Starting a business, anywhere is a big feat to those involved in it. It is a major decision that requires adequate preparation and planning if you want the business in question to be a success. Today we are looking at the top 5 business ideas that you can start with a capital of NGN30ok to NGN500k.
There are different kinds of type of businesses around the globe, ranging from small scale businesses to large scale businesses. Whichever kind you choose is determined by the strength of your initial capital, which in turn would have a huge say on your profit margin monthly or yearly.
What actually is a business?
A business is an organization or enterprise engaged in commercial, industrial or professional activities.
Two major factors associated with starting a business of whatever kind is;
- Business idea
- Starting capital
Any potential/upcoming investor must satisfy the factors above before they can venture into any business, success in the business however gets to depend on other factors like location, marketing strategy, your quality of service/product, level of demand, etc.
It turns out that many persons who has promising ideas, have no funds and those who have funds, have no business ideas. ₦500,000 is a huge amount that can be used to start small to medium scale businesses in Nigeria. Mind you, when we say business, we shouldn’t think of Ponzi schemes where you get to invest #50 and get #100 back – that’s not business. Think more of an actual enterprise that yield interest over time.
In this article we’ve listed five businesses one can start with ₦500,000, taking into consideration, factors like demand, current government policies, level of technical knowhow needed, level of marketing needed before making a significant breakthrough, and profit margin.
Business ideas to Start with half a Million
As with all businesses, the five businesses listed below can be location sensitive, please make sure you take location factor into consideration, before choosing a suitable business plan.
If ever there was a business idea that’s independent on location, it would be farming. Please note that farming in this regard isn’t exactly targeted at cultivation but on livestock (cattle, sheep, goat, poultry, etc.) farming. It’s a business model that requires a lot of attention, and dedication, but when done right, the profit is always worth it.
The growth time of livestock varies, and It’s advisable to start with animals like poultry (chicken, turkey, goose, etc.), or sheep that takes less time to achieve maturity (3-5 months), this will help you start making a profit in a shorter time if you are looking for “faster money”. However, livestock like cattle and goats that take over 2 years for maturity get more profit overtime.
You can breed your livestock anywhere, then send the word out in form of adverts when they are matured enough to sell. Easy transportation might be required by your customers, so make sure you are setting up in a location that is easily accessible.
Still capitalizing on the opportunities from edibles, starting up an eatery can fetch good income, even more than you realize. Everybody needs to eat, but not everybody has the time to cook in the kitchen – that’s where you as a business person need to capitalize on. This business, however, is very location-sensitive, you need to get it right, there’s really no room for mistakes.
You should be located in an area with a lot of youth or students, preferably a market or close to a school, sometimes inside the school if possible. Another box you must check is the cooking department – you should be able to cook on a large scale (more than “family size dish”), or employ someone reliable to do the cooking. The tricky thing you should note is that; you earn per day, and daily income is not fixed. Your ability to save each day has a huge say on what you take home monthly.
A lot of youths (mostly men) love sports, and most of them tend to back up their fantasies/opinions on a given fixture with cash – this is what you are leveraging on. If you can secure a location dominated by youths, you are most likely to be successful in this type of business.
You don’t have to bet directly with them, rather you register with a suitable bookmaker, and place bets on their behalf while they pay you. The location factor is also very sensitive – aside from choosing a place dominated by youths, you should also balance it with a level of security. Profitability largely depends on the bookmaker you sign up with.
Grocery Store (Provision Store)
Coming back to consumables – the business of selling products/services that is directly used by consumers is one with limitless potential. The key to making it big is not only hinged on choice of location but also on your customer service – if you are very polite with customers, they would want to return regardless of the distance.
You should look for a busy location, say maybe close to a market, or at least a building just by a major road, it’ll greatly increase your sales. Profitability for grocers is quite tricky, your earnings depends on the type of sales you make, and also the number of sales – you can sell an item that generates ₦200 profit five times to earn ₦1000, or sell an item with ₦500 profit five times to earn ₦2500. Earnings is very flexible.
Pub (Beer Parlour)
Nigeria is one of the leading alcohol consuming nations in Africa. Over 75% of Nigerians take alcohol, and 30% takes at least a bottle on weekends, these are just known statistics ignoring the fact that a single individual can consume up to 5 bottles in a sitting.
In Nigeria, about 50 billion is spent buy breweries in producing alcohol – if you are comfortable with the nature of this business, there’s a lot of profit waiting for you.
Look for a location in the city that is full of youth (preferably more males), and also, with enough security because there are high chances of you closing late. Aside from selling alcohol, you can integrate other items like cigarettes, pepper soup, and suya to boost income.
The secrete to starting any business, and becoming successful is not about the level of capital investment, level of marketing, packaging or even location (though the location is very important), it’s not even strictly hinged on the level of expertise.
What you need to have in any form of business you chose to start or invest in is quality customer service – having an attitude that makes the people that purchase your services to return. Develop a tone that leaves a good impression in the minds of your clients, this can help ensure that every “new customer” is a “returning customer”, that way your network keeps growing. That’s how the big companies of today built their empire – they didn’t require billion-dollar start-up capital.