Businesses you can start with N50,000 capital in Nigeria
A survey by the Small and Medium Enterprises Development Agency of Nigeria revealed that Nigeria has approximately 41 million microbusinesses and 73,000 small and medium businesses.
This demonstrates that the average Nigerian is an entrepreneur in some capacity, as a result of the risk to financial stability posed by poverty, lack of education, and insecurity. Regardless, many Nigerians have forged ahead to leave a legacy of financial independence for future generations.
However, when individuals are tasked with the creation of passive income or a secondary source of income, the typical reliance on a lack of funds as an excuse prevents them from escaping their meagre salaries and financial constraints.
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Despite arguments and reports fueled by the high cost of energy and erratic power supply, personal finance experts have led discussions on the necessity of embracing multiple income streams.
This may sound like a fairytale, but it is possible to increase your income base. Certainly, by taking baby steps and beginning with a single business.
Businesses you can start with N50,000 capital
Short on funds to get started? Despite the nation’s harsh economic climate, here are some small businesses that can be started with N50,000 or more.
Point of Sale businessÂ
Point of Sale service is regarded as one of the most profitable side businesses to pursue. Even though some Nigerians have fully invested their capital and rely on it as their primary source of income, it is still a viable way to earn supplemental income.
Taiwo John, a full-time PoS operator operating along the Lotto, Ofada bus stop, told Ejes Gist News Nigeria, “Although the startup capital for a full-time PoS business is about N250,000, you can start a side business with N50,000 to N150,000. If you are purchasing two terminals, you will need approximately N50,000, or N25,000 per terminal.
According to him, consistency will play a significant role in determining the business’s success.
“This business is based on trust, so after purchasing your accessories for approximately N25,000, you’ll need cash to operate the company and ensure that you’re always available when customers need you.” John asserts that as a business owner, “you must focus on your profit rather than simply making sales.”
Because it is so simple to launch a point-of-sale business, it has spread rapidly throughout rural areas.
In fact, the National Bureau of Statistics reports that the number of registered PoS operators has increased over time. In January, due to the cashless policy, Point of Sale transactions increased to N807,16 billion, a 40.69 percent year-over-year increase from the N573,72 billion in January 2022. This is a clear indication that the PoS business is profitable and that the service is in demand.
Perfume business
The perfume oil industry is an additional business opportunity. According to a Ketu-based perfume oil wholesaler, “anyone can start a perfume oil business for as little as N11,000.” I began mine approximately four years ago with N24,000, and I have since re-invested approximately N34,000 into it. Tomisin Oke told our correspondent, “At the time, I was a retailer, but now I’m a wholesaler.”
Regarding the profit margin on the initial investment, she says, “Expect to earn between 60 and 40 percent, depending on sales, but your profit cannot be less than 50 percent more often than not.”
There are numerous wholesale distributor groups for oil perfume business owners, according to research conducted by Ejes Gist News Nigeria.
A distributor explains to one of the groups that oil perfume retailers can get started with as little as “N11,000, 15,000, or N21,000.” The N15,000 package includes 40 3ml oil bottles that can be sold for N500 each. Each 6ml bottle can be sold for N800 to N1000. Additionally, you can pay on delivery.”
According to a report by Fortune Business Insight, the global perfume market was worth $29.8 billion in 2020. This is driven primarily by the demand for cosmetics and beauty products. Even better is the fact that this business can be operated stress-free from home.
Thrifts clothing’s (Okrika)
The thrift clothing business, also known as “Okrika” (secondhand clothes), is regarded as a business that requires a modest initial investment.
Due to its affordability for the average Nigerian, this business is regarded as both lucrative and easy to run, and is therefore patronised by the majority of Nigerians.
Speaking with thrift store vendors, our correspondent learned that there are significant factors to consider before diving in headfirst, but that the business requires a small investment of N20,000 to N50,000 or more, depending on the buyer’s financial situation.
Jackson Anadi, the owner of a wholesale thrift store in Ikorodu, tells our correspondent that individuals can start with N20,000.
He states, “If you have roughly N20,000 in cash, you can begin, but it will depend on your region. You evaluate your region: what is truly required? Do you have additional children? Do you believe their parents will purchase? Or do you have more young women than young girls?
“Are they fashionable? Do you believe they would purchase it? These are fundamental factors to consider. You must determine what is in demand at a given time, and only then can you decide to sell.”
Aminah Abdulrauf, a second thrift store owner in Osogbo, tells our correspondent that before selling secondhand clothing, individuals must understand the needs of their customers and evaluate the sales environment.
According to her, “if you are a novice in this industry and you are selling to a community with affluent residents, keep in mind that they prefer neat and high-quality goods.
“Therefore, they may not purchase clearance apparel because it is cheaper to buy and sell.
“If you intend to sell to students, choose items such as ladies’ tops, bum shorts, bralettes, and perhaps nightwear. If you have additional funds, you can add jeans to your wardrobe. You can also invest in first-class or neat clearance with N50,000.”
For beginners, Abdulrauf advises, “Buy a small quantity at first, and when demand increases, restock more of the items that sold quickly.”
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