Starting a business in Nigeria has never been easier. There are so many small businesses that you can start with little capital, and the Nigerian market is ripe for expansion.
There are many reasons why people want to start their own business. For some, it is a way to express themselves creatively and not be bound by the constraints of working for someone else. Others might want more flexibility in their schedule or better work-life balance.
And then there are those who just want to provide for their family as best they can without having an employer dictate what they do with the fruits of their labor. Whatever your reason, you’ll need little capital if you decide to pursue one of these 20 small businesses that can be started in Nigeria with little money!
In this article we will discuss 20 of these small businesses that you can get started with as little as N5,000!
#1 Sale of Drinks and Water: You will need a small initial investment of N5000 to start this business. And then you’ll be able to buy drinks and water in bulk, at wholesale price!
This is one of the most popular Nigerian businesses that is often started with little capital because it doesn’t require any specialized skills or training. You can sell bottled beverages like Coca-Cola, Vimto, and other drinks.
You can also sell water in bottles or jugs at a markup price depending on how you want to structure your business. You’ll have to invest in inventory but once that is done then this business becomes very profitable with little capital!
#2 Bread Supply and Distribution: You need only about N5000 to start this business. The most important thing you’ll need is a small refrigerator, which can be rented for as low as N1000 per month. Other than that the bread itself will make up the bulk of your investment in products and supplies with an initial cost of roughly N3000-N4000. This business is a very easy one to start with little capital.
You can also buy and sell second-hand clothing, which requires no investment other than time spent sourcing the clothes from your community or mall. You’ll need to establish where you will get these clothes before you make this business idea workable for yourself though!
#3 Eggs Supply and Distribution: You need to have a few thousand naira on hand for the initial investment, and then you just buy eggs from local farmers or at the market.
This is an excellent business idea if you live in rural areas where people cannot find eggs easily because they’re expensive. You’ll not only provide them with what many know as a healthy breakfast food, but you’ll also be creating jobs for the farmers and people who work at egg supply shops.
#4 Blogging: If you’re a natural born writer, blogging is an excellent way to earn money. Though the initial investment may be high for this business idea (you’ll need good internet service and some expensive equipment), your blog can bring in passive income from advertising, sponsored posts or just through sponsorships with other companies who want their brands on your site.
#5 Sale of Mobile Pone Accessories: In Nigeria, mobile phones are very popular and Nigerians spend millions of dollars on phone accessories. You could buy wholesale in bulk from other sellers who have excess stock or find a supplier to create your own products (like screen protectors).
If you’re into mobile phones, starting a small business selling accessories for them is a great idea. You can buy wholesale from manufacturers and distributors in bulk to make the initial investment minimal.
#6 Mobile Phone Repairs: Working out of a small one-room office in your house, you could start doing mobile phone repairs. You may need to buy some equipment and tools like screwdrivers etc., but the initial investment is minimal as compared to other businesses on this list.
#7 Dry Cleaning and Laundry Services: The initial investment for starting a dry cleaning business is lower than if you opened up an entire laundry store. You can buy some commercial grade equipment like a rack and hanger, drying tunnel, ironing board etc., but the upfront cost will be less as compared to buying machines for washing clothes or making soap from scratch.
#8 Plantain Chips Making And Sales: This is one of the most popular Nigerian businesses that is often started with little capital because it doesn’t require any specialized skills or training. You can sell bottled beverages, ice cream, chips or bread.
The good thing about this business is that you can start small and gradually increase your inventory to make more profit as the demand for these products grows in Nigeria. You are also not bound by a certain location because most of your supplies will be bought from shops in bulk which means that you don’t have to worry about storage.
#9 Snail Rearing Business: You can start this business if you have a garden with access to fresh water. The only thing that is required is the snails themselves and some kind of container for their eggs which should be buried in your garden. You can then harvest them when they are ready and sell them at markets or individuals as needed.
This particular small business requires little capital and is also a low-risk venture because it can be started with very little investment and run in the comfort of your backyard.
#10 Vegetable farming: Vegetable gardening is a type of farming where you grow vegetables and fruits in your backyard. There are many varieties that can be grown so it’s important to research the plants which will thrive well on your soil, sunlight levels and water availability.
This particular small business requires little capital but does require access to fresh water because most of these crops need regular watering. This is a low-risk venture because it can be started with very little investment and run in the comfort of your backyard.
#12 Importation Business: importation is the process of importing goods or products to a country. It can be challenging but it’s not impossible – if you’re willing to do your research on what Nigerian needs and wants, then this could be an opportunity for you!
This particular small business requires little capital because most importations are done via air freight instead of sea freight.
#13 Cosmetic Business: A cosmetic business is a home-based enterprise which manufactures, sells and distributes beauty products. This particular small business requires little capital because it mainly deals in buying raw materials and packaging the final product for retail sale.
#14 Tricycle Business: This particular small business requires little capital because it mainly deals in buying raw materials and packaging the final product for retail sale. It’s also a more affordable means of transportation, perfect if you’re looking to cater to low-income earners!
The Tricycle Business is very accessible to people who have limited mobility but still want an independent living.
#15 Beauty Salon: A beauty salon is a business that specializes in the care of hair and skin. This particular small business requires little capital because it mainly deals in buying raw materials and packaging the final product for retail sale.
#16 Liquid Soap Production Business: A business that produces liquids typically for bathing or cleaning. This particular small business requires little capital because it mainly deals in buying raw materials and packaging the final product for retail sale.
#17 Perfume and Body Ornamental Production Business: A business that produces perfumes and body ornaments. This particular small business requires little capital because it mainly deals in buying raw materials and packaging the final product for retail sale.
#18 Affiliate marketing: Affiliate marketing is a form of direct marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts. Affiliate Marketing requires little capital because it mainly deals with setting up and maintaining your website.
#19 Ecommerce Business: An Ecommerce business deals in the sale of goods or services over a computer network. It requires little capital because it mainly deals with setting up and maintaining your website, which is usually hosted for free on an external provider’s servers so there are no upfront costs.
#20 Fruit Juice Production Business: Fruit Juice Production Businesses are small businesses that require little capital because they mainly involve the purchase of raw materials and production equipment.
What to do with your idea:
If you’re not sure about how to turn these 20 businesses into reality then you can always take courses to learn more on the subject, or contact a local business consultant for help. To start any business, you first need to find a mentor or business owner to help you get started.
– Research the market and your target customers before deciding on which business to start
– Find a mentor or business owner who will help guide you in getting started with your new venture
– Take courses from reputable institutions such as Harvard, Coursera, Udacity etc. that are relevant to running these businesses so you have a better understanding
– Ask for help from businesses owners, market experts or entrepreneurs to see if you can work with them in running your business. You might also want to consider joining networking groups or organizations that are relevant and of interest to the 20 small businesses listed above.
How much time do you have: If you’re looking for something that you can start and run on your own, we recommend that you choose one of the 20 small businesses listed above because they are all relatively easy to setup without a lot of capital.
If you’re looking for something with more complexities or special needs then it’s best if you work with someone who already has experience in running these types of business so as to avoid costly mistakes.
Starting any small businesses in Nigeria with little capital is not a difficult task. The major dream of most Entrepreneurs is to someday have their own business. Having your own business is sweet because you can afford to do things when you want, you can take time off when necessary and it’s your own business.