What Business Can I Start With 5k In Nigeria?
What Business Can I Start With 5k In Nigeria? This query is keyed into the search bar on Google more frequently, recently. It’s obvious that Nigerians (mostly the young population), are very eager to earn a living. And it has even come to our notice that many of them are graduates with good degrees, but no jobs that would generate income to cater for their daily needs.
Hence, the quest for an emergency low-cost business model is on the rise. And as such, this post is set to profer solution to this query. So, in this post, we will show you a few businesses you can start with N5k in Nigeria.
Before you apply the idea you will get here, whatever amount we mention is just an estimation. However, based on the circumstances on the ground due to the rise in the cost of items in Nigeria, it would be advisable you budget a little more than N5k to be on a secured path. Let’s start!
Things You Should When Starting a Business With N5k In Nigeria
- To start a business with N5k in Nigeria is very small
- Profit is always low
- Growing it to a larger scale will take longer than necessary
- It may not be significant to the general public
- You will need to apply an extreme measure of self-control and strictness to be able to realize your capital, and subsequently profits
- It is not an overnight business success
What Business Can I Start With 5k In Nigeria? Let’s Answer This Query!
#1 Sachet Water Or Pure Water Business
Pure water business is one of the easiest businesses to venture into with very low capital, in Nigeria. With over 210 million people living in Nigeria, it’s already a large market to cover or take advantage of.
The sachet water business is also lucrative in its own small way depending on which model you choose to deploy. That means is either you retail in sachets or sell in bags. People who hawk it around the streets are actually retailing in sachets.
Getting a space, kiosk, or shop to start a pure water business is not necessary, as to the fact that you can begin from where you are living. All you have to do is place a signboard outside your home with the inscription, “BUY PURE WATER HERE” on it!
The budget is N5k. Now, let’s see if pure water or sachet water business can run with this capital.
Business Capital (Calculation)
A bag of pure water is sold for N100 or N120 in some places in Nigeria at wholesale price. If you begin with N5,000, you can either purchase 50 bags for N100 each or with an extra N1,000 you can buy 50 bags for N120, making it N6,000.
NOTE: The above assertion is not all that there is about purchasing the same quantity with the same capital. In most instances, with the proliferation of sachet water companies in Nigeria at different locations scattered across the country, in a very competitive marketplace as such, newer companies can decide to sell their bags of pure water at a promo price. Probably, you can buy each bag for N80 or N90 as the case may be.
However, in this post, we will use a generally accepted flat rate for a bag of pure water at wholesale price, which is N100.
Breaking Down The Profit Or ROI
- Business Capital = N5,000
- Wholesale Price = N100 for 1 bag (N5,000 for 50 bags)
- Retail Price = N150 for 1 bag
- Income = N7,500
- Capital Realized = N5,000
- Profit = N2,500
N2,500 is your profit. It is now up to your marketing strategy that will determine if you will clear off the bags in just one day or two.
Repeat the process over and over again. If you clear 50 bags in a day (which is very simple to do so), you will realize N75,000 at the end of 30 days, which is N2,500 x 30 = N75,000.
#2 Iceblock Selling Business
Iceblock business may somehow be underrated because it’s ordinary water. Actually, that is what makes it very cheap! In fact, you can start an iceblock selling business with little to nothing in Nigeria…and guess what? It is not a seasonal business!
Reasons Why Iceblock Selling Business Is Not Seasonal
No steady power supply in about 90% of parts of Nigeria
A lot of businesses sell frozen items and chillable products
Iceblocks are cheap to purchase
Iceblocks supplement refrigerator
What’s Involved In Starting Iceblock Selling Business With N5k?
- Ordinary water
- White or transparent nylon bags
- Refrigerator, freezer, or cool room
If you look at the iceblock selling business critically, you will realize that you don’t really need even N5k to run it. However, in a situation where you don’t have a freezer at home, you can always make use of the coolroom.
Where you will really be obliged to spend some money is in buying the transparent bags, logistics, and fee for coolroom. But if you have a freezer at home and a generator, fuel and nylon bags will obviously be the cost.
This article may not be all that you wanted; perhaps you needed an in-depth guide to getting you through. This is just to touch on the important aspects of the two businesses that you make do with a capital of N5,000, explained above in this post.
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