Iron rods are widely used in the construction industry, for beams, columns, lintels, and other structural members. With the ever-present demand for iron rods, venturing into the business of providing iron rods to end users presents great prospects. If you have given a thought about this business but don’t know how to go about it, keep on reading this article to the end as we provide you with a step-by-step guide on how to start iron rod business in Nigeria.
How to start iron rod business in Nigeria will be discussed below:
-
Perform Market Research on Iron Road Business
The first stage of starting iron business in Nigeria is to carry out a market survey about the business. This exercise allows you to identify the target market for iron rods around you, the wholesale and retail prices of different types of iron rods and to assess the competition.
Keep in mind that conducting a market survey is an ongoing process, so regularly review and update your survey to help you adapt to changing market conditions and customer preferences.
-
Develop a Business Plan
Creating a business plan is the next step you’d take after you have carried out the market research on iron road business.
Your business plan for iron rod business should include the quantity of iron rods you want to supply, how to transport them and the funds you are willing to start the business with.
Additionally, the business plan for your iron rod business should include the location where you want your warehouse to be as well as strategies you intend to attract customers that would patronize your business.
Having a good business plan for your iron rod business will serve as a strategic tool that guides your business growth and development. This is because it helps you articulate your vision, make informed decisions, secure resources, and adapt to the dynamic iron rod business environment.
-
Get a Warehouse in a Good Location
Getting a warehouse for your iron rod business is the next step and it requires careful planning and consideration.
You should determine the size of the warehouse you need based on your proposed inventory and operational needs. In addition, ensure the layout, flooring, and height of the ceilings of the warehouse meet your requirements.
Also, you should ensure that the location of the warehouse is strategically located on major roads and should be easily accessible for transportation and close to your suppliers and customers.
Other important things to consider when getting a warehouse for iron business include the security of the area and the warehouse itself, lease terms, and plans for future growth by choosing a warehouse with the potential for expansion if needed.
-
Buy the Iron Rods
With the warehouse set, the next step is to purchase the iron rods. It is recommended to buy the iron rods from companies that produce steel in large quantities. Some major top iron rod manufacturing companies in Nigeria include Tiger TMT, Quantum Steels Nigeria Limited, Saba Steel Industries Nigeria Limited, and Dana Steel Company. Alternatively, you could also buy iron rods from major suppliers that sell iron rods in bulk.
Iron rods come in different sizes including 12mm, 16mm, 20mm, 25mm, 10mm, 8mm, 6mm, and 30mm. Below is the average price per ton of iron rods as gotten from betaprices.com (as of September 2023):
| Steel diameter | Qty Per Ton | Single unit price NGN) | Price per ton (NGN) |
| 6mm | 376 pieces | N1,200 | N451,200 |
| 8mm | 210 pieces | N2,100 | N441,000 |
| 10mm | 134 pieces | N3,300 | N442,000 |
| 12mm | 93 pieces | N4,800 | N446,000 |
| 16mm | 52 pieces | N8,500 | N442,000 |
| 20mm | 34 pieces | N13,000 | N442,000 |
| 25mm | 21 pieces | N21,000 | N441,000 |
| 30mm | 15 pieces | N30,500 | N457,000 |
N/B: These prices may vary from one part of Nigeria to the next and from one manufacturer or supplier to another.
-
Register Your Iron Business
Registration of your iron business is the next step of the process. In Nigeria, business registration is crucial as it makes your business legitimate and credible, make it easier to access bank loans and grant, and protect your personal assets from any potential legal issues or debts that may arise from the business.
The Corporate Affairs Commission (CAC) is where to register your business. Below is the registration process for business with CAC:
- Check for the availability of the business name by visiting https://services.cac.gov.ng/
- Complete the pre-registration form – CAC-BNo1 and upload the relevant registration document online using Company Registration Portal
- Pay filing fees.
-
Find Customers for Your Iron Rod Business
This stage involves locating potential customers for your iron rod business. First and foremost, you should display the iron rods so that they will be visible to passersby.
Additionally, you don’t have to rely only on the customers that can locate your warehouse, instead, go out, find, and meet them.
The potential customers you should consider approaching for your iron rod business include construction companies, contractors, architects, builders, and other professionals in the building industry.
Ongoing construction sites are an example of where you can find potential customers for your business.
Aside from physical marketing strategies, you could also use other methods to get customers for your business. One way is to build a strong online presence by creating a professional website that showcases your product. To ensure you get leads off the internet, invest in search engine optimization and utilize social media platforms like Facebook, X (formerly Twitter), Instagram, and LinkedIn.
You can engage in content marketing on iron rods to establish yourself as an industry expert. By regularly sharing content on iron rods, such as blog posts, videos, or infographics, you will increase your likelihood of getting more customers.
Other ways to reach more customers include online advertising, networking and industry associations, and partnerships and collaborations with businesses in the construction industry.
Keep in mind that building a customer base for your iron business takes time and effort, therefore, be patient and persistent in your marketing efforts. However, as you build strong relationships and consistently deliver value to your customers will help your iron rod business to grow over time.