How to become an hypo distributor
Hypo is a subdivision of Multipro Enterprise Limited(MPEL). The company manufactures its main product; hypo bleach at a very affordable price. The company is expanding the bleach market in Nigeria through product excellence and maintaining quality of the product.
Hypo has successfully gained a lot of positive product reviews as the best household bleach in Nigeria. The hypo manufacturers currently boast of a world-class, state-of-the-art technology, with the best manufacturing and finishing machines. Hypo is Nigeria’s no. 1 fastest selling sodium hypochlorite bleach, so if you’re an entrepreneur looking to start up a hypo distribution business; it’s probably one of the best business decisions you ever made. Let’s look at the entire process involved in becoming a hypo distrubutor.
- Get some training
You can’t just start up this business uncooked. You need to undergo some basic training and skill acquisition so as to better position you to effectively manage your distributorship business. This can be easily achieved by affiliating with an already established distributor in this business, someone who will expose you to the modus operandi of the business and also enlighten you on stuff such as;
- Damaged goods policy
- How to store your merchandise so you don’t encounter unnecessary losses
- How to develop your pricing system
- How to manage your warehouse
- How to maximize your profits
All of these are very important for you to not just survive, but to also succeed in this business. Also necessary; is the acquisition and mastering of certain basic skills such as;
- Negotiation skills
- Managerial skills
- Marketing skills
- Technical skills, etc
- Prepare a business plan
Every business needs to have a business plan in order to succeed. This is rightly said because; proper planning precedes progress. So, first off, you want to start off by preparing a well- drafted business plan which should explain your marketing strategies, your financial projections for the first three years, your business goals and objectives; keys to success, with an highlighted competitor analysis. The problem with most businesses in developing countries is that they seem to always neglect the need for a written business plan: This is wrong. To have the kind of success that established entrepreneurs around the globe have; you need to come up with an effective business plan to back up your new startup. If you don’t know how to prepare a business plan, you can always reach out to professionals to get it done for you.
A good business plan in place will serve as a document to guide you through your business, it’s something you can always go back to for reference as you go. Writing a winning business plan is an important part of launching any new business, you should do so.
- Get your business registered
Multipro Enterprise Ltd, the makers of hypo, require that its distributors are registered business entities. Part of the requirements for becoming a hypo distributor is that you provide a proof or a certificate of incorporation to the manufacturers. Business name registration is thus inevitable as far as becoming a hypo distributor is concerned. To do this, you need to first choose a business name( usually two) that you will present to the Corporate Affairs Commission (CAC) for incorporation. The process involved in business registration with the Corporate Affairs Commission is really not as hard as it seems, you just need to go through a step by step process, and in less than a month after applying with them you are good to go. You will be required to pay a fee which shouldn’t be more than N50,000 tops. To get more details about business registration, check out the commission’s official website; www.cac.gov.ng
- Get a warehouse and office space
You need a warehouse or suitable store to keep your goods. Before you can become a distributor for the makers of hypo, you need to have a good warehouse for the purpose of storing your goods. As a matter of fact, part of the requirements for registering with Multipro Enterprise Limited is evidence of a shop space/warehouse with adequate storage capacity. You may also be required to provide the following information;
- Shop address
- Shop agreement and rent details
- Size details and other storage conditions
You have to make sure that your office and warehouse are centrally located to facilitate quick and prompt delivery to your customers. Otherwise, if your customers are spread out in several states, then ensure that your warehouse is situated near transport facilities so that you can easily pack and send the materials across promptly to them.
- Have distribution facilities
As a product distributor, you need to be able to circulate your merchandise around. You shouldn’t expect your customers to come to look for you. You need to have a stable means of delivering the goods to sub distributors and retailers in your target market. Get trucks, vans, or any type of vehicle you prefer. It’s absolutely impossible as at now, to succeed as a distributor without a means of transporting your goods to your customers. It is these vehicles you will use to pick up your goods from the manufacturers to your warehouse, and from there to your customers all around you, it is inevitable; you must have distribution vehicles. If you can’t afford to purchase trucks, you can hire them for now.
- Register with Multipro Enterprise Ltd
For you to fully establish your hypo distribution business, you have to be registered with the makers of hypo, as an authorized and registered business partner of Multipro Enterprise Ltd. You will then be allowed to purchase the products from the company at a special discounted rate, such that you can benefit from a relatively higher profit margin.
Here are some more general qualifications you have to meet before you can register with the company as their distributor.
- A refundable deposit of between N250,000 – N500,000 for a period of 3 – 6 months
- Proof of working capital
- Proof of identity ( Passport, National Identity Card)
- Proof of business registration ( Certificate of Incorporation)
- Shop address and specs ( storage capacity etc)
- Capital requirements
To be a hypo distributor, you need to be able to buy a minimum of 500 cartons. The profit margin is one way to make profit. New distributors get 3% rebate quarterly and the distributor must have been able to sell 3000 cartons quarterly.