In this article, we will enlighten you on how to start recharge card printing business in Nigeria currently. If you wish to venture into this business and you have been searching online for information detailing how you should go about it then you are at the right place as we will intimate you on the step by step processes of setting up your recharge card business in the country with the aim of earning properly from it.
As is the case with any new business one would love to venture into, it is not out of place to seek to know what the merits of venturing into this recharge card printing business in Nigeria will be. To start with, the main advantage of going into this business is that many people in the country recharge their mobile lines everyday for the purposes of making calls, sending text messages and subscribing to various data plans available to them from the different telecommunications companies in the country such as MTN, Airtel, 9mobile, Ntel, etc, that offer a wide range of data services.
What this means for your recharge card printing business in Nigeria is that it will be very profitable in the long run as you progress in the business, having valuable experience in it after studying the behaviour of your customers over the course of time to know which network(s) they prefer the most in your area and how to make it readily available to them.
You will definitely make money as long as you get customers purchasing from you. While trying to get customers to know and identify with your business is not all that easy, it is not totally impossible and once this is achieved, you are on your way to making it in the business. In summary, putting in the hard work will definitely bring results for you in the long term.
COST OF STARTING RECHARGE CARD PRINTING BUSINESS IN NIGERIA
The cost of starting recharge card printing business in Nigeria depends on the level through which you want to come into the business. The higher the level through which you enter into the business, the riskier and more expensive it is but one thing you should bear in mind is that you actually do not really need to start big. You can start at the lower levels and progress all the way up. The various levels and their capital requirements include the following:
TIER ONE RECHARGE CARD DEALERS/ DISTRIBUTORS
If you are starting at tier one, you will be a mega dealer/recharge card distributor and the cost of starting this business for you will be anything between ₦6 million – ₦12 million. The risk level of starting this business via tier one is very high but the profit level is also very high. You will need quality time to monitor your business when you start and it is not an easy thing to do.
As a tier one recharge card distributor, you will have direct contact and arrangement with the network service providers in the country. These telecommunications companies will give you the recharge card PINs and you will print it in bulk and sell to the sub-dealers.
RECHARGE CARD SUB-DEALERS/MERCHANTS
You can also start this business as a recharge card sub-dealer, and it will cost you anything from ₦500,000 – ₦1 million to get started. The risk at this level is moderate and the profit margin is high. You will also need to put in serious concentration into your business and invest time in it. As a recharge card sub-dealer, you can arrange with a tier one distributor for your business to commence.
At this level of recharge card business in Nigeria, you as a sub-dealer are a merchant in the business who sells printed recharge PINs to retailers. You are the middleman between the tier one distributors/dealers and retailers, and you can potentially earn up to ₦450,000 or more as your profit every month.
SMALL SCALE RECHARGE CARD DEALERS
If you are going into the recharge card printing business in Nigeria as a small scale dealer, it will cost you between ₦100,000 – ₦300,000 to start up your business. The risk level of doing this business is low and the profit margin is moderate. Also the time consumption for this level of the business is moderate. You can start at this level and work your way up.
There are two ways in which you as a small scale dealer can start printing recharge PINs and this is dependent on the company you have agreed to do business with. The two ways include:
- The internet method, and
- The voucher printing machine method.
For the internet method, you will need the following:
- A computer
- Internet access
- A software, and
- A printer.
RECHARGE CARD RETAILER
If you want to enter the recharge card business from this level, you will need from ₦10,000 – ₦50,000 for it. The risk level of setting up the business as a retailer is very low and the profit margin is low as well. As a recharge card retailer, you do not print but sell recharge cards directly to the final customers.
Kindly be informed that the profit you will make as a retailer is hugely dependent on the number of recharge cards you sell, and since retailers don’t sell in bulk, their profit margins aren’t as high when compared to what sub-dealers or distributors make.
STEP BY STEP PROCESSES ON HOW TO START RECHARGE CARD PRINTING BUSINESS IN NIGERIA
This is a guide that will prove very valuable to you when you want to start your recharge card printing business in Nigeria.
Kindly note that you cannot start a recharge card printing business in Nigeria without having the recharge PINs, and as such, you will have to consult a tier one recharge card dealer or distributor. There are different channels available in order to get recharge PINs from these top dealers.
A number of these tier one dealers or distributors can be found online but you will need to be very careful when doing business with someone you haven’t met in person before but online. You must be certain that they are genuine so as not to fall into the wrong hands and get duped of your hard earned money.
With that duly noted, you should also be aware that payments are made to the dealer’s bank account. Some dealers may also request for online payment or they may ask you which type of payment method is most convenient for you.
Once you have paid your dealer through any of the payment channels provided, you will have to send them the details of the transaction after you have made payment so that they can confirm that they have actually received their payment.
Upon confirmation of payment, your dealer/distributor will then proceed to send you the recharge card PIN to your email. It is now left for you to decrypt and print these PINs before you can sell to retailers.
That said, these are the processes of starting your recharge card printing business in Nigeria. Ensure that you understand what it takes to embark on this business journey before you decide to venture into it. The guidelines for setting up your recharge card printing business in Nigeria are as follows:
DRAW UP A PLAN FOR YOUR RECHARGE CARD PRINTING BUSINESS
As with any business, you will need a recharge card printing business plan that will outline the specifics of your business in order for you to know what you need to really venture into it.
RAISE THE REQUIRED CAPITAL FOR YOUR RECHARGE CARD PRINTING BUSINESS
Apart from a business plan, this is just about the first thing to do if you want to succeed in owning and running a recharge card printing business in Nigeria. The capital is the money used as a foundation for your business and it can be used to buy recharge PINs, recharge card printer and printing materials, as well as the software you will use for your business.
GET A DESKTOP OR LAPTOP COMPUTER FOR YOUR RECHARGE CARD BUSINESS
This business is a tech savvy business and as such, you should make ready a computer for it. Be it a desktop or a laptop, you will need a computer to access, store, decrypt, and print your recharge card PINs. Endeavour to provide Internet access for your computer in order for you to access your mails or any other channel you may be using to communicate with the dealer online.
Also make sure that you fortify your computer with a strong antivirus and other security tools to prevent hackers from gaining access to your recharge PINs. Some people may opt to use their mobile phones instead, so as to save cost, but making use of a phone instead of a computer is a bit risky.
PROVIDE INTERNET CONNECTION FOR YOUR RECHARGE CARD BUSINESS
As earlier stated, this business needs internet access in order to allow you stay connected with your recharge card dealer that you will be communicating a lot with via emails to get your recharge card PINs.
SOFTWARE FOR YOUR RECHARGE CARD PRINTING BUSINESS
You will need a software to decrypt the recharge card PINs. Your recharge card PINs will not be sent to you from your dealer in a usable form, this is where you need a software to help you interpret the encrypted codes sent to you from your dealer.
If you cannot afford a computer and a printer, you can contact a franchise company to help provide you with a device called voucher printing machine so that you can print recharge PINs.
GET A PRINTER FOR YOUR RECHARGE CARD PRINTING BUSINESS
You will need a printer to print your recharge card PINs once you have successfully decrypted the codes sent to you from your dealer.
REGISTER YOUR RECHARGE CARD BUSINESS WITH THE CORPORATE AFFAIRS COMMISSION OF NIGERIA
Ensure to register your business with the Corporate Affairs Commission of Nigeria in order for you to be able to successfully run the business legally in the country without any hassles from the authorities.
FIND A GOOD LOCATION FOR YOUR RECHARGE CARD BUSINESS
Getting a good location such as a commercial hub can help you make more money than when you are located at a remote area. Try as much as possible to put this into consideration when you want to site your business in any area of your choice.
ADVERTISE YOUR RECHARGE CARD BUSINESS
Advertising your business can help you go a long way in getting your customers. Take advantage of the various advertising tools and channels to push your recharge card printing business out there for people to be informed about it.
This article is purely for informational purposes and it serves as a guide. We at Nigerian Guide do not possess a monopoly of all knowledge, that is why we advise that you move out to make further enquiries on your own in order to be certain about this business before you embark on it.