Are you tired of sitting idly at home and depending on a 9 to 5 job for your livelihood? Are you looking for an opportunity to unleash your entrepreneurial spirit and create your path toward financial freedom? If your answer is yes, then it’s time to explore some business opportunities.
The good news is, that you don’t need to have a huge amount of capital to start this business in Nigeria. With the right strategy and mindset, you can build a successful business from scratch without necessarily breaking the bank.
Starting a business is not only a way out of unemployment, it’s also a chance to pursue your passion, build a sustainable income, and become your boss. The key is to start small and grow big with time.
This article is written to show you the cheapest businesses you can start in Nigeria without needing a huge amount of capital. The aim is to provide a detailed guide on how to start your business with little or no money while still earning decently.
Cheapest businesses to start in Nigeria
Here are some of the cheapest businesses you can start with small capital in Nigeria.
Cleaning service:
Cleaning services include providing cleaning solutions for homes, offices, and other establishments to ensure the environment is free of dirt, germs,s and other harmful substances.
Target audience or customers:
The target audience for cleaning services includes homeowners, property managers, and business and office owners.
Startup costs and estimated profits:
Estimated start-up costs for a cleaning service business in Nigeria can range from ₦50,000 to ₦150,000, including costs such as equipment, licensing, and marketing. The profit margin can reach 40%.
Equipment needed for the cleaning operation:
Essential equipment needed for a cleaning service business includes:
- cleaning solution
- vacuum cleaner
- broom, mop
- bucket
- rag and
- cleaning gloves.
Possible business challenges:
- Difficult to find reliable and dedicated employees
- Strong competition leads to low-profit margins
- Customer trust and satisfaction.
Make Zobo drink
Production of Zobo drinks involves the production of a healthy drink made from the dried flowers of Hibiscus Sabdariffa. It is a healthy and refreshing drink.
Target audience or customers:
Zobo beverage manufacturing’s target audience includes people who prefer healthier options than carbonated drinks, health food stores, and retail stores.
Startup costs and estimated profits:
The estimated initial cost to produce Zobo drinks in Nigeria can range from ₦50,000 to ₦100,000. The profit margin can reach 50%.
Equipment needed for the operation:
The equipment needed to prepare Zobo drinks includes:
- A Pressure press,
- container,
- kettle and
- sterilizer.
Possible business challenges:
- It is difficult to find a good source for Hibiscus Sabdariffa flowers
- Maintain high levels of hygiene during production
- Ensure uniformity of taste and quality.
3. Catering services
Catering involves providing food and beverages for events, parties, and other occasions.
Target audience or customers:
The target audience of catering services includes event organizers, businesses, individuals, and organizations with culinary needs for events.
Startup costs and estimated profits:
The estimated start-up costs for a food service business in Nigeria can range from ₦200,000 to ₦500,000. The profit margin can reach up to 70%.
Equipment needed for the operation:
Essential equipment needed for a food service business includes:
- cooking utensils,
- cutlery,
- serving dishes,
- food warmers, and
- trucks or vans for delivery.
Possible business challenges:
- Difficulty in obtaining operating licenses and permits
- Strong competition in the industry
- Demand is seasonal, leading to fluctuating profits.
Affiliate Marketing
In Nigeria, affiliate marketing is a low-cost business that involves promoting other people’s products and earning commissions on each sale made through your unique affiliate link.
Target audience or customers:
Your target audience or customers are people who are interested in the product or service you are promoting as an affiliate marketer. They can be found on social networks, blogs, forums, and other online platforms.
Startup costs and estimated profits:
The initial cost is estimated to be low and does not require much investment. You can start by promoting your products on social media platforms, blogs, and other online platforms. The profit margins of affiliate marketing can be very promising and it all depends on the amount of traffic you can attract to your affiliate link.
Equipment needed for the operation:
The equipment required for affiliate marketing is minimal. You need a computer or smartphone, an Internet connection, and a social media or blog account.
Possible affiliate marketing challenges:
-
- Competition:There are thousands of affiliate marketers and the competition for the same products can be fierce.
- Deferred payment: Some affiliate programs take a long time to pay commissions, which can be frustrating for the affiliate.
- Issues of trust: People are often wary of products recommended online by strangers, and building trust can be a challenge.
Event planning:
Event planning is the work of organizing and coordinating events such as weddings, parties, and corporate events.
Target audience or customers:
Your target audience or customers are event organizers or planners who want to organize a memorable event, individuals celebrating a special occasion, or corporate organizations organizing an event.
Startup costs and estimated profits:
Estimated start-up costs depend on the size of the event you are planning. The profit margin when planning an event can be quite high because you can charge a percentage of the total event cost.
Equipment needed for the operation:
The equipment needed to organize an event will depend on the scale of the event. You need computers, printers, phones, event venues, decoration, and catering services.
Possible challenges when planning an event:
- Budget constraints: Customers may be on a tight budget, and meeting their needs within their budget can be a challenge.
- Last-minute changes: Customers may change their event plans at the last minute, which can be frustrating and time-consuming for the event organizer.
- Competition: There are many event organizers and standing out in the industry can be challenging.
POS Business
A POS (Point of Sale) business is a low-cost business involved in providing payment services to customers using POS terminals.
Target audience or customers
Your target audience or customers are businesses that need a POS terminal to receive payments from customers.
Startup costs and estimated profits:
The estimated initial cost is low because you can buy or rent the POS machine. The profit margins can be very promising as you can charge a percentage of the total payment transaction amount.
Equipment needed for the operation:
The necessary equipment for a POS business is a:
- POS machine,
- Receipt printer,
- Internet connection and
- power source.
Possible challenges of POS Business:
- Technical issue: Technical issues can arise with POS machines and it is important to have a technical team ready to resolve these issues.
- Competition: There are many POS service providers and standing out in the industry can be challenging.
- Fees: Customers may be reluctant to pay extra fees when using a POS terminal and may prefer it
Data Reselling Business
The data resale business involves buying data packages in bulk from telecommunications companies and reselling them to individuals or businesses for profit.
Target audience or customers
This company’s target audience is individuals or businesses that need to purchase data plans for their internet needs, such as browsing, downloading, and social media platforms.
Startup costs and estimated profits:
The cost of starting this business is relatively low, with an estimated amount of between N20,000 and N50,000 to purchase a data package. Profit margins range from 10% to 20% per sale depending on the size of the package and customer base.
Equipment needed for the operation:
Data Reselling business requires:
- A smartphone,
- computer, and
- A reliable Internet connection.
3 possible challenges for the company:
- Competition from other data agencies with lower prices.
- Price fluctuations of data packages of telecommunications companies.
- Difficulty in finding reliable data providers.
Freelance writer business
Freelance writing jobs include writing freelance articles, blog posts, and other content for clients who need written content for their websites, blogs, and other publications.
Target audience or customers:
This company’s target audience is individuals and businesses that need high-quality content for their websites, social media platforms, and marketing campaigns.
Startup costs and estimated profits:
The cost to start this business is relatively low, requiring about 10,000 to 30,000 naira for creating a website and marketing. Profit margins range from N100,000 to N200,000 per month, depending on the number of customers and workload.
Equipment needed for the operation:
This business may require
- A computer,
- An Internet connection,
- software
- writing tools, and
- a website.
3 possible challenges for the company:
- It is difficult to get clients due to competition from other freelance writers.
- Inability to meet customer specifications or meet deadlines.
- Inability to maintain regular work on a contract basis.
Okrika Company
Okrika’s business includes selling used clothes, shoes, and accessories to individuals at affordable prices.
Target audience or customers:
This company’s target audience is people on a budget who want to buy fashion items at affordable prices.
Startup costs and estimated profits:
The cost of starting this business is relatively low, estimated at between N50,000 and N100,000 to buy used clothes. Profit margins range from 20% to 40% per sale depending on the price of the item and the customer base.
Equipment needed for the operation:
A physical store or online platform, hangers, shelves, racks, and reliable supplies. Three
Possible challenges for the company:
- Difficulty in purchasing good quality used goods to supply to the store.
- Competition because many people are selling Okrika in Nigeria.
- Some people’s negative perception of buying used goods.
FAQs on Cheapest businesses to start in Nigeria
What are the other cheapest businesses to start in Nigeria?
Some of the cheapest businesses to start in Nigeria include laundry services, fruit and vegetable vending, car washing, shoe repair, and online marketing.
How much capital is needed to start a laundry service in Nigeria?
Starting a laundry service in Nigeria can cost as little as 50,000 naira if you already have a washing machine and the space to operate it. However, if you need to purchase equipment, it can cost up to N150,000.
What is the profit margin on selling fruits and vegetables in Nigeria?
Profit margins when selling fruits and vegetables in Nigeria can be quite high, with markups of up to 100%. The cost of buying vegetables and fruits from farmers is relatively low.
How can you market your shoe business in Nigeria?
To market your shoe repair business in Nigeria, you can advertise on social media platforms such as Facebook, Instagram, and Twitter. You can also offer discounts and referrals to attract new customers.
What is needed to start an online marketing business in Nigeria?
Starting an online marketing business in Nigeria requires a computer or laptop with Internet access, digital marketing skills, and a good knowledge of social media platforms. You can also enroll in online marketing courses to enhance your skills.
Conclusion
We have shown you some of the lucrative cheapest businesses in Nigeria. You don’t need huge capital to start any of the businesses we discussed above. Now you have to go out and start doing something that will reward your efforts.
