Nigeria boasts of about 41 million micro-businesses and 73,000 small and medium businesses, a survey by the Small and Medium Enterprises Development Agency of Nigeria has shown.
This shows that an average Nigerian is an entrepreneur in one way or the other, and this is because of the unpleasant risk to financial stability, due to poverty, lack of education and insecurity. Regardless, many Nigerians have forged ahead to build a lasting legacy of financial freedom for the generation yet unborn.
However, when individuals are tasked with the gospel of creating passive income, or secondary income source, the usual tilt towards lack of funds as an excuse has shortchanged individuals from breaking the shackles of meagre salaries and financial limitations.
Despite, arguments and reports fueled by the high cost of energy and epileptic power supply, personal finance experts have led conversations on the need to embrace multiple streams of income. While this might sound like a fairytale, it is possible to expand your income base. Of course, by taking baby steps and starting with one business at a time.
Pressed for funds to start? Here are a few small businesses to start with N50,000 and above despite the harsh economic climes of the nation.
Point of Sale business
Point of Sales service is considered as one of the most lucrative side hustles to adopt. Even though, some Nigerians have fully invested their capital and rely on it for primary income, it is still an effective way to earn some extra cash on the side.
A full-time PoS operator, Taiwo John operating along Lotto, Ofada bus stop told Noted that, “Although the startup capital to venture into PoS business full time will cost about N250,000, if you are doing it as a side hustle with N50,000 to N150,000, you can start. If you are getting two terminals, you will need like N50,000, that’s about N25,000 each.”
According to him, for starters, consistency will play a big role in determining the success of the business.
“This business is about trust, so after getting your accessories for about N25,000 you need to get cash to run the business and make sure you are always available when customers need you. Above all John, states that as a business owner, “you must pay attention to your profit rather than just making sales.”
The Point of Sale business has rapidly spread through the rural areas as it is quite easy to start.
In fact, according to the National Bureau of Statistics, the number of registered PoS operators has grown over the years. In January, due to the cashless policy, Point of Sales transactions grew to N807.16bn which signified a 40.69 per cent year-on-year increase from the N573.72bn transactions that were done in January 2022. This is a clear indicator that the PoS business is lucrative and there is a demand for the service.
The perfume oil business is another venture to go into. According to a perfume oil wholesaler living in Ketu, “Anyone can start a perfume oil business with as low as N11,000. I started mine about four years ago with just N24,000 and later I reinvested about N34,000 into the business. At the time, I was a retailer but now I am a wholesaler,” Tomisin Oke told our correspondent.
Speaking on the profit margin recorded on the initial investment, she says that newbies can “Expect to make about 60 per cent to 40 per cent depending on the sales, but your gain cannot be less than 50 per cent half the time.”
Based on findings by reporters, there are numerous wholesale distributor groups for oil perfume business owners.
Reaching out to one of the groups, a distributor explains that oil perfume retailers can start with capital as little as, “N11,000, 15,000 or N21,000. The N15,000 pack comes with 40 bottles of 3ml oils and you can sell for N500 per each. You can sell the 6ml for N800 to N1000 per each. And you can also do the payment on delivery.”
A survey report by Fortune Business Insight revealed that in 2020, the global perfume market was worth $29.8bn. This is largely driven by the demand for cosmetics and beauty. Even better is the fact that this business can be run from home without stress.
The thrift clothing business otherwise known as “Okrika”(second-hand clothes) is considered as one business that favors small capital to start.
Patronized by a majority of Nigerians, this business is considered lucrative and quite easy to manage, all thanks to its affordability for the average Nigerian.
Speaking with thrift vendors, our correspondent gathered that there are major factors to consider before taking a deep dive but the business needs a little capital of N20,000 to N50,000 or more depending on the buyer’s pocket.
A wholesale thrift business owner in Ikorodu, Jackson Anadi, tells our correspondent that individuals can begin with N20,000.
He says, “If you have like N20,000 cash, you can start, but then it depends on your area. You look at your area what is really needed? Do you have more children, do you think the parents of these children will buy? Or do you have more young girls or ladies?
“Are they stylish? Do you think they would buy it? These are basic things to put into consideration. You have to take note of what is needed at a particular time, and after that, you can decide to sell.”
Another thrift operator in Osogbo, Aminah Abdulrauf, tells our correspondent that before venturing into selling thrift clothes, individuals must understand the customer’s needs and gauge the environment where sales will take place.
According to her, “If you are a newbie in this business, if you are selling to a community that has a high-class breed of residents, understand that they would prefer wares that are neat and high quality.
“So if you take clearance wears to them because they are cheaper to buy and sell, they may not buy.
“If your plan is to sell to students, then go for items like ladies’ tops, bum shorts and bralettes, or maybe nightwear. If you have more money to spare, you can add jeans to the mix. With N50,000 you can also invest in first-grade or neat clearance for that.”
Abdulrauf advises that for newbies, “Buy a small quantity first and then when the demand grows, you can then restock more of items that sold fast.”