MODULE 1 · FOUNDATION

BUSINESS FOUNDATION — SETTING UP TO WIN

Most people start importing before they have set up the structure that makes importing work. They buy first, think later, and create problems that follow them for years. This module covers everything you need to have in place before you place your first order.

1.1 THE IMPORT BUSINESS MODEL — HOW IT ACTUALLY WORKS

At its simplest, the import business works like this:

1. You identify a product with strong demand in your local market 2. You source it from a manufacturer or supplier abroad at a price that allows a profitable margin 3. You pay for shipping, clearing, and delivery to your location 4. You sell it at a price above your total landed cost 5. The difference is your gross profit

Everything in this book is about maximising the margin at each step — buying smarter, shipping smarter, selling smarter.

1.2 BUSINESS REGISTRATION & STRUCTURE

Sole Proprietorship (Business Name) Fastest and cheapest to register. Good for starting out. Register with CAC.

Private Limited Company (Ltd) More credibility with international suppliers and banks. Required for some import licences.

Informal (unregistered) Fine for your first 1–2 orders. Migrate to registered as soon as you are generating consistent revenue.

Note: You do not need to be registered to place your first order. But if you are building a real business, registration gives you access to a business bank account, credibility with suppliers, and protection if things go wrong.

1.3 BANK ACCOUNT & FINANCIAL SETUP

- Open a dedicated business account — do not mix import capital with personal funds - Set up a domiciliary account (USD, GBP, or EUR) for paying foreign suppliers — most major Nigerian banks offer this - Understand your bank's Form M and SON/NAFDAC requirements for regulated goods before ordering - Keep a separate float for clearing and delivery costs — these always arrive before you have collected sales revenue

1.4 STARTING CAPITAL — WHAT YOU ACTUALLY NEED

A common beginner mistake: underestimating total startup capital. Your order value is only part of the cost. Your full capital requirement includes:

Product cost (Alibaba/1688/direct factory price) ₦X Repacking agent fee (China — inspection, repack, consolidation) ₦X Air freight — all-in rate per kg (customs included) ₦X OR: Sea freight — all-in rate per CBM (customs included) ₦X Collection from Nigeria warehouse / last-mile delivery ₦X Storage/warehousing at your location (if needed) ₦X Repackaging for retail sale ₦X Contingency buffer (minimum 10%) ₦X MINIMUM STARTING CAPITAL Sum of all above

THE CAPITAL RULE: Never commit all your capital to product. A minimum of 30% of your total budget must be reserved for freight and operational costs. With the 2026 logistics model, customs is already included in your freight rate — but you still need to cover repacking fees, collection, repackaging for sale, and contingency before you collect a single naira in revenue.

1.5 YOUR OPERATIONAL TOOLKIT

Before you order, have these in place:

- A logistics company that handles door-to-door shipping AND customs clearance — one company, full accountability - A China-based repacking agent who receives, checks, and consolidates your goods before shipment - A China sourcing agent for 1688 and WeChat/direct factory orders - A WhatsApp Business account set up for sales and client communication - A basic spreadsheet or notebook tracking every cost from order to sale

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