Starting a business can be both exciting and challenging, especially when it's your first venture into the entrepreneurial world. I began my retail provision store just 12 months ago with #700,000(895.14 USD) which includes my rent #80000(102.62 USD), and some other infrastructural facilities expenses. I must admit that I made some mistakes along the way due to my lack of experience. These mistakes significantly impacted my cash inflow and left me feeling disheartened.

Despite my frustration, my husband always reminds me that there is no such thing as a bad business. With his encouragement, I realised that quitting was not the solution, especially considering that I had only just started. It was a rough beginning, but I knew I had to learn from my mistakes and develop strategies to overcome the hurdles I faced.

One of the challenges I encountered was the misleading tactics employed by my competitors. Whenever I inquired about prices, they would either quote me an exorbitant figure that scared away my customers or offer me an extremely low price that put my business at risk. This manipulation made it difficult for me to find a competitive edge in the market.

However, instead of giving up, I decided to make corrections and sought reliable information from the wholesaler in the market. By joining their WhatsApp group, I gained access to vital information such as pricing and order inquiries. This allowed me to make smarter decisions without having to physically frequent the market. Additionally, I started utilising distributors whose prices aligned with those in the market, providing me with a more predictable supply chain.

Although the question that lingers in my mind is whether I am making profits or experiencing losses, remember I have to pay my rent which is #80,000(102.62 USD) and there are other expenses. Initially, when I started my retail store, I was earning an impressive daily cash flow of around #60,000(76.97 USD ) to #70,000 (89.80 USD). I was so focused on growing my business that I didn't prioritise saving at the time.

However, challenges came knocking on my door, starting with the naira redesign saga in Nigeria. Sales began to plummet, and I found myself barely reaching a daily income of #40,000(51.31 USD). Then, with the onslaught of inflation, the prices of items skyrocketed, further reducing my daily income to a meagre 15,000(19.24 USD) to 20,000(25.66 USD). People became more reluctant to spend on discretionary items, preferring to prioritise essential food items like bread, beverages, and noodles. This change in consumer behaviour created significant struggles for me, often making it challenging to sell even 50,000(64.14 USD) naira worth of goods in a week.

Therefore, instead of giving up, I decided to learn from these mistakes and implement strategies that have proven effective. Allow me to share some valuable insights and lessons I've gained along the way.

Stocking the Right Quantity
While having ample funds to invest in your store may tempt you to stock it to the brim, it's essential to exercise caution. Stocking up with the right goods that align with your location's demand is more crucial than simply filling the shelves. Starting small enables you to understand your customers' preferences on a daily basis, preventing wastage or ending up with unsold inventory that may lead to substantial losses. Gradually expand your product range based on customer feedback and demand.

Efficient Distribution
To save time, energy, and costs, consider utilising distributors whose prices align with market rates. By relying on trusted distributors, you can streamline your supply chain management and ensure regular and consistent availability of products for your customers.

Be Wary of Debtors
One vital lesson I learned from personal experience is to avoid giving goods on credit. Unfortunately, there will always be individuals who take advantage of your trust and manipulate your emotions to avoid settling their debts. These debtors can harm your business and strain your finances. Thus, it is essential to establish strict credit policies and prioritise cash transactions, minimising the risk of accumulating bad debts.

Stay Updated on Pricing
The prices of items in the retail industry are rarely static. To avoid incurring significant losses, stay well-informed about price changes by obtaining information from reliable sources. Instead of relying on competitors who may have ulterior motives for providing inaccurate pricing details, seek updates from wholesalers or trusted market sources. This will enable you to adjust your pricing strategy accordingly.

Offer a Variety of Brands
Attracting customers and standing out from competitors requires offering a broad range of brands and products. Giving customers multiple options not only increases the chances of making a sale but also enhances the overall appeal of your store. Strive to strike a balance between quality and affordability, and stock different brands to cater to diverse customer preferences and needs.

Understanding Local Preferences and Affordable Options
To thrive, it is crucial to understand the specific preferences of your local customers. In my case, my customers leaned towards products that were both of good quality and affordable. By catering to these preferences and sourcing the lowest-priced options without compromising on quality, I was able to attract and retain customers while maintaining profitability.

Despite the setbacks that I encountered, I refuse to conclude that my business is doomed. I believe that by continuously adapting and seeking ways to overcome obstacles, I can steer my retail provision store towards profitability once again.

I can tell you with confidence that starting a retail provision store is a challenging endeavour, especially for first-time business owners. By following these guidelines, you can pave the way for a thriving and profitable business. So, take the plunge and embark on your journey to retail success!

All images are mine.

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