Dreaming of launching your own computer sales business but concerned about the startup financial hurdles?
The good news is that in today’s digital age, starting a computer sales business with minimal capital is not only possible but also practical which we will be revealing in this article.
Whether you have a budget of 50,000 Naira or no money to invest upfront in this business, this blog post will guide you through the steps and strategies needed to bring your dream business to reality which is the computer sales business.
Table of Contents
1. Know Your Role as the Middle Man:
In this business, your primary role is that of a middleman, connecting suppliers with customers in need of computer products.
This approach eliminates the need for substantial upfront capital to your suppliers from your own pocket, as you won’t have to maintain any inventory or invest in any physical storefront.
Instead, your focus will be on networking, promoting, and facilitating sales and transactions between the buyers and the sellers.
2. Strike Agreements with Established Suppliers:
The first step in this journey is to identify and connect with established computer sales businesses that are willing to collaborate with you as your suppliers.
Your pitch to them should emphasize the benefits of having an additional channel for reaching potential customers without them incurring any expenses.
This agreement can be structured on a commission basis, or it can involve you purchasing the products at a minimal price and then adding a margin when selling them to the customer.
For instance, consider a situation where an HP product typically retails for N200,000. Instead of receiving a commission, you and the seller agree on a minimal price, let’s say N170,000 for you. You then have the flexibility to add your own margin, say N50,000, making the final selling price N220,000.
With effective negotiation skills, you might persuade the buyer to purchase it for N210,000, which results in a profit of N40,000.
By consistently maintaining favorable margins through your negotiations, you can earn between N300,000 and N500,000 monthly by acting as an intermediary in the sale of computers and related products.
And this money earned comes with no expenses or at least a little expenses on marketing your items.
These suppliers can be local computer stores, distributors, or even manufacturers (if we start having them in Nigeria).
Building strong relationships with reliable suppliers is crucial for the success of your business.
3. Pick a Niche:
Now that you have reached an agreement, either through a signed contract or a verbal understanding, with your suppliers, it is advisable to select a specific niche within the computer business.
This is important because the computer industry encompasses the sale of various items, including:
- Gaming PCs and Accessories
- New and Refurbished/Used PCs
- Custom-Built PCs
- Business Solutions such as servers, networking equipment, and software
- Computer Accessories and Peripherals such as such as keyboards, mice, cables, and adapters.
Focusing on a niche simplifies your task of targeting the right customers during the promotion and marketing of your suppliers’ products.
4. Promote Your Suppliers’ Items Online:
The fourth step can only be pursued once the first three steps have been successfully completed.
When it comes to promoting the items you intend to sell, your primary marketing channel is the online platform. This is because your business operates exclusively in the digital realm.
However, if your business also has a physical presence, such as a computer repair shop, you can complement your online marketing efforts with some offline marketing strategies to expand your target customer reach
Here are the online marketing channels that prove effective when it comes to promoting your sales items and reaching a broader customer base online:
- TikTok
- Telegram
- E-commerce Marketplace Platforms (especially JIji)
It’s important to note that if you choose to sell on these platforms and you don’t have the logistics in place to ship items outside your city or state, you have two options.
You can either limit the visibility of your items to your specified city or state where you can timely cover the logistics, or you can indicate in your listings that the items are only available for pickup at your chosen location.
However, if your suppliers operate an eCommerce store and offer nationwide shipping in Nigeria, you can extend your reach to customers all over the country. In this case, your supplier will handle the logistics.
In addition to working with physical store dealers in your city/state, you can also register as an affiliate with companies that sell computers and computer-related products online.
Promote their products using your referral links, and earn a commission for each item sold.
The initial 50,000 Naira you have will primarily be allocated to promote these items on your chosen online marketing channel using paid ads.
But If you’re starting this business with no startup capital, you can still effectively reach your target customers and generate sales for profit without utilizing the paid advertising options provided by social media channels; the free features are sufficient for this purpose.
The Basic Requirement to Succeed in the Computer Sales Business Without Money or with at Least 50k
To succeed in this business of selling computer products as a middleman, things needs to be put in place.
You should have some fundamental items and knowledge, including:
- Your Phone and/or Computer that will be used for the online publicity
- Market knowledge on trends, customer preferences, and the competitive landscape
- Strong supplier relationships
- Effective communication: Very critical especially during Negotiation on both sides (buyers and Sellers), and in customer service
- Relevant networking
- Proficiency in online marketing and promotion
To even start this business you need these items before the path to succeed can be feasible.
A Practical Story
Here is. practical story shared by a Nairaland user, Roselynbas. On how she quit her job and started this business full-time.
Passion for computers ignited my journey into the world of business.More than just a means of livelihood, it was the fascination of understanding the inner workings of computers, from assembly to problem-solving, that drove me.
The starting point of my venture was serendipitous.
Initially, I was a sales representative for a computer firm in Ikeja, I found myself fielding requests from customers for software installations, an area in which I had little expertise. This ignited my curiosity, prompting extensive online research.
However, circumstances changed when the owners of the company relocated, leaving me jobless.
It was a chance meeting with a potential laptop buyer that marked the turning point.
Lacking the capital for the transaction, I engaged a contact I had met in Ikeja, explaining my predicament. With his assistance, I secured my first independent sale.
This experience unveiled my passion for sales, leading me to explore the used computer market, an intricate community of its own.
I identified a reliable source for goods, leveraged my social circle, and ventured into prospecting. The journey was far from easy, but recognition gradually followed.
I eventually secured a contract position, leading me to briefly set my business aside.
While the job was engaging, increasing family responsibilities nudged me to reconsider.
Resuming my business, I recognized an unmet need: customers sought laptop repairs and part replacements.
This insight propelled me toward yet another opportunity, where a mentor played a pivotal role in honing my skills.
Balancing my job, business, and training was a Herculean task, often demanding Saturdays for learning and creative use of social media for sales.
Nevertheless, I persevered, completing my training only to be reassigned to a more demanding department, forcing me to once again suspend my business.
The tug-of-war between my job and business became unsustainable. I had to choose, and I opted for my business, resigning from my job. This came at a cost, offering only my final paycheck.
I resumed from home, having built a modest clientele. The search for a market shop marked the next chapter.
While working, I had made the rounds at phone repair shops, offering my laptop repair and sales services. This outreach proved fruitful, generating significant income.
Following shop hunting, which spanned six months due to an agent’s mismanagement, I secured a space. The shop began with scraps and a meager four laptops, but it was a start.
Referrals and prospecting fueled my business growth. I even secured a laptop supply contract from a social media organization.
Social media marketing became a valuable addition, expanding my reach.
Now, many clients I’ve never met in person send referrals my way. I supply fellow technicians with used laptops, thanks to reliable suppliers.
The used laptop market, while lucrative, carries risks, but bulk purchasing and strategic cost-spreading ensure profitability even if issues arise.
Starting from scratch, I navigated the challenges of entrepreneurship, driven by an unrelenting passion for computers and a knack for turning obstacles into opportunities.
Roselynbas from Nairaland
READ ALSO:
- How to Start a New/Used Computer Sales Business: Step-by-Step Guide
- The 7 Key Steps to Profitability: How to Start an Electronics Business in Nigeria
- How to start UK/US used Phone Business in Nigeria with 50k
- 11 Businesses you can Start with no Money or no capital
Final Thoughts
By acting as a middleman and focusing on promoting your suppliers’ products through online platforms like Facebook, and WhatsApp, you can start a computer sales business with 50k capital or no money.
Your dedication, marketing efforts, and commitment to providing excellent customer service will be key to your success in this cost-effective venture.
Yes, the business of selling computers and computer-related items as a middleman who doesn’t hold inventory is very profitable and can set you high financially.
This business of selling computers and computer-related products without money can be started by both students and non-students (graduate inclusive) as a main hustle or side hustle.
With all that being said, we come to an end on how to start a computer sales business with No Money or at least 50k
