The new frontier of wholesaling

How to Start a Wholesaling Business in 2021

by with No Comment Businessstartup tips

Wholesaling plays a fundamental role in the overall distribution and sales of a particular product. It is also a very competitive market, but you can be successful at wholesaling with the right resources and connections. 

Wholesaling gives you an advantage because unlike the retail business where the money is made one product at a time; the wholesale business allows you to earn more. Since your customers are retailers, they will need to buy your product in volumes to sell to their customers.

You might want to ask yourself; Do you want to stock your products or have them drop-shipped to your customers? What products do you want to sell, and where can you find suppliers?

In this article, we will run through tips on how to start a wholesaling business in 2021. Let’s dive in!

SEE ALSO: MSMEs To Receive Support Through SMEDAN

1. Choose a Market for Your Business

This is the most crucial part of starting a wholesaling business. You will need to decide which industry or market needs your product. You will need to ask yourself. What products should I sell? Who needs my products?

As an SME in Africa, it is important to choose products that are moving in your current economy. You will need to find dealers, store owners, retailers, and customers who need your product.

You would also need to know who your competition is, their prices and what kinds of products they sell. This will help you understand which market to target and what kind of products to sell. There are several profitable wholesaling ideas. You could wholesale in Jewelry, textile, or even organic food. The key here is research.

2. Choose a Location for Your Business

This is the next most important step. If you decide to stock your product, you will need to get a warehouse to run your business.

Choosing a central location for access and easy movement of goods is also something you would need to consider.

How to Start a Wholesaling Business in 2021
Choose a good location for your wholesaling business

Secondly, you will need to hire efficient staff to ensure that your product is not misplaced or damaged. You could opt for a family member you can trust.

3. Choose Your Manufacturers/suppliers

You will need to identify manufacturers who are willing to give you their product to sell. You might want to note that some companies might require you to meet certain sales targets. You can also decide to talk to distributors that can get you a dealership. Wholesaling is about networking and establishing relationships.

4. Establish an Online Presence

In 2021, going online has become an important business strategy. Your wholesaling business is no different. The online space has become saturated with buyers making several buying decisions every day.

Establishing yourself online will help build trust and establish you as an authentic brand. Not only does it build trust, but it also attracts retailers and suppliers. It is a great way to tell prospective clients that you are ready to do business.

5. Get an easy to use inventory software

With the number of goods going in and out of your warehouse, having inventory software will pay a lot and give your business a smoother run. Inventory software helps you keep track of your inventory and determine your business’s demand and supply relation.

6. Check for Return Policies

 When looking for manufacturers/suppliers, it is important to check for their return policies. You would need to check their return policies and how they handle goods being returned to them. If their return policy isn’t clear, it is best to stay clear of those manufacturers. Inventory not sold is a waste of money.

In return, you would need to create friendly return policies that allow retailers to return goods they can’t sell. To create a comprehensive return policy, you should check with your manufacturers and align your return policies accordingly.

We hope that these steps give you a good platform to start your wholesaling business. To grow and establish yourself in the wholesale business, you would need to identify product trends and have a good understanding of your market. Don’t be afraid to take that wild step in starting your wholesaling business. 

Do you have any questions or comments on SMEs in Africa? Kindly drop them in the comment section below!

SOURCE: SME360

SMEDAN INITIATIVE

MSMEs To Receive Support Through SMEDAN

by with No Comment BusinessNews

The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) says it will support Nigeria Micro Small and Medium Enterprises, MSMEs in a practical way through its SMEDAN SELECT initiative.

The Director-General of the Small and Medium Enterprises Development Agency of Nigeria, SMEDAN, Dr Dikko Umaru Radda said this at the launch of the SMEDAN SELECT Document in Enugu State, Southeast Nigeria

READ ALSO: Fegho Umunubo, Arinze Chilo-Offiah, Dolapo Adejuyigbe To Speak at BusinessDay, NetPlusDotCom Webinar

The DG who was represented by Director, Planning, Research, Monitoring and Evaluation Mr Wale Fasanya, said the SMEDAN SELECT is designed towards creating brands from standard products amongst the best of Made in Nigeria products in the food, fashion, beauty and goods sectors.

Radda said, “these products, numbering about 150, have been specially sought and selected across Nigeria and the products would be displayed and marketed on the SMEDAN Website and other social media handles.”

“The hardcopy catalogues would also be distributed to Embassies, MDAs and in departmental stores across major cities in Nigeria to improve the patronage of these products.”

He noted that the MSMEs sub-sector is a very important sub-sector in the Nigerian economy.

“They collectively account for a majority of the enterprises in Nigeria and also account for the highest number of jobs created in the economy,”  Radda stated.

He said the recent National MSMEs Survey of 2017 conducted by the Agency in collaboration with the National Bureau of Statistics (NBS) revealed that there are 41,543,028 MSMEs, employing 59,647,954 (76.5% of the labour force) and contributing 49.78% and 7.64% to nominal GDP and exports respectively.

The SMEDAN boss said this staggering statistics cannot be ignored in any serious economy, adding properly harnessed, MSMEs can trigger an entrepreneurial revolution in Industrialization, Agriculture and Commerce in Nigeria towards creating the platform for job creation, wealth creation, poverty alleviation and food security.

Dr Radda also said the globalisation process for MSMEs can be realized through any of a range of cross border activities, including trade, international investment, and participation in strategic alliances, partnerships and networking arrangements.

According to him, “governments in both industrialized and developing countries provide a wide variety of programmes to assist micro, Small and Medium Enterprises.”

“Despite the success of MSME strategies in a few countries, majority of developing countries have found that the impact of their SME development programs on enterprise performance has been less than satisfactory, as such there is the need to develop and deploy more specific approaches, hence the SMEDAN SELECT initiative.” 

Dr Radda stated that the objectives of implementing SMEDAN SELECT are to increase access to local, regional and global markets for MSMEs; to support market expansion for MSMEs. to support the creation of brand names for Made-in-Nigeria products as well as to Increase awareness creation on standard Made in Nigeria products.

He however encouraged Nigerians to patronize all the products profiled as a way of supporting the MSMEs to achieve their collective goal of instituting the MSMEs sub-sector of our dream that would contribute significantly to job creation, wealth creation and poverty alleviation.

SOURCE: VON

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Fegho Umunubo, Arinze Chilo-Offiah, Dolapo Adejuyigbe To Speak at BusinessDay, NetPlusDotCom Webinar

by with No Comment Business

Fegho Umunubo, CEO of XTREME Mindz Solutions Ltd; Arinze Chilo-Offiah, Special Adviser to the Governor of Enugu State on SME Development and Investment Promotion and Dolapo Adejuyigbe, Co-Founder of Traction, will be speaking at the February edition of the Monthly SME Digital Transformation Webinar Series themed “Revamping your business processes in the digital era” by BusinessDay and NetPlusDotCom. The virtual event will hold on Thursday February 25, 2021 from 10:00am – 11:30am.

See also: Raising stake in SMEs financing, growth in Nigeria

This monthly series is organized by BusinessDay Media, West Africa’s leading provider of business intelligence and information and NetPlusDotCom, a leading technology and digital payment company.
The aim is to create an avenue for SME’s in search for expert information on navigating the effects of the Coronavirus pandemic to learn the modalities of the new age of doing business. It also offers a connecting platform for participants to meet with organizations that can facilitate access to market, finance and digital skills.

To register for this event, please visit https://bit.ly/3dyD1td

SOURCE:Business Day

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Raising stake in SMEs financing, growth in Nigeria

by with No Comment Businessfinance

From unemployment reduction to its contribution to government revenue, the benefits of a well-developed Micro, Small and Medium Enterprises (MSME) sector can never be over emphasized. Given their contributions, nations have set out plans to develop the MSMEs sector to achieve economic growth.
  
In high-income countries, MSMEs contribute well over 65 per cent of employment and about 48 per cent to the GDP, while in low-income countries; they contribute to about 30 per cent of employment and about 15 per cent of GDP.
 
READ ALSO: How Rwanda plans to enhance SME corporate governance


MSMEs have been generally acknowledged as the backbone to the success of developed nations, gaining popularity through the success rates in such developed economies that invested in the sector.
 
There also exists a relationship between the informal sector, MSMEs and economic development. In low-income countries, the contribution from the informal sector is rather high, unlike high-income countries where the contribution from the informal sector is low.

This gives room for the development of the informal sector, to reduce the gap between the formal and informal sector and allow the poor to actively participate in the economy
  
For the Nation to be among the 20 most economically advanced nations in the world by the year 2020, serious attention must be paid to the development of the MSMEs sub-sector in Nigeria
  
The contributions of MSMEs to the economic growth of countries have been very significant. SMEs are viewed as an engine of growth that contributes enormously to the nation’s Gross Domestic Product (GDP) employment generation, industrial output poverty alleviation, export promotion, and self-independence
 
In Nigeria, despite the fact MSMEs has been identified as a tool for economic development and provision of employment, variety of challenges seems to have a negative impact that constraint MSMEs from playing the vital role of stimulating economic development.
 
To this effect, First Bank of Nigeria Limited, Nigeria’s most valuable bank brand has over the years demonstrated an unwavering commitment to the business success of SMEs in Nigeria.
  
At the just concluded Ehingbeti, the Lagos Economic Summit, the Group Chief Executive Officer of First Bank, Adesola Adeduntan said the bank has a cocktail of products and bespoke solutions, specifically designed to help grow and sustain SMEs; enable them play out their business activities as well as fulfill their goals and aspirations.

In addition, the bank offers advisory services that are tailored to meet the needs and aspirations of their SME customers.
  
He said the bank is enthusiastic about the SME segment as one of the strategic platforms to stimulate economic development.
  
“We have SME CONNECT portal which serves as a advisory services platform to help them up their skills, supporting them to make accurate decisions and a number of banks have similar support system. We refine and update the portal. Our SMEs portfolio is quite sizeable considering Nigeria’s population.
  
“Our support for relevant businesses helps us come far especially the SMEs. We have been active in providing various financing instruments. The path to growth and development of the Nigerian economy is growing the SMEs segment,” he said
   
With a bouquet of bespoke products and services, First Bank is set to place SMEs ahead of their competition through collaborations with the business owners to provide flexible and dependable services, helping each SME fulfill life time dreams for their businesses.

Source: Newscentric

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RSE CEO: How Rwanda plans to enhance SME corporate governance

by with No Comment Business

Watch Full Video Here!

Small and medium-sized enterprises often find it hard to access long-term investment capital. One of the reasons is that SMEs lack corporate governance. Rwanda has a plan to attract SMEs to list on stock exchange, and a new SME Governance Guidebook offers promise. Celestin Rwabukumba, CEO, Rwanda Stock Exchange joins CNBC Africa for more.

SOURCE: CNBC AFRICA

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P&G, FMITI, BoI, others empowers SMEs at the 2021 P&G – BoI SME Academy

by with No Comment Business

Vice President Osinbajo, Minister Adebayo, industry leaders provided insights and training during the virtual event.

Lagos, Nigeria. February 2021: Leading consumer goods company in Nigeria, P&G, in partnership with the Federal Ministry of Trade and Investment (FMITI) and the Bank of Industry (BoI), provided access to trainings for over 700 SMEs during the 2021 P&G – BoI SME Academy. The first day and launch of the Academy took place on the 12th of February 2021.

READ ALSO: How the Nigerian Market can Support MSME Financing

The plenary session themed ‘SME Development and Growth as a Precursor to Nation Building’ brought senior government and private sector leaders to discuss proven strategies that can be leveraged to drive the growth and development of local SMEs as the bedrock of Nigeria’s economic development.

In his keynote address, Vice President Yemi Osinbajo, stated that,  “The Federal Government believes wholeheartedly that SMEs are the bedrock of the economy and we are constantly aiming to support innovations that can help SMEs grow and in turn groom the economy and provide job opportunities. The government has been working diligently and creatively on engaging the most vulnerable businesses especially during this current crisis. We thank P&G and BoI for this proactive initiative designed to ensure a better Nigeria”.

Also, the Minister for Industry, Trade and Investment, Otunba Adeniyi Adebayo reiterated the need to create a favorable business environment for SMEs in Nigeria: “The Federal Ministry of Industry, Trade and Investment is committed to providing SMEs the required support and trainings needed to consistently project their businesses in an upward trajectory. We achieve this through information-driven support vital in building a better playing field for commerce in the entire nation. We are grateful to organizations like Procter & Gamble for their continuous efforts towards transforming their communities of operations through proactive projects like the SME Academy”.

In his remarks, the Managing Director, P&G Nigeria, Mr. Adil Farhat highlighted the need to continuously support SMEs in Nigeria as they have the potential of outrightly transform the country. Mr. Farhat added that “in line with the focus of Nigeria’s economic recovery and growth plan to drive industrialization and economic growth through globally competitive SMEs, P&G in collaboration with the Federal Ministry of Trade, industry and investment and the Bank of Industry launched the SME Academy to improve their standard, ensure longevity, and facilitate integration into global value chains. For over 27 years in Nigeria, P&G has consistently partnered with the Nigerian government to promote strong investor policies and practices that drive inclusive growth, jobs, and welfare of Nigerian citizens”.

Furthermore, the Managing Director/Chief Executive Officer of the Bank of Industry, Mr. Olukayode Pitan, in his presentation reiterated the importance of the SME Academy especially during this challenging economic situation across the globe. “The maiden edition was held in October 2019. This second edition and first virtual event has been expanded to incorporate structured trainings. This initiative has become particularly important in this era of the covid-19 pandemic and current global economic challenges, which has left many SME businesses struggling to survive now. The Bank of Industry remains committed to transforming Nigeria’s economic sector through funding, strategic partnerships and strengthening of our technology and operations”.

This year’s SME Academy also featured key stakeholders in the industry including Ms. Yewande Sadiku, the Executive Secretary/CEO of the Nigerian Investment Promotion Commission; Mrs. Bola Adesola, the Senior Vice Chairman for Africa at Standard Chartered Bank; Mrs. Tara Fela-Durotoye, the CEO of House of Tara International; and other experts on procurement, investment facilitation, and access to finance.

Over the years, P&G has maintained a significant manufacturing investment in Nigeria with their plants in Lagos and Ibadan and general offices in Lagos. The organization’s operations generate over 4,000 direct and indirect jobs and create over 300 SMEs with sustained training programs. The people are its greatest assets with over 95% local employees and 50% female representation at managerial levels.

Source: The Sun

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Get a loan of N3 – N10 million naira payable in 7 years with Zero collateral – AGSMEIS Loan Program

by with 3 Comments BusinessEnugu SME News

Get a loan of N3 – N10 million naira payable in 7 years with Zero collateral and 5% interest rate for both Agric and Non Agric businesses.

This scheme is targeted at providing loans for:

1. Working Capital Need
2. Purchase of Equipment

*You can apply from N3million – N10million and require  _No Collateral_*

The AGSMEIS project is part of CBN’s Intervention Funds and disbursed by NIRSAL Microfinance Bank.

The loan is for all forms of businesses in sectors such as

Agriculture Value Chain
Logistics
Services
Hospitality
Manufacturing and Industry
Processing
Renewable Energy
ICT
Creative Industry
And other economically viable sectors.

*YOUR BUSINESS DOES NOT NEED TO BE REGISTERED TO APPLY.*

*Note: Applicants are required to undergo a mandatory 1 week Financial Literacy Training as part of the application process, with a mandatory training fee of N10,000 as directed by NIRSAL MFB. See link below from NIRSAL MFB for verification*

https://m.facebook.com/story.php?story_fbid=168597907883309&id=101836764559424

To apply visit:

*www.enugusme.en.gov.ng/agsmeis*

#GburuGburuissme
#AccessToCredit
#EnuguSMEAgency
#NIRSAL

IMG-20200808-WA0027

15 key reforms from Nigeria’s first revision of corporate law in 30yrs

by with No Comment Business

Nigerian President Muhammadu Buhari on Friday assented to the Companies and Allied Matters (CAMA) Bill 2020.

It’s the first reform of the CAMA, one of the most important pieces of business legislation in Africa’s most populous nation, since it was first introduced 30 years ago in 1990.

The 1990 CAMA had become a clog in the wheel of progress for new businesses with outdated laws that complicated the ease of business.

The reforms in the revised CAMA which were championed by the private sector have been widely applauded by the business community and tipped to improve the ease of doing business in Nigeria which ranked 131 of 190 countries surveyed by the World Bank in the 2020 ease of doing business index.

Here are 15 key reforms from the revised CAMA;

  1. The revised CAMA allows single member/shareholder companies to be incorporated in Nigeria. Before now the minimum number of shareholders was two. This will prove particularly beneficial for Micro businesses who are owned by one person and hirtherto restricted from registering or forced to use proxy co-founders or directors. The new practice of single membership aligns with global trends such as in Singapore, India & the UK.
  2. The new CAMA also makes it easier and cheaper for small and medium-sized enterprises to register in Nigeria, by reducing filing fees. The charge is now 0.35 percent of the value of the initial charge.
  3. The new CAMA makes provisions for electronic filing, electronic share transfer and e-meetings for private companies. Certified true copies of electronically-filed documents are now admissible in court; possessing equal validity with the original documents.
  4. The new CAMA also enhances minority shareholder protection, by prohibiting a person from simultaneously holding the positions of Chairman and CEO of a private company. It also prohibits anyone from serving as a director in more than 5 public companies.
  5. The new CAMA allows for the creation of “limited liability partnerships” (LLP) and “limited partnerships” (LP) – which combine the tax benefits of a partnership with the greater liability protection of the owners of a private company. The need for Consent of the Attorney General for companies limited by Guarantee has also been deleted.
  6. The new CAMA now requires the disclosure of persons with significant control/shareholding in companies, as well as the capacity of shareholding, and also nominees of interested persons, in a register of beneficial owners, to enhance corporate accountability and transparency.
  7. The new CAMA permits remote general meetings for private companies. Small companies (as defined by the Act) and single shareholder companies are also now exempted from the requirement of having to hold Annual General Meetings (AGM).
  8. With the new CAMA, having a Company Secretary is now optional for private companies.
  9. Procuring a company seal is no longer a mandatory requirement for companies, in line with international best practice.
  10. The new CAMA replaces authorised share capital with minimum share capital, to reduce the cost of incorporating companies.
  11. Statutory audit of accounts is now optional for Incorporated companies that are yet to commence operations or with turnover of less than N10 million and balance sheet size of not more than N5 million for a financial year. This exempts banks & insurance companies or as prescribed by CAC.
  12. The new CAMA contains rescue provisions for insolvent companies.
  13. Applicants can now sign their statement of compliance and no longer have need for lawyers for the process.
  14. The new law also means Incorporated Trustees can now merge.
  15. CAC has been empowered to cancel name conflicts or fraud, rather than having to go to court.

Find graphics for revised CAMA below