Nigeria is a country with many opportunities. It’s also home to the largest population of people living in poverty in Africa, and that has led to a thriving informal economy where business owners take risks by selling their products or services on the black market.
There are plenty of ways for entrepreneurs to make money legally, too. We discuss 10 different types of businesses you can invest in and how they’ll make you good profit.
1. Real Esate Investment
What you need: Cash, a business plan, access to credit and a financial partner. If your investment is successful, the returns should be 10-15 percent per year depending on the location of your property and its quality.
4 reasons why it’s good for small business owners:
– It’s a quick way to make extra cash because you can buy and sell properties in the same year.
– You have the opportunity to buy land at low prices and turn it for a profit. If you get a piece of property that is near an airport, rail road or seaport, your profits will be even higher than your average return.
– You can get a large loan for this type of investment and have more funds to work with. However, make sure you don’t overspend on renovations or improvements as that can leave you with less cash in the future.
– That being said, take advantage of other ways to raise money such as using your credit card or borrowing from a friend if you have a good chance of getting the loan’s principal back.
The demand for real estate has been growing in Nigeria over the years, especially among nouveau riche who are interested in a good investment. By investing in a property that will increase in value, you can make money when you sell your investment later on or rent it out.
2. Manufacturing Businesses
What you need: Cash and a business plan. There are many things you can manufacture in Nigeria, but here is the type of products we’re focusing on:
Electronics: (1) TVs, CCTVs and navigational devices — with great profit margins; (2) Smart phones; (3) Printers/copiers/scanners. These should be most popular in the next few years. Shoes and leather products: (1) Men’s shoes; (2) Ladies’ shoes; (3) Leather bags, jackets, belts etc. These are all hi-tech businesses that require less physical work on your part but high initial investments.
To start one of these businesses, you’ll need access to a factory/warehouse and credit.
5 reasons why it’s good for small business owners:
– Manufacturing businesses are high profit and can make you good cash, especially if you have access to a factory and credit.
– You don’t need to worry about selling your products because once it leaves the warehouse, it’s on its way to be sold. That means no extra time or effort is needed for marketing.
– You don’t need to physically work on the production line but you can do other things like hire a sales team and manage the company.- This type of business is good for individuals who want to use their expertise in a specific field or have access to raw materials and technology.
– You can borrow money to start a manufacturing business which means you don’t need to use your own cash. Just remember that you’ll have to pay the loan back with interest, so be sure to take that into account when setting up your budget and financial goals for the year ahead.
This is another great option for owners who want to make good money but don’t want to spend too much time at their business. Manufacturing businesses are especially lucrative for small business owners who utilize machinery and have an idea of what they’re selling; this is because there’s no need to physically work on the line unless you prefer it that way.
– This type of enterprise is great for individuals who don’t want to manage workers but still want to make a lot of cash.
3. Selling online
What you need: The know-how and time to do it well. This is an easy business that can earn you good money if done right. You basically buy items at low prices (discounted, seconds or slightly damaged) from different manufacturers and resell them on Amazon, eBay or any other site.
4 reasons why it’s good for small business owners:
– You can make a lot of money if you know your stuff and are able to buy at the lowest appropriate price point. This is especially true since there are hardly any distribution channel fees to pay and stores take care of things like packaging, shipping and handling costs.
– You can scale up the revenue your business is generating without increasing your workload, just by hiring other people to help you with marketing, sourcing and logistics.
– It’s easy business to start (no need for a fancy office or anything) and it’s something that can be done well from your home.
– You don’t need to go through the hassles of a physical store. All you need are a computer, internet connection, and a bank account. The items can be shipped to customers or even sold online depending on what fits your budget and preferences best.
While the initial investment may be high, you can sell your products on the local market or export them to other African countries where there is great demand . You could also establish partnership with individuals who have contacts in developed markets to export your products there
4. Consulting Businesses
What You Need: Knowledge in a particular field, passion for it and the time to do it well.
Firms today realize that consulting firms are one of the most important have.
5 reasons why it’s good for small business owners:
– You don’t need much financial capital to start your own consulting company because you can use your expertise and knowledge to get clients. Most small businesses today are run by consultants, so this is definitely a great opportunity for entrepreneurs who want to make decent cash but don’t have the time or money to start an entirely new business.
– Consulting firms are easy to set up and there’s no need to go through complex licensing and registration procedures. You can operate from the very basic of offices and be licensed to give advice on your specific field without having to go through red tape.
– You don’t need a lot of employees to run a consulting firm, most business owners who have one are their own bosses and they typically work with one or two direct reports.
– You can make a lot of money in consulting because you get paid per project or job the more clients you work with and jobs you complete, the bigger your revenue will be.
– It’s not a business that requires long hours to start and run, which is great for aspiring entrepreneurs who want to have a fulfilling work-life balance. You can even outsource some of your work and delegate to other people if you want more free time for yourself.
5. Bread-and-Butter Business
What You Need: A good idea and the time to do it well.
Bread-and-butter businesses are not spectacularly exciting, but they can bring in a lot of cash if done right.
5 reasons why it’s good for small business owners:
– This type of business is great for small business owners who want to have a side hustle that will bring them in cash even after they’ve finished their day jobs.
– There are no entry barriers for this type of business. You don’t need any special skills or training, just an idea and some startup capital (which you can get from personal savings).
– It’s a low overhead type of business since you don’t need any fancy equipment or location, just specialized tools and the help of your employees are enough for you to start making a profit.
– You can always add more people to work with you in your side hustle if you want it to grow into something substantial, but you can also enjoy the by keeping it small and personal.
– When things get slow in your regular job, you can work on your business to make some extra cash for yourself or to take a break from that monotonous 9-to-5 schedule.
5. Import/Export Business
What you need: You should be familiar with the market for the goods you’ll be importing and exporting, which means doing research on a wide range of products.
5 reasons why it’s good for small business owners:
– There are no entry barriers with the import/export market. All you need is some capital and a knowledge of what’s available in your country or region.
– It can be big business especially if you manage to get a government contract or cooperative agreement for trade with a foreign country.
– Depending on how you approach your business, it can be quite profitable from the outset because you’re dealing in valuable goods or services that would have high demand from other countries.
– You can choose to import and export different kinds of goods depending on what’s available in your local market and what’s in demand overseas.
– If you’re willing to go the extra mile, you could even get a franchise import/export companies since there are many out there with varying product offerings that can hold their own in any foreign market.
6. Sourcing Business
What you need: In sourcing, you’ll need to be familiar with the business and trade of your specialized product in order to establish good deals for yourself.
What it does: Sourcing does not simply refer to bringing goods from region into another. It refers to a whole list of services that you as a small business owner can provide for other businesses who need a little help in finding the supplies that they need.
6 reasons why it’s good for small business owners:
– This type of business can be very profitable if you choose to focus on goods that are especially expensive and difficult to source, like parts for new technology or items with complicated specifications.
– You can start sourcing from other businesses or through your own physical location.
– Your business can you want it to be, or you can keep it small and personal. You could even do this in the form of a small cottage industry for a wide range of clientele.
– It can be a low risk, high reward type of business because all you’re the negotiations between the people who need your services and those who are willing to provide it.
– You get to increase the revenue potential of your regular job by bringing in some side income with this business.
– It could be a great way to keep yourself busy while taking some time off from your regular work.
7. Landing Page Design and Development Business you need:
You’ll need basic knowledge of HTML/CSS codes for your landing business to sustain itself in the online world.
8 reasons why it’s good for small business owners:
– With a landing page, you can promote your small business or your actual product as an affiliate marketer.
– There are no entry barriers to this type of business so you won’t have to start capitalizing on a huge investment in order to get started. You will, however, need the page design
What doing is facilitating for your clients and even business owners who want to start earning money online but aren’t sure how.
– Landing pages can be very diverse depending on the niche, so you have a wide range of opportunities for profit without having to go through the trouble of investing in expensive digital ads.
– You just need your computer and internet access to help as many business owners and entrepreneurs get their in the online world.
– You can utilize your own skills in a number of different ways with this kind of business: you could be working independently for clients, or you could partner with others so that you can reach more people.
– This type of business can be scaled easily since it only relies on you and your computer, so you don’t have to worry about hiring staff or expanding your office space.
– You’ll need to know how to work online in order to get started since that’s where most of your clients will probably come from.
– You can really focus on client work since you don’t need to spend much time and resources get started.
7. Dorm Room Businesses:
(Offline and Online)
What you need: In order to run a dorm room based business, you’ll have to be living in a campus or dormitory that serves as the office space. You can also set one up anywhere else with the use of WiFi connection and laptop or desktop computer.
– for your budding business be big if one country or from established companies. You can deliver newspapers, babysit children, run errands for people and even teach lessons on the side.
7 reasons why it’s good for small business owners:
– This type of business is perfect if you’re looking for something low-risk and no upfront investment to start with while still being able to earn enough to pay your rent and other monthly expenses.
– You will not need to worry about hiring staff members or running office space since you can operate this one from home, and you’ll be able to have more free time as well.
– This is a flexible way of earning cash on the side while still working on other projects.
– You can earn money doing something you’re already good at, and you also get to enjoy the perks that come with having roommates (like having a housemate/housemates).
You’ll have your own personal office space no matter where you are in the world.
– You can do this just about anywhere in the you don’t need to worry about dealing with clients face-to-face.
– Since there are hardly any entry barriers for this type of business, you’ll have no problem getting started as long as you already have a laptop or desktop computer and an internet connection.
– You can set your own hours for work and you don’t have to worry about dealing with high overhead costs or staff since this type of business only involve you, your laptop and
8. Virtual Assistant:
(Offline and Online)
What you need: All that’s required of you for this type of business is a computer and internet connection. You can also work on your VA skills while at home so that you will be able to attract more clients later.
– What you’re offering here is time, and the skills that come with it like organization, writing, virtual assisting and several others.
7 reasons why it’s good for small business owners:
– This is a type of business that anyone can do, and one that won’t require you to deal with much at first. There’s also the option of hiring other VAs in order to make your services available 24/7.
– You’ll have the opportunity to earn a good amount of money without having to deal with clients face-to-face.
– You can earn a nice income and have the time you need to work on other projects at the same time.
– The professionals that hire VAs are usually more concerned about results rather than how or when they’ll get them done, so you’ll be working from a position of power.
– You can work as much or as little as you want per day and still earn a decent amount of money for it.
– You also get to enjoy the perks of running your own online business.
There’s no shortage of opportunities for you in this type of business and it’s perfect if you’re looking for something that will earn money fast.
– This is a business for stay at home moms or dads who are looking for something to earn a little extra cash on the side.
9. Blogging:
What you need: You will require a computer with an internet connection to get started in this type of business. It’s also best if you already have some basic skills when it comes to blogging and other technical matters when running a blog online.
– The only thing you need to worry about here is offering something of value in your posts and getting people to read them, which means that you have to take the time out to write.
6 Reasons why it’s good for small business owners:
– This type of blogging can be done from anywhere so there’s no need to worry about being tied to a specific location when earning some cash.
– You can work on your business while at home and control your own hours, which means that you’ll have more free time on hand.
– There’s always room for growth in this type of business so you still have the chance to improve your skills and earn extra money for it.
– This is the perfect business for stay at home moms or can do this from their homes.
– Since you don’t need to worry about stocking inventory or dealing with any clients (except readers who are potential buyers), this is a very low cost way to earn money.
– There aren’t any entry barriers for this type of business so you’ll be able to start as soon as possible once you’ve registered your blog online.
10. Virtual Assistant:
(Offline and Online) What you need: Computer, internet connection and phone access. You can also work on your VA skills while at home so that you will be able to attract more clients later.
– The main skill here is the ability to manage projects well and deliver them successfully in time for the client.
4 Reasons why it’s good for small business owners:
– This is a type of business that anyone can do, and one that won’t require you to deal with much at first. There’s also the option of hiring other VAs in order to make your services available 24/7.
– You’ll have the opportunity to earn a good amount of money without having to deal with clients face-to-face.
– You can earn a nice income and have the time you need to work on other projects at the same time.
– The professionals that hire VAs are usually more concerned about results rather than how or when they’ll get them done, so you’ll be working from a position of power.
3 Reasons why it’s good for stay at home moms or can do this from their homes.
– Since you don’t need inventory or dealing with any clients (except readers who are potential buyers), this is a very low cost way to earn money.
– There aren’t any entry barriers for this type of business so you’ll be able to start as soon as possible once you’ve registered your blog access. You can also work on your VA skills while at home so that you will be able to attract more clients later.
– The skill that’s required here is the ability to manage projects well and get them done in a timely manner, which is something that can be done at home.
3 Reasons why it’s good for stay at home moms or dads:
– This type of business will allow you to earn extra cash while staying at home, which gives you more free time during the day.
– Since you won’t have to deal with clients face to face, this is a very low cost way to earn money.
– There aren’t any entry barriers for this type of business so you’ll be able to start as soon as possible once you’ve registered your blog online. You can also work on your VA skills while at home so that you will be able to attract more clients later.
11. Website Reviewing
What you need: Computer, internet connection and phone access. You can also work on your VA skills while at home so that you will be able to attract more clients later.
5 Reasons why it’s good for small business:
– You get the chance to earn money by writing reviews about businesses that have a website, and this can be done from anywhere in the world so you won’t need to worry about being tied down to one place.
– You’ll get paid for writing about businesses that you’re interested in and checking out, which makes this something that’s fun and will leave you with extra money in the end.
– Since it doesn’t cost you anything to register your site online, there aren’t any entry costs involved in starting this type of business.
– You’ll be able to earn money as soon as you have a site up and running, so you can start earning almost immediately here. You won’t need stock or anything like that since all reviews will just be done online, so it’s a very low cost way to make money with your site.
– Since you can get paid for writing about companies, businesses and other types of websites, this is a type of business that anyone can do based on their own interests.
2 reasons why it’s good for stay at home moms or dads:
– This is a type of business that allows you to earn extra cash while staying at home.
– Since you can work on your reviews from anywhere in the world, this is a very low cost way to earn money.
12. Web Content Writing:
(Offline and Online) What you need: All that’s required of you is the ability to write quality content and the time you need to put in it.
– The best thing about this type of business is that any writer can do it, regardless of experience or education level. You can also work on your VA skills while at home so that you will be able to attract more clients later.
– In order to get this business going you’ll need to create a few articles and put them up on one or multiple websites in order to start getting sales. This is basically freelancing since you’re selling your writing
7 Reasons why it’s good for small business owners:
– This is a relatively low cost way for you to earn money as compared to others so you’ll be able to get started right away without having to invest a lot of money.
– Since anyone can do this type of business, it’s ideal for those who are out or need an easy way to earn more money.
– You don’t need a website in order to get this business going, so it’s a lot easier to start than other businesses.
– You get paid for writing about topics that you’re interested in here, which makes this a type of business that’s fun and will leave you making some extra money in the end. All types of businesses can benefit from putting up good content.
– Since there aren’t any entry costs involved in starting this type of business, you’ll be able to get started right away.
– You can choose based on your interests what kind of website content you will write for so this is a very flexible way to make money.
13. Entrepreneur:
(Offline and Online) What you need: All that’s required to run your very own business is some entrepreneurial spirit, some knowledge about business a good amount of time to devote to the venture.
– There are many advantages of having your own business including increasing your chances of financial success and being able to set your own hours so you can be home with your family.
4 Reasons why it’s good for small business owners:
– You’ll be able to earn money easily through this type of business.
– Since you start your own business, you have complete control over what you do and how much time you here.
– At the same time, even if it’s your own business, you can delegate tasks that you’re not interested in doing.
– You don’t need any special education or training as long as you have the knowledge about business and how to start business.
4 Reasons why it’s good for stay at home moms or dads:
– This is a type of business that allows you to earn a small put in
– This is a relatively low cost way for you to earn money since easy to get started, there are no “start up costs” either. It’s also easy to get started with because you don’t need any type of special training or education. You simply have to start your business and then take things from there.
– Along with being affordable, this type of business is a way for you work on your entrepreneurial skills while earning money at the same time.
– Since you can work on your business while being at home, this is a good way for stay at home moms and dads to have some extra income.
6 Reasons why it’s good for retirees:
– Everyone eventually retires but a lot of times they’re stuck with retirement funds that don’t last very long. This is a way for retirees to earn income that they’ll need by working with online businesses.
– In order to run an online business you don’t need any type of special training or education, it’s just the right amount of time and effort that will be needed in order for your business to succeed.
– Since you have a lot of time on your hands, you can devote that extra time to running your business so it’s possible to earn extra income.
– While at the same time, those who are retired may not be in the best health and it might be difficult for them to work with traditional businesses. This is an easy way for retirees to earn money, without the high levels of stress that they might face with other types of businesses.
– Since this business is online, you can run your business from just about anywhere and still earn money.
– You don’t need a lot of money in order to get started here so that makes it a good type of business for retirees to start because they can work with a small amount of money that they have.
7 Reasons why it’s good for military:
– This is a type of business that doesn’t require you to be physically stationed at any one location, which means that you’ll be able to stay close to your family while earning money.
– Anyone who’s currently in the military has their job at hand and they don’t have a lot of free time, this provides them with an opportunity to earn additional income which can help them out.
– In addition to being able to work around your current commitments, this is also a business that doesn’t require any type of special training or education which is helpful for military because they don’t have time to complete any courses.
– These are easy types of businesses to get started with and anyone can do them, including those who work full time jobs and then go off to work in the military.
– Since there aren’t any physical requirements here, this is something that you could do regardless of your location and in addition to that, it doesn’t require any special training or education.
– In order to earn money from this type of business, you have complete control over how much time you work with it which means that it can act as a side business for you.
– These are low cost ways to earn money, which means that they’re good for those who are on a tight budget and might amounts of money to work with.
6 Reasons why it’s good for retirees:
– This is a type of business that doesn’t require you to be physically stationed at any one location, which means that you’ll be able to stay close to your family while earning money.
– Anyone who’s currently in the military has their job at hand and they don’t have a lot of free time, this provides them with an opportunity to earn additional income which can help them out.
– In addition to being able to work around your current commitments, this is also a business that doesn’t require any type of special training or education which is helpful for military because they don’t have time to complete any courses.
– These are easy types of businesses to get started with and anyone can do them, including those who work full time jobs and then go off to work in the military.
– Since there aren’t any physical requirements here, this is something that you could do regardless of your location and in addition to that, it doesn’t require any special training or education.
– In order to earn money from this type of business, you have complete control over how much time you work with it which means that it can act as a side business for you.
Other Business
Before you can invest in any business, it is important to know the risks and rewards. This blog will be giving you 10 lucrative businesses that are worth investing in Nigeria.
The first one is the textile industry which has a high potential of success due to its low-cost production, huge demand from developing countries and its ability to produce for many different markets.
You also have an opportunity with agriculture where there is a lot of room for growth by investing in crops such as cocoa beans, cassava, pepper and palm oil among others. Another option is mining where gold remains king but copper ore prices have shown some good returns lately too.
The process of setting up these businesses will take time, effort and a substantial investment. But be assured that your efforts could be worth the risk especially if the business is profitable. There are many different ways to get involved in such businesses including getting into partnerships with those already operating and even starting on your own especially here you have some of the capital being required.
When you are investing cash on a venture in Nigeria, it is always important that you weigh up the risks alongside make sure both goals can be achieved.
If you want to invest in businesses but do not have much money, there are opportunities available for you through microfinance schemes which are loans offered to small entrepreneurs who want to start businesses or get involved in expansion.
The concept of microfinance involves lending money to people who are engaged in small scale business activities but don’t have enough cash inflow to meet their needs when the need arises and hence they are unable to take care of expenses such as buying new equipment, paying wages or increasing production.
Basic Factors
Some basic factors you need to consider when making a decision whether or not to invest in Nigeria are the political, social and economic conditions of that country. In addition, investors are advised to take into consideration the risk associated with doing business in any given nation.
There is always a degree of risk involved in every investment but it is even more prominent in emerging economies like Nigeria where new laws are passed on a daily basis and corruption is rampant.
However, this shouldn’t scare you away from investing in Nigeria because there are lots of lucrative businesses that can make your money grow if you take the time to run thorough research before going into any business venture.
Textile Industry
The textile industry will help you get off to a good start since it is one of the largest industrial. The industry involves manufacturing and selling clothes, household items, rugs etc.
There are about 30 million people employed by Nigerian textile companies and they account for a substantial part of Nigeria’s export trade which means huge opportunities exist if you’re willing to invest in this sector.
The reason the textile industry is so successful is that it has low production costs and it can produce for many different markets.
Moreover, you can expect a high demand for textiles even in developing countries since globally supplies are shrinking every year while the demand keeps growing.
The industry will continue to soar as long as new technologies are being adopted to make textiles cheaper, easier to clean and more durable.
Agribusiness
Agribusiness is another profitable business in Nigeria that has potential for expansion especially if you have good land for sowing and harvesting crops such as cocoa beans, cassava, pepper etc. Despite the fact that Nigerian agriculture faces various problems including a lack of irrigation systems or efficient transportation it still continues to be an important sector of the Nigerian economy.
The production of cassava accounts for almost 30% of total agricultural output in the country. Other export commodities produced on a large scale are cocoa, palm oil and coffee.
Agribusiness offers big opportunities for investors who want to open businesses where they can employ people or manage vast plantations.
Moreover, agribusiness will remain prosperous in Nigeria as long as the population keeps rising and people keep eating more food. As a result of this increase in demand for crops, the agricultural sector is profitable to invest in.
Retail Business
Retail business is another good option because you can open stores to sell clothing, footwear goods etc. But do remember that the demand for such goods is not always stable because there are seasonal fluctuations.
However, Nigeria has a large middle class which means there will always be people with enough money to spend on new clothing items or shoes so you can still expect a profit from this type of business even if it’s not consistent. Another profitable segment of retail businesses in Nigeria is the entertainment industry.
You can set up entertainment spots where people can go to watch movies, listen to music or dance so all you have to do for this business to be profitable is hire staff who will provide the necessary entertainment services which means you won’t need a large capital investment.
Finally
Some Nigerian companies are willing to pay handsomely for any investment that can make them foreign exchange earnings.
This is why it’s worth looking into the export business if you have enough money and want to invest in Nigeria.
You export goods directly or find companies that already produce stuff for export and put some money in their operations allowing them to grow further.
If you’re willing to invest in Nigeria you’ll find plenty of profitable opportunities to do so, but make sure the business you choose has a high potential for growth otherwise your investment might not pay off.