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How Much Capital Will Be Needed To Start A Mini Supermarket? - Business - Nairaland

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How Much Capital Will Be Needed To Start A Mini Supermarket? by Godmother(f): 10:52am On Oct 18, 2011
A friend of mine wants to go into a mini supermarket business. How much should she be looking at in terms of capital for a start. She plans on starting small and will grow from there.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 11:23am On Oct 18, 2011
subscribing

I wonder what the profit margin is like for a mini supermarket, with the western experience, i know the larger stores have the better deals buying in bulk
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Godmother(f): 7:36pm On Oct 18, 2011
Pls guys, this is really urgent. If you have any info share with everyone.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 10:35pm On Oct 18, 2011
I'd say N1m and above in surulere for a standard supermarket with rent, freezer, decor, inventory, etc.

For a medium mart, N500k, though i saw a thread with N400k, not this:
www.nairaland.com/nigeria/topic-773292.0.html

For a neighbourhood minimart, N200k should be ok.

I'm sure you'll have a better idea once you list the essentials like:

1. Rent: 60k, 150k, 300k
2. Freezer: 50k
3. Furniture/decor: 50k
4. Goods : 200k
5. Gen: 10k, 30k
6. Misc: 100k

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Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 10:58pm On Oct 18, 2011
I just checked my post from 2008, i cant believe I said almost the same thing!! shocked

http://www.nairaland.com/nigeria/topic-161136.0.html#msg7803269
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 11:21pm On Oct 18, 2011
Dis Guy:

I just checked my post from 2008, i cant believe I said almost the same thing!! shocked

http://www.nairaland.com/nigeria/topic-161136.0.html#msg7803269





lolz. Deja vu, i guess.

The margins are small, and you'll have to stock more of the fast moving items and less of the slow ones to improve turn over.

You'll also have to cover a wide spectrum of goods because people prefer going to shops where they are most likely to get what they want, rather than moving from stall to stall.

One more thing, the jampacked stores always attract more business. It might make sense to partition a big shop or get a smaller one if starting small.

Lighting also matters. Nobody likes to shop in a dim or candle lit shop. Running a gen gives the impression the business is healthy.

As per where they get their goods, it depends on your scale. If you can afford to be a distributor to the manufacturers, fine. If not, enter balogun or oke-arin.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by buzugee(m): 10:18am On Oct 19, 2011
be a lot easier if you owned the building. that way you are not worrying about rent.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by gidiMonsta(m): 10:51am On Oct 19, 2011
I'd say N1m and above in surulere for a standard
supermarket with rent, freezer, decor, inventory,
etc.
For a medium mart, N500k, though i saw a thread
with N400k, not this:
www.nairaland.com/nigeria/topic-773292.0.html
For a neighbourhood minimart, N200k should be
ok.
I'm sure you'll have a better idea once you list the
essentials like:
1. Rent: 60k, 150k, 300k
2. Freezer: 50k
3. Furniture/decor: 50k
4. Goods : 200k
5. Gen: 10k, 30k
6. Misc: 100k

Do u live in lagos?

Dat 1m is hardly enuff to get a standard shop in ikorodu let alone Surulere.

All ur oda expenditures r grossly underpriced, it would hv bn okay if this was 2000 nt 2011.

U'll need abt 2m for a neighbourhood mart nd abt 3.5 - 4m for a mini mart in an area like 'lere or ikeja, for lagos island dnt just talk abt it if u don't have at least 7-10m for starters.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 10:59am On Oct 19, 2011
gidiMonsta:

Do u live in lagos?

Dat 1m is hardly enuff to get a standard shop in ikorodu let alone Surulere.

All your oda expenditures r grossly underpriced, it would hv bn okay if this was 2000 nt 2011.

U'll need abt 2m for a neighbourhood mart nd abt 3.5 - 4m for a mini mart in an area like 'lere or ikeja, for lagos island dnt just talk abt it if u don't have at least 7-10m for starters.

i said above N1m and above, and didnt dwell on that cos its not what she needs.

You can get shops around surulere for 350k/yr or less and ojuelegba/lawanson for 10k/month.

Depends on what you define as a minimart anyway.

I'm looking at those marts in lock up shops paying 150k/yr or 300k for 2 years.

Whatever you decide to stock up with depends on the size of the shop and your pocket.

Remember she intends to start small and expand, not go all out.

Anyway, lets see your own budget.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by oxax99(m): 11:29am On Oct 19, 2011
Well, it all depends on your location and how you plan to operate. From my understanding, a "Mini Mart" is bigger than a "Neighbourhood" shop. Rent, Furnitures, Set ups and other decors may be your highest capital expenditures. You could also start with stock of between N500k to N1million and you're ready to go.

As for the Margin, your everyday consumables attract little margins but give you turnover. However stocking up on other stuffs (cosmetics & the likes) should cover for that.

I have just set up one myself.

Good luck.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by otokx(m): 12:27pm On Oct 19, 2011
Generator of 10 - 30k, that won't suffice
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 12:37pm On Oct 19, 2011
otokx:

Generator of 10 - 30k, that won't suffice

the fridge/freezer if she gets one, will be the highest power drain. A 3kva should do for a small freezer. We cant expect to spend all profit on fuel na?
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Sacarstic: 1:25pm On Oct 19, 2011
Got one opened for my wife, definitely you should be looking from 2million and above,if you are to pay rent and also other facilities you may need like Generator,Fridges, the internal structuring of the place etc, The face book page is been updated,may be u can have a chat with her,she will be most willing to help you,it is Sadora Supermarket.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by tkb417(m): 3:08pm On Oct 19, 2011
5million
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by awuf2008: 5:26pm On Oct 19, 2011
At least N1.Million Naira.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by moshoodn(m): 5:27pm On Oct 19, 2011
Yamakuza said it all.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by shawonlese: 7:05pm On Oct 19, 2011
Godmother:

A friend of mine wants to go into a mini supermarket business. How much should she be looking at in terms of capital for a start. She plans on starting small and will grow from there.

Whenever your friend starts, we are on hand to supply her our ready to eat packaged snacks.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 10:30pm On Oct 19, 2011
3m-5m is not starting small now is it grin

About inventory, will there usually be a separate warehouse perhaps in the owners house or its all part of the store
I think it should be possible to make a basement/underground storage
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by SuyaEater(m): 11:38pm On Oct 19, 2011
love this topic
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 11:40pm On Oct 19, 2011
Dis Guy:

3m-5m is not starting small now is it  grin

About inventory, will there usually be a separate warehouse perhaps in the owners house or its all part of the store
I think it should be possible to make a basement/underground storage

for security purposes (fire/theft), some people opt for seperate storage.

Some rent another store if they dont have space at home.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Godmother(f): 7:06am On Oct 20, 2011
Dis Guy:

3m-5m is not starting small now is it grin

About inventory, will there usually be a separate warehouse perhaps in the owners house or its all part of the store
I think it should be possible to make a basement/underground storage

Thank you, jare. My friend has nowhere near this amount. Her husband is setting her up and I dont think she has up to a million. Thats why she wants a mini supermarket
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 3:05pm On Oct 20, 2011
oops
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 3:12pm On Oct 20, 2011
I really believe about a millions should be enough to start,

Wish people saying thats not enough would elaborate on the other big ticket expense,
apart from the rent itself, very possible to negotiate for a one year
A big Freezer or two and get the carpenter to knock up some nice straight shelves attached to the wall
and a U shaped one in the middle
a good generator

what else an ACCA CFA qualified staff with SAP cert?
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 3:24pm On Oct 20, 2011
Dis Guy:


what else an ACCA CFA qualified staff with SAP cert?
grin grin
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Godmother(f): 7:47pm On Oct 22, 2011
Dis Guy:


what else an ACCA CFA qualified staff with SAP cert?

Errr. . . . what's that?
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by LagBlogger(m): 9:41pm On Oct 22, 2011
It depends, but for a start N500,000 excluding rent, generator and other costs may be sufficient to start small
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by Dis Guy: 12:55am On Dec 02, 2011
Update?
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yamakuza: 7:11pm On Dec 02, 2011
200k should do it:

100k for the shop
100k for the stock

www.nairaland.com/nigeria/topic-801338.1248.html
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by yvy1(f): 2:13pm On Mar 15, 2012
@Godmother please what is the update on your friend's business venture?
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by lillyadet: 3:39pm On Apr 04, 2012
Please help! where and how do i get goods to stock up my mini supermarket that is just coming up in a couple of weeks? And any idea on the varieties of goods that can move faster and where to get them with the starting capital of 500k for goods only would be very much appreciated.
I'm still looking for a good location around Ajah environ in Lagos. Not a big supermarket. Just small one to start with. I've told some of my friends to look out for shop that is not that expensive for me. My worries are where to get goods. Note that the 500k is for goods only. Thanks in advance for your help.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by kenmaro: 11:22pm On Apr 04, 2012
Go to Trade fair complex(Balogun). You will get varieties of stocks at cheap wholesale prices.
Re: How Much Capital Will Be Needed To Start A Mini Supermarket? by lillyadet: 11:40am On Apr 05, 2012
@ken. thanks for the tips but what about if i want to be getting coca-cola products too like nestle water, eva water, can drinks e.t.c. thanks.
lillyadet@yahoo.com

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