Have you ever wondered what it takes to own a fast growing business in Nigeria?
Do you have the capital or funds to start a lucrative business in Nigeria but lack viable business ideas?
Look no further, as we take a look at 5 of the most lucrative and fastest growing businesses in Nigeria right now.
If you have the required capital and the right management skills, you can’t go wrong with any of these businesses.
Let’s take a look at them.
Supermarket (FMCG)
First on the list is a Supermarket business. A supermarket is a fast moving business that requires a substantial capital to start.
If you find the right location for your supermarket, you could be making as much as 20,000 Naira per day in pure profit.
I recently spoke with a supermarket owner in Lagos, and he told me without mincing words that owning a supermarket was the best decision he has ever made. Actually, he served his boss in an electrical store but after being settled with the sum of 200,000 Naira, he decided to take a bold risk and started a supermarket even without any experience.
That was as far back as 2005.
Things have changed now though, but a supermarket still remains as lucrative as ever. I’ve seen supermarkets spring up and within a month start making good cash flow. All you need is a good location that has need for retail products.
Right now, due to the inflation in Nigeria, you can start a standard supermarket with a capital of between 1 million and 2 million Naira.
Fashion Business
The fashion line is a very lucrative business, but very dependent on trends. So, you need to be abreast of fashion trends and customer demands to make it big in the fashion business.
One thing I like about the fashion business is that you can start with a very low capital. I’ve seen entrepreneurs launch their fashion business with as low as 50,000 Naira. In fact, anyone anywhere who is savvy enough can start a fashion business due to its diverse market. From students and jobseekers, to anyone looking to make an extra income.
There are so many market segments in the fashion business that you could create your own niche and start growing your business. Here are some of the fashion market segments you could take on:
- Footwear
- Sportswear
- Women fashion
- Men corporate
- Ankara/pattern wear
- Jewelries
- Custom printwear
One of the biggest secrets of the fashion business is to know how to leverage partnerships. You have to be very sociable and learn to grow a network within the fashion business. You could start your fashion business from scratch by partnering with printing presses, tailors, importers and wholesalers.
Foodstuff Merchandise
I strongly believe that the foodstuff merchandise is one of the hidden but lucrative businesses in Nigeria.
If you observe the space, foodstuff merchandising in Nigeria is mostly done by the lowly-educated and aged moms and pops. It’s amazing that people who seem to be lowly educated could realize the opportunity in this business more than the seemingly educated.
I’ve seen moms and pops fund the education and upbringing of their families for years without any difficulty. I’ve even seen a few build their own houses from just selling foodstuff.
In terms of capital outlay, the foodstuff merchandise business is in the mid-level with an average required capital of 200,000 Naira.
A foodstuff business could be set up inside a market complex, by the roadside or on the street. You don’t even need to rent a shop for the business as a temporary kiosk or umbrella-table would suffice.
If you want to sell wholesale or store your goods in your shop location, then you might need to rent a shop in a permanent structure.
With a foodstuff shop, you could be making as much as 10,000 Naira per day in a high-traffic area.
Pharmacy Store
A pharmacy store is the ultimate business for any savvy entrepreneur in Nigeria. In fact, in my opinion, it is the fastest and most lucrative business you can start right now in Nigeria.
The good thing about a pharmacy store is that you can incorporate several businesses into it. You could incorporate a supermarket, a POS business, or medical diagnostics into your pharmacy store.
But you would need some licenses to operate such a mega pharmacy store in Nigeria. That is where your business skills come into play. You could partner with a licensed pharmacy and a licensed medical lab technician and then use their licenses to run your business.
To make the most of your pharmacy store, you have to be in the right location, design your shop the right way and create an inviting ambience. Also, your signage in front of your shop has to be facing the right locations to attract foot and moving traffic both in day time and at night.
The required capital to set up a pharmacy store in Nigeria is definitely on the high side, so you have to be sure that you want to do this business before
Salon & Spa
Salon & Spa is one of the most lucrative essential businesses to start in Nigeria. As an essential service, you would never run out of customers if you know your onions and are positioned at the right location.
The most important part of a Salon & Spa business is to know how to deliver quality service or have staff who know how to do the job.
I’ve seen big salons and spas that are empty just because they cannot deliver the right quality of service to fill the needs of their customers. So, it is important that Salon service providers actually have the experience and know how to deliver.
That said, a salon business in my opinion is the most passive service business anyone can start. Once you know the job, it is easy to do and you can add the sales of other spa products and body care products which your customers can buy.
To set up a Salon & Spa business, you definitely need a shop or container kiosk in a good location. The average capital outlay for this business could be as little as 200,000 Naira and as high as 5 million Naira, depending on the location and standard of Salon you are setting up.
Due to its semi-passive nature, a Salon & Spa business could be a nice side business for busy people looking to set up a side business while going about their day jobs.
If you have a capital of between 500,000 to 2 million and looking to set up a part-time business or side business, then you should strongly consider a Salon & Spa business. All you have to do is find someone who is seasoned in the business and hire them to manage the business for you after all due diligence.
You could also get apprentices to groom for the long-term survival of your business or towards expansion in the future.
Conclusion
There is no guarantee that any business would work. You have to put in the time and effort, at least initially, to get all the information you would need about the business and create your own strategy according to local forces.
Any of these fast growing businesses could set you up or set you back, depending on your business acumen and management capacity. This article is just for information purposes only and doesn’t serve as financial advice, so you need to incorporate your own unique ideas to set up, manage and grow the business in your own way.
Finally, you don’t have to set up or manage any of these businesses yourself. You could be an investor or someone willing to set up a side business. All you have to do is get competent and experienced hands to manage the business for you.
Set up systems to make your personnel and staff accountable, and you’d be on your way to growing a multimillion Naira business.