Entrepreneurship has been a recurring discourse in economic discussions globally. Underemployment and unemployment issues plaguing many countries have called for the need for a solution. And many people have found the solution in entrepreneurship.
Consequently, being an employer of labor or investor is increasingly becoming attractive. There is, however, the issue of finding it difficult to choose the venture to go into. Some people desire to start a business or invest in one but struggle to make a decision and the main point of being an entrepreneur is doing the right business.
Exportation is one business that quite a number of people, unfortunately, do not consider. But exportation is actually is actually a lucrative business because Nigeria has a lot of products that are in high demand in foreign countries. One of such products is Ginger. Ginger is a root herb that is not only useful for domestic purposes; it is also used for industrial purposes. Ginger is a natural herb that is in high demand due to its aromatic, nutritional and medicinal benefits.
Is Ginger Good for Exporting?
As mentioned earlier, many people erroneously think ginger is only useful for domestic purposes but ginger has industrial value as well and used for the production of many things. Many of the industries in different countries demand ginger to be used for as a raw material in the production of their products. It is, in fact, one of the items Nigeria is blessed with that is ready for export.
According to Nigeria Export Statistics, 23% to the country’s GDP comes from ginger export. Food and confectionaries companies use ginger for their biscuits, drinks, sweets among others. The oil of ginger is also extracted from drugs, perfumes, foods, and drinks. So yes, on the question of whether ginger is good for exporting or not, the answer is yes.
Countries You Can Export Ginger To
There are many countries that demand ginger. Many countries such as the United Kingdom, The Netherlands, France, Spain, Germany, Italy, Poland and others in Europe demand for ginger in high quantity. Apart from all the industrial and domestic uses of ginger, it is highly demanded mostly during winter because of the effect on cold. Ginger is not only good for a cold weather, it is also good for a sore throat, common cold and general cold that is usually common during winter in Europe.
How To Start Ginger Export Business:
Have you decided to start exporting ginger? Then there are certain things you need to know and do. Before you learn the ropes of exporting ginger, remember if you want to simply invest because you have a large amount of cash lying around and want it to generate income for you, you can get a partner who will do the work while the profit will be shared between you too or you could invest in an already existing business.
However, if you are interested in being actively involved in the establishment and running of the business, then here is information to get you started.
Before starting any business at all, it is important to do research so you can prepare for some avoidable challenges. Of course, there are many things you would not be able to learn till you actually start the business. But so you can concentrate on those and also avoid what is avoidable, you need to so both theoretical and practical research. There are certain entrepreneurs who served as apprentices for others before they established their own business, you can do the same.
- Get Capital
No business can run without capital, that is a given already. Luckily, starting a ginger business is quite cheap compared to setting out in other businesses. Apart from the money that will be spent registering for the businesses and getting all other required documents, you will also need capital for transportation both from the suppliers and to the buyers. Buying ginger itself for a ton can go for about N200,000 to N250,000.
- Register Your Business
Registering your business is another very important step you need to take if you want to set out because it will not only protect you, it will increase the credibility of your business. The truth is many foreigners have distrust for Nigerians because of their impression and so they will not likely want to do business with an unregistered company. Plus, it will save you from the hassles you are likely to face with the government. CAC (Corporate Affairs Commission) is the government organization saddled with the responsibility of registering businesses.
As a small and medium business, you will simply need to register your business name and probably private limited company. There are certain steps to take when registering your business with the government.
- To start with, you have to get a business name. To save yourself a lot of back and forth with CAC, it is important to have a name on the ground first before visiting because if another business is bearing the name, it will be rejected. Luckily, before visiting CAC, one can check their website for a list of registered companies to determine if a name is available or not. You should probably have two or three names so you can have options and besides, you will be allowed to submit an alternative name at CAC.
- After getting your business name(s), you will visit the CAC office close to you, get a form and be required to fill. You will fill in the usual details as well as your business name (first choice and alternative), then the type of business you are registering. It is advisable you make a photocopy of the form before submitting the original. Then you will need to check back at a later date to check that the name is available and approved.
- Once approved, you will need to go to CAC again to register to get a business registration form. Some other documents will be required from you (you can find out from CAC or on their website online). To submit with the form.
- After submission, attestation form will be given to you to sign at a magistrate court.
- You will be required to submit all these with a token.
- You should also register with NEPC (Nigerian Export Promotion Council). Not only will it also increase your credibility, you get to associate with the exporters’ community and be eligible to all the benefits that come from that.
- Find Your Suppliers
Once the above is taken care of, the next thing you need to do is to find your suppliers. There are certain things you should consider when trying to find a supplier. They include distance, quality of the product and the price. If you can get all these things at once, then you have found your supplier. One thing you shouldn’t compromise on, however, is the quality. Most of the countries you will be exporting to have a standard on the kind of quality they allow be imported into the country. So if you want to ensure you keep getting request, then you should make sure you only buy quality ginger.
How can you find suppliers? This is quite easy. Ginger is produced in a high quantity in Kaduna state. However, other states like Benue, Nassarawa, and Gombe also produce ginger in large quantity. If you want to get directly from the farmers at a cheaper rate, then you can scout farms in these states or you can buy from the market in your own state. It depends on which you find more convenient.
- Find International Buyers
You cannot successfully run a business without having buyers and in this case, international buyers. There are different ways to get buyers for your goods. Luckily, Nigerian ginger is actually a preferred type of ginger because of its flavor, spice, and oil. So the attraction of Nigerian ginger has already given you a head start.
- One good way to get buyers is a good old internet. The internet is home to many things; the good, the bad and the ugly. For an exporter like yourself, you can use the internet to search for buyers of ginger abroad.
- You can also get buyers by attending international trade fairs. NEPC organizes some that are a good meeting point for buyers and sellers.
- Another way is to liaise with Nigerians living abroad. It is either they serve as your scout who will help you scout the market over there or they serve as your partner in the business.
Don’t forget to do a research around the market to determine the international price before setting your own price.
- Other Logistics
Once you have secured your buyer(s), there are other logistics you have to take care of.
- Packaging and storing your goods should be done with the ginger in mind. You have to store in a way that will not bring damage to your product.
- Documentations like invoices, receipts, shipping documents, bill of lading, certificate of origin and other documents required by Nigeria and the country imported to should be cleared and settled.
- It is also important to take care of insurance in case of any loss.
- The goods should be labeled not necessarily with the name of the business but the details of the product and other important export details to identify the products.
- Take an inventory to determine your revenue and income in order to plan for the next sale.
Ginger exporting business is a lucrative business that does not need too much money to start. The above information will help you get started. However, there is more that will be learned from people who have experience of the business or even as you go ahead.