Gift Shop Business Overview
Intending to venture into a gift shop business in Nigeria, and you do not know how to go about it? With this business plan on gift shop business, you will get to know the business structure and functions of gift shop business. also, you will discover the financial profits and implications required for this business. So, first what is a gift shop?
What Is A Gift Shop, And How Profitable Is It?
A gift shop is a place where people buy different kinds of gifts for their loved ones, friends and family members. Gift shop business booms more during festive seasons like Christmas, Salah, Easter, etc. and during celebration times such as valentine’s day Christmas, children’s’ day celebrations, Workers’ day, mothers’ day fathers’ day etc.
Read Also: How to Start a Supermarket in Nigeria; Everything you Need to Know
It is, however, a seasonal business. Gift shop business has a good profit margin and it sells best in locations and amongst people with a great inkling for celebrations.
With this business, you can creatively put a smile on people’s faces, while returning home daily with huge amounts of money in profits. It is, therefore, such a business with a high level of lucrativeness.
Types Of Gift Shops
There are many kinds of gift shops in town you can choose from. We have the artisan gift shop, a souvenir shop, sports gift store as well as the personalized gift shop.
How To Start A Gift Shop Business In Nigeria
Business Location
While choosing a location or a place to site your gift shop business in Nigeria, ensure that you rent or build such a place in town with high population density.
If you don’t have much money, you can start with a small gift shop, which is strategically located in town to drive attention and patronage of passersby easily.
I advise that you start small and scale up with time. Your business premises should, also, have sufficient parking space for your customers and clients to park their vehicles.
Read Also: 20 Businesses You Can Start With 1Million Naira
Business Registration
The first place to go as per business name registration in Nigeria is the Corporate Affairs Commission of Nigeria (CAC).
You should also register with other appropriate agencies of government as well as trade unions within the gift shop business niche in your locality. With simple research and visibility study, you will be able to know how to go about this.
Funding And Capital
You cannot run a gift shop business without sufficient capital. But that does not necessarily mean that you must empty the bank to start this business.
I cannot really say the exact amount for now but starting a gift shop business in Nigeria depends on you and your pocket.
It also depends on where you want to site the business, the volume of stock you want to start with and the size of the shop you want to rent.
This is where proper market feasibility study comes in to ascertain what it entails to start and run this business successfully.
Sustainability Tips For Running This Business In Nigeria:
Try to be dynamic and innovative. Formulate new approaches to advertisements and publicity of your business. You must not necessarily do what every other person is doing. Even if you should incorporate some of their techniques, try to add value to what they already have.
For example, you can choose to offer gift wrapping service for free or for a fee. Try to go the extra mile by combining different gift items to create a gift store hamper which will catch customers interest.
So as not to lose out in the gift shop market in Nigeria, you need to understand and determine the kind of gift shop that best suits a given location so try to know what kind of gift items works best during a given season and what sells better at other times.
Read Also: How to Start Bridal Shop in Nigeria
Licensing & Certification
Gift shop business does not require any special Licensing or certification. However, you may decide to get legalized by the government by getting your business registered by the Corporate Affairs Commission of Nigeria, CAC.
Equipment Needed:
To run a successful gift shop business in Nigeria, you need to purchase a few pieces of equipment. This includes but not limited to office supplies, wrapping materials, souvenirs, shipping supplies, display shelves, table decorating materials, a personal website etc. You can always get these materials locally and easily in the open markets here in Nigeria.
Profitability and Sustainability Strategies, Marketing
Choose A Niche
As already stated, there are different kinds of gift shops possible in Nigeria. Decide on the exact niche you want to focus on so as to know your kind of customers.
That is, the kind of customers you expect to patronize your business. There are two kinds of customers in this business and they are the individual buyers and the corporate clients.
The corporate clients include companies with purchase gift items for their customers during the festive season such as anniversaries, birthday etc.
The individual buyers, on the other hand, are simply individuals who just walk into a gift store at any time and buy items off the shelves.
A choice of your niche determines the kind of customers you expect at your shop. You can choose to stick to one niche or target several niches and customer base.
Read Also: How To Start Event Management Business In Nigeria
Choice Of Supplier
Who you buy from determines how you are going to sell your goods. This, of course, determines how long you are going to be in business.
If you buy from sellers of good quality gift items, then you are going to attract the who’s who in a society and this, of course, is going to raise your capital base and keep the patronage coming.
Also, when you buy at a cheaper rate, chances are, you are going to sell off at cheaper rates too. As much as possible, try to keep your prices moderate enough and favorable to every person in the society.
Advertise & Conclusion
There are many ways you can advertise gift shop in Nigeria. You can choose to go online and run adverts on some website and the social media.
Get your business listed on online directories and yellow pages. You can also leverage on the mass media like radio, television, newspaper, magazines etc. to boost your publicity.
Get more business plans like this one here