Top 11 businesses you can start with 500,000
This article was updated on 28 September 2020
This is serious. Was running away from answering the following questions:
How do I invest in 500,000?
What are the best ways to earn more money with just 500000?
What profitable business will I do with #500,000?
Businesses that can be started with 50000 naira?
Business to start with 500,000 naira in Nigeria?
The reason is 90% of people who ask such questions, what you to give them the get rich quick formula.
I know you’re not one of them.
I have been asking myself the best way to approach the question. Hmmmmm…and I realize that it’s best that I tell the truth.
Since i know that I cannot run away, I have to say it as it is to help you. If you think the article will show you ways to get rich quick, then this article is definitely not for you.
Again this is in no way trying to tell you to have to invest your money, but let it be as a guide to give an idea of some of the businesses you can do with 500k.
You may properly know some of them and the idea to do the business never cross your mind.
If you want to build a business that will last then this article is for you.
Why will I say that?
Business and investment is a gradual thing. It’s like growing a child, it takes the time to reach the desired goal. Why it’s so?
- If you’re new, it’s definitely a learning process
every business whether small or big learn daily. For new businesses, their learning process can be tedious. You’ll need to unlearn to learn.
- You may face a temporary setback
Setbacks might come no matter how to try to avoid them. but use it as a stepping stone.
- It takes time to build the customers you need.
You don’t make 1000000 customers today. You build your customers with time.
Top 11 businesses you can start with 500,000
There are two things you can do with your money. You can either spend all to get the good things that life has to offer, which is equally good, or invest some to build the financial free future you desire.
If you choose the first option, then this article is not for you. If you choose the second option, you should continue reading the article.
Here we go to the top businesses you can start with 500, 000. 500, 000 is great seed capital.
In a country like Nigeria, there are many businesses you can start with such cash.
We’ve clear fully selected the businesses that will better produce the return on investment.
1. Grocery store
This form of business that works irrespective of the business location and provides the daily needs of households and individuals. The items can range from fast food, toiletries, children’s candies to soft drinks.
With your money, you can create a permanent grocery store where you operate from a location daily or create a grocery store for emergencies where you move from one location to another.
Grocery store for emergencies is a part-time form of grocery store business where it works best in places where the camp is held or as a result of natural disasters.
The grocery store business is a great business because once set up, the business provides a residual income.
There’re several things a grocery provision store in Nigeria needs. You’ll first need a shop in a good location that’s accessible to your customers.
Then work on your grocery store interior by installing floor tiles, store shelves, deep freezer, refrigerators, and what will make your shop organize when you stuck them with groceries.
Despite the fact that the business does not require a certain demographic to thrive, that’s is in no way to start the shop on assumption by bringing groceries that your customers don’t like it.
Else you risk the possibility of tying your money in products that don’t sell faster in your location.
If you’re not sure of what product sales, work around your target customer location and see what they’re buying.
For instance, if they’re buying bread, are they buying the expensive one or the cheap one. What type of seasoning do they prefer and so on.
This you do putting the financial capabilities of your customers into consideration and know which groceries that sell faster. Once you’re done with all that, you can stock your shop and begin your business operations.
The sure thing that’ll happen is the flow of customers will start in earnest rather than later because you have what your customers are looking for.
2. Farming business
The agricultural sector is another sector that you’re to watch and probably try to invest your money in one aspect.
In the past few years, we’re seen government programs and policies which is aimed at improving the agricultural industry.
This is in a bit to boost food security, reduce food import, and increase export which can boost revenue generation for the country therefore boosting our economy.
According to Akinwumi Adesina, the president of the African Development Bank who said and I quote “the future of millionaires and billionaires of Africa will not be coming from oil and gas sector. They’ll be coming from the agriculture sector.
But I want African countries to be looking at the agriculture as a business, not as a way of life. Nobody smokes gas, nobody drinks oil, but everybody eats food. So food is critical and that is what Africa has a comparative advantage in.
The advantage that Nigeria has over other African countries is we have the population, so it doesn’t matter the farm business, there’s still a market for it. Some will need the farm produce as food to eat at homes and companies will need it as raw materials to produce other products suitable for export.
The truth is, the farming business sector is vast and may be confusing as to the one you can venture into. In my opinion, some of the profitable ones you can start are crop production, poultry, and fish farming.
Since the border closure in august of 2019, we’ve seen increase investment to boost location food production. We’ve also seen how many companies are springing up looking for raw materials for their production. Whatever you want to grow will depend on your interest.
You can grow your crops in your backyard garden or on a farm but put it at the back of your mind that the more crop you have the more yield you’ll get.
Most crops need between 90 to 120 days to grow and become fully matured, although they’re few exceptions.
Some of the crops you can grow easily in Nigeria are:
- Melon (Egusi)
However, best practices should be deployed to avoid losses during and after the farming period.
As new hotels, restaurants, caterers spring up, fast food joint, corporate occasions, and celebrations, the need for poultry egg, and meat is on the increase.
Also, as the demand domestically increases, the import is discouraged, to boost local production and to ensure we’re taking healthy meat.
In poultry farming, there are three ways to enter the business.
- Broilers farming: where you grow bird for meat consumption
- Layers farming: Where you grow bird for egg production
- Cockerel farming: where you also grow the bird for meat consumption
Each of the poultry birds you choose to do, you’re going to make a profit.
According to reports, the demand for fish domestically is higher than the supply, the federal government has to import to augment the demand. This simply shows that the market for fish farming is available.
You’ll need to know the nitty-gritty of the business before you venture into.
In fish farming business, you’ll need a fish pond, easy to water accessibility and good breed for the fish to stand the chance to grow to the required size.
Learn more about fish farming business in Nigeria.
There’s hardly a place or community where stationaries are needed. That’s why bookshop will thrive in any environment because students will need writing materials, schools will need boards and stationaries for correspondence, others will need novels, motivation books to read. These things that are in constant need.
This business works irrespective of your location. The business is about selling books and related items. The bookshop can focus on the most important book and the item that people will buy.
For instance, if you stay in a place where you have more of the student, you can decide to start a bookshop to sell academic books, CDs, writing pad, and so on.
Some may decide to focus your bookshop based on a cause you believe in. for instance, you may decide to focus on providing religious material and motivational books. This form of bookshop attracts a specific group of people.
Whichever type of bookshop you wish to open, you’ll have to look for suppliers. My recommendation is to get 3-5 suppliers and choose from the one you can work with.
4. Event Rental Equipment
A wedding planner I got to know some few years ago told me his business is more of outsourcing. He outsources virtually all the equipment he uses which include the tent, canopies, chairs, and table.
Now the owner of that equipment may not necessarily be in the business, but renting the equipment to those who are into the business.
You can start the rental equipment business and earn money from it.
Most of the equipment once created stands the test of time. For instance, the canopy stands are created with metal, the only thing you change over time is the canopy itself (which also last longer than you think too).
At the start, create a business where you can be able to rent out this equipment to at least two people. You’ll have the room to expand by reinvesting the profits into the business.
The event rental equipment business is one of the businesses that makes you recover your invested income in time.
5. Building material rentals
Renting of building material equipment is another business you really need to look into.
There are several materials you can make available for rent. Some include block making machine, mixing pan, water tank, shovels, etc.
However, this business will require to be located in an area where it’s developing so that the demand for the building equipment will be high.
Another advantage of this business is once you make the investment in purchasing the materials they can last longer and you can recover your investment plus profit over time. In a good location, this business can bring cash flow on a regular basis.
6. Dry cleaning services
Many have little or no time for themselves because of the nature of their work. To develop more free time for themselves, they have decided to pay for other services. And one of the popular of such services is dry cleaning.
This business can be started from the comfort of your home and scale it up. Get standard equipment that enhances your work and makes your service stand out.
7. Football viewing center
Nine out of ten youth love football. European football has captured the minds of many. Today, the majority of people can pay any amount if you can stream football.
Even those who have access to view it at home, prefer the viewing center because of the fun.
Starting the business requires that you have space (preferably 50X50), satellite dish, Television/projector, standby generator, and seats.
Choose the satellite dish that shows the majority of the football people love in your area.
Make your place unique and ensure your charges will cover your cost (satellite subscription, generator servicing, and fuelling cost and utility bill).
Security measures should be included. Because without security guarantees, no one will visit the viewing center.
8. Business center
This is a business that requires you to have computer skills to run it. If you don’t have the required skills, you can always hire someone who can do it.
Even though we’re in a computer age, we still people who like to outsource their printing, typing, photocopy, online registration, laminating, and so on.
You can start the business by getting the necessary equipment and start offering the services.
Some of the equipment you’ll need to start this business is:
- A shop which houses the equipment and serves as your business location
- Tables and chairs
- Laminating machine
- Spiral binding machine
- Standby generator
- Photocopying machine
9. Car wash
More cars are plying our roads today than a few years ago. You can start a house to house car wash business or start a standard one in a location that car owners will visit you.
Want to know more about how to create a car wash, click here to learn more.
10. Gift shop
Create a business where you sell gift items. the business thrives all year round. Because these items are bought and presented during weddings, corporate occasions, award nights, appreciation, and so on.
11. Product line
Maybe you may want to start your own product line, where you find a manufacturer or supplier to create a product (s) with your name, contact, logo and cover design on it.
With this business, you stand the chance of building your own business network of suppliers and distributors.
More businesses to come
This is just the beginning, in our next article, we’ll discuss the possible investment you can do with 500, 000