What would you do if you had an extra ₦500,000 in your bank account (or PocketApp) right now? Would you save and invest the funds in a safe and secure platform like PiggyVest? Or maybe try something different — like start a business? What types of businesses could you even start with half a million naira?
The business to start with 500k in Nigeria include e-commerce, food, logistics and delivery, as well as event planning. You could also establish a car wash, a bookstore, a small-scale grocery store or a thrift store.
So, are you looking for a business to start with 500k in Nigeria? This article explores some of the easiest and most profitable ideas.
Choosing a business to start with 500k in Nigeria
Let’s start by listing out some of the best business choices to consider in Nigeria. All of these are guaranteed profit-makers if you do them right and are sure to keep you in business for a long time.
The best businesses to start with 500k in Nigeria include:
- Event planning
- Logistics and delivery services
- Food business
- Car wash
- Small-scale grocery store
- Thrift store
Now let’s see what makes them such excellent choices.
The internet has always been a great place to find information and an excellent way to communicate, but it can also be a profitable marketplace. In fact, people have been buying and selling using the internet for almost as long as the internet has existed.
This transaction, known as e-commerce, is the first on our list because it’s an easy business to start with 500k in Nigeria. All you need to do is have a product you can sell (like clothes or shoes or even food), an online shop and willing customers.
E-commerce is straightforward and relatively cheaper to set up than a traditional shop — especially if you use a free platform like PocketApp by PiggyVest.
2. Event planning
If there’s one thing we love as Nigerians, it’s events! And with good reason. Who doesn’t love a great party?
Nigerians are so party-positive that we spend millions creating the perfect event, from birthdays and graduations to burials and weddings.
In fact, the event industry in the country is such a thriving field that you can make quite a lot of money from building an event-planning business. Just ask Ifeanyi Okoh-Amayo, owner of the flourishing event company, I Plan Wonders!
One of the best things about event planning is that it’s relatively easy to get off the ground, and you can start small (like with birthdays and dinners).
But you would need to brush up on your management skills if you’re ever going to build a profitable event planning business.
3. Logistics and delivery services
If there’s one industry that gained a lot of traction from the Covid-19 pandemic in Nigeria, it’s the logistics industry. Logistics and delivery services are so popular these days that it’s almost impossible to leave your house without seeing at least one motorbike sporting popular brand names like Gokada or Kwik Delivery.
You could get in on the action. But you need to get one or two bikes and hire riders to pick up and deliver goods for paying customers. You also need to get the required licences and documentation.
It’s a great business to start with 500k in Nigeria and one that will be profitable if your services are top-notch.
The amount you’ll spend to get your logistics and delivery business off the ground depends on how many bikes you plan on getting. Still, you might be capped at one bike when starting since a motorcycle costs around ₦300,000 in Nigeria.
You could also be a rider and hire one when your business becomes more profitable.
4. Food business
The business of food is another business to start with 500k in Nigeria. Everyone has to eat — no matter who they are or where they live. And depending on what works for you, you can set it up as a physical restaurant or an online food delivery business.
All that matters is you create something that resonates with your target market and budget.
For example, you could set up an online food delivery business in an area with many offices since many workers would rather order in than leave their office for lunch. Or you could consider a physical food business if your target market is in a rural location or if your target customers don’t have experience with online food delivery platforms.
Of course, quality is essential if you’re selling food. We recommend brushing up on your cooking skills if you’re starting this venture alone. You can also partner with a more experienced cook if you need culinary skills.
Food businesses are quite profitable in Nigeria, and success stories like Dare Aderinokun’s Quacktails, Valhilda Agbaka’s The Hungry Lagosian and Tosin Onafuye’s 500Chow are testament to how far you could go, if you play your cards right.
Starting a bookstore is another excellent business to start with 500k in Nigeria. Get a great space and fill it with books. These books can be anything from romance and thrillers to academic textbooks and workbooks — whatever people want or need.
You can even sell only religious books if you want, as long as there’s a market for them.
Also, your bookstore doesn’t have to deal only in new items. You could sell used books for much cheaper and move merchandise quicker.
Regardless of what you choose to sell, your bookstore will thrive and make you more money if it’s in a great location and your books are of high quality.
Plus, you could also go online and save money (and expand your market). E-commerce platforms like PocketApp are perfect for this, and you could use the extra money to invest in more merchandise.
6. Car wash
Car wash companies are quiet but significant money makers. Think about it: many car owners visit a car wash, even if it’s just once in two months. Considering there were 11.8 million cars on Nigerian roads as of Q4 2018, that’s a pretty large market to get into.
Still, you might need to spend a reasonable sum on equipment (and land) if you choose this venture. But your sweet ₦500,000 can go far if you start small and choose a great location.
7. Small-scale grocery store
Small-scale grocery stores have been part of the Nigerian experience for decades. We all have that one shop we frequent on our street or at work. But what if you could start your own?
Well, the good news is that with ₦500,000, you can. And it’s super profitable!
Of course, you’ll need to study your market and find a location to run a small-scale grocery store that’s sure to get lots of customers.
8. Thrift store
Nigeria’s thrift industry has been flourishing for years. From clothes to shoes and even electronics, you can make a killing if you have enough funds. But what exactly is thrifting?
Thrifting means buying gently used items at a much lower price than you’d get them if they were brand new. But it can also refer to selling these items in a physical store or an online one.
In Nigeria, this business is known in many circles as okrika (after the island in Rivers State) and has dedicated markets in almost every city in Nigeria.
It’s an excellent venture if your target market is low-income earners like students and fresh graduates. It’s also a pretty cool business you can start with 500k in Nigeria.
It’s important to choose an optimal business and understand your target market if you’re starting a business in Nigeria, especially if you’re investing ₦500,000 in it. However, it’s also essential to be cautious and assess the risks involved in the business to ensure you don’t run into any problems.
Still, the eight businesses in this article are excellent ideas and should be profitable with thorough research and planning.