The building materials retail business is a lucrative one, especially in our part of the world where real estate is on the rise.
Truth be told, starting a building material business in Ghana can be a daunting task. It requires a lot of work to get the business set up. Some of the processes involved include getting a business permit, business registration, space acquisition and many more.
In this post, I am going to give you a complete overview of how to start a building material business in Ghana with a little bit of ease, at least.
As a business man, I can share with you my candid opinion when it comes to setting up one in Ghana.
Things to note
It is prudent that I make these things known to you. Building material business is a demanding one and requires every bit of your financial, psychosocial and social.
- Building material business requires huge capital to start.
- It is a lucrative one. You make sales almost every day once people don’t stop building.
Stuff needed to get started
The capital needed to start this business is subjective. It depends on how big you want to start the business. GHC 300,000 will be a decent amount to get started.
However, if you have additional money to put into the firm, you can put more money into it. Overhead expenses will include things like a shop, money for land rental, and other incidental costs.
Space is a critical aspect of setting up a business. A good location contributes greatly to the success of a business. A building material business can be set up anywhere and still prosper but some specific locations make the business grow faster.
Such locations include a new site, an industrial enclave, a town with developing commercial properties, and a road construction site. In these areas, you become a supplier for all construction work.
Business registration & permit
You need to duely and legally register your business and business name with the Registrar General Department in Ghana. You can either register as a sole proprietor, a company limited by shares, or others.
Also, you need to obtain a business permit from the district or municipality where your business is located.
Means of transportation is a critical factor to consider when planning to start a building materials business in Ghana. You need one truck or tricycle that can carry your cement and other building materials for delivery to clients.
Although this can be omitted, but having it makes your business stand out.
You need laborers or staff that will help to offload goods, manage finances, stock, security, and others. You literally can’t start a building and construction business without staff.
This is also another important aspect. You literally have no business if you don’t have the suitable suppliers for your needed goods. There are different suppliers for different building materials in Ghana. You need to do research on getting the right suppliers.
What sells fast in the building materials business?
- Roofing sheets
- Iron rods
- Blocks or bricks
- Safety gears
- Plumbing materials
How much do you need to start a building materials business in Ghana
An amount ranging from GHS 300,000 – GHS 500,000 can get you started. However, if you have a smaller budget you can still start and top up whiles in business. That will be small-scale.
How profitable is building material business
It is a fast-moving business. Building and construction materials are needed on daily basis. This makes it a very profitable business.