Starting a wine importation business in Nigeria
Introduction to starting the business
Are you looking to start a wine business in Nigeria?
Just like every other business, it is important that you have a bit of wine knowledge, if you wish to effectively run a wine business. Having wine knowledge would increase your authority status in the mind of your prospective customers
Once you have the resources, you can start a winery business being one of the numerous lucrative enterprises you can start in Nigeria. Running a retail wine store requires that you have a bit of wine knowledge and understand of the different types of wine you want sell. Because most times, you’d be offering advice and suggestions to your prospects/customers on the type of wine that is befitting for different occasions and this will opens up the path to building trust and creating lasting relationships which will creates room for confidence, trust and positive relationship with your customers.
And with the internet revolution, you can now operate an online wine store where people can easily communicate with you, place an order and you deliver to them. However, this is a delicate procedure that necessitates a certain amount of trust before your target audience will start placing orders with you.
To be successful in this industry, especially in the Nigeria, you must first decide if you want to be mere importer or an agent of the vineyard by selling wine to retailers. Because acting as both a wholesaler/distributor and an importer for foreign wineries are both essential roles.
Guides to starting a Wine Importation Business in Nigeria
Knowing your business
You must plan carefully and perform considerable research if you want your business to succeed. Getting yourself familiar with the wine is easy, but knowing where to find high-quality wines at a reasonable price is invaluable. The vineyard or factory that makes the wine is at the top of the food chain in the case of wine. Foreign wineries typically engage an agent in Nigeria to represent and act on their behalf.
As an importer, you are licensed and permitted to carry wine from the manufacturer’s home country into Nigeria. In this business, the wholesaler or distributor that represents the intermediate tier that will be your potential target market. The wholesaler/distributor are the individual or business who has been given authorization to purchase wine from you for resale. The wholesaler/distributor delivers and resells the wine purchased from your institution to the retailer, which are restaurants, liquor stores, hotels, bars, lounges, individuals
Name the Business
Before you start working on your business, you’ll need a name and a legal organization. When it comes to naming your company, you should think outside the box since the name you pick will help to build an impression of what the firm stands for. When it comes to naming a company, most individuals go with the current trend in the industry they want to operate in. You should double-check that the name you choose for your vineyard is available and hasn’t been claimed by another winery. When it comes to actually selling your wine, this will be critical, since a name can go a long way in terms of branding and making your business stand out and be remembered.
It is advisable to check whether the business name you want is available, and if it is, you can probably reserve it online. Simply contact the secretary of state’s office in your state. Keep in mind that the domain name for the name you pick must be accessible so that you may build a website and other online marketing tools like an Instagram, facebook, and twitter account.
Develop a comprehensive Business Plan
Before you create your company plan, you need do a lot of research about the industry and your rivals. Start with a business overview, then move on to a company overview, market analysis, details on the product you want to sell, financial projections, and so on.
You may use a business plan template or make your own from scratch. In any case, it should be comprehensive and include a significant amount of research. It’s also not a static document; as your company grows and its goals change, you’ll need to update it. Take a look at it from the perspective of a possible investor: What information would you want if you were contemplating investing in a company.
Financing the Business
All businesses need money to start and manage its operations. Depending on the sort of wine you want to stock, fund is quite crucial in your operation. Some wines are quite costly, and many people are interested in purchasing them. Depending on your business area, you should budget between half a million to a million naira to start your business. This is for a small wine shop, and it may not be enough to cover the costs of renting a location or installing wine shelves. For begin, the sum is for stocking up on supplies for your company. The more sales you make, the more inventory you’ll have in your store, and you’ll be able to progressively expand from there.
Obtaining of business licencing and documents required
It is important that every businesses in Nigeria be registered and must have obtained its business license from all necessary regulatory authority before officially starting the business. Any individual, or business wishing to start a wine or alcohol business in Nigeria must first obtain an alcohol license. The Nigerian Liquor (Licensing) Regulation governs the process of acquiring an alcohol license. The Liquor (Licensing) Law of Lagos State is the recognized regulatory authority governing the sale of alcoholic beverages in the state.
The following is the procedures to follow to apply for the license;
- The candidate must make a personal visit to the Board Secretary Office of Local Government Area in his or her state.
- This page’s “Office Locations & Contacts” section contains the address and contact information.
- Visit the office and get an application form for a Liquor License from the relevant department, as applicable to your class of license.
- When you come to the office, make sure you have all of the necessary documents are complete.
- Fill out the application form with the necessary facts and information pertaining to your licensing requirement.
- After that, send the application form together with all needed papers to the Secretary of the Board.
- As requested, pay the requisite amount of fees. The officials will next carry out internal procedures in response to the applicant’s request.
- The adequacy and suitability of your connected papers and application form will be reviewed first.
- If adequate, the responsible officials will complete the remaining duties required for the issuing of the license.
- After all of the duties and processes are completed, the applicant will be notified to pick up the license by any available method.
The following are all the documents needed for the registration
- Completed application form
- Registration/Incorporation Certificate
- Agreement copy of Partnership
- Constitution copy of the company
- Certificate copy for the company’s name
- Copies of share certificates of the company directors and shareholders
- Title deed or Written undertaking lease in lieu of agreement
- Applicable Proof of Identity of Directors and Shareholders
- Relevant regulatory permit from NAFDAC
- Proposed menu copy
- Evidence of payment.
The next step is to decide how and where your business will be located. The ideal location for a good wine importation business is for it to be located near hotels, restaurants, bars, lounge and residential areas. If you’re establishing a business in the same area as other well-established wine businesses, you may need to come up with something distinctive and different from your competitors’ offerings. Starting a good wine importation business in a more safe and secured area in order to avoid risk of theft and robbery.
When wines are in stock, you need a place to keep them. You should get secured warehouse in a secured area. You can rent a shop or a warehouse for a lower price instead of buying the place. You’ll also need to set up your place so that potential clients may come in to check what you have in stock and this will prompt them to make their choice from all kinds of wines they would want to purchase.
Obtaining your customers
Customer happiness is the lifeblood of all sorts and sizes of business in anywhere. Client pleasure drives brand loyalty and customer retention in the wine business, and it frequently enlists new consumers simply via word of mouth. Customer satisfaction is extremely essential in the wine industry since customers range from connoisseurs to novices, and there are numerous wine options. Without client retention and a healthy new customer base, a rival will always steal your position and your customers. You can enhance your winery’s customer happiness by knowing how customers choose your wine and what motivates them to stay loyal.
Recognize the Threats and Challenges You’ll Face
Making a successful wine import business might be challenging, but it can be made easier if you have prior expertise in the industry. Also, things will be a lot simpler for you if you work hard and are ready to learn. Keep in mind that the amount of profit you may make from this type of company is greatly dependent on the items you select, as well as your marketing and sales strategies.
Whatever the case may be, you may be questioned about your top investors, debts, and even personal problems. In the case of a possible threat, such as theft or fire, the authorities will inquire about your security strategy. A business plan is required for the majority of entrepreneurs who wish to start a wine import company.
Issues to look out for when starting a Wine Importation Business
Know the Level of Competition in the Industry
There is rivalry in the wine and alcohol wholesale business, in addition to competition among wine distribution companies. Wine shops, liquor stores, nightclubs, bars, and any other institution that sells wine will be your competitors. This because many people prefer to buy wine directly from producers or through a wine distributor.
As a result, it’s safe to say that competition in wine and spirits wholesale distribution is strong.
The truth that no matter how tough a sector is, when you do your research and successfully market your products or services, you will make progress.
Simply make sure you offer well-known wine brands in your region and that you know how to attract and communicate with your target market.
There are, nevertheless, a handful of wine and alcohol wholesale distribution companies strewn around Nigeria. So, if you decide to establish your own wine and spirits wholesale Distribution Company in Nigeria, here are some things to keep in mind. Within your business region, you will almost definitely encounter stiffer competition from wine and spirits wholesalers. Furthermore, market trends are created by larger wine and alcohol wholesale distribution firms, and you must be prepared to compete with them for clients.
Self-motivation skills: Self-motivation is what drives you to succeed. To put it another way, it’s the reason you go to work, love your family, and enjoy traveling or reading. It’s all about knowing what you truly desire.
Self-motivated refers to someone who is driven by a strong desire to succeed. Personal motivation is a vital component of your professional success. Nothing will be able to stop you if you know exactly what you want to achieve and how you want to do it.
Customer service skills: Customer service skills will help your businesses answer inquiries from consumers, resolve technological issues, and collect money. Depending on the sort of corporate setting in which the business operate, you can as well take inquiries or address issues over the phone or in person. To represent your organization, address difficulties, and execute their jobs, customer service professionals require specific talents, such as professionalism, excellent communication, resource efficiency, and problem-solving ability.
Build a Website:
According to estimates, approximately 56 million Nigerians access the internet on a daily basis. This equates to about a quarter of Nigeria’s population. You may do this in conjunction with the Wine Store Company because it is simple to start. Your web page just need the services of a website designer.
The main source of concern is how to fulfil the online order. However, choose the city where the byway is located. The future is online, and any firm with an internet presence is treated with respect. Apart from gaining your clients’ confidence, you establish yourself as a professional in your field.
Word of mouth:
Saying interesting things about your product will help grow the customers’ contentment, loyalty, and new customer recruitment are all affected when wine is shared. If a person makes purchase of some bottles of wine for his/her party and there are some customers that like it, there will be recommendation of your business. For instance, the hostess has likely included your wine because she loves it and has trust that her guests will, too. If this is the case, her visitors may purchase your wine in the future and join your list of satisfied consumers. This concept may also be applied to wine gifts. Recommendations and affirmations from other customers and wine shop employees are frequently given.
His firm takes a long time to start generating consistent profits, but once it has established itself, the earnings begin to flow. One might become a big provider in a certain region with good management and consistency. Take advantage of the wine business opportunity and watch the money roll in.
About the author
Adebiyi Adesewa wields a degree in Accounting and has helped startups and small businesses navigate starting our business. Her specialty includes How to guides, articles, small business tips, sharing insights on what matters to the small business.
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