The success in this business can be attributed to the high demand of cement following the several building projects going on in the country by the government and individuals. Most wealthy Nigerians prefer to invest their money in building projects, this is because of the long time flow of income it offers. Besides that, building income had been on increase from year to year unlike other types of investment that one may hardly predict the stability of the income in the future.
The high demands of cement in Nigerian markets have made so many cement industries in Nigeria to flourish despite the competitions and numerous number. One good thing I like about the cement industries in Nigeria, is their ability to control the price of the cement whose increase or decrease in price don’t actually interfere with the economy inflation of the country.
Though the increase in prices of cement is inevitable due to inflations, it had been on record that between 2000-2017; the cost of a bag of cement in Nigeria had been within N1000-N2000.
Running a cement business in Nigeria can be a great source of revenue to the investor, but this will be possible only when the right strategy is put into place. There are over 10 cement industries in Nigeria, for you to run a success cement depot in Nigeria, you will need to understand the selling strength of each of the brands of cement and what makes each of the brand unique and different from others.
The business has its own risks just like every other business, it is your duty to ensure the risk is avoided. To run a small cement depot, the following will be required:
A good container made with thick metal that will be able to keep the content in it warm. When the container is not available, renting a store that has no window or easily exposed to cold. The essence of all is to ensure that your cement depot is not a cold environment, if not you will encounter a lot of losses from the caking of the cement bags stored in them.
A small truck for the conveying of the cement to customers. Such truck can be made from an old vehicle by converting the back to look like a pickup.
A good business arrangement with the suppliers if your capital is below N10 million if not you will need to deal with the industry directly.
PROBLEMS IN CEMENT BUSINESS
There could be a loss coming from the damaged bag during the cement transportation process leading to pouring out of the bag contents.
There could be financially lost coming from the caking of cement bags in the packing store.
There could be a loss from miscalculations during the purchasing and loading process.
There could be a loss from sudden fall in the price of the cement when you have just finished stocking your store with the costlier one.
ADVANTAGES OF CEMENT BUSINESS
You can make up to N100,000 in a single sell of numerous quantity in terms of a number of bags.
When the business is flourishing, you can make up to N1 million within a month depending on your capital and capacity in the business.
The business creates more link to other business such as building contracts, block molding industries, and road construction industries.
THINGS YOU NEED TO BE CAUTIONS ABOUT WHILE DOING THE BUSINESS
You need to be very calculative, try to view the future of the business constantly by checking for the possible increase or decrease in prices.
Employ trusted sales representative, to avoid financial loss.
Always check the stored cement, and re-arrange them if the need is to avoid caking.