much viable, and it’s not saturated as many people think.
If you have doubt, make enquiry from the hotel licensing authority in your state to get the full picture of current number of hotels in your state. Hotels renew their licence every year. The licensing board would give you an idea of functional hotels. And most of these hotels are just chalets, not full fledge hotels.
There is really not so much hotels as some people think. That’s why I broke it down for you above. In fact, most states don’t have five star or four star hotels. Even if you think others are already saturated, what of four and five star hotels.
I have carefully compiled some tips to help you build a hotel of any size in Nigeria. Let’s take them one after the other.
Package A Hotel Business Plan
To build a hotel, its most advisable to have a hotel business plan. Don’t assume you know all the details you need in the hotel or what you want to build. It may be clear in your head but not to someone else.
A hotel business plan would help you understand the right kind of hotel to build in a target location. It will identify the market, customers, demand, service expectations and estimated cost of investment.
You should not build a hotel without first packaging a proper hotel business plan. And it has to be done by a hotel consultant. A proper understanding of hotel business is required in packaging a hotel business plan that covers all the important elements of building a hotel.
Another factor that’s important in packaging a hotel business plan is funding. Finding the right investors or accessing financial institutions with investment interest in hotel and hospitality business is part of what the business plan will help to sort out. So, your hotel business plan should also be helpful in finding the money to build a hotel.
Find The Right Size Of Land
The next step in building a hotel of any type is to find the right size of land. Hotel business is a location based business, therefore, you need a land where to build a hotel. Inasmuch as the location of the land is important, the right size of land for the type of hotel you want to build is equally more important.
If possible, work on the design first before acquiring the land size to accommodate the design plan. But the only reason it’s better to acquire the land before design plan is to enable the architect design the hotel based on the shape and topography of the land.
The right land size takes into account all the elemental features of the hotel. For example, if the hotel is going to have a swimming pool, what land size should the pool take? The size of land and it’s topography can affect the design.
Another important element of the land size decision is the car park. How many cars can park inside the hotel premises? This can take considerable amount of land space, based on the number of rooms and guests expected at the hotel at any given time.
How Feasible Is The Location?
After you have found the land, don’t just start to build a hotel without assessing the viability of that location. One thing you should know about business is that any business is profitable based on two important factors. One is demand and the other is accessibility.
Ones you identify demand in any business, make sure you make it easily accessible to the target customers. And that’s where location comes in. The viability of your location is determined by the demand and accessibility.
Although, business is not a good friend of assumption, you have to conduct a proper feasibility study to ensure proper analysis of the demand and accessibility for your target customers.
That’s why some hotels locate close to airports. The idea is to target those coming into the country or the city through the airports. If you noticed, customers who use the airports are often in need of a hotel for lodging. And to build a hotel close to the airport is to make it easily accessible.
The bottom line here is for you to priorities location assessment when you want to build a hotel. Don’t ignore it. Hire a hotel consultant to conduct the assessment for you. It can cost between N500,000 to N1,500,000 for a proper location viability assessment report.
Draw A Hotel Building Plan
You can’t build a hotel without a building plan. Hotel business is built based on classification. You have to know which class of hotel you want to build before you start building.
Once you have decided the classification of hotel to build, the design drawing should be next, to put that idea into a practical design. The architect should be experienced in hotel design.
Some architects specialize on homes and office buildings. Some are good with churches and mosque design. While some are just good with bridge and monumental buildings. A hotel design architect should understand the different classes of hotel buildings.
You build a hotel based on the class of the hotel. And for each class the cost of building, amenities to be provided and decoration is what determines the cost of building. So, pick wisely and design based on your hotel class.
However, depending on the class of hotel the cost of drawing a hotel plan also differs. You can get a hotel building plan drawn for the cost of N1,500,000 to N5,000,000 within Nigeria. If you want foreign architects to be involved it might cost over N20,000,000 fondue to exchange rate disparity.
Cost of Hotel Building Materials
Cost is a very important element when you want to build a hotel. Avoid this madness in using estimates. Don’t try to surprise yourself with wrong estimates. Also, if a contractor brings you a rough estimate, just know that you are going to lose millions that should have been saved.
The right way is to get the building plan costed by an experienced engineer. Costing looks into some many factors like, the numbers of blocks required, cement quantity needed, exact number of roofing sheets, flooring cost based on thickness and mass of gravel required.
I’m giving you an insight just for you to know that estimate and costing are not the same. Costing would give you like exact number of blocks required and cost of each block. While estimate would give you an approximate number of blocks required.
Both are not the same. You should go for proper costing to get the exact idea. Moreover, you don’t need additional cost to get the cost of building a hotel. It should come together with the design plan.
Any good design should come with cost of building together. A building plan without costing is just a drawing. And probably the architect doesn’t know his job. Or you paid for a drawing and not a building plan, which can be cheap too.
Hiring A Construction Company
To build a hotel you will need a building contractor. It’s usually advisable to use an established hotel building/construction company. This kind of companies should have everything you need to build a hotel.
It also saves you cost of building. If you use different people or contractors for different aspect of the hotel, each one of them will be looking for higher profit. But when one comoany is doing everything the cost is lower since the markup is determined by one factor.
One major problem with hiring a qualified hotel construction company is that very few has done hotel jobs before. Some experienced ones may have done some partial hotel building jobs or just knowledgeable about furnishing.
You will need a hotel consultant to help pick a good construction company to handle your hotel. Don’t use just any contractor to build a hotel. You won’t get the best. It’s in this same light that a Mercedes mechanic should not be used to fix a Toyota vehicle.
Furnishing The Hotel
Furthermore, hotel furnishing is just as important as the design. Furnishing a hotel also follows the classification for that hotel. There are basic requirements for a two-star hotel, different from that of a three-star.
Just as it would be wrong to furnish a two-star hotel as though it’s a three-start hotel. The way you furnish your hotel is important, even as it saves cost.
However, quality is another factor in consideration. Hotel is for public use, therefore wear and tear is expected. The cost of maintenance is huge and should be an important consideration from inception.
One way to combat this issue of maintenance is by using the best quality furnishing materials. It would cost more but pays up at long run. You don’t build a hotel furnitures like home furnitures. Hotels are built for luxury and luxury must have class and quality.
Hiring And Training Hotel Workers
No matter how good the hotel design is, the workers are what makes it a good hotel. You should hire and train workers properly. The kind of workers you employ would depend on the class of hotel.
That would also determine the salary scale. The truth about salary is that if you want the best customer service at your hotel, pay higher salaries to attract the right kind of workers for the job.
You cannot pay low salaries and expect professionals to be employed in your hotel. That’s why I recommend that you hire based on your class of hotel. For example, the kind of workers in a two-star hotel shouldn’t be the same in a three-star hotel.
And their salary scale shouldn’t be the same either. However, when you hire, train them to fit into your hotel service culture. Every hotel has its service culture. While you train your workers on hotel business from time to time, equally train them frequently on your hotel service culture.
Plan To Launch The Hotel
We are now at the launch plan. I’m not actually explaining how to preparing to launch a hotel. I’m only pointing out that planning a hotel launch is important in hotel business. You should make it the biggest and news worthy in your city.
The strategies you adopt should be one that inspires news stories. Remember, if your hotel appears on the news it’s free advertising that would reach more potential customers for you.
That’s a big way to launch a new hotel. Although, I’m not revealing any launch strategy here, but if you hire me for your hotel launch, we would work out a perfect news worthy launch idea for your hotel.
7 star deluxe hotel – The Fraser Suites, Abuja-Nigeria
Test Running Your Hotel Operations
This part is another strategy of launching a hotel. It’s like test driving a car. The idea is not common among hotel entrepreneurs. However, it’s my unique way to build up word of mouth publicity for a hotel launch.
It’s not cheap to do this either, but it’s a great way to attract your target customers, host them with bunch of huge discounts and freebies for a whole week or a period of time. That way you may get to fill up your hotel, test your services and get valuable feedback from actual customers.
Also, I’m not going to reveal the strategy here. It’s something that each hotel should implement with the right strategy that would work for them. I’m available to help out with the planning if you need my services.
Hotel Opening Day
The last of the tips on how to build a hotel that works is about the hotel opening day. From the day you began to build a hotel, there is a picture of the opening day on your mind. This is actually the real launch.
But I don’t recommend opening day with a test run. You should test run for a week or more depending on your launch plan. Some launch plan can last over a month period or even three months.
Whatever you do, make the opening day unique and invite journalists, hotel bloggers, food bloggers, and anyone that can help promote your hotel. Also use hotel marketplaces like hotels.ng, booking.com and others.
If you want to build a hotel, you may be wondering what class of hotel that doesn’t have much competition. One class of hotel that stands out in the country as having less competition is five-star and Seven-star hotels. There are very few of them in the country. In fact, Nigeria has only one seven-star hotel built around 2018 in Abuja, the countries capital.
However, whether it’s a five-star or three-star or even one-star, if you follow my guidelines here you will build a hotel that works. Even if you already have an existing hotel, you can still relaunch or re-market your hotel.
One thing hoteliers should constantly do is explore the advantage of fresh ideas to compete in the hotel space. Frequently using the services of a consultant would help turn the fortunes of your hotel around. One simple idea can make all the difference in your hotel revenue.
Do you want to start a business or a profitable business? Even though you might choose the later, most startups end up doing the former. Most of what beginners do is just to start a business. The issue of profitability is usually left for assumption.
Let me give you an example that describes it well. I’m a blogger, and the common idea among those who want to start blogging, is to setup a blog and ‘boom’ they start making money.
If you ask many of them how people would find their blog to read, they don’t know. They just assume that once you write a blog the internet will do the rest for you, and find you millions of readers. Then, you start collecting money from Google for AdSense.
It’s the same thing most startups do in Nigeria. They never factor the most important things about business before getting started. In fact, if you ever ask any startup the problem they are having in their business, you will hear things like, if only I have money to invest or my problem is capital. But the question is, what would you do with the capital?
Understanding Profitable Business
A business that doesn’t have a pool of customer base is not feasible and cannot be a profitable business. Get this right, you don’t have a business if you don’t have customers. Instead of trying to start a business first, why not try to get customers for the the business you plan to start.
A profitable business is not an assumption, and that’s why many startups don’t succeed. You cannot start a business you are not sure you have customers who are willing to patronize you and are within your reach.
An idea or a question
Take bloggers for example. Instead of rushing to start a blog, offer to write on another existing blog to build your audience. Especially if you don’t know much about blogging. The same thing for startups. Be patient to undergo an apprentice program. What you don’t know may be the reason your competitors are doing better than you.
A profitable business is not just a good business idea. Anyone can have an idea or even copy other people’s idea to start a business. You need both an idea, the required skills or experience to convert the idea into a profitable solution for the customers who are ready to buy it. Let me delve into apprentice program further in the next paragraph.
Business Apprentice Program
According to a TEDTalk in 2018, Igbo traders apprenticeship program was considered as the largest incubator program in the world. This system has raised most of the successful entrepreneurs there is from the eastern part of Nigeria. And if you must start a profitable business, don’t ignore this at all.
When ever I advise startups to do apprentice program first before launching their business, they always chide the idea as old school. They are usually in a hurry to start a business. I bet you, they are not planning on starting a profitable business, but they don’t know it.
Apprentice program gives you valuable knowledge and experience in that business that would have taken you many years to acquire. Sometimes, what most people don’t see in a successful entrepreneur is the many years he or she spent trying to figure out how the business works and failed.
No one talks about or remembers the failures of successful entrepreneurs. All people see is the success they have achieved after many failures. Take this from me, if you want to start a profitable business, become an apprentice first. You cannot lose with the knowledge and experience you will acquire. It’s the best form of mentorship.
A Different Kind Of Startups
The advantage most successful startups have in developed countries are because of their experience working for another company. Take a look at the tech world, you will see these examples. WhatsApp founders, Brian Acton and Jan Koum were former employees of Yahoo! before they started WhatsApp in 2009.
No wonder they went on to build very successful product like WhatsApp, which they later sold to Facebook for $19 billion in 2014. What do you think helped these guys come up with such an innovative idea as WhatsApp? In their days at Yahoo! they probably saw how the technology was evolving and what they needed to do.
Sometimes, what you need to start a profitable business is to create a product or service that people really need.
And there are many of such examples of startups who were able to launch profitable businesses because of their past experience or training. You cannot be competing against successful competitors with the same old ideas that nobody wants.
Writing. A Business Design
If you want to start a profitable business, you should at least write a business plan. It’s amazing how most startups never had a business plan, excerpt when they are looking for bank loan.
A business plan is not just a tool for collecting loans from investors. A business plan is a written building plan of your profitable business. How do you want to build a profitable business without a building plan. How would you even know what you need to do the most?
In the next subhead, I will be showing you about the 80-20 rule. How would you even know what would give your business it’s 80% outcomes? Your business plan is the real Bible of your business, and you shouldn’t be going into business without one.
If you don’t know how to write a business plan, I would suggest you hire a consultant, but work together with the consultant to write it. Even if you don’t know what he or she is writing, at least get them to explain. Don’t trivialize the soul of your business.
Moreover, there is so much about your business that your business plan would reveal to you. Have you ever wondered why car makers, phone manufacturers, even wristwatch makers add a user manual in their product? Imagine your business not having an owners operational manual. That’s not the way to start a profitable business.
How Money Works In Business
The issue of business capital is mostly misunderstood. It’s not every startup that needs money at the beginning. Don’t get me wrong, but you will understand as I explain further. Money is needed in a business to make your idea profitable.
So, what’s your business idea? How viable is your idea? What’s your huge value proposition? Who are those willing to buy it? What are your chances of reaching your target market? And lastly, what makes you think you can deliver on your promise?
The real work of money is to amplify your business. Your business will not become profitable because you have money. A profitable business is the business that requires money. That’s why the bankers and investors only put their money in a profitable business idea. And not just in a startup business.
A plan is the soul of your business
You do not have a profitable business if it’s only money you have. Money in itself cannot make your business profitable. So many startups have lost money because they invested it in a business that’s not profitable.
A Different Kind Of Marketing
From a different kind of business to a different kind of marketing. A profitable business must know how to market its product or service to reach a larger audience. Imagine the concept of 80-20 rule.
According to an Investopedia description, the 80-20 rule, also known as the Pareto Principle, is an aphorism which asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority.
As a consultant, I was faced with this kind of situation when I started my practice. I know the 20% effort that would cause my 80% outcomes, and that’s exactly what I did. However, I did it in a most usual way that multiples the effects of my 20 percent effort in a way that my 80% outcome is constantly amazing.
Do you know what your 20% effort for your startup business should be? Even if you have the most amazing product, you must have the most amazing marketing if you must turn it to a profitable business.
Marketing is probably the most important task for startups. It should be well researched and planned for as much as you work on your business idea. It’s always recommended that marketing precedes the business launch. It’s the success of your marketing that should encourage you to launch out.
Where Are Your Customers?
Now, I’m back to the main reason any business is profitable in the first place. It’s about the customer, and always about the customer. And there are different types of customers that you should be aware of when starting a profitable business.
That’s why it’s important you start your marketing ahead of launching your business. Some of these customers would only be helpful during the startup stage. Some may not be helpful in anyway. While some customers would be helpful once in a while or always throughout the life of your business or theirs, whichever comes first.
Here are the classes of customers your business may encounter:
Customers that loves your business
Customers that loves your product or service
Customers that would tell others about your business
Customers that would encourage others to buy from your business
Customers that would never buy from your business
Customers that would buy from your business sometimes
Customers that would always buy from your business every time
The customers that loves your business are usually the ones that comes in contact with your business early at startup. What they love about your business may not be profitable to you. That includes those who love the product or service, but are a lot better than just loving the business and not even knowing the product or service.
You may have seen those customers that likes, shares and comments on business pages or posts. That’s where you mostly find customers that tells others about your business. Another category are the encourages. Then, those who would never buy.
Finally on the real customers, you will find two different categories that buys from you. One group buys sometimes, either when they can afford it, or when they really-really need it. But the last category is your target customers. They are the kind of customers that gives you 80% of your outcomes. They buy every time. The thoughts of your product or service excites them.
The Skill-Set Of Startups
Let’s look at the skills you have to start a profitable business. It’s not just enough to want to start a business, you should know your strength and weakness. You should understand the important skills your business requires the most. If you don’t know what these skills are, you probably shouldn’t be starting that kind of business.
It doesn’t necessarily have to be you that must have the skills. But it’s important you know the skills you need in your business. You can hire such skills or get some as partners in the business. That’s why I recommended the apprentice program earlier.
These skills are the advantage your business would have over your competitors. You know there are no exact skill sets that are the same degree and experience. Imagine if you are a musician with the most soulful voice in the industry, just that alone can give your music career an edge. That applies to every skill set that you may have.
That’s what skills does for your business. If there are skills you need to acquire, go for it. If there are those you need to have as partners, do so. For the rest or lesser ones, you can hire them to work for you. But be mindful of the skills required for your business and prioritize their level of relevance and benefits to your business.
I didn’t set out to discourage you from starting a business, but to help you start a profitable business. If you really want to do something, at least do it well. There’s no joy in starting a business that would eventually fail.
I strongly believe that you never set out to start a business with the knowledge that you won’t be successful in it. So, you should humbly follow my candid advise here and do the needful. If your business is profitable, you are the first beneficiary, isn’t it?
And my role as a consultant is to help you make the right decisions. If you are having a problem starting your own profitable business, just share your challenges in the comment box and I will be glad to answer your questions. Cheers!
Do you want to know how to start your own commercial real estate investment in Nigeria? Do you know how to make the right real estate investment? Have you thought about how to Start investing in properties but you don’t want to fall into the wrong hands?
The first thing that most people imagine when you talk about real estate is the huge capital need. But there is also real estate business you can start with little capital.
In fact, everybody is involved in real estate, even if you are just a tenant. Maybe not the investment side. So, it’s for your own interest if you understand how real estate investing works and how to become a beneficiary.
However, there is also such a thing as bad real estate investing. In fact, many Nigerian have made a bad real estate investment. It may be buying above the value of a property. Or you may have built office spaces in a residential area.
You need to know the right decision to make when investing in real estate. Sometimes, the agents mislead their clients to buy the wrong properties. They care more about their commission. You have to be real estate literate to know how to invest wisely.
What Is Real Estate Investing?
According to Wikipedia, Real estate is a “property” consisting of land and the buildings on it, along with its natural resources. These resources include crops, minerals or water; an immovable property of this nature; an interest vested in this (also) an item of real property. But more generally lands, buildings or housing properties.
On the other hand, real estate investing is the act of making one’s living or making money by building or buying and selling real estate properties. Simply put, it is any real estate activity or enterprise entered into for profit.
Any transaction that involves real estate properties is part of real estate investing. Even if it’s described in this startup guide.
Why Choose Real Estate
There 3 reason many invest in Real estate business. Here are the reasons below:
To enjoy good cash flow
Because real estate investment works all the time
The increase in value of properties over time
Cash Flow Advantage
Cash flow is the first reason anyone should consider investing in real estate business. When you buy real estate with the right strategy and risk assessment, you are able to get a decent cash flow every month.
Consistency In Value
The second reason is that real estate has consistently proven to add value to your investment. Historically, real estate has been one of the main avenues of wealth creation throughout history, only next to Stocks. So, your investment in properties is sure and proven to create wealth for you.
Value Creation Potential
The third on my list is about value creation potential of real estate business. People will always need a place to stay, so your home will only rise in value as demand for housing increases in that location. As the world’s population increase, and it’s now even more faster than before, there will be more greater need for housing than there has been in the past.
Here are also some important benefits of Owning Real Estate:
Types Of Real Estate
There are four types of real estate in Nigeria. The real estate investing opportunities revolves around them. The list includes:
Land for sale
The property comprises empty lands, farmlands and ranches. The residential estates include new constructions and resale homes. And these are condos, co-opts, town-houses, duplex, triple-decker, quadplexes, high-value homes, exterior.
Real Estate Investment
Real estate is the investment in property, commercial or residential. It’s either on houses For rent or homes for sale. And there are three parties involved in any real estate transaction. The buyer, the owner and the realtor or agent.
The buyer is the willing investor. And the seller is the captive investor. While the agent is the umpire investor. Because the buyer has a choice to buy or not, that makes him willing. But the seller needs money or profit. So, he is a captive of the buyer. While the agent is just an umpire.
It works like this in every real estate transaction. Although sometimes the case reverses between the buyer and the seller. But the umpire is usually the same. That’s why real estate investors are the richest in the business.
They play the role of the three parties. Sometimes they are the buyer or the seller. But most of the times they the umpire. So, they never lose. They are playing all sides if the real estate game. When it’s cheaper, they are the buyer. When properties are high, they turn into the seller. And the never lose.
Going into property investing makes you the buyer, seller and the agent. All three in one. And a real estate investor is involved in the following.
Houses For Rent
Houses For Sale
Homes For Sale By Owner
How To Buy Cheap Land For Sale
You can buy cheap lands anywhere in Nigeria. All you need is to understand how to buy properties that have potentials for profit. It’s not every cheap land that is profitable. But that are features of the valuable cheap land.
Here are what you should for before buying any cheap land:
Where the land is located in the first consideration.
What are the major landmarks in the area? Like School, industries, seaport, refinery, a unique government project.
What is the possible habitation? Like how soon can people migrate to that area?
Has any significant real estate investor bought properties in that area recently?
Would anyone live there for the next twenty years?
How fast can the land be sold to a buyer?
Also, you can find cheap lands even within an expensive or high brow area. All the factors I mentioned above may or not apply. But cheap lands in a highbrow area would need proper investigation before purchasing to avoid fraud.
I will use Lagos as an example. There are affordable locations in Lagos where you can buy cheap lands now. These locations are suburbs in Lagos, and they are growing at an alarming rate.
These cheap suburbs are being pushed up by current development by the government. The following areas in Lagos are more affordable to buy now.
The land properties in some of these locations sell between N300,000 to N1 million. Although, prices are going up as demand increases. Some people have also bought to sell it when the price goes up.
Places like Epe see price increases. And if you understand the Lagos property market. These places will soon be the new Lagos. The rent prices in Lagos is choking on the cost of living.
So, people are making choices for cheaper accommodation. And these suburbs are the next affordable rents for Lagos. It’s going to see a surge in rental demand in a couple of years from now.
Steps To Buying A House
Any property you are buying in Nigeria, there is a process to follow. Whether it’s buying a house, land or an estate, the process is the same. You have to be extra careful when purchasing properties.
The risk is not really about the value or the quality of the property you want to buy. But the fraudulent nature of property deals in the country. See the steps you should follow when purchasing property anywhere in Nigeria.
Decide the place you want to buy the property
Decide your budget and work within your budget
Start your search online and offline
Involve the services of a property lawyer or consultant
Compare features and prices
Conduct a proper search to verify the identities of the property owners.
Verify all documents about the property before payment
Convert all necessary documentation of the purchased property immediately into your name.
It’s also vital to have where you want to buy the property in mind. That usually helps to estimate the cost of ownership in that area. And avoid speculative and deceptive prices. Consult a property expert for proper information.
You can compare prices with other areas if you have more than one site in mind. Also, don’t just limit your search through an agent offline. The internet gives you more extensive reach and the advantage of even finding a cheaper deal.
Most property sellers are those who need the money to solve a problem. If you can know the real owner of the property, you can get a better bargain. Property agents usually inflate the prices to make more profit.
Opportunities In Real Estate
There are several opportunities in the real estate business in Nigeria you can tap into. You just need to pick what works for you. Or what you can start now based on the resources available to you.
However, below is a list of what I consider as real estate opportunities for Nigerians.
Commercial land for sale
Commercial Property For Lease
House Or Office For Rent
Real Estate Agent Or Realtor
Commercial Land For Sale
Buying land properties of retail value is an excellent real estate investment. Apart from buying lands with future value expectation, you can buy land with resale value. You can still find a good deal in essential locations in your city.
It may be empty lands or building. The nature of property makes it change hands faster than you can imagine. And in the hands of someone, the value is high or low.
Sometimes, commercial lands for sale comes up when an owner dies. The demise children might have reason resale. Either to raise money or share the proceed of the will. Such properties are fast buyer option.
Property Space Leasing
Property space leasing is lucrative in mostly brawl areas. Smart property investors tap into the lack of empty spaces in those locations to make money.
It works best if you buy the space. But you can also lease from owners who don’t have an interest in developing it in a long time. And lease out this space for temporary uses.
This kind of lease is needed by churches or car wash owners and mechanics. Then you will charge monthly rent. And if you own the property, you will still earn more value in the future sale as the property is appreciating.
Build House Or Office For Rent
Building rental apartments and office spaces are still a significant real estate investment. Although some people have built at the wrong locations and couldn’t recoup their investment.
It’s always wise to plan such Investment. A property location determines to a large extent the value and the use of such property. Just like every other business, real estate is no different.
Sometimes people live with the idea that all properties are an excellent real estate investment. But that’s not true. You can make a lousy investment in properties.
Office space must only be built where the demand is high. The same with the apartment buildings. And if you discovered that you have made this mistake, you can convert the property to its best use.
There are still many corner pieces around busy cities across the country. The most valuable part of a property investing is the corner piece. They face two streets in a busy place. Their value is not the same as other properties.
Commercial Property For Sale
As a property developer, you are tapping into the gap created mostly by lack of affordable properties in highbrow areas. It’s different from just building common housing or offices for rent. The primary focus is on selling the properties after development.
It’s a just a strategy of developing properties into luxury apartments or offices and selling them at premium rates. Although, this real estate business is capital-intensive. But it very lucrative.
The secret is to find the right place to build the required properties. And then develop the property to a luxury taste. The right feature in the right area is vital. However, you should also be aware of current property rates in the place you want to develop luxury apartments or offices.
Real Estate Agent Or Realtor
This opportunity can require little or no startup capital. However, it’s the most profitable investment opportunity in real estate. But your primary real estate business is providing help for transactions in real estate.
You can start a real estate agency without even studying real estate management. Although, I recommend you still get some form of training to develop your skills. But it’s one business you can start on a small-scale as well.
The opportunity for a real estate business agency is significant. As a real estate agency, you can do any of the property business while still earning money from your agency services. That means apart from winning commission on property sales, you can buy lands and flip it for profit.
You can offer property Space leasing, build and rent houses and offices and develop properties for sale.
First Time Home Buyer Tips
If you are a first time buyer this tips would help you a lot. Even if you have been in the business a long time, you will find some tips here you may never have been using.
Hire an experienced real estate consultant
Pick the location you want to buy
Get details about cost of properties in that area
Budget for all home ownership costs
Action Points For Investing
There are several real estate investment opportunities depending on where you live. But planning your real estate investing should not be confined to one place. Go where you can find value and higher returns on investment.
Point One: Do Your Research
Don’t buy real estate properties as a novice. Always research properties before you buy. Don’t allow agents to push you into rushing to pay. Every real estate investor takes their time to research properties before buying.
The best way to buy properties is to select the area yourself and start your search for a suitable property. It gives you room and time to do your research before buying properties there.
Point Two: Find Out Recent Property Value
You need to know what current buyers paid for a property in that area. Although this may not be final proof of price in Nigeria, it will give you an idea. And you should also find out why the owner wants to sell.
If you know why the owner is selling, you may have real bargaining power. Sometimes, agents usually tell the buyer that the owner wants to move. But most properties are sold out of a need for money. Other reasons are immaterial.
Point Three: Look For Other Attached Value
Sometimes the real value of the property may not be the property itself. Find out if there are other attached values the seller may not even be aware exist. If you want to sell after buying, that may help increase the value of the property instantly.
There are several attach values in real estate business. As simple as an increase in rents in a nearby neighbourhood can influence property values. In anticipating an influx of new neighbours, property owners might increase rates.
Point Four: Define The Reason For Investing
Okay, now you need to be clear why you are buying that property. Although this might change if you have a better option of converting it for more profit. But having a plan in place is the real estate investing.
For example, do you want to sell it after how many years? Or do you want to use it for self? And if for sale, what’s the revenue projection and when is the possible cash out time?
Point Five: Invest Only In Cashable Properties
This one is important for real estate investing. Don’t buy properties that don’t have recouped time. If you are buying for your grandchildren also make sure it’s cashable. Any property you can’t sell quickly when you need cash may not be a good investment.
That way, you should spread your properties as well. That would help you revert to an area for safety when you need to raise money fast. You don’t want to find yourself tanked by any government policy or natural disaster that hits an area and devalued all properties in such area.
A real estate investing is a plan against time. You cannot invest in real estate and be worried about your future. That is why some believe that real estate investment can make you live longer.
However, the most important real estate is land. And there are essential features of a property. They are unmovable properties. It can only be one such property in that place. You own both what’s on top and underneath.
And you can also tap into the virtual lands. Real estate opportunities abound everywhere you look. forever, men will continue to buy and sell real estate. And it doesn’t end in just domain names.
You can start a buy or rent platforms online. We have great examples like propertyng.com, tolet.com.ng and several others in the Nigerian real estate market.