Top 12 Small-scale Business Ideas in Nigeria (2023)

Calling all Nigerian entrepreneurs! If you’re eager to start a scalable business in Nigeria this year (2023), you’re in great company! Many Nigerians share your ambition to be their own boss and launch successful ventures. With the right idea and a solid business plan, you can turn your entrepreneurial dreams into a reality. In a country where economic deficit and unemployment prevail, starting a business in Nigeria is like tapping into a goldmine of opportunity for a better livelihood. Let’s make it happen together!

What is a small-scale business in Nigeria?

Small-scale businesses offer an excellent opportunity for individuals with skills to generate income, desire to be independent, and are ready to take the entrepreneurial leap. Starting such a business often requires minimal capital, and it allows for personal flexibility and autonomy. With the right idea and drive, one can embark on this journey alone. If you’re contemplating starting your own business, don’t wait any longer!

In this article, we would explore the top 12 small business ideas that entrepreneurs in Nigeria can start in 2023.

1. Point of Sale (POS) 

For obvious reasons, POS (point of sales) tops the list of business ideas in Nigeria that you can launch with 100,000 naira. The company is one of those that has been around for a very long time. Human life involves financial transactions, and the banking industry routinely falls short of what the public expects in that regard.

POS acts as a subdued substitute for banking transactions and prevents people from wasting valuable time waiting in line for routine financial transactions in the bank hall. Financial transactions like money transfers and withdrawals, bill payments (DSTV, GOTV, PHCN), airtime recharges, and data sales, among others, can be handled by POS.

After graduating and completing his required NYSC, Mr. Tayo Adewale, a 26-year-old HND holder from one of Nigeria’s federal polytechnics, was unable to find a position in a white-collar field. With the help of N100,000 donated by his family, which he used to launch the business, he ultimately made the decision to start a POS business. Since he began the business, Mr. Tayo claims he has earned no less than N100,000 in return for his investment, while some of his coworkers are still out on the streets looking for nonexistent white-collar jobs.

One of the most crucial factors to take into account when starting a POS is the location of the company. Your POS business idea could succeed or fail depending on the characteristics of the location where it is located. Some factors to think about when choosing the type of location are:

• GSM network/Internet
  This is an important factor that must be considered before opting for any location. You must ensure your POS business is situated in an area with a very good GSM network, to ensure hitch-free business transactions.
• Proximity to banks
  Another important thing you should consider before choosing a place to locate your POS business is how close the area is to the banking area. Locating your POS in an area very close to the banking area can be likened to efforts in futility and may not bring about the return on investment as expected. This is because the majority of the people may rather prefer to visit the banking for their transactions since it is close by.
• Security
  While searching for a place for your POS business, you should ensure the place is secured and has little or next to any history of crime. This is because you will be dealing with cash daily which makes you vulnerable and a soft target for criminals if the location is not secured.

2. Fashion Businesses

There are several options for starting a small-scale fashion business, including ready-to-wear, bespoke tailoring, fashion accessories, and personal styling. You can begin with a tailoring business, using your skills and a sewing machine in your own space, like your bedroom.

Another option is to import fast fashion items from companies like Shein. LuxebyBella is an example of a brand that started by importing fashion items before launching their bespoke tailoring and ready-to-wear lines.

To start your fashion business from scratch, you’ll need some essentials: business capital, which can be saved by outsourcing tailoring and equipment costs, or using free sewing tutorials on YouTube if you make the clothes yourself.

Having a dedicated business bank account is crucial to keep personal and business finances separate from the start.

By taking the first step today, you can work towards building your dream fashion business. As seen with LuxebyBella’s success, you can grow from a small start-up to a thriving ready-to-wear brand by staying creative and delivering unique designs.

3. Personal Catering and delivery business

Food is a fundamental necessity for human existence, and it’s something we can never avoid. That’s why online food vending and delivery businesses rank at number 3 on the list of business ideas you can start with 100,000 naira.

In today’s busy world, many individuals struggle to find time to cook at home due to their work schedules and busy lives. As a result, they rely on food vendors to provide them with meals. This includes working-class professionals, students, artisans, and others in similar situations.

Since there are many alternatives, including eateries, restaurants, and other mobile food vendors competing for your customers, having knowledge of or experience with cooking will give you a distinct advantage over your rivals. You will stand out from the crowd if you can make nice, tasty, and inexpensive meals.

In a conversation with a well-known mobile food vendor in Lagos’ Ojodu-Berger neighborhood, Mr. Kelechi Emmanuel said that ever since he started the company a few years ago, his life had improved significantly. He thanked a friend who had first discussed the business idea with him. However, he bemoaned the current cost of food and cooking supplies and pleaded with the government to please find a long-term solution to the price increase.

• What you need to start
  
  Fast and reliable means of transportation are important aspects that must be in place for the smooth running of the mobile food business. 

The good news about the business is that you don’t necessarily need a shop or office to cook your meals, you can start by cooking from the comfort of your home and expanding the business as time goes by.

4. Event planning

Event planning is a great business opportunity in Nigeria. There is a high demand for event planning services, as people are increasingly looking for professional help to plan their events. This makes event planning a lucrative business, as there is a large potential customer base.

To start an event planning business in Nigeria, you need to have a passion for organizing and coordinating events. You should also have a good understanding of the event planning process, as well as the different aspects of event planning, such as budgeting, venue selection, catering, and entertainment.

You can start your event planning business by planning small events for your friends and family. This will give you the opportunity to gain experience and build your portfolio. As your business grows, you can start planning larger events for businesses and individuals.

There are a few things you need to keep in mind when starting an event planning business in Nigeria. First, you need to be organized and efficient. You will need to be able to manage multiple projects at the same time, and you need to be able to meet deadlines. Second, you need to be able to build relationships with vendors and suppliers. This will help you get the best prices on event supplies and services. Third, you need to be able to market your business effectively. This will help you attract new customers and grow your business.

Starting an event planning business can be a great way to start your own business and be your own boss. With a little hard work and dedication, you can be successful in this industry.

Here are some additional tips for starting an event planning business in Nigeria:

• Focus on providing high-quality service. This will help you to attract and retain customers.
• Be flexible and adaptable. The needs of your customers may change over time, so be prepared to adjust your services accordingly.
• Build relationships with your clients. This will help you to get repeat business and referrals.
• Stay up-to-date on the latest trends in event planning. This will help you to provide your clients with the best possible service.

5. Hair Styling

Based on my experience, the average Nigerian woman spends a minimum of three thousand five hundred naira per month on her hair.

With ten customers each month, your hairstyling business can earn approximately thirty-five thousand naira.

To kickstart your hairstyling business, consider offering home services initially. Here’s what you’ll need to get started:

• Choose an area of expertise: Focus on braiding, wig installations, natural hair styling, short haircuts, or any specific niche you excel in.
• Share your styling tips online, similar to what Michelle does.
• Purchase equipment such as hair extensions, cutting combs, styling gels, and a mobile bag to carry your supplies.
• Set up a payment method, like a Point of Sales terminal (POS terminal) for physical and bulk deliveries. Alternatively, you can create professional invoices and send them via email with payment links.

Starting this business requires less than ten thousand naira, especially if you offer home services exclusively. You only need to invest in hair products, combs, a dryer, and a mobile bag to carry your items.

6. Cleaning services

Cleaning services are one of the most in-demand services in Nigeria. There is a high demand for cleaning services in both homes and businesses, as people are increasingly busy and do not have the time to clean their own homes or offices. This makes cleaning services a great business opportunity, as there is a large potential customer base.

Starting a cleaning business does not require a lot of capital. You can start with a small investment in cleaning supplies and equipment, and as your business grows, you can gradually add more staff and equipment. This makes cleaning services a relatively low-risk business to start.

You can start a cleaning business alone, and then hire more people as your business grows. This gives you the flexibility to start small and grow your business as you see fit.

Here are a few cleaning tools you might need to kickstart

• Sponge
• Microfibre cloths
• Cleaning detergent
• Bucket
• Mop, dustpan, and broom
• Spray bottle
• Scrub brush

7. Laundry Business

The laundry business is a highly profitable yet often overlooked venture in Nigeria. With people’s busy work schedules, finding time for washing clothes becomes challenging, creating an opportunity for laundry service providers.

Take Richard Ojigbede, a student at Ambrose Alli University, Ekpoma, as an example. He started washing clothes manually in the past, but now, thanks to the business’s success, he owns two washing machines and a generator. He caters to the laundry needs of fellow students who are overwhelmed by academic stress, which has greatly benefited his business, earning him a minimum of 10,000 naira daily.

Starting this business is convenient as you can operate from home without needing a dedicated shop or space. The essential tools required are a washing machine, iron, and a generator as a backup for power outages.

To excel in the laundry business, honesty is crucial. Being a reliable promise keeper and ensuring timely delivery of your customers’ clothes is essential.

Building strong connections with your customers will increase the likelihood of getting referrals from satisfied clients, boosting your business prospects further.

8. Content Creation and Monetization

Content Creation Doesn’t Need to Be Expensive

Content creation is a small business that is often overlooked due to the perceived high cost of equipment. However, Alma Asinobi’s success story proves that you don’t need expensive gadgets to get started.

When Alma started creating content, she used a simple Android phone, an Instagram account, and a small community of less than 1,000 supporters. In less than three years, Alma’s dedication has paid off, and she now boasts nearly 100,000 followers across various platforms. She collaborates with brands, creating organic content, influencing their products, and attending events.

So, what do you need to start your own content creation journey?

• High-quality content: Focus on providing valuable content that educates or entertains your audience. This will help your online following grow.
• A phone and tripod: Fancy gadgets aren’t a prerequisite. Start with your current phone and invest in a tripod to get started.
• Learn how to monetize: While honing your content creation skills, don’t forget the business aspect. Explore ways to make money by pitching and partnering with brands that align with your values.

To discover the secrets of successful content creators in making money, check out our guide on monetizing your content.

Remember, building an engaged community is crucial before earning money from brand-influencing deals. Genuine care for your audience and consistent sharing online are the keys to achieving this.

Start your content creation journey today and watch your influence grow!

Here are some additional tips for starting a content creation business without expensive gadgets:

• Use free or low-cost editing software, such as Adobe Premiere Rush or iMovie.
• Find creative ways to use natural lighting.
• Collaborate with other content creators to share resources and reach a wider audience.
• Don’t be afraid to experiment and find your own unique voice.

9. Copywriting

Copywriting is a highly profitable online business in Nigeria that requires a low startup cost of 100,000 naira and below. If you possess strong writing skills and language proficiency, this business can be your path to financial freedom.

Copywriting involves various forms, such as writing advert copy, blog posts, video scripts, presentations, direct mails, jingles, and creative content. The primary objective of a copywriter is to craft persuasive content that promotes products, services, ideas, or causes effectively. A well-written copy has the power to work wonders for any offering.

This business can be pursued full-time or as a lucrative side hustle with a promising return on investment for those well-versed in the field. Students with good writing skills can also seize this opportunity to support their academic financial needs.

Copywriters in Nigeria earn salaries ranging from 100,000 to 300,000 naira, depending on the type of copy and the organization they work with. Some copywriters charge clients per word, typically earning 11-20,000 naira per 1,000 words.

As a beginner in copywriting, attracting clients can be achieved through freelance job boards, cold pitching, speaking at conferences/workshops, and promoting your business on professional platforms like LinkedIn.

Seyi Olawale, a final year student at the University of Ilorin, shared his success story, stating that he has been financially independent through copywriting since losing his father during his second year at the university. With the income generated from his copywriting business, he no longer relies on monetary assistance from his family and can meet his financial needs comfortably.

• What you need to start
  
  Apart from having an inherent writing skill, copywriting just like every other skill can also be learnt.  You can build from scratch or improve your copywriting skills by reading books on copywriting, watching copywriting videos on YouTube, following copywriting blogs and taking copywriting courses on online learning platforms such as Udemy and Coursera. Getting a copywriter as a mentor can also be of immense benefit while you are trying to improve or learn copywriting.

Another good news about this business is that, it is a remote one, and you practically don’t need to situate the business in a particular geography. All that is needed to start up the business is your smartphone or preferably a laptop system, a good internet connection, and, an adequate power supply.

10. Private Tutoring

Private academic tutoring is a thriving market in Nigeria as parents constantly seek to improve their children’s education. However, tutoring extends beyond academics and includes coaching in music, dance, and sports.

To begin a private tutoring small business, credibility and trust are vital, as teaching carries significant responsibility. Demonstrating good character will lead to further client recommendations.

The barrier to entry is low, with platforms like Prep Class allowing you to set up your coaching business online for free, showcasing past results and receiving job recommendations.

Surprisingly, you can start this small-scale business with zero capital in your bank account. Simply secure your first client and provide value to grow your customer base.

Despite being overlooked by some, private tutoring is a profitable venture for those who enjoy teaching, and it offers opportunities for stress-free customer growth through client referrals.

11. Perfume store

Start a Perfume Business from Home with Less than N5,000

Perfume is a popular product in Nigeria, and there is a growing demand for affordable perfumes. If you are looking for a small-scale business that you can start from home with a low budget, then selling perfumes is a great option.

D’fragrance Home is a successful perfume business that was started with only N4,200 in 2020. The founder, Mercy, spent two months researching the business before she launched it. She also focused on consistency and building a strong customer base.

If you are thinking of starting a perfume business, here are some tips:

• Do your research. Before you launch your business, it is important to research the market and understand the demand for perfumes. You should also research different wholesale suppliers so that you can find the best deals.
• Stay consistent. It takes time to build a successful business, so it is important to stay consistent with your marketing and sales efforts. You should also focus on providing excellent customer service.
• Know your target customers. Who are you selling to? What are their needs and wants? Once you understand your target customers, you can tailor your products and marketing messages to appeal to them.
• Act like a professional. Even if you are starting a small-scale business, it is important to act like a professional. This means using professional branding materials, sending professional invoices, and providing excellent customer service.

With hard work and dedication, you can start a successful perfume business from home with less than N5,000.

Here are some additional tips for starting a perfume business:

• Use social media to market your business. Facebook, Instagram, and Twitter are all great platforms for reaching potential customers.
• Offer free samples. This is a great way to get people to try your products and see if they like them.
• Host in-home perfume parties. This is a fun way to introduce your products to potential customers and sell them directly.

With a little effort, you can start a profitable perfume business from home. So what are you waiting for? Get started today!

12. Selling of clothes

The Importance of Clothes and How to Start a Lucrative Clothes Business in Nigeria

Clothes are one of the three basic needs of man, the others being food and shelter. As such, the clothes business is a lucrative one that can be started with a relatively low capital.

One young male clothes vendor in Ilorin, Nigeria, explained that the best way to grow a clothes business is to have a good relationship with your customers. He also said that you should be willing to advertise your business through one-on-one interaction and on social media.

Some of the types of clothes you can sell include children’s wear, native wear, English wear, jeans, and underwear. You can purchase these clothes for resale at popular markets like Balogun Market, Aswani Market, Katangua Market, Tejuosho Market, Onitsha Market, and Aba Market.

While starting out, you may not need to have a shop. You can simply purchase clothes and deliver them to your customers’ doorsteps. However, one of the most important qualities you need to have to be successful in this business is the ability to convince your customers to buy your products. If you can’t do that, they’ll likely spend their money on other things.

It’s also important to have good networking skills and to maintain a good rapport with your customers. This will help you to build relationships and get referrals from your customers to other potential customers.

Here are some tips for starting a successful clothes business in Nigeria:

• Do your research and identify a niche market.
• Find reliable suppliers.
• Set competitive prices.
• Market your business effectively.
• Provide excellent customer service.

With hard work and dedication, you can be successful in the clothes business in Nigeria.

Additional Tips

• Keep your inventory up-to-date with the latest fashion trends.
• Offer a variety of payment options to make it easy for customers to buy from you.
• Provide free shipping or discounts for bulk orders.
• Host events and promotions to attract new customers.
• Get involved in the community and support local charities.

By following these tips, you can increase your chances of success in the clothes business in Nigeria.

Conclusion:

The Future of Small Business in Nigeria

The country has a young and growing population, a rising middle class, and a growing economy. These factors all create a favorable environment for small businesses to thrive.

If you are thinking of starting a small business in Nigeria, there are a few things you can do to increase your chances of success. First, make sure you have a sound business plan. Second, do your research and identify a market that you can serve. Third, build a strong team of employees or partners. Fourth, market your business effectively. Finally, be persistent and never give up.

With hard work and dedication, you can achieve your dreams of owning a successful small business in Nigeria.