One of the most common question people have always asked me is “Raphael, what business can I do?”
And my most frequent reply is “Any type of business so far it’s legal”. Then comes their next statement; I am looking for a profitable business. Once again I would reply; All businesses are profitable as long as it offers value”. How profitable a business is on the other hand is dependent on the person(s) doing the business and the current technology/economic trend.
For example, importing and selling cars may yield much profit some years back when the dollar was 156 to 1 naira but certainly not now. The cost of buying and shipping in cars is much higher now and even when the car lands in Nigeria, getting a buyer is not easy. Not so many people are thinking of adding a new car to their current fleet. They literally do not have the money due to the current economy. So you end up having cars parked at the showroom with no one to buy.
Based on the current situation of the economy, I have outlined certain businesses you can start and would generate good profit even in the midst of Nigeria’s turbulent economic weather.
These business are based on the following attributes
- They are least affected by the economy decline as exchange rate is not likely to cause significant alterations to your cost price margin, hence profit remains fairly stable.
- They require little or no capital to start, so no serious investment risk attached
- You can do them from home. No capital needed to rent and set up a corporate office.
- They can all run as one man business. No extra staff needed to start so worries of paying staff salaries is out of the picture.
I have taken out time to attach an estimated minimum capital to each of them as well as provide you with a rationale to justify their profitability in the current economy.
1. REPAIR COMPANY
Involves offering repair services for damaged devices, electronics, office wares, computers, etc.
How to go about it: You pick the ones you want to specialize in. I know the first thing coming to your mind right now is I am not a technician, how could I possibly repair anything. You don’t need to know how to repair them yourself; all you need is to know people who can repair them. Get the contacts of some local repairers from whatever field you chose. Once you have a solid network of experienced repairers and have established good understanding with them. Package yourself as a company, get the job and outsource them to the repairers in your network. Now the difference between you and the main repairers is that while they are stationed in their various workshops waiting for miracle customers to come knocking, you package yourself as a corporate company, promote yourself online, offer free pickup and delivery service. All customers need to do is to place a call and you can go pick up, outsource, and deliver it back. Whatever is the technician’s cost of repair, add your own profit and forward the bill to your customer.
Rationale: Due to the economic recession, a lot of people would become naturally conservative and opt for repair of their devices/properties rather than buying a new one at a very high cost in the market due to the exchange rate.
Challenge: Due to trust issues, a lot of customers would want to be sure there is a physical place they can come to should their property go missing. No one would freely release their property for repair simply because you are offering them a free pickup and free delivery if they are not sure you have a physical office somewhere.
2. POULTRY FARMING
Rearing livestock specifically the broiler specie of chickens
How to go about it: You can start this with as little as a 100 thousand naira provided you already have an enclosed space to rear them. Starting with as little as 50-100 chicks isn’t a bad idea if you are a rookie. A single chick is sold between N500 to N650. So you can get as much as a 100 chicks for N50000. The maturity time frame for broilers chicks is less than 4 months so you should be able to sell them off that quickly.
Rationale: 2-way income channel. You make money from both the sales of the matured chickens and the eggs they lay. A crate of egg is about N1000 while a matured broiler chicken for about N2000-N2500.
Why I chose poultry farming is because you don’t need have expert knowledge to start and it has lesser risk of failure with quicker turnover rate unlike crop farming.
Challenge: You will need space if you want to go large scale. Poultry feeds can also attract significant cost and the expertise of a veterinary doctor’s consultation might be required if going large scale.
3. OFFICE SUPPLIES
Supply of office materials
How to go about it: Search for a network of corporate offices in your locality and submit proposal to deliver office stationary to them on request (Papers, pins, stamp pads, printer inks, envelopes, folders, toiletries, etc.) at an agreed rate.
Rationale: No risk, you only go to the market to purchase when a request has been made. You don’t have to invest in buying the office materials until a company makes an order.
Challenge: Your price has to be very low for you to be awarded such supply contracts except of course you already have a good relationship with the company’s management.
Besides, how well this business will boom is dependent on the number of companies you supply and how big they are.
4. EVENT PLANNING
How to go about it: Get a network of event vendors (decorators, rental services, caterers, bakers, photographers, Djs, etc.) and their contacts. Build up a personal brand, bid for jobs and have them carried out by your vendor network.
Rationale: Little capital needed. No professional knowledge needed.
Challenge: You must verify the credibility, professionalism and work integrity of vendors you work with. Any deficiency in the overall event falls upon you as the frontier brand.
5. FULL SCALE FARMING
How to go about it: I won’t be able to say much on this right now due to its complexity and skill set needed. You can contact me personally if interested in learning more of its profitability.
Rationale: Less affected by the economy. Produce are necessity to human survival and demand would always be fairly constant.
Challenge: Large space, huge capital, deep agricultural knowledge needed.
6. TRANSPORT BUSINESS
How to go about it: Get a vehicle, commercialize it, do necessary registration and employ someone to drive it while the person delivers a certain amount to you daily.
Rationale: Due to the economy and current fuel hike, more and more people are embracing public transportation by the day while their cars are packed at home and only taken out to nearer distances.
Challenge: Cost of getting a vehicle (Bus, Taxi, Tricycle, Bikes) can be huge. Getting a trustworthy driver you can put in charge. I have a little solution to this problem of trust. Space would not permit me to add it in here. If you need consultation on this, kindly contact me.
List will be continued…
To avoid this article from being lengthy and ensure easy readability, I would continue the list in my next post. All information provided here are brief and might not answer all the questions on your mind. However, you can contact me privately should you need further consultation on any of the outlined businesses.