Starting a business in Nigeria might be difficult, especially if you are working with minimal funds. The good news is that numerous profitable companies can be launched with a minimal initial cost.
Whether you’re a student, a recent graduate, or trying to supplement your income, there are chances in Nigeria’s dynamic economy that don’t demand a large investment to get started. In this article, I will walk you through the top ten most profitable businesses you may start in Nigeria in 2024 with low capital. From service-based enterprises to product sales, these concepts provide a means of making significant earnings without breaking the bank.
Why Low-Capital Businesses Thrive in Nigeria
Nigeria’s business ecosystem has experienced an increase in low-capital initiatives, driven by the demand for rapid, scalable businesses that can respond to economic shifts. According to a PwC Nigeria analysis, SMEs account for 48% of the country’s GDP and are expected to expand further in the future years. Many great entrepreneurs began with little and grew their businesses over time.
With increased unemployment and economic uncertainty brought on by inflation, more Nigerians are resorting to small companies to make ends meet. These enterprises provide freedom, independence, and, most crucially, the possibility to start with a small investment. And with digital tools and platforms, it’s easier than ever to sell and scale these businesses.
Top 10 Most Profitable Businesses in Nigeria with Low Capital by 2024
#1. Laundry and Dry Cleaning Service
- Why it’s profitable: Laundry services are constantly in great demand, especially in cities where working professionals don’t have time to do their laundry. All you need to get started is a washing machine, an iron, and a modest amount of room.
- Capital required: ₦50,000-₦200,000.
- Profit potential: With a steady clientele, you can earn up to ₦50,000 or more every week.
Starting a modest laundry service for less than ₦100,000 and targeting busy professionals in your neighborhood can lead to steady income within a few months. Once you have a devoted consumer base, you can easily scale.
Read Also: How to Start a Laundry Business in Nigeria 2024
#2. Mobile Food Vending (Food Trucks and Delivery)
- Why it’s profitable: Nigerians value convenience, and mobile food vending is an excellent method to cater to people looking for quick meals on the go. You can begin with basic foods such as jollof rice, snacks, or local favorites.
- Capital required: ₦30,000 – ₦100,000.
- Profit potential: Depending on the menu and location, you might earn ₦50,000 to ₦150,000 every week.
A friend established a meal delivery service with a little initial expenditure on supplies and packaging. Her business expanded quickly as a result of social media promotion, and she now receives orders daily.
Read Also: How to Start a Frozen Food Business in Nigeria: Detailed Guide
#3. Freelance Writing & Content Creation
- Why it’s profitable: As more businesses go digital, the demand for writers, bloggers, and content providers has grown. Freelance writing takes little or no cash, only a good computer and an internet connection. You can even start writing on your phone and eventually upgrade to a laptop.
- Capital required: ₦20,000–₦50,000.
- Profit potential: Writers can earn ₦5,000 to ₦50,000 per piece, based on niche and length.
As a freelance writer, I’ve discovered that content creation offers both flexibility and high earning potential. Once you’ve built a portfolio, it’s simple to attract clients from Nigeria and even abroad.
Read Also: HOW TO BECOME FREELANCE COPYWRITER: Beginner’s Guidelines
- Why it’s profitable: As businesses realize the value of an online presence, social media managers are in high demand. You don’t need a large budget—just an understanding of sites such as Instagram, Facebook, and Twitter.
- Capital required: ₦20,000–₦50,000.
- Profit Potential: Charge between ₦50,000 and ₦200,000 per month based on your client base.
A coworker began handling small business pages for local businesses in Lagos. By providing reasonable packages, he attracted a large number of clients and established a consistent cash stream.
#5. Mini Import Business
- Why it’s profitable: Mini importation allows you to import tiny quantities of things such as gadgets, fashion items, and accessories and sell them for a greater price in Nigeria. Thanks to platforms like Alibaba and AliExpress, this is now easier than before.
- Capital required: ₦30,000 – ₦100,000.
- Profit potential: Importers can expect profit margins ranging from 30% to 100%, depending on the goods.
Tip: I began by importing small quantities of fashion items and gradually expanded my business through referrals and social media marketing.
Read Also: How to Make Money During NYSC 2024
#6. House Cleaning Services
- Why it’s profitable: Home cleaning services are in high demand among urban inhabitants, particularly in Lagos and Abuja. It’s a business that takes little investment in cleaning materials but can attract repeat customers.
- Capital required: ₦20,000–₦50,000.
- Profit potential: Charge between ₦5,000 and ₦20,000 every cleaning session.
I know several folks who began this business with little or no experience. As long as you are dependable and provide high-quality service, word-of-mouth referrals will keep your business growing.
Read Also: How to Start Your Own House Maid Services in Nigeria 2024
#7. Event planning and coordination
- Why it’s profitable: Nigerians enjoy celebrating, from weddings to corporate gatherings. Event planning can be quite rewarding if you are well-organized and communicate effectively.
- Capital required: ₦50,000-₦150,000.
- Profit potential: Event planners might earn ₦200,000 or more per event, depending on its size.
A buddy began hosting small-scale birthday parties and expanded her clientele through referrals. She now handles weddings and business events around the state.
Read Also: How to Become an Event Planner: The Complete Guide
#8. Barbing and Hairdressing Services
- Why it’s profitable: Personal grooming is essential, and barbering and hairdressing services are constantly in demand. You can start modestly by providing home services or renting out a tiny area.
- Capital required: ₦50,000-₦150,000.
- Profit potential: Earn between ₦20,000 and ₦100,000 each week, based on location and clientele.
Starting with home services lowers the expense of hiring a place and allows you to establish a customer before expanding.
Read Also: Hair Salon Business: Simple Steps to Start a Profitable Salon in 2024
#9. Phone and Computer Repair Services
- Why it is profitable: Nigerians rely extensively on smartphones and laptops; therefore, repair services are in high demand. You don’t need much money—only the correct equipment and talents.
- Capital required: ₦30,000 – ₦100,000.
- Profit potential: Repair services can generate ₦50,000 to ₦200,000 monthly, based on volume.
I know someone who started by fixing phones for friends and family before developing into a small repair shop, which he now runs full-time.
#10. Digital Marketing
- Why it’s profitable: In today’s environment, digital marketing is essential for any firm to grow. If you’re an expert in SEO, email marketing, or PPC advertising, you can help firms expand their online presence.
- Capital Required: ₦30,000-₦70,000.
- Profit potential: Digital marketers can charge between ₦50,000 and ₦300,000 per month, based on the services provided.
I began learning digital marketing through free online classes and gradually built up a portfolio by providing reduced services to local firms. As my clientele grew, so did my revenues.
Read Also: Digital Marketing Strategy: The Ultimate 2024 Digital Marketing Playbook
What Are the Startup Costs for Low-Capital Businesses?
Startup costs are the first expenses incurred while starting a firm. These expenditures vary based on the type of business you’re beginning, but they usually include equipment, licenses, marketing, and operational fees. These expenditures are very minor for small enterprises, but understanding them is critical for good planning.
Let us break down the typical launch costs for some of Nigeria’s most profitable low-capital enterprises.
#1. Equipment and tools
Most organizations’ principal launch costs include the purchase of necessary equipment or supplies. Depending on the business, this could be anything from a laptop for freelance writing to cleaning materials for a house cleaning service.
#2. Raw materials or inventory
If your business sells actual things, you will need to buy inventories or raw materials. For example, in the food industry, you’ll need to purchase ingredients for your menu items, but in small imports, you’ll invest in products to sell.
#3. Marketing & Promotion
Every business requires clients, and to get them, you will most likely need to spend money on marketing and advertising. This could include social media advertisements, flyers, business cards, or even a basic website.
#4. Licenses and Permits
Depending on your business, you may need to seek licenses or permits to operate legally in Nigeria. While not all businesses require this, it’s something to look into.
#5. Rental or Space Setup
If your company requires a physical location, you must evaluate the expense of renting or establishing your office. However, many low-capital firms, particularly those that provide services, can easily operate from home or offer mobile services to save costs.
#6. Branding and Packaging
For firms that offer actual products, branding and packaging are also important considerations. This includes creating a logo, ordering packing materials, and labeling your products.
Common Startup Costs by Business Type
| Business Type | Estimated Startup Cost (₦) | Key Startup Expenses |
|---|---|---|
| Laundry Services | ₦50,000 – ₦150,000 | Washing machine, detergent, iron |
| Mobile Food Vending | ₦30,000 – ₦100,000 | Ingredients, cooking tools, packaging |
| Freelance Writing | ₦20,000 – ₦50,000 | Laptop, internet subscription |
| Social Media Management | ₦20,000 – ₦50,000 | Laptop, social media ads, internet |
| Mini Importation | ₦30,000 – ₦100,000 | Product sourcing, shipping costs |
| Home Cleaning Services | ₦20,000 – ₦50,000 | Cleaning supplies, transport |
| Event Planning | ₦50,000 – ₦150,000 | Marketing, equipment, transport |
| Barbing and Hairdressing | ₦50,000 – ₦150,000 | Clippers, hair products, rent (optional) |
| Phone/Computer Repair | ₦30,000 – ₦100,000 | Tools, parts, transport |
| Digital Marketing | ₦30,000 – ₦70,000 | Laptop, ads, software subscriptions |
Understanding the breakdown of startup costs allows you to budget efficiently and ensure that your low-capital business is profitable from the beginning.
How Templates Can Help You Track Business Growth
Staying organized is key for tracking revenues and effectively managing your business. Here’s a basic form to help you manage your spending, revenue, and profit margins.
Business Profitability Template
| Business Type | Startup Cost (₦) | Monthly Revenue (₦) | Monthly Expenses (₦) | Profit Margin (%) |
|---|---|---|---|---|
| Laundry Services | ₦100,000 | ₦200,000 | ₦50,000 | 75% |
| Mobile Food Vending | ₦50,000 | ₦150,000 | ₦70,000 | 53% |
| Freelance Writing | ₦30,000 | ₦100,000 | ₦10,000 | 90% |
| Social Media Management | ₦40,000 | ₦120,000 | ₦30,000 | 75% |
| Mini Importation | ₦70,000 | ₦200,000 | ₦80,000 | 60% |
This template helps you to track your company’s financial health, allowing you to identify which areas need development and where you’re making the most money.
How Should I Promote My Low-Capital Business in Nigeria?
Promoting a business in Nigeria does not have to be expensive, especially when working with a tight budget. You may attract clients and expand your brand by combining creativity, online platforms, and community outreach. The following are some successful techniques to promote your business.
Social media networks are among the most effective methods you can use to promote your business for little or no expense. In Nigeria, platforms such as Facebook, Instagram, Twitter, and WhatsApp have millions of active users, allowing you to reach a wide audience.
- Facebook & Instagram ads: You may run cost-effective targeted advertisements on Facebook and Instagram to reach people in your region who might be interested in your services or products. Ads can be tailored to your budget, and you can target them by area, age, and preferences.
Tip: For about ₦5,000, you can run an ad for a few days and reach thousands of people. Make sure your ad has a clear call-to-action (CTA), such as “Contact Us” or “Shop Now,” to direct potential customers. - WhatsApp Business: Creating a WhatsApp Business account is another excellent approach to engaging with consumers directly. WhatsApp can be used to deliver promotional messages, product catalogs, and customer support requests. WhatsApp status updates can provide a platform for promoting items or services, which your friends may readily see and share.
Tip: Make a broadcast list of potential consumers, family, and friends and email them your company promotions or new product news.
#2. Use Google My Business
Google My Business (GMB) is one of the most underutilized platforms for small businesses in Nigeria. GMB allows you to list your business online so that it can be found when people search for relevant services or products in your area.
- How to Use It: Create a Google My Business page for your company, providing any pertinent information such as location, contact information, and business hours. This allows you to rank higher on Google Search and Google Maps. If you run a local business, this is an excellent approach to attract customers looking for nearby services.
Tip: Encourage satisfied consumers to provide positive feedback on your GMB profile. The more positive ratings you have, the more likely new clients are to trust your company.
#3. Create a website or blog
Having an online presence, such as a website or blog, helps your business appear reputable and professional. You can use your website to promote your items, post client testimonials, and offer thorough information about your services.
- Free Website Builders: If you have a limited budget, platforms such as WordPress, Wix, or Squarespace can help you establish a simple, cost-effective website.
Tip: Include relevant keywords linked to your business on your website to improve its search engine optimization (SEO). For example, if you provide laundry services in Lagos, your website should include terms such as “laundry services in Lagos” or “best laundry service in Lagos.”
#4. Network in your local community
Offline promotion can be equally effective as online marketing, particularly if your target audience is local. Word-of-mouth marketing and good neighborhood relationships are critical for businesses such as event planning, laundry services, and food vending.
- Flyers and Posters: Create basic flyers and posters for distribution or display in high-traffic places such as markets, shopping malls, churches, and community centers. Even on a tight budget, you can print flyers in bulk and distribute them to potential consumers.
Tip: Make sure your flyers have a memorable slogan, your company name, contact information, and a call to action.
- Referrals: Provide rewards for referrals. For example, offer consumers a discount or free service if they suggest a new customer to your company. This can help to increase your customer base through word-of-mouth.
#5. Join Online Marketplaces.
If you sell things, online marketplaces such as Jumia, Konga, and Jiji are ideal venues to list them and reach more buyers. These platforms have a high volume of traffic; therefore, listing your products can greatly increase visibility and sales.
- How to Use It: Register as a vendor on the marketplace and make sure your product descriptions are thorough and include clear, high-quality photographs. Always provide excellent customer service to foster confidence and generate favorable feedback, which can lead to increased sales.
#6. Collaborate with influencers
Influencer marketing is an excellent approach to promoting your business, especially if you are targeting a younger demographic. You don’t have to work with top-tier influencers; micro-influencers (those with 5,000 to 50,000 followers) typically have more engaged audiences and charge less.
- How to utilize it: Contact influencers in your niche—whether they’re fashion bloggers, fitness experts, or foodies—and ask them to promote your brand in exchange for free products or a small fee.
Tip: To maximize impact, ensure that the influencer’s audience matches your target market.
#7. Run Promotions and Giveaways
Running a campaign or hosting a giveaway can be an excellent way to generate buzz about your brand and attract new consumers. Giveaways encourage consumers to tell their friends about your company, while promotions might entice clients to spend more by providing limited-time discounts.
- How to Run a Giveaway: Set a simple entry requirement, such as liking and sharing your page or tagging friends in the comments. At the end of the giveaway, randomly select one winner to receive a free good or service.
Tip: To maximize reach, promote the giveaway or sale on social media and via WhatsApp.
#8. Attend networking events and trade fairs
Networking events and trade fairs are excellent opportunities to meet potential customers, partners, and investors. You can immediately promote your products or services, distribute samples, and gather contact information from potential customers.
- How to Use It: Search for local business events or trade exhibits in your field. Events like the Lagos Trade Fair and Abuja Entrepreneurial Summit offer wonderful opportunity to network and promote your business.
Tip: Bring promotional items such as business cards, pamphlets, or samples to create a memorable impression with attendees.
Template to Track Promotional Efforts
When promoting your business, it’s critical to track what works and what doesn’t. Use the template below to keep track of your promotional activities and assess their efficacy.
Promotional Tracking Template:
| Promotion Type | Cost (₦) | Duration | Reach (People) | Results (Sales or Leads) |
|---|---|---|---|---|
| Facebook Ad Campaign | ₦5,000 | 7 days | 5,000 | 10 sales |
| Flyer Distribution | ₦10,000 | 1 week | 500 | 5 new customers |
| Influencer Collaboration | ₦15,000 | 3 days | 3,000 | 8 sales |
| Instagram Ad Campaign | ₦7,000 | 5 days | 4,000 | 6 sales |
| WhatsApp Broadcast | ₦2,000 | 1 day | 1,000 | 3 new leads |
Using this template, you can track the expense and outcome of each promotional activity, allowing you to focus on the techniques that produce the best results.
Key Takeaways
- Starting a thriving business in Nigeria doesn’t require a significant investment; many companies survive with little capital.
- Laundry, food vending, and small importation are all high-demand services that are extremely profitable.
- Most low-capital businesses require only minimal equipment or tools, making them inexpensive to start.
- Social media, word-of-mouth, and Google My Business can all help you promote your business on a tight budget.
- Starting small does not have to imply remaining small; with the correct plan and constant effort, these enterprises can develop.
Conclusion
Starting a business in Nigeria with limited funds may be overwhelming at first, but as we’ve seen, there are various profitable projects you may embark on in 2024 without making a significant upfront investment. From freelance writing to event planning, these business ideas have proven to be successful in Nigeria’s economy. Understanding your market, successfully managing initial costs, and promoting your firm through cost-effective but impactful channels are all critical to success.
As you start your business, think about how you might use technology and networking to scale your operations and maximize revenues. Which low-capital business concept are you most interested in pursuing in 2024?
- BUSINESS IDEAS FOR STUDENTS: (35+ ideas and easy guide)
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- Dry Cleaning Business: How to Successfully Run One (+ quick guide)
- Laundry service Business: [6 success keys +business plan]
- INNOVATIVE BUSINESS IDEAS: (+ 5 quick tips)
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