By Tony Obiechina, Abuja
From a humble beginning in 2007 to a thriving fast moving consumer goods enterprise, Alhaji Jafaar Sidi has grown his business through patience, reinvestment and a focus on fast-moving essentials.
He shares insights on surviving Nigeria’s tough consumer market, managing high turnover operations and why young entrepreneurs must play the ‘long game’.
Excerpts:
What kind of business are you into?
I am into the trading of fast moving consumer goods, including products like milk, Milo, flour, sugar and other essential household items. These are items that people use daily, so the business serves a wide range of regular customers.
Why did you choose this line of business, not other businesses?
I chose this line of business because the products are always in demand. Almost everyone uses one or more of these items, so there is a steady market and constant movement of goods.
How profitable is this business?
The business is profitable. The profit margin may not always be very high, sometimes around one to three percent, but because of the high turnover, it remains consistently profitable.
How did you raise capital to start this business?
I started the business around 2007 with an initial capital of about one million naira. Over time, I reinvested profits back into the business, and today it has grown to be worth several millions of naira.
How has banking with Jaiz Bank helped you grow your business?
Banking with Jaiz Bank has helped my business, especially in accessing financial facilities. One challenge I sometimes face is the need for repeated valuation of collateral whenever I want to increase my facility, which can slow down the process.
How would you describe your transactions using the Jaiz Bank Mobile App?
I enjoy using the Jaiz Bank Mobile App because it makes transactions easier and more convenient. However, there are occasions when transaction alerts are delayed.
What are the challenges you have encountered in your business?
One of the major challenges is that the market can sometimes be dull, leading to slow sales and affecting business momentum.
What strategies are you putting in place to surmount these challenges?
We manage the situation by maintaining steady operations and adjusting to market conditions. Greater access to business facilities, especially with more flexible collateral requirements, would also help businesses grow.
What do you think Jaiz Bank should do to help small holder businesses grow and alleviate poverty in Nigeria?
Jaiz Bank should provide more financial facilities to small businesses and make collateral requirements more accessible. This would help businesses expand and contribute to poverty reduction.
What would be your advice to young entrepreneurs who want to start a business?
My advice to young people is that business is the way to go. They should not remain idle but engage in productive work. They must be patient with small profits at the beginning and reinvest them, because that is how a business grows.
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