Marketing Company Business Plan in Nigeria
Marketing is a very important aspect of running any business. These days, many companies will rather seek the services of external marketers rather than employ marketers on their payroll. This is a huge opportunity for you if you are seeking for a new business that you can start with minimal capital.
Also Read: Business Consulting Business Plan in Nigeria
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Do you have a desire to market products? Can you convince people to buy just about anything? Are good with striking deals and managing a team of people? If your answer to all these questions is yes then you should consider becoming a marketer.
Who is a marketer?
Before we go ahead with this discussion, it is paramount that we understand the term “marketer” in the context of this article. Like we said earlier, marketing is a very wide field and several people on the supply chain refer to themselves as marketers.
Our definition of a marketer is a person that acts as an intermediary or middleman. Manufacturers these days will hardly bother themselves with the sales of their products. All they do is find wholesalers who are ready to pay for their goods and sell them to the consumers. The job of the middlemen or marketers is to link up with the wholesalers. They pick up goods and sell to the end-user through their own supply chain.
This may seem quite complex when you think about it initially, however, it is less complicated when you understand the process. We will take a close look at how middlemen operate in this article.
Types of middlemen
Before discussing the role of middlemen, it is important that we take a look at the different types of middlemen. This will help get a clearer picture of the kind of middleman you want to operate as. Basically, there are four different types of middlemen and they are:
When you consider the supply chain closely, you will discover that wholesalers and agents have a better relationship with the manufacturers. They usually purchase goods from the manufacturer and distribute them to retailers and brokers. Considering the capital outlay required to be a wholesaler, we wouldn’t discuss further on this. After all, you need a business that you can start with little or no capital.
The retailers and brokers get products from the wholesalers and in turn, resell to consumers in smaller quantities. Even though most people don’t know this, there is a difference between retailers and brokers. Retailers pay money for the goods they receive from the wholesalers or agents. On the other hand, brokers strike a deal with the wholesaler to pick up goods and sell at a commission. This is where we are going to, a business that doesn’t need capital to run.
How does a broker operate in Nigeria?
All intermediaries (wholesalers, agents, retailers, and brokers) have one major function. They help to get the products to the consumers from the manufacturing point. Every other part of the chain requires some form of funds or capital to operate.
The only standout individual is the broker. The reason for this is that the broker doesn’t need to spend their own money to run the business. All the broker needs is the ability to negotiate deals, bring people together, and market products.
A broker goes to the wholesaler with the aim of collecting products that should be originally paid for. Instead of paying for the goods, the broker offers to sell on behalf of the wholesaler. What does the broker get in return for the effort and time? A commission in percentage or a specific agreed amount per item for all the trouble.
The question is this, how does the broker sell the products? Have you been in traffic anywhere in Nigeria? You must have seen those guys selling things like Gala, drinks, or some other wares. Those are not brokers but people contracted by brokers.
The broker sets up his own marketing team by gathering these young energetic individuals looking for means of survival. Of course, the broker has no money to pay for their services so they employ a method that has always worked, negotiation. The broker tells the seller that on every item sold, there is a commission that motivates the seller to do so much.
Once the seller agrees to the terms of the contract, an agreement is signed. Basically, the broker just negotiates deals and run the marketing team. Everyone else partners with the business and at the end of the day, the broker enjoys a fat commission.
Qualities a broker should have
From the above description of how the broker operates, it should be clear that without certain qualities, the broker cannot operate. Brokering is a business that requires the following qualities:
- Negotiation skills. This is the chief of all the qualities that a broker needs. How do you think you can convince the wholesaler and your marketing team? You must be able to negotiate such that everyone enjoys benefits.
- Leadership skills. The only way you can convince sellers to work on your behalf without prior payment is being a true leader. You must be able to lead your team of sellers to achieve the aim of your business.
- An eye for opportunities. Not everyone is able to identify opportunities easily. It is important for a broker to smell and sight opportunities from a mile away. Some people refer to these individuals as opportunists because they are able to sniff opportunities from the most unlikely places.
- Tenacity. It may seem really easy or fairy-tale-like, however, it is not a bed of roses. You have to be tenacious as a broker because you will be turned down many times. Asides this, mistakes will happen amongst other things. This should not stop you from pressing on in the business.
- Trust. This business requires a lot of trust. You must be able to trust others and people must be able to trust you as well. This just implies that you must have a good reputation. You cannot afford to be shady or of questionable character, else, the business will not grow.
Starting your marketing company in Nigeria
Now that you know who a broker is, how the broker operates, and the qualities required, how do you start? Starting this business requires a lot of guts but the beauty lies in the fact that you will not be spending any money. You can become a millionaire in a few months if you get it right. Here are a few helpful tips:
- Carry out a feasibility study of your locality or the sector in which you want to operate.
- Draw up a business plan or a business module canvas for your business. This acts as a map that guides you through the business. It will also help to attract investors when the need arises.
- Find wholesalers.
- Build a network of wholesalers and other brokers to help.
- Grow your marketing team.
- Strike your first deal.
Profitability of the marketing Company in Nigeria
You are probably wondering at this point if there is an assurance of making money in this business. It is important to ask this question if you want to start any business. To help you understand how profitable this business is, here are a few figures in a practical example.
Let’s say you approach a wholesaler to help sell a thousand loaves of bread. The bread is sold at #250 each and you are allowed to fix your price. You get your marketing team and tell them to sell at #350 so they can take #30 per loaf. As the broker, you will be making #70 per loaf, let’s do some calculation.
Your total income = 1000 loaves of bread x #70 per loaf = #70,000
It should take you about a week to finish selling this amount. Now let’s calculate how much you will be making monthly and yearly:
Monthly income = #70,000 x 4 weeks = #280,000
Yearly income = #280,000 x 12 months = #3,360,000
Now, this is just for bread, there are several other products that provide you with higher income. Do you see why you should become a broker (marketer)?
Marketing is a very lucrative business in Nigeria. Many people are making huge amounts daily from being marketers. We have told you all there is to know on the periphery about marketing. However, we advise that you research as much as you can before starting this business.
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