HOW TO START A RECHARGE CARD SALE BUSINESS IN NIGERIA
The recharge card sale business is not an exactly new business in the country today as it has been in practice for almost as long as network providers have been around. The business is not a hard one at all and infact is very popular in Nigeria today. Many people always look to the sale of recharge cards as a means of getting extra income from their regular retail business. It can also be practiced solely if entrepreneurs want. It is a business with high demand and one that will definitely get you customers and good amount of profits when started. It doesn’t require much and is a very good business idea.
Everybody uses phones and in these phones there are sim cards which can be from the different network providers available in the country. To make use of the sim cards for calls, texts or even to browse the internet, you’ll definitely need to recharge your line and this is where the recharge card sale business comes in. It simply involves selling the recharge cards for different network providers to customers who are willing to buy and since there are a lot of people, if not even everyone, that uses phone for their daily activities, you’ll definitely not find it hard getting customers especially when you’re well placed in the area you want to start.
One of the major advantages of this business is of course like I’ve mentioned earlier, there is a high demand for recharge cards. Everyone needs it at one point or the other to complete an action on their phones and as such makes it a good business. High demand translates to a good business option which could even develop to become a really big and lucrative business if you’re well situated and if you have high level of customers patronize your business. Another thing is that you don’t need any special skills, educational qualifications or prior experience to be able to start the business. The business is something almost anyone can start as long as they know the basic things about starting any business.
The business comes in two types depending on the choice of the entrepreneur and also the capital available. You can either decide to deal with wholesale recharge card sale or rather as a retail seller of the recharge cards. This is much like the large scale and small scale size of any business. The large scale aspect is the wholesale part where you’ll sell the recharge cards in large quantities or multiple numbers for retailers who are willing to buy. The small scale aspect which is also the retail aspect involves the sale of the recharge cards to customers or the final consumer. As a wholesale business owner, you only deal with the retailers and have almost no business with the final consumer while as a retailer, your business is with the final consumers.
Entrepreneurs can determine which one they’re interested in based on the capital available. A low amount of capital means you’ll definitely start small while a large capital means you’ll deal with the large scale aspect of the business. Staring the business is not a difficult thing to do. You don’t need any kind of training to be able to start. It can be started by almost anyone provided they’re ready for all the business entails. It is not a stressful business to start as it doesn’t require too much work. All that you need is to get the recharge cards and gets them sold which should the main point of the business.
In the next sub heads, I’ll be discussing the steps involved in starting a recharge card sale business in Nigeria and some of the neccesary factors that might prove useful for starting the business and to also ensure you make profit and be successful at the business.
The benefits of research to any business can not be overestimated. There are many things to be learnt about a particular business when one starts it. Mostly, they are things individuals are not aware of or things not common during the practice of selling the product and since it’s strictly online, the model of operation will definitely be different from the usual store business. A proper research helps you review your business and the different options you might have to select from. The study is not only important for the starting stage of the business but it also gives insights on how to manage and sustain the business for several years to come.
Most times, research helps individuals come up with a better written business plan. The business plan, of course, needs no introduction. It contains all the information about the business and everything you have planned to help bring the business to light including ways you chose to spend capital, plans to operate and also projections for the future of the business. A well written business plan is not just there for writing sake and it also comes with its benefits especially for individuals who have to look for ways to secure funds to kick start the business.
A good, well detailed and thorough research will most likely help in writing a very good business plan, thereby helping to win over investors, if need be. Research is highly important and not something individuals or rather, future entrepreneurs should take lightly. The internet is available for all kinds of research and if you choose to meet up and discuss with experts in the industy, it is a huge plus to your research based on their level of knowledge about the business. Never ever skip the research stage especially if you’re a self starter and someone who has never been involved in the business before.
- SELECT A SPECIALITY
Like I’ve mentioned, you can either decide to select between the wholesale or retail aspect of the business. The wholesale aspect requires more space, work and capital to be successful. You’ll need a place for this one and you might also need workers at the business. Here, it is solely the recharge cards that can be sold as you’ll be dealing with extremely large quantities of the recharge cards and to prevent confusion and to properly focus on the business, you’ll just need to stick with it. On the other hand, the retail aspect doesn’t require much. You only need a small space and you can choose to sell the recharge cards alongside other things in your shop. It also requires small amount of capital as compared to the wholesale aspect.
- CAPITAL AND LOCATION
Capital is always very important to the start of any business enterprise. It helps in properly kick starting the operations involved in the business. The capital is like a pivot for the other production processes and without it, nothing can be done or started at all. The capital will be very useful in bringing your ideas into light and working to get things started. First, it is advisable to create a budget for all the things to be needed for the start of the business. After the research, certain thing concerning the business are now clear and also, some other requirements that will certainly require a cost are also made known. Create a budget for it and from there estimate your capital to know the amount you’ll need. You can either get capital from personal savings, loans from family and friends or taking a loan from banks.
Like I’ve mentioned, you’ll need a place where the recharge cards can be sold. The size of the place will depend on the aspect of the business you’ll be selecting. A small scale aspect requires a small space and vice versa. The shop should be close to a place with high turnout of people to maximize your chances of success.
- GET THE RECHARGE CARDS
At this point, you’ll need to get the recharge cards and then the business can be started. If you’re starting large scale, you’ll need to get a major wholesaler of recharge cardo in your area and get the products there. For the small scale aspect, just get a wholesale place where you can get it. If you’re starting large scale, you might need workers to speed up operations in the shop while you don’t necessarily need any for a small scale shop. There is also the option of using a POS machine for recharge card sale.
- MARKETING AND SALE
You’ll need to advertise your business using banners and flyers positioned in designated spots in the area you choose for the business. You can also encourage new customers to come again and refer your place to other people who sell recharge cards too. Word of mouth and referrals are quite useful for this business. On rare occasions, social media can also be used.
The recharge card sale business is one of the popular businesses in Nigeria today and it is actually a lucrative business that can bring in profits when set up properly.