3 Businesses you can start with N5,000 in Nigeria
100 entrepreneurs were asked in a seminar what their number one challenge was in taking their businesses to the level they desired it to be and 91% of them mentioned funds. While some of them had started their businesses and needed funds to step it up, others were even yet to start due to lack of funds. Businesses, regardless of the size or industry require funds to stay in the competition and succeed.
Finance and funding are major aspect of starting or setting up a business. Money is needed to buy materials, suppliers, equipment, pay staff and lots more. In Nigeria, funding is a major problem especially if an entrepreneur does not have enough money to kick start the business. The banks that should help investors are not willing to give startups or new businesses loans because they do not believe in them or feel they have no experience and do not trust them. Where such startup companies or entrepreneur is fortunate to get a financial institution to assist and support them, there is the issue of interest rate or collateral to contend with. Banks usually place high interest rates on loans they want to give their customers. Another problem is that the payback period is usually short which will make it almost difficult for the business to pay back within the stipulated time.
Over time, many options have been pitched to entrepreneurs as the solutions to these problems. Actually, many, many options exist. One option is to look for a business requiring very little capital which is also very lucrative. Patience is the keyword here. If one is serious, persistent and keep your goal always in view, you can start small and grow big through excellent management, customer satisfaction, attention to details, mastery of your craft, growth mentality and many other important tools necessary for success in business. This is why in this article, what we will be looking at are “8 Lucrative businesses you can start with just N5,000 and are highly scalable within a short period of time. A lot of people erroneously think they require a huge capital outlay to start a business – and that nothing can really be done except you have a huge capital to start with. On the contrary, however, there are numerous businesses you can start with as little as N5,000. Below are a few of them for your consideration and personal study.
Today in Nigeria we celebrate the likes of Linda Ikeji, Uche Eze, for breaking the strides as top bloggers and online entrepreneurs. The truth is blogging is one of the ways to get rich in the world today, if you know what you are doing. Blogging is giving money to those who know how to play their cards well. Tens of thousands of bloggers are creating content on topics as diverse as cooking, fashion, gossip, news, travel, film, and lifestyle. Starting a blog/vlog with a particular niche and focusing on a particular set of individuals is a lucrative business idea with great potentials. There are many ways you can earn income as a blogger, and these include advertising income, affiliate income (this is when you link to a product that is for sale on another site (for instance, Amazon, Jumia). If someone via your link ends up buying that product, you earn a commission), events and event promotion and recurring income.
If you are a student, you can create a blog for your school and run it. You can start posting trending stories about happenings in your school. Once you have started creating useful content, invite readers. A good way to do that is via your social networks. You can share articles on your blog via social media handles such as Facebook, twitter, WhatsApp, LinkedIn etc. Build engagement with your readers and soon, start counting your rewards in cash!
Read Also: 2 Sure ways to become a CEO in Nigeria
- Sell locally bottled liquid soap
Nowadays, there’s hardly a building you’ll get to that you won’t find at least a bottle of liquid soap. This is because liquid soap meets a wide range of domestic needs. From washing of hands to washing of plates, clothes and sometimes, bathing. Therefore, the liquid soap business is a profitable venture to start in Nigeria, and the required capital can be as low as N5,000 or even N3,000 depending on how large or little you want to start, based on the startup capital available to you.
Today many people now venture into liquid soap production business because it’s quite easy and sells very fast. When I say liquid soap, I am practically making reference to something I know you must have seen or even bought or used in the recent time – this nameless new popular liquid soap with green color mostly. This soap is produced locally and doesn’t require much start-up capital at all. Like I said earlier, it is very possible to start this business with just #5000 Naira.
If you do have some business sense, get nice containers, a good graphic designer to help you create an attractive label, quality ingredients to produce your liquid soap and market it. Take it to shops around you, negotiate price and commission with resellers. Before you know what’s going on, people will begin to call you from different places for supplies. Mind you, as you think about more innovative ways to build your brand and make your product more market-friendly, you are likely to get ideas for other products such as laundry soaps – similar products of the same line but of higher ROI.
Come to think of it, if you are making #50 Naira from each bottle of soap you sell (many people doing this business makes way beyond that), and you are able to sell 20pcs of soap daily then you will be making 1000 daily, giving you a side earnings of N30,000 per month which doesn’t have to affect your existing channels of income at all.
If you haven’t forgotten where we started from, this soap business may not be your dream business but through persistence and focus, you can be able to gather some good amount from it, which can now be used to fund a business of your dream which you have always longed to start.
- Used clothes imported from overseas (Okrika)
Okrika business which includes the trading of “used clothes” or “Tokunbo products” is a business anybody can do with reasonable amount of certainty for profit and low risk of business failure. You can start it with a small capital as low as ₦5,000.00 and grow your business over time. Nigerians including rich and not so rich wear used clothes in varying degrees. Some low-income earners wear it as a matter of necessity occasioned by limited resources, while some others wear it because they have spotted really good and quality designer and fashionable wares which they love but could be quite expensive if they were new – and sometimes some people have to buy such clothes not just because the new ones are expensive but because they actually find such wears in boutiques selling new clothes and they so much like it.
Some of the products you can be dealing in include but not limited to the following:
- Electrical / home appliances
- Bras and pants
- Children toys
- Text books
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