For people that keep postponing the pursuit of a viable small business venture on the guise of not having sufficient capital to set up the business, here is a word of advice for them – actually you don’t really need a lot of money to start some types of small business.
With little or no capital you could start up a host of potentially lucrative businesses which are mostly service based but could sometimes also be potentially retail businesses.
For instance with as little as N10000 (ten thousand naira), you can start a boutique business anywhere in Lagos or Abuja. What is involved in owning a mini boutique apart from a small inventory of quality clothes, shoes and fashion accessories? The truth is that with the little capital you have saved up, you can start a small business of your dream, especially for job seekers who are becoming tired of the job search.
A Small Business that is ideally suited for this category of ventures are mostly home based businesses.
You can find a lot of home based business ideas from doing a simple brain storming exercise in which you ask simple questions with a view to coming up with as many answers as possible. Here are a few small businesses you may consider as viable home based businesses; selling provisions from home, laundry service, repairing of gsm and other electronics, network marketing (also known as MLM), affiliate marketing, article writing/marketing, sewing clothes for people, hair dressing and viewing center to mention just a few.
These businesses can grow with time and become very profitable even to the point of employing others. You don’t need to have millions of naira to start a profitable small business and with that kind of thinking (thinking big but starting small) the sky is the limit to what you can achieve as a business person.
Many people are mistaken in their believe that small businesses are not profitable because they tend to associate a profitable business with one that generates large volume of sales and therefore big profits however the truth is that a business in which thousands or hundreds of thousands of naira is recorded as net profit are equally profitable depending on the scale of the business.
If I make let’s say N100000 from a small business in 3 months when what I actually invested in it was N50000 then that business is profitable what I need to work on instead is increasing sales and minimizing cost to make it more profitable. Sadly, many of our entrepreneurs don’t think that way and fewer still understand what ploughing back your profits in a growing small business really means.
So regardless of your financial situation, I’ll suggest you take a good look at what you have and see what you can make of it. With as little as N10000 or even less you can actually start making a lot of money in a couple of months time not that this is a sure banker but if it has worked for some people in the past why shouldn’t it work for you?
Another good reason you may wish to consider for starting a small business with little or no capital is the valuable pieces of business knowledge you could gather along the way as you progress, if you fail it won’t hurt you so much and you would have acquired a couple of business skills to guide you in future whereas if you fail with a lot of investment made in a business, the outcome could be devastating.
Therefore, I urge you to run with that small business idea that crossed your mind during recently if not for anything to learn the ropes in owning and managing a business but possibly to also grow and expand into a successful business just as many success stories in business will testify.