In this article I will be discussing a trade which is common all over the street,villages. Most people have lost fortune doing this business, not notting it. People see this as all comers type of trade.
This business is called “provision store “, like seriously this trade, need not much experience to start has various techniques which is applied by those who got a foundation in it.
Having foundation in it, means that you will have “godfather” in company and an individual as “oga”.Here if you got all these two factors, you will be supplied without limit. The supply is based on’credit” facilities, which you pay after sales. With this package you will make it in the business.
The business has a very low profit margin, if you invest like fifty thousand seriously you can’t make up to 10% at the end of the month. Bear in mind that your prosperity or success is based on your profit/turnover.If you turnover with no or less profit margin will you succeed in business.
This business comprises of shop rent,goods,electricity bills tear and wear in the business,’tear and wear” means damaged goods and transportation. So check all these with the expected income per month. Note that this business commands huge amount to operate depending on level. It is ‘capital intensive’.
As a beginner you ought not to open and operate business that has less profit margin with higher capital based. Ask around you,and see know what provision trade is all for. With this business you can’t execute projects that involved cash,because if you do,the shop will be empty or shown that something has gone out from it.
For instance, beta malt is now buy at #2480, from distributors ,than in the provision store at #2500 with the gain of #20. So how much have you invested already and what’s your profit. A carton of spaghetti is #12000 ,you sell at #12050.what’s your profit. So on;so fault.
Another part of it is that ,maybe you intent to boast it, then decided to borrow money from banks, micro finance which gives you 5% interest, (depends on bank). That’s where your case will start because every month you pay as divided, both the interest and principal .Now check how much you will make as profit margin to cover both the street and principal every month. So in all, don’t start the business with little profit margin.