Ways to Start an Export Business fromHome With No Money

   valuable minerals and agricultural resources probably
knows nothing about the country. Nigeria is richly
endowed with a wide range of resources. These include
petroleum, which is the country’s major money-spinner,
agricultural produce, solid minerals, charcoal, and lots
more.
Starting an export business in Nigeria is one of the most

lucrative business decisions you can make. The reason is
because most export commodities are worth much more
in the international market than they do in the local
market. The business offers unlimited opportunities and
ultimately unlimited profits.
Though you can make money selling any of these
resources and commodities to the local market, you can
make much more by selling to foreign countries where the
commodities are of greater value. This explains why the
export industry is one of the most lucrative business
sectors in the country. If you are based in Nigeria and are
looking to start a profitable business in the country,
starting an export business is one of the best business
decisions you can make.
It is impossible to cover everything about the export
business in Nigeria within a single short post. However,
this write up explains the steps involved in starting the
business. Read on to understand the guidelines for
starting a profitable and successful export business in
Nigeria.
Table of Content
Module 2-: Legal requirements for an export
business in Nigeria
Module 3-: How to make money in the export
industry without exporting
Module 4-: Characteristics of successful exporters
in Nigeria
Module 5-: How to find reputable product sourcing
agents
Module 6-: How to find foreign buyers online for
your export product
Module 7-: How to avoid being scammed as an
exporter
Module 8-: How the Nigerian Export Promotion
Council can help you
Module 9-: How to negotiate with prospective
buyers as an exporter
Examples of Hot-in-Demand Non-Oil Products You Can
Export from Nigeria and other African Countries
There are a lot of products in Nigeria that have huge
demand in the global market. I made a comprehensive
list of over 25 hottest non-oil products you can export
from Nigeria and other African Countries. Some of them
are:
Gallstone
Bitter Kola
Tea
Cashew Nut
Mango
How to Start an Export Business from Home
1. Learn about the market
The export market in Nigeria is so complex, you will fail if
you take a plunge without having gathered enough
knowledge and experience. So, before starting out you
need to take your time to learn vital details about the
export business such as licensing requirements, port
procedures, product sourcing, working with foreign agents
and distributors, locating profitable foreign markets, and
so on.
In Nigeria, you will find many e-books on how to become
a successful exporter. Ironically, most of these e-books
are written by people who are not exporters themselves!
You need to be wary of these.
The best way to learn about the export business is to
contact a seasoned exporter with years of experience in
the business and ask them to teach you all you need to
know before kick starting your own business. Practical
teaching in a face-to-face setting is best.
2. Figure out what products you will sell
In Nigeria, there are more-than-countable commodities
and resources that can fetch you huge profits in the
international market. But you will fail woefully if you try to
sell too many items at once. So, you should focus on only
one product from the start. As you gain more experience,
you can expand your scope to include other products.
As a recommendation, start with products that you can
easily make available in the required quantity whenever
there is demand for it. Cassava, cashew nuts, bitter kola,
cocoa, charcoal, and kola nuts are very good examples of
products to start with.
3. Decide how you will source the products
After deciding which product you would like to export, you
need to decide how you will source the product. Basically,
you have two options: you can either produce the product
yourself or buy from manufacturers or producers in
wholesale quantities.
For a start, buying from someone else is the easier and
cheaper option, as you might not be able to afford the
cost of setting up and maintaining a production point. If
you are going for this option, then you need to find
suppliers or producers of the product. It is recommended
that you have one or two ‘standby’ suppliers aside your
main supplier, so you won’t have much worries if your
main supplier suddenly runs out of stock.
4. Register your business
Legalizing your business is one of the most important
steps towards starting any business in Nigeria—and the
export business is no exception. You must register your
export business with the Corporate Affairs Commission.
Aside giving you the legal permission to operate your
export business, registering your business will boost your
credibility. Before doing business with you, most foreign
distributors will try to establish your credibility by
requesting a certificate of incorporation and other
documents showing that your business is legally
registered in Nigeria.
5. Find your buyers
With the internet, export business has become easier than
ever. You can find buyers for your products and seal
trade deals right from the comfort of your room without
necessarily holding a face-to-face meeting with the
buyers. All you need to do is join trade websites, become
an active member, and start sealing trade deals with
interested buyers.
6. Exhibit your products
Trade fairs and missions provide great opportunities for
exporters to showcase their products. As your export
business grows, you will need to attend more of these
events to create awareness about your export products.
You have bright chances of meeting with potential buyers
and sealing additional lucrative trade deals.
How to Finance Your Export Business in Nigeria
When you are planning to start your own export business
in Nigeria, there are many things you need to put in
place. You need to register your business and obtain
certain licenses and permits issued by the Nigerian
government. You need to fulfill all legal requirements
imposed by the government of your foreign target market.
You need to have a deep understanding of the export
market and how the business works. And you need to
adequately plan everything about your business: export
commodities, target foreign markets, connections, startup
costs, and so on.
However, one major factor that stops most aspiring
exporters in Nigeria from kick-starting their export
business is funding. The cost of starting and running an
export business in Nigeria is far more than what most
people can afford—though this varies depending on the
products to be sold and the foreign markets targeted.
If lack of funding is the only challenge preventing you
from starting out, here are proven tips on how to finance
your export business and get it off the ground:
a. Ask family and friends
When you are sourcing for funds for your export business,
don’t overlook any possible source. And this is not the
time to be an introvert, either. Approach members of your
family as well as your friends who you think can afford to
lend or give you all or some of the money you need.
The advantage of seeking startup funds from your close
ones is that there is little or no protocol or formality
involved. And trust won’t be an issue, since they have
known you for years. Chances are that they will be willing
to help you if they have the money—unless you have done
something really bad in the past.
So, approach that rich uncle of yours or contact that your
good friend. Schedule a meeting with them, and go with a
copy of your business plan to show that you are really
serious about starting the business. If you are able to get
funding from a friend or relative, be sure to clarify if it’s a
gift or a loan.
b. Approach angel investors
Angel investors are wealthy individuals and serial
entrepreneurs who are willing to invest in business
opportunities with huge profit potential. In return for the
funds that they invest in your business, angel investors
will take a share of your business, hoping to get back
their investment with time alongside huge profits.
You can use the web or your connections to locate and
contact angel investors in your locality who might be
willing to invest in your export business. Once you are
able to get in touch with an angel investor, schedule a
meeting with them during which you present your
business plan.
However, you must bear in mind that angel investors are
only willing to invest in promising business ideas and
opportunities. So, you need to prove beyond all levels of
doubt that your export business will turn out profitable.
c. Approach venture capitalists
Venture capitalists are limited liability companies that are
looking to invest in lucrative business opportunities. A
fund manager invests the funds on behalf of investors
who contribute money to the venture capital fund.
Like angel investors, venture capitalists also seek to take
some shares in your business in return for the funds they
invested. And they will be looking to get back their money
by implementing an exit strategy between five to ten years
after your business launches.
To find venture capitalists in Nigeria, check a physical
business directory or an online business directory such
as Vconnect or Nigeria Galleria. You must bear in mind,
however, that Venture Capitalists seeks to take more
control of your business than angel investors do. So, if
you are not willing to trade your power to make decisions
on your business for anything, then this option is not for
you.
d. Loans
Another common way to finance your export business in
Nigeria is to take loans from banks and other loan-
issuing institutions. Although getting a loan might be
difficult if you’re new to the business or do not have
connections with influential individuals. But it’s not
impossible, provided you have a convincingly promising
business idea. If you have no luck with the high profile
banks, the microfinance banks will more likely fund your
business.
However, note that you will need a valuable property as
collateral for securing a loan. And you will pay a fixed
amount as monthly interest on the loan. There you have
them! If you have a promising export business idea, but
have no funds to get started, you just learned four
realistic ways to get funding here in Nigeria.
10 Challenges to Expect When Starting an Export
Business in Nigeria
Whoever told you that starting and running and export
business in Nigeria is easy definitely knows little or
nothing about the business. As with any other business,
the export business in Nigeria has its fair share of
challenges. And to succeed as an exporter in Nigeria, you
need to know these challenges as well as the strategies
for overcoming them.
In this section, I will explain ten of the commonest
challenges that you will most likely face when starting out
in the Nigerian export market.
I. Lack of access to quality information
Your interest in the export business must have been
fueled by some information you got about it, no doubt.
But chances are that you still need to learn a lot about
the business. Unfortunately, most of the resources
available on the internet are not tailored to the export
business in Nigeria. Yet, most of the seasoned and
successful Nigerian exporters who can teach you all you
need to succeed in the Nigerian export market will hardly
have the time for that. So, you will most likely start out
with a trial-and-error approach.
II. Lack of startup funds
The amount of money you will need to start you export
business depends on many factors including the type of
products you want to export and your target foreign
market. However, even if you’re exporting cheap
commodities to countries that are inexpensive to break
into, you will still need a decent amount of money as
startup capital. Remember, you will need funds for
business registration, obtaining licenses and permits,
purchasing export commodity, visiting target market (if
necessary), and so on.
III. Difficulty in finding reliable foreign agents
It goes without saying that you will need to sell your
products in another country with the aid of a distributor
or agent in that country. That is, the distributor or agent
will be the link between you and the consumers of your
products in that country. Finding agents or distributors
that are credible and reliable could be a daunting task.
Many new exporters have fallen victim to fraudsters who
disguise as agents and distributors. So, you need to
really take your time to carefully find out about any agent
before working with them.
IV. Unplanned extra costs
Even after you have planned adequately before starting
your export business, you will most likely need more
funds than you earmarked. This is due to the ever-
changing nature of most foreign markets. For example,
new importation policies in your target foreign market
might require the payment of certain fees, which you
never planned as part of your budget. Such extra costs
could significantly reduce your profit.
V. Rejection of products in foreign market
In many countries, there are specific safety standards that
must be met by imported products. This means you need
to modify your products to meet the standards of your
target foreign market. For example, if you import
electrical gadgets with a voltage rating of 220V to a
country where the standard voltage rating is 110V, you
will have your products rejected—for obvious reasons.
This can lead to huge losses.
VI. Financial risk
When dealing with a foreign market, you will most likely
use payment collection methods that are more time-
consuming and more complicated than those you will use
for a domestic market. Worse, these payment methods
are not perfectly secure; as there are chances you could
lose your money to fraud. So, you must carefully weigh
the financial risk involved before starting an export
business.
VII. Lack of enough market information
Many Nigerian exporters rely on incomplete information
about foreign markets, and this leaves many badly burned
in the end. For example, assume you got information that
certain electrical appliances are selling like wild in
Colombia, and you quickly jumped at the opportunity by
exporting the appliances to that country. Unfortunately,
you sent appliances with a main voltage rating of 220V
because your source didn’t state that Colombia uses
110V appliances. You can guess what the outcome would
be.
VIII. Slow transportation
When you are starting out as an exporter, you will most
likely settle for cheaper means of transport. But
unfortunately, most of these cheap options are quite slow.
This becomes a big deal if you are exporting perishable
products such as fresh vegetable or fruits that need to get
to the target market in a fresh state. To ensure timely
delivery of such products, you need to pay huge costs for
faster transport options.
IX. Problems of packaging
When you are just starting out as a Nigerian exporter,
chances are you will get your packaging wrong for a few
times before getting it right. This means some of your
export products will either be spoiled or damaged before
they get to the target market. When this happen, you will
incur loses proportionate with the number of volume of
damaged products.
X. Lost shipments
There are times when exporters lose their goods in-
transit. Although it rarely happens, it usually results in
huge losses. A good way to check this is to always track
where your products are. But a better way is to purchase
an insurance policy that will provide coverage for your
business in the event of a lost shipment.
9 Mistakes to Avoid When Starting an Export Business in
Nigeria
While starting an export business in Nigeria could be your
best business decision ever, it can also be your worst
nightmare. With the huge profit potential of the business
comes huge risks and pitfalls that could cripple anyone
who is not wary of them. Unfortunately, most casualties
are the new exporters who are just starting out.
So, before starting your export business in Nigeria, you
need to know what to do to boost your chances of
success and what you must avoid. Here are five common
mistakes you should avoid when you are just starting out
as an exporter in Nigeria:
A. Not understand the export business
As with any other business, starting an export business
requires lots of learning and research. You need to really
understand how everything works in the business. To
achieve this, you may need to contact seasoned and
successful exporters who have deep understanding of the
Nigerian and foreign markets.
Now, beware of some so-called Nigerian “ gurus ” who sell
e-books and try to teach people how to start an export
business, but are not exporters themselves. Your ideal
mentors are those who have really achieved huge success
as exporters and can teach you the real, practical aspects
of the business.
If you plunge into the export business without adequate
information and knowledge, you will most likely fail, and
you will quit much sooner than you can imagine.
B. Not targeting foreign markets that are promising
To earn maximum profits from your export products or
commodities, you need to sell them in a country where
they are in huge demand. While it could be tempting to
send your products to any just country that you can
establish connections in, selling them to a market that is
hungry for them and has low competition is the smartest
way to make maximum profits.
How do you figure out the most promising foreign
market ? You can do this by simply by conducting
structured research. This entails short listing countries
where you think your products will sell well in, and then
carefully researching the market in each country before
making a decision. If you export your products to a
foreign market that does not want them, you will record
very little profits—if any at all—or even huge losses.
C. Trying to enter too many markets at once
Many new Nigerian exporters are often tempted into
targeting multiple foreign markets at once. This is a huge
mistake that leaves most of them badly burned because
they get to spend more money, time, and resources than
they can afford.
Even if you can afford the cost of sending your products
to multiple markets at once, take your time to study all
the aspects of the export business before doing such.
When starting out, always stick with one foreign market
at a time. After you have gained enough experience and
know-how, you can then start focusing on multiple
foreign markets.
D. Not carefully finding foreign agents or distributors
Another common problem that many new Nigerian
exporters face is the inability to find a good agent or
distributor in their target foreign market. Some of them
fall into the hands of greedy distributors that leave them
with very little or even no profit. Worse, some fall into the
hands of fraudsters who disappear into thin air after
receiving their products.
Though chances are slim that you can find the perfect
agent or distributor on your first trip, with carefully
conducted research, you will be able to find good ones
that you will be happy working with. So, when choosing
your export partners, choose with care. Make sure to
invest ample time and effort to locate and secure the
commitment of really good agents, distributors, customs
brokers, and other agents in your country.
E. Not visiting your target market
Many Nigerian exporters send their commodities to
foreign markets without having a feel of those markets
themselves. Though you can still achieve success without
necessarily visiting your target market, the only way to
really appreciate a new country and its people as well as
understand its market is by visiting.
Aside that you will be able to perceive the demand for
your product, you will also be able to meet with
distributors face-to-face. Such face-to-face meetings will
reduce your chances of landing in the hands of the wrong
distributors (you never know the guy at the other end of
your emails or phone calls ).
F. Not understanding foreign product regulations and
preferences
Countries all over the world have varying regulations and
policies regarding products that are acceptable into their
local markets. Unfortunately, however, many Nigerian
newbie exporters neglect to find out and understand these
regulations and modify their products accordingly. This
usually leads to rejection of products by foreign product
regulatory agencies, which ultimately results in huge
losses for the exporter.
To become a successful exporter, you need to modify
your products and packaging to suit the preferences of
your target market, even if it means completely
redesigning your domestic approach. In addition, ensure
that your business methodologies are both legally
compliant and culturally acceptable in your foreign
market.
G. Reliance on inadequate relationships
In the rush to start making huge profits, some newbie
exporters hurry through the process of choosing foreign
distributors and agents. But they later pay the price the
hard way when their budding export business becomes a
tangled mess of distributions worries, shady transactions,
and marketing breakdowns.
So, before you begin exporting, take your time to verify
the credibility of any foreign partners you will be working
with. Before going ahead to deal with them, be sure that
they are reliable and capable of delivering what they
promise.
H. Lacking a coherent international marketing plan
In certain aspects, selling to an international market is
just similar to selling to a domestic market. Your
products won’t find their way into your target market
unless you have taken the time to put together and
implement a marketing plan. Doing this for a foreign
market is trickier and more complex, but it must be done.
Whether your products will enjoy massive patronage in
your target foreign market or not depends on your
marketing efforts. So, if you want to realize huge profits
from your exports, you need to market like wild. Don’t
leave this to foreign distributors.
I. Having money as primary motivation
There are no doubts over the huge profitability of the
export business in Nigeria. But then, going into the
business with the sole aim of raking some quick profits is
a recipe for failure. When starting out, you need to focus
on a lot of aspects to get your business firm on the
ground. These include building connections with foreign
partners, finding profitable products to export, prospecting
for lucrative foreign markets, and so on.
So, you need to focus on growing your business. That
should be your primary aim. The more focused and
determined you are, the more successful you will become,
and the more money you will make. If you are able to
avoid these nine mistakes, then you will be on your way
to joining the league of successful exporters in Nigeria