Starting a business doesn’t have to drain your wallet. With the right approach, you can launch a profitable venture with minimal capital. In this article, we’ll discuss some of the cheapest businesses to start in Nigeria, tailored to the unique needs and opportunities in the country.
Why Start a Low-Cost Business?
Starting a business with minimal investment has several advantages, such as:
- Lower Financial Risk: You can start small and scale gradually, reducing the pressure of large capital investments.
- Accessibility: With a small initial outlay, more people can pursue entrepreneurship.
- Flexibility: Many low-cost businesses can be started part-time, allowing you to transition gradually into full-time self-employment.
In Nigeria, the growing demand for essential services, coupled with advancements in technology, creates a perfect environment for small businesses to thrive.
Key Factors to Consider When Choosing a Low-Cost Business
Before starting a business, you must consider the following:
- Personal Skills and Interests: Choose a business aligned with your strengths and passions.
- Market Demand: Ensure there is a need for the product or service in your community.
- Scalability: Select a business with growth potential as you reinvest profits.
- Time Commitment: Consider how much time you can dedicate to the business.
By starting small and keeping costs low, you can test the waters and make adjustments as needed.
10 Cheapest Businesses to Start Now in Nigeria
Here is a list of 10 cheapest businesses to start with minimal capital:
1. Selling Agric Products to Consumers
Fresh farm produce like eggs, vegetables, and fruits are always in demand. Purchase directly from local farmers and sell to households in your area.
- What it Takes to Start:
- Source fresh produce like eggs, vegetables, and fruits directly from local farmers.
- Basic storage facilities to keep products fresh.
- Capital starting from as low as ₦50,000, depending on scale.
- Growth Strategies:
- Build relationships with reliable suppliers for consistent quality.
- Expand your network by supplying to small shops or restaurants.
- Offer delivery services to stand out from competitors.
2. Owning a Small Tuck Shop
Setting up a small convenience shop in your neighborhood allows you to meet the daily needs of your community while earning steady income.
- What it Takes to Start:
- Identify a location in your neighborhood with high foot traffic.
- Stock essential items like snacks, beverages, and toiletries.
- Initial investment of ₦50,000–₦100,000 to purchase stock and set up.
- Growth Strategies:
- Introduce loyalty programs for regular customers.
- Diversify your inventory based on customer preferences.
- Keep your shop open during peak hours to maximize sales.
3. Selling Foodstuff in Small Quantities
Staples like rice, beans, and garri are household essentials that are always in demand. Selling them in small, affordable quantities can attract more customers. You can always scale up as time goes on.
- What it Takes to Start:
- Buy staples like rice, beans, and garri in bulk from wholesalers.
- Repack them into smaller, affordable portions.
- Startup costs from ₦100,000 for initial stock.
- Growth Strategies:
- Build a reputation for selling quality and properly measured goods.
- Expand your customer base by offering doorstep delivery.
- Partner with local markets or small retailers to sell in bulk.
4. Starting a Daycare Service
Many working parents are in need of safe, reliable childcare. A home-based daycare offers a cost-effective solution for this demand.
- What it Takes to Start:
- Secure a safe and child-friendly space at home.
- Purchase basic supplies like toys, mats, and learning materials.
- Initial investment of ₦50,000 for setup.
- Growth Strategies:
- Offer flexible hours to accommodate working parents’ schedules.
- Build trust with parents by maintaining high standards of care.
- Gradually expand by hiring additional caregivers as demand grows.
5. Afterschool Lessons for Students and Pupils
Offering tutoring for pupils preparing for Common Entrance exams and students studying for WAEC or UTME can be both profitable and impactful.
- What it Takes to Start:
- Create a quiet and conducive learning environment.
- Acquire basic teaching materials such as textbooks and stationery.
- Growth Strategies:
- Offer specialized lessons for exam preparation (e.g., WAEC, UTME).
- Partner with local schools to refer students to your program.
- Provide discounts for referrals to attract more clients.
6. Personal Shopper Services
Busy individuals often require help with their shopping needs, from groceries to clothing. A personal shopper service helps save them time and effort.
- What it Takes to Start:
- A reliable means of transportation (e.g., bicycle or motorbike).
- Strong networking and communication skills.
- Minimal startup costs for marketing and transportation.
- Growth Strategies:
- Create an online presence to reach a broader audience.
- Offer tailored services such as fashion shopping or grocery pickup.
- Build a portfolio of satisfied clients for word-of-mouth referrals.
7. Selling Premade Courses Online
If you have expertise in any subject or skill, you can create and sell premade courses on platforms like Udemy or Selar to earn passive income.
- What it Takes to Start:
- Choose a niche topic and create quality course content.
- A smartphone or computer for recording and uploading.
- Free or low-cost platforms like Udemy or Selar.
- Growth Strategies:
- Promote your courses through social media and email marketing.
- Continuously update your content to remain relevant.
- Expand to other platforms like YouTube to drive traffic.
8. Fashion Styling Services
With a keen sense of fashion, you can help clients select outfits for events or everyday wear, offering valuable guidance on style.
- What it Takes to Start:
- A good eye for fashion trends and styling techniques.
- Build a small wardrobe of versatile pieces for client demonstrations.
- Minimal costs for marketing and transportation.
- Growth Strategies:
- Showcase your styling work on social media platforms like Instagram.
- Network with photographers and event planners for collaborations.
- Offer affordable packages to attract new clients.
9. Freelance Graphic Design Services
Graphic design services are in high demand as businesses require logos, flyers, and branding materials. This business can be started with minimal tools.
- What it Takes to Start:
- A computer and graphic design software like Canva or Adobe Photoshop.
- Build a portfolio with sample projects to showcase your skills.
- Initial investment of ₦50,000–₦100,000, depending on tools.
- Growth Strategies:
- Join freelancing platforms like Fiverr or Upwork to find clients.
- Offer discounts for bulk projects to attract small businesses.
- Expand services to include branding consultations.
10. Perfume Oil Sales
Perfume oils are affordable and popular, making them an excellent product for resale. They are in constant demand due to their quality and affordability.
- What it Takes to Start:
- Purchase small quantities of perfume oils from wholesalers.
- Bottles and packaging materials for resale.
- Startup costs starting at ₦50,000.
- Growth Strategies:
- Build a loyal customer base by offering samples.
- use social media platforms to market your products.
- Expand to bulk sales for events or corporate gifting.
Tips to Keep Startup Costs Low
- Use free or low-cost tools and platforms.
- Start with what you know to avoid expensive learning curves.
- use social media for organic marketing.
- Focus on reinvesting profits into your business to scale gradually.
Key Takeaways
- Use Existing Resources: Start with the tools, skills, and networks you already have to keep costs low and gain a head start.
- Adapt to Your Market: Understand the needs and preferences of your local community to provide products or services that solve real problems.
- Build Relationships: Strong relationships with customers, suppliers, and collaborators can help your business grow faster and more sustainably.
- Consistency Matters: Delivering quality service or products consistently helps build trust and ensures repeat customers.
- Reinvest for Growth: Avoid spending early profits on non-essentials; reinvest in your business to expand and improve your operations.
- Embrace Technology: Use free or low-cost digital tools and social media platforms to market your business and streamline operations.
Conclusion
Nigeria is brimming with opportunities for low-cost businesses. Whether you are selling foodstuff, offering services, or creating digital products, the possibilities are endless if you take the initiative.
The first step is to choose a business idea that aligns with your strengths and interests. Then, create a clear and realistic business plan to guide your growth. Leverage free tools like social media to reach your target audience, and start small by testing the waters with minimal risk. Waiting for the perfect moment will only delay your success, so act today.
Sign up for Entrepreneurs Success Blueprint Programme to learn from experts on how you can start or scale your business.
Once you’ve started, focus on consistency and delivering quality services or products. This will build trust and attract repeat customers. Additionally, reinvest your profits strategically to scale your business, whether that means expanding your inventory, acquiring better tools, or offering more services.
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FAQ on the Cheapest Businesses to Start Now
What are the most profitable low-cost businesses to start in Nigeria?
Some of the cheapest businesses to start include, selling foodstuff in small quantities, starting a tuck shop, and offering afterschool lessons. These businesses have consistent demand and are easy to scale.
How much money do I need to start a small business in Nigeria?
You can start many small businesses in Nigeria with as little as ₦50,000 to ₦100,000. Examples include selling perfume oils, agric products, or setting up a personal shopper service.
What skills do I need to start these businesses?
Some businesses, like freelance graphic design or selling online courses, require specific skills. Others, such as selling foodstuff or running a daycare, only need basic organizational and communication skills.
What are the biggest challenges in starting a low-cost business in Nigeria?
Challenges include competition, inconsistent demand, and limited access to capital. However, starting small and reinvesting profits can help overcome these issues.
How can I market my low-cost business effectively?
Use social media platforms like Facebook, Instagram, and WhatsApp. Participate in community groups, and use word-of-mouth referrals to reach a broader audience without spending much on advertising.
Are there any government grants or programs for small businesses in Nigeria?
Yes, there are several initiatives such as the Bank of Industry’s small business loans and the federal government’s N-Power program. Research local opportunities and apply for support.
Can I start these businesses while keeping my full-time job?
Absolutely. Many of these businesses, such as selling premade courses or offering personal shopping services, can be managed part-time until you’re ready to transition fully.
How do I ensure the growth of my business?
Focus on providing excellent customer service, maintaining quality, and reinvesting your profits. Networking and using technology can also help scale your business.
Where can I learn more about starting a small business in Nigeria?
Read our articles on how to start a business in Nigeria and success tips for entrepreneurs. These guides provide detailed information and actionable steps to help you succeed. Sign up for Entrepreneurs Success Blueprint Programme to learn from experts on how you can start or scale your business.
What type of business is best for students or part-time entrepreneurs?
Businesses like freelance graphic design, selling perfume oils, or creating online courses are among the cheapest businesses to start and can be easily managed alongside studies or a full-time job.
