Introduction:

In an economy that is steadily going haywire, everyone is looking for a way to increase their income, either by getting a side hustle or three. If you fall into the category of looking for a side hustle or a stable business to invest in, then you’re in the right place. The engine oil supply business in Nigeria is a highly lucrative one, with our high population and heavy reliance on machinery from vehicles to motorbikes and generators, almost every household is a potential customer of engine oil products.

It’s advisable to understand any business before you dive into it, and for this reason we came up with this guide, to ease your journey into this niche.

Knowing your product; Engine oil:

Engine oil, also known as motor oil, is a lubricant used in internal combustion engines to reduce friction and wear between moving parts. It is a vital component for the proper functioning and longevity of an engine. There are several types of engine oils such as mineral oils, semi-synthetic oils, and full synthetic oils. To learn more about engine oils, their types and strengths, you can go through this article. The beauty of engine oils as a product is that it rarely ever goes bad, so you risk little.

Understanding the engine oil Market:

The engine oil industry is a very lucrative market, with a steady increase in the number of people buying cars despite the recession (Where are you guys seeing this money? Please drop the update in the comment section below, and if you don’t have excess cash like me, abeg continue reading), and as Nigeria Automotive Engine Oils Market stood at 163.27 million liters in 2021 and is projected to register a CAGR of 1.74% to reach 177.98 million liters in 2026 based on a report from research and markets. Almost every home in Nigeria has at least one generator set, and those that don’t have cars use public transportation (okada, keke, buses), this means that owning or investing in an engine oil business is a good idea, in almost any location of the country.

Also, Nigeria is poised to be the highest consumer of engine oils in Africa in the foreseeable future due to our rising middle class and large population, and after signing the. Now is an excellent time to get a foothold in this niche. Without further ado let’s get started on what’s needed to succeed in the engine oil business.

First off, Research:

Before setting up your engine oil business you need to do some research to ensure that your business succeeds, You need to understand your ideal customers, the best location for buyers (mechanics, car owners, public transporters, homes e.t.c)to easily access you, the kind of products that sell, and then the best time for your business to be open.

Getting products:

After your market survey, the next thing to do is to start sourcing for products, you need to take the information you’ve gathered from your research and use that in stocking your store. The kind of business or investment you want to start in the engine oil sector, would determine where you go to source your goods. If it’s a small scale investment say a kiosk, you can start off by looking for wholesalers and buying products from them, but if you’re looking at medium to large scale investments it’s best to go directly to cut out the middleman and go directly to your manufacturers, this way you increase your profits.

I know that looking for manufacturers can be a bit tough, so here’s a link to help.

Name your business:

I understand that most people just want to start selling and making money, but giving your business a name helps the business in a number of ways. Your name sets you apart from others, as people can easily refer you to others, it helps retain and grow your customer base, and can also improve sales. Take a look at samsung and other android phones, the name alone sets the product apart from other companies offering the same android devices.

So your name is something that’s very important, and should be chosen with care. Here are a few tricks to help you name your brand.

• Avoid names that are hard to spell or remember.
• Don’t choose a name that limits your company.
• Research to find out if the name is being used by someone else.
• Pick a name that means something to you.
• Ask family and friends for feedback.

After choosing a preferred name to register the business name with CAC, this isn’t expensive and opens your business up to be able to work with large clients, companies and even the government.

Setting up a store:

Now that you have your location and name down, you’ll need to set up a storefront to house your goods and service your customers. The type of store should be based on your budget, the amount of goods you intend to stock, and any other services you intend to render in that location. Your store can range from an oil stand to a complete service center depending on your budget.

After choosing your preferred location, the next thing to do is to brand your store with your identity. You can do this yourself, or you can partner with a reputable brand like Everest oils, and they would help brand your store for you, as well as provide you with the best lubrication products available, here’s a link to sign up as an Everest service center.

Join the engine oil dealers, association in your chosen area:

Thing is an important step to take in your engine oil business, because meeting up with other dealers would help you in a lot of ways. Like keeping you abreast of what’s going on in the markets, any new policies, tips on how to scale certain issues, the list is endless. It gives you access to grow your business and a place to go to for support.

Marketing:

Apart from focusing entirely on physical sales, or people coming into your store. You need to look into online marketing channels to increase the visibility of your store, and also boost sales. 

The best way to do this is to run ads that focus on your target audience (ideal customers), these are the people most likely to buy your products, you should define who this person is before doing any form of marketing. Imagine running an ad for secondary school students or people over 85, against running an ad that focuses on car lovers. I’m sure you can imagine the strategy that would boost sales. 

You shouldn’t neglect creating marketing strategies for your physical store as well, partner with mechanics in the neighbourhood, filling stations, and service centers to generate more sales.

Customer service:

A good business owner knows that the customer is the most important part of the business, as without them the business cannot succeed. So it’s important to ensure that your customers are happy when doing business with you, as a bad experience might chase them away  as well any business that they might bring.

Conclusion:

Engine oil is a very good business to start, with almost no risk, no need for large capital as you can start your journey with NGN 500,000 and scale up from there. It’s a good place to invest money in an economy that is volatile, as you are sure that people would always need to move and work in, which means they will always need transportation in turn they would always need your engine oil products to service their vehicles and machinery.

I hope this guide gives you a clear path to starting your engine oil journey, please drop your thoughts, questions, comments or any steps you feel should be added to the guide. Don’t forget to share it with friends and family!