The instability wrought on the Nigerian economy has led to an increase in the price of everything. Every businessman knows the chant of ‘everything is now expensive’ like a lullaby a mother sings to her sickly child; but the truth remains that there are endless possibilities to the businesses you can start in Nigeria, especially as a developing country where all you require is determination, hard work and a little bit of money.
Starting a business has always been known to be capital intensive. In times like this, when income remains fixed but the cost of living continues to explode, we are faced with a higher capital need to start the simplest businesses; after all, businesses thrive on the buying and selling of goods and services indirectly or not.
There comes the need to search out ways to start lucrative businesses that require little to no capital but can grow exponentially. This post seeks to provide a list of profitable businesses in Nigeria you can start with little capital, key steps, and processes of what you need to start a profitable business in Nigeria.
List of profitable businesses in Nigeria
- Baking and Confectionery Shop
- Meal ordering
- Affiliate marketing
- Animal farming
- Day Care Centre
- Home and Online Tutoring
- Dry Cleaning
- Viewing Centre
- Pre-Order Importation
- Soap Production
- Real Estate Agency
- Website and Graphic designing
- Software and Application Development like accounting applications, gaming applications, business enabling applications
How Can You Start A Profitable Business With Little To No Capital In Nigeria?
A house built on a mountain has a strong foundation. A business built on effective planning is bound to succeed.
1. Find a Business Idea.
To start a business, you must find or create a business idea relative to your available capital. Many nurture businesses for years that bring in insufficient profit relative to the stress and energy required to keep it up. When searching for a business idea, there are a few things that will serve as a guide;
- Think about the problems in your locality
- Can you provide a solution to such a problem and monetize it
- Think about the execution processes: What will it cost you and how will you do it
Not all business ideas are worth starting at all. A business idea that is worth the effort must be unique, practical, needed by the market, and easy to scale.
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It is also possible that your business idea is completely new. So, what you then need to be certain of is your business offerings and pricing. You may need to ask questions from people, do your own research and as well seek advice from entrepreneurs.
2. Conduct market research.
According to Wikipedia, A business plan is a formal statement of business goals, reasons they are attainable, and plans for reaching them. It may also contain background information about the organization or team attempting to reach those goals.
Every business, whether big or small, needs a plan for that business. In starting a business, a business plan helps you to stay focused and organized. Remember organizational skill is one of the skills of a successful entrepreneur. Therefore, in writing your business plan, you check out some business plan samples online to serve as a guide.
Examine the current market for the proposed business.
- Who are the possible clients of this proposed business?
- Can I succeed in this business? Do I have the necessary skill to make this business thrive?
- Will this business be easy to scale?
- What is the necessary amount of capital that must be inputted into this business and do I have it?
Do not be afraid to drop business ideas when they prove dismal just because you’ve exerted too much energy and effort on it.
3. Create a business plan.
Every business needs a business plan in order to analyze its implementation. It may be unwise to have a business idea inspiration, acquire the necessary funds to bring it to life, and then go straight to its execution stage.
What is an effective business plan?
An effective business plan is a document addressing the following –
- The aim of the business/product to be sold
- Business growth plans
- Advertisement strategies
- Physical and or online presence only?
- Client basis
- Capital needed
4. Acquire business funding
Of course, the number one means business starters get funds is by bootstrapping which means scraping together all available personal funds and support funds from friends and relatives. Money from this source is usually not enough but must be the first resort.
The next method and the most usual means of getting funds are by obtaining loans. Loans can be daunting and it is advised that this would be a last resort except such loans have simple terms, If not you’ll be looking at a future of monthly payment build-ups that may eventually ruin the business.
You can consider taking WEMA Bank small business loans which have been tailored to meet specific business needs such as the WEMA Bank Pharma Loan which is tailored to help pharmacies and small drug store owners. Applicants can get as much as 5 million naira loans without collateral.
They also have the WEMA Medi Loan which targets private hospitals, clinics, and diagnostic laboratories. Applicants can also get as much as 5 million naira.
The School support facility loan is another loan initiative that is targeted at supporting the operations of educational facilities and applicants can get as much as 10,000,000 loans.
WEMA has also partnered with the Development Bank of Nigeria to provide loans to Small and Medium-scale enterprises at affordable rates with a five years tenor and up to 200m for SMEs and 720m for small corporations.
These loan schemes are designed to make your business execution easier. Applications for these loans have been made easy.
5. Register your business
This is yet another important stage of starting a business in Nigeria. Every business operating in Nigeria has to be registered under the Companies and Allied Matters Act. Your business can be registered as a business name or a corporation, depending on its confirmation with the requirements of the CAMA 2020. It is advisable to consult a lawyer on the benefits of both and their suitability for your business.
After registration, there’s the need to employ staff depending on what you want. If you think it is a small business you can run all by yourself, then do it. If not, consider employing a team that’ll address the various sectors of the business, all within a reasonable salary frame relative to the business’ profits. Research if there’s any need for professional advice or skill in your business.
7. Book Keeping & Accountability
The success of every business depends on its finances. It is a good idea to place yourself on a salary like the rest of your employees. If there are none, still do so. It helps you avoid indulgently and emergency spending. Separate your personal funds from your business funds and ensure you keep records of all expenses and incomes.
8. Open a business account
A business account will help your business be more financially capable. You çan place restrictions on the account to enable proper finance management.
A WEMA business account is highly suited for this. It is an account created to target small businesses and can be operated online for ease of business. It is designed to help small businesses grow. It has a minimum opening balance of just 10,000 naira and has the full benefits a current account has to offer. Charge rates on this account are affordable at a monthly turnover.
It is also important to create monthly, quarterly, and yearly business reports that must be vetted by professionals, in order to keep you track.
In the long run, the idea behind starting a business is to have the financial freedom only a personal business can afford you and also to liberate yourself from the instability the economy imposes. You can start your business today with next to no capital and grow exponentially with the above strategies.
You should take a step towards financial freedom today.