Starting an iron rod and steel business in Nigeria is what many Nigerian entrepreneurs are admiring to do — since iron rod and steel business is one of the lucrative enterprise business to get more sales and make money from.
Just think about the number of people that are building houses and are buying building materials to modify and beautify their houses in Nigeria.
Well, this article here has all you may need to know about how to start iron rod and steel business in Nigeria with a step by step guide in 2021.
As someone wanting to start an enterprise in Nigeria and thinking about the iron rod and steel business, you should first of all understand how to iron rod and steel business works and this can help you get started without getting loss.
Supposing you one length of 16mm Iron Rod is being sold at about N3,500 at a retail price, then buying more at N150,000 per tonne for 55 pieces will get you N42,500 naira worth of profit after making sales.
You can make more profit depending on how much you bought them at a lower price. As an entrepreneur, you should always seek to know how to minimize cost and maximize profit in business enterprise.
Starting an iron rod and steel business does not require that you have too many logistics before starting but just a space by the roadside along with your start-up capital at hand then you will be good to go.
Sample Price Estimates Of Iron and Steel rods in the Nigerian market
- 25mm – About N7, 000 per length. 21 pieces make a tonne. It cost N120,000 per tonne
- 20mm – About N4,000 per length. 33 pieces make a tome. N120,000 per tonne
- 16mm – Around N2, 200 per length. 52 pieces N120,000 per tonne
- 12mm – About N1, 200 per length. 93 pieces. N120,000 per tonne
- 10mm – Cost around N1,200 per length. 133 pieces. N120,000 per tonne
- 8mm – N700 per length. You get 210 pieces per tonne at N120,000 per tonne.
How To Start Iron Rod And Steel Business In Nigeria
Since the iron rod and steel business is one of the lucrative business in Nigeria today, this article guide will help you explore more to improve your knowledge in starting up this business.
1. Planning: Write a Detailed Iron and Steel Business Plan
In starting any type of business, you would have to try your hands on writing a correct and authentic plan for the business. Getting a written business plan will help you to set direct target for everything. You might be wondering how to write a business plan, and with this, you are good to consult any legal practitioner or any business plan drafting consulting firms in Nigeria.
The business plan should include some important information on how to spend low and maximize your profit at the end of the month. Ensure proper management and control; covering debt control, inventory, business insurances, accounting, employee management, legal aspects and financing.
3. Register Your Business
After writing your business plan, there is the need to register your Iron rod and steel business in Nigeria. Try everything possible to register your business name with the Corporate Affairs Commission in Nigeria.
To register your business in Nigeria, you can check the registration steps for business with guide here
2. Get a Good Business location: Let a Real Estate Agent Help Out
In getting a good business location, you always need let a real estate agent to help you out. Once the planning process is over, you could get a space by the roadside in a developing area if possible.
This is where the material sells most for average traders. Though big construction companies handling big projects like the roads, building of companies. And other massive structures usually get their materials direct from the manufacturing companies.
So, your target customers are chiefly private and commercial building construction people. It is worthy to note that the location will also be a very important factor for the success of your business.
3. Finance the Business
In financing a business, always ensure that you have a better source for funds — to growth the business. Make a better decision on how much you will invest in the iron rod and steel business in Nigeria. The quantity you would love to start with is another factor to consider.
One of the most popular steel rods in your target market is between 16mm downwards. These are the most demanded iron rods in Nigeria because they are used mostly for private and commercial building and all concrete works.
4. Consider Miscellaneous Options: First Aid, Safety, Equipment, Competent Staff
Make sure to develop a well-strategic miscellaneous options for first aid, equipment, safety and competent staff for your iron rood and steel business as an entrepreneur.
Equipping your steel and iron rod business with the best and high-quality equipment is very necessary, since the iron rod and steel business is one kind tough job. Ensure the availability of first aid for all emergency cases at work.
5. You Can Employ 2 Or More Workers
After following all the basic guides given above, you can now proceed to employ 2 or more people as workers for your iron rod and steel business. You should bear in mind that, iron rods and steels are heavier in weights and one or two persons cannot be lifting and packing them into cars or van anytime a customer comes to buy some. Ensure to employ more people to make packing, offloading, and distribution faster and easier.
Importance of Iron And Steel rods in Nigeria
In Nigeria or globally, the iron rods and steel rods are used for the same purpose in general. The key importance usage for iron rod and steel is the use for construction and building.
In summary, starting any business is not really hard nor difficult but managing it to last long is what matters at the end. I believe this awesome information here educated you about how to start an iron rod and steel business in Nigeria for 2021.
Source: Nigeria Insider