Mobile phones, blenders, and other electronic equipment have become commonplace in our daily life. Every household owns at least one electrical device and anticipates the acquisition of a specific sort of electrical equipment to make life easier.
An electronics appliance store is a company that sells and distributes electrical products. Repairs and upkeep are among the other services they provide. DVD players, laptops, mobile phones, fans, desktop computers, cameras, ovens, washing machines, refrigerators, and other electronic gadgets are some common examples.
Do you intend to start a business selling electronic appliances? If you answered yes, you’ll find this article helpful as you prepare to launch your electronics/appliances retail business. Below are some critical points to think about as you evaluate this new electronics company concept.
1. Get a Business Plan
The business plan for your electronics/appliances retail business will include all of the information needed to start the business. It will include the number of people the company plans to hire, a cash flow analysis, a profit and loss analysis, and projected earnings from the electronics/appliances retail business.
Your electronics business strategy can also be beneficial in the following ways:
- Attracting investors
- Making sound decisions
- Raising money for the business
- Identifying potential weaknesses
- Communicating ideas with stakeholders
Below we have compiled a list of important contents of your business plan:
- Executive Summary
- Commercial sales
- Target market segment strategy
- Industry analysis
- Key to success
- Company summary
- Company ownership
- Start-up summary
- Market analysis summary
- Market segmentation
- Buying patterns
2. Register the Business
The Corporate Affairs Commission (CAC) is the statutory authority. It is legally entitled to establish a corporation in Nigeria in accordance with the terms of the Companies and Allied Matters Act (CAMA) 1990. The advantages of registering a company cannot be overstated. The following are some of the top advantages:
- Building trust and a good reputation. Registering a company gives potential clients the assurance that they are working with a trustworthy company.
- The certificate of incorporation is one of the prerequisites for opening and operating a corporate bank account in Nigeria. The Corporate Affairs Commission (CAC), which is responsible for the registration of business names, issues a certificate of incorporation.
- People prefer to pay into a corporate account rather than an individual account while conducting business.
- Customers, suppliers, and other business associates are more likely to trust a company that operates a corporate account.
3. Register for Tax
For your electronics/appliances retail business, hire a tax consultant. It will help in avoiding government sanctions and disruptions of company activities. Alsom the tax expert assists you in setting up your books and advises you on the tax implications of your business.
4. Get the Relevant License
When it comes to running a business, licenses serve as legal documents that authorize your company and the products you offer. You could see big and stable electronic businesses such as Eabel electrical cabinet and Scondar greatly emphasize this step, so you can’t ignore this step.
To ensure a smooth business operation, it is necessary to secure the necessary licenses. Same apply to permits from the local, state, and federal governments, along with relevant associations, as the case may be.
5. Get Insurance
Insurance safeguards your company from unanticipated occurrences and conditions that may arise throughout the course of its operations. The following items are covered by an electronics/appliances company’s insurance:
- Fire outbreak
- Goods in transit
- Vehicle insurance
- Business premises
As a business owner, you must get insurance and insurance cover for your electronics business.
6. Understand the Business Model
It is critical to research, study, and comprehend the business models of existing electronics enterprises before starting your own. This can be accomplished in a variety of ways, including:
- Learning how to deal with suppliers.
- Tactics towards customer satisfaction
- Understanding how items are priced is essential.
According to a number of experts who researched and talked to a lot of people, the above three points are critical to work upon. The majority of these people were owners of electronic stores, electronic manufacturing companies’ sales representatives, or anyone involved in the electronic value chain.
An extra bonus tip; Consider undergoing sales apprenticeship training with a well-known electronic retailer. It will greatly help you to understand the ins and outs of the business.
7. Choose a Niche
We all know that there are many different sorts of electronics to choose from. You must select whether you will run a general electronics store or a business that specializes in a specific type of electronics.
For example, a multi-purpose electronics store can sell a variety of electronics such as refrigerators, washing machines, television sets, air conditioners, fans, cookers, and so on. Whereas a store that focuses on a certain type of electronics may only sell air conditioners. Choice is totally yours!
8. Study Your Competitors
To surpass your competition, you must maintain a careful eye on their sources of supply and the services they provide to clients. You should try to stay one step ahead of your competition by providing services that they don’t provide. Also, by developing better and more efficient ways to provide the services that they do provide. You may, for example, provide delivery and installation services to your clients.
9. Choose a Location
A conspicuous and accessible company location aids in the promotion of your electronics store. An electronics store should be located in areas with high people and vehicular activity. In short, choose a prime location for your store.
10. Showroom/Display Room
Putting the products on display is one technique to advertise electronics and appliances. Customers should be able to try out your products in a showroom or display area. Customers will need to have a real-life experience in your showroom/display room.
For example, you could build a fake or even a virtual living room where you can test television sets and audio appliances. Or a fake kitchen where you can test the cookers. You can take a good example from Las Vegas trade show booth builders; the way they display their booths and provide demos before the client makes their final decision.
Well, practically every home in Nigeria uses electronics. With these in mind, new improved devices are being made every day for sale, and the electronics industry in Nigeria is booming and profitable. Starting a consumer electronics business necessitates understanding the specifics of the electronics you want to sell, having the appropriate amount of capital, and providing standard goods to clients.