To start a good business in Nigeria requires some amount of capital, and when you’re broke, starting a meaningful business could be difficult.
These are some tips on how you can start a small business when you are broke.
A lot of people make this mistake so I thought to teach about it.
If you do not have a lot of capital or skill and you want to start a business to make some money to survive, you must first build a list of things that you should NOT consider.
Things to consider before starting a business in Nigeria. when your capital is less than 20k, 50k, 100k
- No buying and selling (everyone is doing buying and selling, they do not know it is business for the rich. Only a rich man should tie down money.)
- No business that has small margins (no one-one kobo business)
- No tying down money on inventory (not enough money to buy goods and be looking at the goods)
- No focusing on selling to only family and friends (forget them from day one)
- No multi-level marketing (No time to bring two people. lol)
- No production of any kind (No time to fry Chips with a hope of making 10 Naira profit)
- No non-essentials (sell what people need everyday not shoe and bag)
- No non-consumables (sell only what the customers keep coming back frequently because it has finished)
Again, there is nothing wrong with the things listed in 1 to 8 above; but you cannot start a business in Nigeria without putting the right things into consideration. You only take big financial risk when you have more trading capital.
So, what would I do if I had only 50k to start a business and survive on it?
There are some businesses in Nigeria which you can venture into even if your capital is very low.
Cheapest business to start in Nigeria
- Service-based business like braid someone’s hair and make 5k
- Act as a middle man and sell items that other people own. Example – Take pictures of nice parlour decorations from a major interior deco importer, and sell at a margin
- Sell a single type of cooked food in massive quantity. Example – Only beans or only sweet jollof rice or only moimoi or only Indomie
Listen please – If you do not have a lot of capital, you do not just jump into any business like the rest. You need to give yourself time to think.
Factors to consider in setting up a business in Nigeria
Think about what?
- Think about the profit
- Think about the speed at which that thing sells
- Think about the speed at which you will leave poverty
- Think about the speed at which a customer will come back to buy again
- Think about the speed at which my money will turn over