Wednesday, September 27, 2023

How To Start a Business In Nigeria When You Are Broke And Financially Down

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

  1. 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.)
  2. No business that has small margins (no one-one kobo business)
  3. No tying down money on inventory (not enough money to buy goods and be looking at the goods)
  4. No focusing on selling to only family and friends (forget them from day one)
  5. No multi-level marketing (No time to bring two people. lol)
  6. No production of any kind (No time to fry Chips with a hope of making 10 Naira profit)
  7. No non-essentials (sell what people need everyday not shoe and bag)
  8. 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.

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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 someoneโ€™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

8 Small Business ideas in Nigeria