If you’ve been in search of the best business to start with 500k in Nigeria, this blog post is published just for you. The current state of affairs in the Country makes it sound impossible for regular Nigerians to have up to 500k in their account and talk less of investing in any business. Nonetheless, ₦500k is more than enough to start a business in Nigeria.
Many Nigerians seem to have difficulty raising money and applying for loans because they worry about missing the deadline or losing their invested capital. Aside from that, it can be challenging for Nigerians to choose the business that will yield them the greatest return in the shortest amount of time, which is why queries like simple businesses to start with ₦500k in 2023 are raised.
No one wants to invest such a large sum of money into something that is not profitable, which is why these problems are raised. So, this blog article will walk you through 15 unusually simple businesses you can start in Nigeria with ₦500,000. These companies might be able to provide you with the big bag in a few months. They are legit, tested, and trusted by several Nigerians.
However, these businesses range in procedures to make them successful in the long run. They could be offline or online. Combining both online and offline elements could help you gain in the shortest time.
So now let’s dive right into it!
Table of Contents
Business to Start With 500k in Nigeria
Offline Businesses to Start with ₦500k in Nigeria
1. Food business
Everyone has to eat — no matter who they are or where they live but because there is so much to do and there is little time for anyone, physical restaurants are patronized to get food on the go. With the addition of online food delivery businesses, people can now satisfy their hunger without needing to move from their location. This has made this industry one of the most profitable businesses present.
With ₦500k, you could set up an online food delivery business or a small restaurant, depending on what works for you. This could be the opportunity to share a recipe that is unique to you. But it must resonate with your target market and budget.
You could set up a small restaurant or online food delivery business in an area that is flooded with workers making it easy for them to get lunch or around campuses for easy access by students (since most students lack the time to cook for themselves).
Never forget that the quality of your food matters and should take priority. Ensure you hone your cooking skills, learn the required etiquette to observe when cooking, and hire a chef if necessary.
2. Sale of Phones & Phone Accessories
This is another simple business that you could start with ₦500k in Nigeria and thrive if you play your cards right. All you need to do is connect with a phone and accessories dealer, buy phones and related accessories in bulk, strike an agreement on the prices, and resell at a retail price.
Phone accessories, including batteries, chargers, cases, earpieces, headphones, power banks, selfie sticks, and other items, sell out quickly, especially in large stores.
If you can get phones and accessories at the best price, you could get between ₦10,000 to ₦25,000 profit on every sale. Assuming you sell at least a phone every day, in 7 days, you’re making at least ₦70,000 weekly. In a month, you’ve regained more than half your investment of ₦500k.
This business is for you if you have an in-depth knowledge of phones, sharing your knowledge about them on social media, to your specific location would help you recover your investment quickly.
Find suppliers of mobile accessories, engage in negotiation, and purchase things at a discount to get started. The Alaba market and Computer Village in Lagos, NITA market in Abuja, Central market Onitsha in Anambra, and other significant and well-known marketplaces nearby are the best places to find phone accessories at the lowest costs. The location of your store in a popular area, such as a market, parking lot, or in front of a school (universities or polytechnics), will be beneficial to the success of your business.
3. Mini Bakery
Bread and pastries are some of the most consumed foods in Nigeria, making it one of the fastest-selling foods in the country. Nothing hits the spot like freshly made bread for breakfast.
You will earn big time if you could open a small bakery in a crowded area, especially around student campuses where you make and sell freshly made bread and pastries such as cake, buns, puffs, and so on either to retailers or directly to people.
With a budget of ₦500k, you will need to rent a store and hire a few bakers before you begin operation. You could also expand by preparing pastries for events such as parties, weddings, etc. In no time you would recover your investment.
4. Become an Uber Driver
Are you a good driver, or do you want a side hustle that generates daily income where you just need to start with ₦500K? Then, become an Uber driver.
With ₦500K, you could get yourself a fairly used good-looking car, then you could register as an Uber driver by downloading the Uber app, register as a driver, and then start getting orders and making money.
This business model is very simple since your only job is to transport people and goods from one place to another and get paid for a job well done. Aside from the fact that you are capable of earning a daily wage, you get to work when you feel like it. This means that you are in complete control of your work activities.
So, if you’re looking for a side hustle to start with ₦500K in Nigeria, try Uber driving.
5. Thrift store
The industry of “bend down & select” has been thriving in Nigeria for decades. Starting from clothes to footwear to clothing accessories such as sun shades, wristwatches, necklaces, and bandanas, to mention a few; your earning potential is very large if you have the funds to set it up.
Thrifting is the practice of purchasing gently worn goods at a significant discount from their new versions. However, it can also be used to describe selling these things online, in a physical store, or even in both.
This company is well-known in many areas in Nigeria as “Okrika” (named after an island in Rivers State), and it has specialized marketplaces in practically all of the country’s cities.
You would profit most from it if you target low-income earners including students and fresh graduates, as well as those in service (that is the Corpers). It’s also a simple business you can start with 500k in Nigeria
6. Logistics and delivery services
The logistical sector has had significant growth in Nigeria, particularly during the lockdown period brought on by the COVID-19 outbreak. Leaving your house without seeing at least one motorcycle with a logistics brand name is impossible because logistics and delivery businesses have become increasingly common.
All you need to do is to get the required licenses and documentation done and dusted, then specify the kind of goods you wish to deliver, get a bike or two if the goods will be lightweight or a minivan if it will be medium or heavy weight. Hire men who will pick up and deliver these goods for paying customers.
This simple business can become a top-notch enterprise for you if your services are of the best quality and standards.
Since your budget is 500k, you could start by getting just two bikes that will transport lightweight goods, then as you expand, you could get minivans that will transport heavier goods. Additionally, being a rider yourself is not a bad idea when starting because it will allow you to make extra money to put into your company.
7. Real Estate
This has to be one of the most lucrative businesses in Nigeria today. This is the type of business that most entrepreneurs invest in so that they can generate passive income for as long as they live. With 500k, you could own a property then sell or rent it out and get a huge profit.
This is a simple business model that involves selling or renting out land property either belonging to you or another individual and getting paid for the sale
There are two ways you could venture into real estate; You could either purchase a property, an apartment for example, and rent it out at a higher price every year as such making a huge profit. Another way is to act as a real estate agent and sell or rent properties for other property owners and get a percentage commission on every sale.
Since it is a booming market, Nigeria is home to several real estate firms that specialize in either commercial or residential real estate, which opens up several chances for those working in the sector. Either online, offline, or even better, both, could be used to conduct this business. You might work with these businesses as an agent, earning a commission for each real estate transaction you complete.
Online Businesses to Start With ₦500k In Nigeria
8. Mini Importation
Mini importation is an online business that you could start with 500k and earn millions with time
This is a kind of business model that involves ordering products from countries such as China from e-commerce websites such as AliExpress or Alibaba and shipping your products back to Nigeria and selling them for profit.
The beauty of this business is that the items imported are very cheap so it is very easy to make a profit from these products. for example;
Let us assume that Jerry is a watch dealer. Through mini-importation, he imports all kinds of watches (in bulk) down to Nigeria to sell. The cost price of these watches is ₦350k and the shipping fee is ₦25k.
Now after these goods have arrived, he goes to where they are stationed for collection and gets his goods. He transports them to his warehouse or place where he will store and sell them. If the cost of each watch is ₦500, and he sells each watch at the rate of ₦2,000, he has made ₦1,500 gain on every watch sold.
Do the math, this is a business you do not want to sleep on if you have the funds for it. I recommend that you seek guidance before venturing into this business
9. Dropshipping Business
This is another simple business that you could start with 500k in Nigeria. This business is very similar to mini-importation but unlike mini-importation, you do not need to have contact with the product you are selling. You do not even need to see or touch them. This kind of business pays you in USD (United States Dollars), depending on the website you are working under.
All you need to do is create an e-commerce website where you will list products you wish to sell from websites such as Shopify.
You can run your shop online and then copy inventory from suppliers and place it in your online shop. If you receive an order, the supplier will ship it, and you will receive your money. Everything from ordering to delivery is done online.
Just like mini-importation, all you need to do in this business model is to order products from China via AliExpress or Alibaba, and then have them shipped directly to the buyer. Once again, I will not advise you to just venture into this business without a proper guide
We all know that the Internet is a profitable marketplace. It is now common to buy things online, it is the new norm. In today’s society, if you have not engaged in any sort of online transaction, you are considered strange.
Speaking of online transactions, this is arguably the number one online business there is in Nigeria, a business that you can start with ₦500k and make profits quickly if you play your cards right.
It involves having hot products (things like clothing, footwear, cosmetics, and so on) that people will need, and then you set up an online store or social media and start selling your products.
This simple business model is known as e-commerce and it is easier and cheaper to set up than a physical store that bothers you with stuff like rents, location, or even electricity. This business can be combined with mini-importation where products can be imported at a cheap price and sold to make gain.
Make sure you seek appropriate guidance so that you can milk this business.
11. Affiliate Marketing
Affiliate marketing is another simple yet profitable online business you can start with ₦500k in Nigeria. The shocking fact about this business is that you can start making money from day one.
This business model involves recommending someone else’s product or service in a particular niche to other people in need of these products and getting paid a commission.
I will advise you to get mentorship if you wish to venture into affiliate marketing because this business model is quite saturated hence it is quite difficult to navigate your way if you are just starting
To start, all you need to do is sign up for an affiliate platform, select the kind of product you wish to promote, get your affiliate link and promote these products via social media ads, and get paid on every purchase someone makes from your referral links. If you wish to know more, click here
PS: If you wish to know affiliate marketing come over here. (This is an affiliate link if you decide to acquire an affiliate marketing course)
12. Digital Marketing
The majority of businesses now operate online, so if you can master the social media algorithm and learn how to get visibility on social media platforms such as Facebook, Instagram, Twitter (now called X), or even LinkedIn, with 500k (or less) you can set up a digital marketing agency where you help companies and start-ups set up a marketing campaign for their products or services.
This simple business model involves finding small, medium, or large business owners who wish to grow their businesses via the Internet. Then you offer them your service for a premium price, get paid, and start helping them grow via the internet using social media platforms, and other online resources.
With ₦500k, you could leverage the services of other individuals who have expert knowledge of some specific aspects of digital marketing, hence building a team and building together. This way, your services to these clients will be more effective and efficient.
If done correctly, you may begin to attract big enterprises in Nigeria that would be willing to pay you up to 5 million naira for your services.
PS: Here are the best digital marketing side hustle
13. Become a YouTuber
Are you looking for a business to start from home with ₦500K in Nigeria? How about becoming a content creator on YouTube? (YouTuber)
A YouTube business is more or less the video version of a blogging business (also known as vlogging) because it requires sharing information and ideas on your channel while also earning money from the promotion (ads) that appear on your videos after your YouTube channel is prepared for YouTube partner monetization or through affiliate links that you put in the description of your video (that is if you are speaking about a product you are recommending)
To be frank. You do not need any capital or budget to set up a YouTube channel. But to make the most out of YouTube in the shortest time, you need to invest your money in a good camera or smartphone with an excellent camera (if you want to be doing short-form content on YouTube, also known as YouTube Shorts). Additionally, you’ll need to spend money on equipment like a microphone, video editors (if you don’t already know how to edit videos), software, and, most importantly, ads that will attract viewers and subscribers.
14. Own a Mobile App
Are you still weighing your options on the kind of business to start with ₦500k in Nigeria? Try creating a mobile application, then launch it on the Google Play Store and Apple Store.
This model is arguably the most untapped online business there is in Nigeria. You could even do this while staying at home. This business model is for you if you are a computer programmer. Hence, this should be easy for you to do compared to others.
There is no limit to the kind of app you can create and launch. It all depends on the excitement you want to make or the problem you hope to solve. However, if you do not know how to write computer codes, but have an idea of the type of app you wish to create, use your ₦500k budget to hire a good computer programmer on freelance sites like Fiverr or Upwork or from social media apps like LinkedIn or Twitter (now called X). Once he finishes the app, you can now launch this app for use.
Note that launching this app to the Play Store or Apple Store is not enough. You have to monetize the app if you wish to gain from it. You monetize your app via ad networks, networks like Google Ad Mob
15. Forex Trading
This business model requires some skills. You should venture into this if you are willing and ready to take the risks. So, I will advise that you seek the mentorship of someone who knows the ins and outs of this business. You will quickly lose your money if you blindly venture into this business.
That aside, one business model that can help you quickly make millions is forex trading. Foreign exchange, or Forex, refers to the buying and selling of other currencies to maximize profits.
You should sign up with reputable broker platforms like OctaFx, FXTM, JustMarket, and others to begin trading with them and earning money online.
There you have it! 15 unusually simple businesses you can start with ₦500k. So, the problem of picking the best business model for you is sorted. I believe this post has provided some of the best options for you to choose from. However, it is not enough to pick any business model and invest your hard-earned 500k in it. If you wish to get the most out of this business, learn the pros and cons of the business you choose.
Get in-depth knowledge from people who have excelled in this business, and pay them if necessary. Doing this will save you time and help you avoid mistakes that you can avoid. The listed business model is simple and profitable but rushing into it could still result in a loss for you if you rush into it without planning and proper preparation.
The economy is hard but, it is still possible for you to make a profit from any business of your choosing, for as long as we constantly have needs and wants, there will always be a need for businesses that can provide these needs for them. Just learn how to play your cards right.
Frequently Asked Questions (F.A.Q)
What type of business has the most risk?
Forex trading has the most risks. Do not dive into it without adequate preparation.
Which business can I start with 500k in Nigeria?
The business you can start with 500k in Nigeria is as follows. You can try: Investing in Real Estate, selling phones and accessories, opening a Mini Bakery, becoming an Uber Driver, opening a thrift store, setting up a logistics and delivery business, opening a food business, trying Mini Importation, Dropshipping Business, E-commerce or Affiliate Marketing, etc.
Small businesses to start with ₦500k in Nigeria
Mini Bakery, an Uber Drive, Logistics and delivery services, and Food business are some of the small businesses you can start with 500k in Nigeria.
What business is trending now in Nigeria?
E-commerce Stores, Fast Food Restaurants, Food Delivery Services, Digital Marketing agencies, and real Estate are some of the businesses that are trending.
What is the cheapest and most profitable business to start?
You could set up a YouTube channel, affiliate marketing is a good option, mini-importation, and becoming an Uber driver. You could also try being an online tutor.
What is the cheapest most profitable online business to start?
Affiliate marketing is one you could start with. Or you can try mini-importation. Online food delivery services are also an option.
What are the 3 risks of owning a small business?
Several risks including bankruptcy financial risk, competitive risk, environmental risk, brand risk, and financial and political risks, are faced by business owners.