According to a survey by the Small and Medium Enterprises Development Agency of Nigeria, there are around 73,000 small and medium enterprises and 41 million microbusinesses operating in Nigeria.
Because of the uncomfortable danger to financial stability posed by poverty, a lack of education, and insecurity, this demonstrates that the ordinary Nigerian is an entrepreneur in some capacity. In spite of this, many Nigerians have persevered in order to leave a lasting legacy of financial freedom for the future.
However, when people are given the responsibility of establishing passive income, or a supplementary source of income, the typical tendency to claim a lack of money as a justification has prevented many from escaping the chains of meager incomes and financial restrictions.
Personal financial gurus have driven dialogues on the need to embrace numerous streams of income despite concerns and reports generated by the high cost of electricity and unstable power supply. Although it may seem impossible, it is feasible to diversify your source of income. Obviously, by beginning small and focusing on only one business at a time.
Point of Sale business
One of the most lucrative side businesses to start is providing point of sale services. Although some Nigerians have entirely invested their money and depend on it as their main source of income, it is still a successful technique to make a little additional money on the side.
“Although the startup capital to venture into PoS business full time will cost about N250,000, if you are doing it as a side hustle with N50,000 to N150,000, you can start,” full-time PoS operator Taiwo John who works near Lotto, Ofada bus stop told The Spectator. If you want two terminals, you would require roughly N50,000, or about N25,000 per terminal.
He thinks that the first key factor in determining the company’s success is consistency.
“This business is about trust, so after getting your accessories for about N25,000 you need to get cash to run the business and make sure you are always available when customers need you. Above all John, states that as a business owner, “you must pay attention to your profit rather than just making sales.”
Due to its ease of entry, the Point of Sale industry has quickly extended throughout rural regions.
In actuality, the National Bureau of Statistics reports that the quantity of authorized PoS operators has increased over time. Due to the cashless policy, point of sale transactions increased in January to N807.16 billion, representing a 40.69% year-over-year rise over the N573.72 billion in transactions that were made in January 2022. This is a blatant sign that there is a market for the service and that the PoS industry is successful.
Perfume business
Another endeavor to consider is the sale of fragrance oils. A Ketu-based wholesaler of perfume oil claims that “anyone can start a perfume oil business with as little as N11,000.” My own firm, which I started with barely N24,000, has been running for almost four years. I was a retailer at the time, but I’m now a wholesaler now, Tomisin Oke said our correspondent.
She states that newcomers may “Expect to make about 60% to 40% depending on the sales, but your gain cannot be less than 50% half the time” while discussing the profit margin achieved on the original investment.
The Spectator discovered that there are several wholesale distributor associations for proprietors of oil perfume companies.
A distributor contacts one of the groups and informs them that oil perfume sellers may launch their business with as low as “N11,000, 15,000, or N21,000. 40 bottles of 3ml oils are included in the N15,000 box, and you may sell each one for N500. The 6ml may be sold for between N800 and N1000 apiece. Additionally, you have the option to pay upon delivery.
According to a study research by Fortune Business Insight, the worldwide perfume business will be valued $29.8 billion in 2020. The desire for beauty products and cosmetics is a major factor in this. Even better, this company may be operated stress-free from home.
Thrifts clothes
The second-hand clothing industry, sometimes referred to as “Okrika” (thrift clothing), is seen as one that benefits from low startup costs.
Because it is affordable for the typical Nigerian, this enterprise is supported by the majority of the country’s citizens and is seen as lucrative and manageable.
Speaking with secondhand store vendors, our reporter learned that there are important things to think about before diving in, although the company only requires a little amount of funding—between N20,000 and N50,000 or more, depending on the buyer’s budget.
People may start with N20,000, according to Jackson Anadi, proprietor of a wholesale secondhand store in Ikorodu.
If you have about N20,000 in cash, you may start, but it also depends on your location, he explains. You consider the needs in your region. Do you believe the parents of these kids will buy if you have additional kids? Or do you have more women or young girls?
“Are they stylish? Do you think they would buy it? These are basic things to put into consideration. You have to take note of what is needed at a particular time, and after that, you can decide to sell.”
Aminah Abdulrauf, a second thrift store owner in Osogbo, advises our reporter that prospective thrift store entrepreneurs should consider their target market’s demands as well as the setting in which they would conduct their business.
“If you are a newcomer in this business, if you are selling to a community that has a high-class breed of residents, understand that they would prefer wares that are neat and high quality,” she said.
“So if you take clearance wears to them because they are cheaper to buy and sell, they may not buy.
“If your plan is to sell to students, then go for items like ladies’ tops, bum shorts and bralettes, or maybe nightwear. If you have more money to spare, you can add jeans to the mix. With N50,000 you can also invest in first-grade or neat clearance for that.”
Abdulrauf advises that for newbies, “Buy a small quantity first and then when the demand grows, you can then restock more of items that sold fast.”
