Most Profitable Business to Start with 20k in Nigeria

To start a business, you usually need large capital. Nevertheless, if all you have is 20 thousand, there are still options. We’ve researched the most profitable businesses to start with 20k in Nigeria, and you can check them out below:

1. Selling Phone Accessories

red iPhone and red smartwatch

In today’s digital age, smartphones have become ubiquitous, creating a substantial market for phone accessories. Starting a phone accessory business with 20,000 Naira is feasible, and with the right strategy, it can be quite profitable. Here are tips to follow:

Firstly, identify the most sought-after accessories such as chargers, earphones, cases, screen protectors, and power banks—research wholesale markets or online platforms where these items can be purchased in bulk at a lower cost. For instance, Computer Village in Lagos is a well-known hub where you can negotiate great deals for bulk purchases.
Secondly, consider your selling platform. With a limited budget, renting a physical store might not be viable. However, leveraging online marketplaces like Jumia or social media platforms like Facebook, Instagram, and WhatsApp can be cost-effective and far-reaching. Offering door-to-door delivery services can also give you an edge over competitors.
Packaging is key. Attractive and secure packaging can significantly increase the perceived value of your products. Invest in good-quality packaging that ensures the items are delivered in top condition.
When it comes to pricing, mark up your products reasonably. A markup of 30-50% is generally acceptable, but this can vary based on the product type and competition. Keep a close eye on market prices to stay competitive.
Lastly, provide exceptional customer service. Prompt responses, reliable delivery, and after-sales support can convert one-time buyers into repeat customers, which is crucial for long-term success.

Given the high demand for mobile phone accessories, with a well-thought-out approach and efficient cost management, you can expect to start seeing profits within a few months. The key is to start small, understand your market, and scale gradually.

2. Underwear Sales

The underwear market in Nigeria, much like elsewhere, is a staple in the clothing industry, presenting a lucrative opportunity for entrepreneurs. From experts at Biz Startup Today, these are tips to launch your underwear business with just 20k:

To begin, identify your target market. Are you catering to men, women, or both? Once you have a target demographic, research the types of underwear in demand. For women, this could range from daily wear to more luxurious lingerie pieces. For men, focus on comfort and durability.
Next, source your products. Look for wholesalers who offer quality products at competitive prices. Markets such as Balogun Market in Lagos or other local markets in different states are good places to find wholesale deals. With 20,000 Naira, you can purchase a modest stock to kickstart your business.
Your selling platform is crucial. Physical stores can be costly, so consider starting online. Utilize social media platforms and online marketplaces that cater to Nigerian consumers. WhatsApp groups, Instagram, and Facebook are excellent platforms for showcasing your products and reaching potential customers.
Pay attention to the presentation. Good packaging can elevate the perceived value of your products. Even simple, clean, and hygienic packaging can make a difference.
A reasonable markup is necessary, but remain competitive. Regular market surveys will help you stay aligned with current trends and prices.

With a keen eye on market trends, good sourcing, and effective use of online platforms, starting an underwear sales business with 20,000 Naira can be a profitable venture.

3. Recharge Cards

The demand for airtime is constant, and if managed well, the business has a high turnover rate, ensuring that your initial investment can be quickly recovered and profits can start rolling in. With 20,000 Naira, you can purchase various cards in different networks. Diversifying your stock is key, so offer a range from the lowest to higher denominations to cater to different customer needs.

Choosing a strategic location is crucial. High-traffic areas near schools, markets, or transportation hubs are ideal. However, if renting a space is beyond your budget, consider a mobile setup or partnering with existing shops to display your cards in exchange for a small commission.

Leverage digital platforms as well. Many Nigerians now prefer electronic recharges. You can use your 20,000 Naira to fund an e-wallet from which you can vend airtime electronically through platforms like VTU. This can be done via a mobile phone, and it allows you to sell airtime to customers directly without the need for physical cards.

Marketing is essential. Utilize word of mouth, social media, and even handbills to create awareness. Offer incentives or small discounts to repeat customers or those who make bulk purchases.

Track your sales and inventory meticulously. This will help you understand your business flow, know when to restock and identify which networks are most popular.

4. Oil Perfume

clear perfume bottle

The fragrance market in Nigeria is expansive, with a diverse range of consumers seeking quality scents at affordable prices. Starting with as little as 20,000 Naira, one can tap into this market by sourcing oil perfumes in bulk from trusted suppliers. These concentrated perfumes, known for their longevity and strong sillage, can be bought at wholesale rates and sold with a good margin.

Marketing is key, and for someone with a limited budget, social media platforms like Instagram and Facebook, along with WhatsApp groups, can serve as effective channels. Setting up a small stall in busy areas or collaborating with salons and boutiques can attract customers.

The key is to understand the preferences of your target demographic and offer them a range of scents that appeal to their senses. With careful planning and effective marketing, the oil perfume business can flourish, even with a starting capital of 20,000 Naira.

5. Masonry

Masonry, a skilled trade focusing on constructing and repairing structures from individual units of bricks, stones, or concrete blocks, is a business avenue with potential in Nigeria. Even with a capital as low as 20,000 Naira, one can embark on a masonry venture by offering minor repair services or small-scale projects. This modest capital can cover the cost of basic tools and materials required for such tasks.

For those without professional masonry skills, investing in a short course or apprenticeship under a seasoned mason is advisable. Once equipped with the necessary skills, promoting services through word-of-mouth in local communities, listing on online directories, and leveraging social media can help attract clients.

The key to success in the masonry business lies in delivering quality workmanship, using durable materials, and maintaining a strong work ethic. As trust in your services grows, so too can the scale of the projects you undertake, eventually expanding your business beyond its humble beginnings.