Books continue to be in huge demand for different reasons. This is why the bookshop business in Nigeria is a very profitable one give or take. Children, teens, adults and old people read books at every stage of their life . ADEOLA TUKURU reports.
Books are one of the fastest selling items in the Nigerian market today due to the huge increase in population.
Nigerians are well read people and you see that from the level of interest they show in anything book. A full container load of books can be sold within days and the profit margin is attractive .
Madam Ada Uchele, a bookseller explained to Business Starter that books are sourced from countries like UK and USA at very low price or at nothing at all.
Profit in book selling business
She said sometimes she gets 40ft full container load of used books of different kinds for less than $2,000 and sell in Nigeria for over N500,000 within days, making over N600,000 profit, adding that she sometimes get this books as philanthropy and still sell and make money.
According to her, as an outsider in the business, you wouldn’t believe what anyone can make, but while inside you will marveled at the enormous wealth people are making in this business .
“Once you have your contacts and logistics in place, you are good to go on this business, making millions of naira on regular basis .
“Nigeria is one of the most blessed countries on earth for so many reasons , the good , the bad and the ugly. Despite the said ugly state of our educational system, we still come out on top in many things related to education.
Expanding business to access retailers
She said if one wants to expand the business, one will need to secure a warehouse that must be easy to access the retailers who are the target customers.
She further said one should make it specious enough to accommodate the books and customers who are struggling most of the time to select the best books especially whenever there is new arrivals.
Steps to start a bookshop business in Nigeria
- Prepare a business plan
You should prepare a business plan for your bookshop business to ensure profitability and growth. A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved.
business plan is a written document that describes in detail how a business, usually a new one is going to achieve its goals. Typically, a business plan lays out a written plan from a marketing, financial and operational viewpoint.
A business plan should be used to help run your bookshop business with a more cohesive vision. It is your road-map. By truly analyzing your plan for marketing, sales and customer relation, you greatly improve your chances for success in your bookshop business.
- Decide on the type of books you want to sell
Choose the type of books you want to sell based on your target market. Do you plan on selling to school children, entrepreneurs or professionals in the workplace? If you plan on selling to young children, you will have to sell story books and school books for children in nursery and primary schools.
If you are selling to professionals in the workplace, you will sell books about career development.
And if you are selling to entrepreneurs, you will have to sell books on entrepreneurship and startups.
- Select a location
Your location is important when starting a bookshop business in Nigeria. The type of books you intend to sell also affects your location. Sell your books near your potential customers.
If you plan to sell books for students in nursery, primary schools or tertiary institutions, locate your bookshop near these schools where students or their parents who are buyers of these types of books can locate you easily.
The building where you sell books should have space sufficient enough to accommodate shelves where the books will be kept on display.
A bookshop requires proper organization such as indexing. That is, classifying and arranging the books such that, books that are alike or in the same category can be found in the same place.
Your bookshop will always look attractive and organized to your customers. You can also do a window display for the books you sell.
Customers can see the books easily, come into the bookshop, and buy books.
- Raise capital
You need sufficient capital to cover costs in your bookshop business in Nigeria such as rent, books, furniture, electricity and shelves. Write down your costs and prepare an affordable budget.
You can borrow money from friends or family members. You can also save money to start your bookshop business. Another option is to apply for loans from various financial institutions.
- Get registered
You should register your bookshop business with the Corporate Affairs Commission (CAC) . This is important for any business in Nigeria .
- Buy books from a trusted suppliers
Find trusted suppliers for your books. This can be publishers or printing presses. You can also import or order books from abroad if they are not readily available in Nigeria.
One advantage of importing books from the United States of America is that, you don’t have to pay import duties. Books from the United States of America are not taxed.
However, make sure that your supplier abroad, includes the books on the customs form and also indicates what the parcel contains on the form so that you can easily get it through customs here in Nigeria. Importing books from the UK is also as easy as importing from the USA. No import duties apply.
Take for instance, you are importing books worth N596,036.63 from the UK, the shipping cost will be around N32,010, while the insurance will cost like N5,500. Making a total import value of N633,546.63, without import duty and vat.
When you sell the books here in Nigeria, you can make up to N1,000,000. By so doing, you will be gaining around N360,000 with about 37% profit margin.
Buy books in large quantities so you can buy them at cheaper prices. This will increase your profit margin.
- Advertise and market your bookshop business
Advertise your bookshop business to everyone you know including friends, family and neighbors. You can do this through different media such as fliers, radio & TV ads. If you sell school books, you can even approach schools in your neighborhood. They will definitely patronize you if you sell the type of books they need at affordable prices.
