How to Start A Cement Distribution Business In Nigeria – Dangote, Unicem, Ibeto, etc.
Having a cement distribution business in Nigeria can answer a lot of financial questions for you. Nigeria is a developing nation as well as all African countries bar South Africa. There are implications of being a developing country. One of them is that you are confronted with housing deficit. This challenge is enormous in Nigeria and almost all other African countries.
This implies that Nigeria and most African countries are involving in massive construction of infrastructure to fill in this gap. Suffice it to say that cement is one of the goods whose demands will keep increasing even for years to come.
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So, you can make use of this opportunity to make some real fortune for yourself by starting a cement distribution business
There are a couple of big cement manufacturers that you can become a distributor too. They include Dangote, BUA, IBETO, LAFARGE WAPCO, CCNN, and co. If you have an interest in becoming a distributor with any of the following cement producers, all you need to do is to stick to this piece to the end.
In the course of this post, I will be guiding you on how to achieve your aim of starting a cement distribution business with any of the big producers in Africa and the world over. You may have doubts about whether the business is going to sell or not.
What I can say to that effect is that the demand for cement in Nigeria and Africa at large will keep increasing due to the rising construction needs of the underdeveloped countries involved.
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If you need a prove still as regards how much you can make from this business, you need to take a cue from Ronald Nzimora (a top copywriter, and information marketing strategist) who only a few years ago started renting trucks to the Dangote group.
Today this man has made millions renting trucks to Dangote. So, you can also become a millionaire by mere distributing the product. Take your chance now! Follow this post to the end as I will be exposing the ultimate secrets of making real money in cement distribution business without much stress nobody has ever told you before and also giving you tips on how to go about starting the business.
Why You Should Start A Cement Distribution Business
- Most countries in Africa including Nigeria are developing countries with rapidly rising populations and still have heavy needs for Infrastructures such as bridges, roads, houses, monuments, etc. However, the demand for these infrastructures is a derived demand for cement.
- There is a present and future demand for cement due to the huge population in Nigeria and Africa at large, coupled with the present housing problems facing the government. There is currently heavy investment in this line by both the government and private real estate investors
- There is an indirect policy backing for this business. You need to be a bit smarter to see this. Currently, the federal government of Nigeria is implementing a plan that will require cement to be used for road construction. You should be able to grab the implication of this. Take for instance the issue of cassava bread. You remember what happened to the price of flour and cassava when the federal government made a policy that cassava flour should be the composite material used for baking bread, instead of the conventional wheat flour? It’s about to repeat with cement.
- With over 3000 trucks registered under the brand, Dangote Cement is currently the dominant and leading cement company in Nigeria. You need to take advantage of the great business acumen of the investor and founder Aliko Dangote and start a cement distribution business.
- With Dangote Cement PLC currently the biggest cement company in the world with factories spread across Africa and a future potential to export to the rest of the world, it can only be wisdom that you key into this initiative and make money for yourself.
How Much Money Can I make if I start a cement distribution business?
This is the biggest fear of most people that fail to go into this business. They really don’t know if a cement distribution business can bring profit. Anyway, I advise you to hold on while I do the following analysis. As at the time of releasing this research piece, a bag of cement directly from the factory was sold for 1,450; while you are only allowed to purchase a minimum of 600 bags (a truckload of cement is 600 bags).
Now, if you supply the 600 bags at the retail price of 1,650; you are making some N120, 000in excess from just one trip.Consider a situation where you were able to make 3 rounds of supply a day. You are definitely going home with an excess of N360, 000.Can you really see how much you can earn here?
If you cant afford the funds for a trip which is the minimum you can buy, you can still do start a cement distribution business with some level of smartness. You can partner with others to make the load lighter after which you can either share the profits at the end or split the products before they go into the market.
How to Become a Registered Cement Distributor for Dangote Cement PLC
Before you start your cement distribution business, you need to register. The following documents are required before you begin application:
- A copy of the certificate of company registration from the CAC (Corporate Affairs Corporation)
- A scanned copy of the bank reference letter
- A detailed application letter to become a credible distributor
- Passport of the company’s CEO
- And a minimum purchase of one trailer (600 cement bags monthly on cash & carry basis)
If you can provide the above documentation alongside the funds to do this business, feel free to send your completed applications to cementdistributor@dangote.com
or call Customer Care hotlines: 01-4616193, 01-4616196 and 01-4630569. This is for Dangote company alone.
Alternatively, you can contact the Group’s head of corporate communications inIkoyi via the following address:
3rd Floor,
Union Marble House,
1 Alfred Rewane Road, Falomo,
Ikoyi, Lagos.
5 Facilities You Need To Put In Place To Start A Cement Distribution Business
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You Need to Write a Business Plan for your Cement Company
For you to start a cement distribution business, on your own, you need to draft a good business plan to guide you in this business and in managing the resources at your disposal properly.
The business plan should cover issues such as the resources at your disposal, your target prospects, how much you need to start the business, things you need to introduce to make your product stand out, and other vital issues.
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Study the Competition
Who’s your competition? What are they doing that you can do better? You need to study and understand their strengths and weaknesses. This is your advantage when starting a cement distribution business.
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You Need a Warehouse
One of the facilities you should put in place is a warehouse. Get it to the back of your mind that you cannot do this business without a warehouse as you must not always supply all your products out of the source.
Sometimes, it takes time to supply and you have to warehouse them somewhere. Also, you should be able to stock your warehouse in the case of emergency. A warehouse of a capacity of at least 500 – 1,000 cement bags can do.
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You Need to Arrange for a Vehicle
A truck is a necessity for this business as it helps you track your products with some level of certainty, fastens transportation, and also helps you save some money. However, you can still do cement distribution business if you cannot afford a truck. You can go on to hire trucks to transport your products from the factory to either your warehouse or point of sale.
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Learn from the Gurus and not the “GOOROS”
A couple of established business owners are happy to give advice to serious entrepreneurs. They love industrious young people and are ready to go the extra mile in helping them. Don’t be scared. The worst answer you will ever get is a “NO” but you have to understand that rejection is most times inevitable in the process. Always learn to listen to the Gurus rather than the GOOROS.
In all I want you to understand that the cement distribution business is what you can do while working your job. It pays really well if you can put in so much work with determination. However, you need to also know that there are risks involved here, just like every other business. You can lose your products to thieves. Your truck may get involved in an accident and you lose most products if not all. However, there is a visible solution if you can go ahead to insure your products and vehicle.
