In one of my previous posts, I shared a comprehensive guide on some business ideas to start with just 5,000 and here today I have made a compilation of the top 30 businesses to start with 500k in Nigeria (2023).
There are a lot of profitable businesses to start with 500k in
Nigeria but oftentimes, we should be considering our locations and some other factors.
If you’re going to start a business before this year runs out with 500k, you may need to choose any of the 30 provided in this article.
What are you waiting for?
Let’s delve in now!
List of Profitable Businesses To Start With 500k In Nigeria In 2023
Below is the information on the list of profitable businesses to start with 500k in Nigeria today:
1. POS Agent Business
The demand for cashless transactions has been rising in Nigeria, making a POS agent business a lucrative opportunity.
As a POS agent, you can carry out electronic payments for customers who want to withdraw or deposit cash, pay bills, or make purchases using their debit cards.
Your investment of 500k will cover the cost of acquiring a POS machine, renting a space, and initial float for transactions, etc.
If this business is in the right location and you have excellent customer service, your business will stand out amongst the rest and thereby attract a steady stream of customers and earn commissions on each transaction.
2. Barbing Salon
Nigeria has a thriving grooming culture, making a barbing salon a promising business venture, and with the sum of 500k, you can set up a modest barbing salon with stylish chairs, quality grooming tools, and attractive interior decor.
For your visit to stand out, you must offer value-added services like beard grooming, hair styling, and complimentary refreshments.
Building your business with loyalty will be crucial, and word-of-mouth referrals can drive significant traffic to your salon.
3. Beauty Salon
The beauty industry is booming in Nigeria, and a beauty salon can be a profitable venture.
You may use your 500k to purchase beauty products, and salon equipment, and rent a suitable location. Offer a range of services, such as hairdressing, manicures, pedicures, facials, and makeup services.
Invest in skilled staff and promote your salon on social media platforms to attract customers, especially targeting brides-to-be and individuals preparing for special occasions.
4. Selling Fashion Items
Nigeria’s diverse population provides an excellent market for fashion items. With 500k, you can start a small fashion retail business, selling trendy clothing, shoes, and accessories.
Consider catering to specific niches, such as office wear, casual wear, or traditional attire.
Establish an online presence to reach a wider audience and collaborate with local influencers for promotion.
5. Logistics and Courier Business
The growing e-commerce industry in Nigeria calls for reliable logistics and courier services.
Allocate your 500k to purchase delivery vehicles, and packaging materials, and hire trustworthy delivery personnel.
Partner with online retailers and SMEs to provide cost-effective and efficient delivery solutions.
Excellent customer service and timely deliveries will be the key to success in this business.
6. Car Dealership
The automobile market in Nigeria is substantial, and starting a car dealership can be a lucrative venture.
While 500k may not cover the cost of stocking vehicles, it can be used as a down payment for a dealership franchise or securing a loan.
Focus on popular car brands and target both new and used car markets to cater to a broader customer base.
Also, you need to employ a better strategy to beat the competition.
7. Mini Supermarket
A mini supermarket can be an excellent business idea with 500k.
Ensure you choose a strategic location with high foot traffic and invest in stocking essential household items, groceries, snacks, and beverages.
Provide excellent customer service and consider offering home delivery services to attract more customers.
As your business grows, you can expand your inventory and diversify your product offerings.
8. Open a Boutique Store
For fashion enthusiasts, opening a boutique can be a dream come true.
With 500k, you can curate a collection of trendy and unique clothing items, shoes, and accessories.
Differentiate your boutique by offering personalized styling sessions and exclusive clothing lines.
Engage with customers on social media to showcase your latest arrivals and fashion tips.
9. Real Estate
Real estate remains a solid investment opportunity in Nigeria.
While 500k may not be enough to purchase the property outright, you can use it as a down payment for a property investment or collaborate with real estate developers to earn commissions on sales.
Consider focusing on high-demand areas with significant development potential.
10. Sales of Phones and Phone Accessories
The sales of phones are one of the most profitable business ideas to start with 500k in Nigeria.
The mobile phone market in Nigeria is vast, making it a profitable sector to explore, and with 500k, you can start a phone retail business, selling popular smartphone brands.
You need to establish partnerships with authorized distributors to ensure the authenticity of your products.
Additionally, offer repair services to attract more customers and increase revenue streams.
11. Jewelry Store
Jewelry holds cultural and sentimental value in Nigeria, presenting an opportunity for a jewelry store business.
You can raise the sum of 500k to source a unique collection of necklaces, bracelets, rings, and earrings.
Consider offering customized pieces to cater to individual preferences and special occasions.
Participate in local events and collaborate with wedding planners to showcase your jewelry and attract potential buyers.
12. Cosmetic Store
Cosmetics is also included in the list of profitable business ideas to start with 500k in Nigeria today.
Beauty and cosmetics products are known to be in high demand in Nigeria and you can use your 500k to stock a wide range of beauty products, including skincare, makeup, and grooming items.
Partner with popular brands and focus on promoting natural and organic products to appeal to health-conscious consumers.
You may also include the offering of beauty consultations to guide customers in choosing the right products for their needs.
13. Sales of Electronics and Computer Accessories
As Nigeria’s technology market continues to grow, it is creating opportunities for selling electronics and computer accessories.
Investing your 500k in sourcing popular electronic gadgets, such as laptops, smartphones, and audio devices is a great idea.
Alongside your sales of electronics and computer accessories, you can also offer a variety, of chargers, cables, and peripherals.
Provide after-sales support and warranty services to build trust with customers.
14. Rental Services
The rental business can be a profitable venture with a diverse range of opportunities.
Consider renting out party supplies, event venues, equipment (e.g., generators, projectors), or even vehicles.
Use your 500k to acquire the initial inventory and invest in marketing to attract customers for your rental services.
15. Printing Business
The Printing Business is yet one of the most profitable businesses to start with 500k in Nigeria.
This business is in constant demand for businesses, events, and individuals.
With 500k, you can purchase printing equipment like a digital printer, copier, and materials such as paper and ink.
Offer services like business card printing, banner printing, and promotional material creation.
Network with local businesses and organizations to secure regular orders.
16. Betting Shop
Sports betting is popular in Nigeria, and starting a betting shop can be a viable business idea. You can raise the sum of 500k to set up a comfortable and secure betting shop.
You can partner with Bet9ja, Betking, BetPawa, Nairabet, etc, and offer a variety of sports and gaming options to attract customers.
17. Building Materials
The construction industry in Nigeria is booming, creating a demand for building materials.
Use your 500k to start a building materials store, offering essential items such as cement, blocks, sand, roofing materials, and plumbing fixtures.
It’s highly crucial for you to build strong relationships with suppliers to ensure a steady supply of quality products at competitive prices.
Target construction companies, contractors, and individual builders to drive sales.
18. Sales of Clothing Materials
Nigeria has a rich cultural heritage, and traditional clothing materials are in high demand.
Invest your 500k in purchasing a variety of high-quality fabrics, including Ankara, lace, and Aso Ebi materials.
Cater to both retail and wholesale customers, and consider offering tailoring services to provide customers with ready-made outfits.
Being skilled in tailoring is an added advantage.
19. Production and Sales of Ice Block
Given Nigeria’s hot climate, the demand for ice blocks remains constant. Use your 500k to invest in an ice block-making machine and raw materials.
Identify strategic locations to distribute your ice blocks, such as near busy markets, events, and local stores.
Maintain a reliable supply chain to meet customer demands, especially during peak seasons.
20. Open a Foodstuff Shop
Opening a foodstuff shop can be a rewarding venture. This business is never excluded from the list of profitable businesses to start with 500k in Nigeria in 2023.
To get started, you will need to use your 500k to stock essential food items like grains, cereals, spices, and canned goods. Source products directly from farmers or wholesale markets to maximize profits.
You may also have to employ the idea of offering home delivery services and bundle deals to attract more customers.
21. Poultry Farming
Poultry farming is a profitable agribusiness opportunity in Nigeria.
Starting a poultry farming business can begin from your house building a large number of cages but it’s a good idea if you already have a space or land where you can build your chicken coops.
The 500k is enough to build chicken coops, purchase chicks, feed, and necessary equipment. However, it is crucial for you to maintain proper hygiene and nutrition for the birds to produce high-quality eggs or meat.
As your poultry farm grows, you can expand your operations and explore new revenue streams.
22. Open a School
As the population of people increases by birth so also the establishment of increases. This is an opportunity for you to invest in education which can yield long-term benefits.
Bear in mind that while 500k might not be sufficient to start a large school, you can establish a small nursery or primary school and focus on providing quality education, qualified teachers, and a conducive learning environment.
As the school gains reputation and student enrollment increases, you can expand your facilities and offerings.
23. Become an Uber Driver
The major requirement for becoming an Uber driver is to own a suitable car.
If you own a suitable car, becoming an Uber driver can be a flexible and low-cost business option.
Use your 500k to cover all the car maintenance and fuel expenses.
As an Uber driver, you can earn money on your schedule and take advantage of peak ride times to maximize your earnings.
24. Open a Restaurant
The restaurant business has always been on the list of the most profitable businesses to start with 500k in Nigeria.
The food industry in Nigeria is thriving, and opening a restaurant can be a rewarding venture. You can allocate your 500k to set up a small restaurant with a unique menu that caters to local tastes.
Emphasize quality ingredients, hygiene, and excellent customer service to attract repeat customers.
You can start as a small eatery and later expand into a full-service restaurant.
25. Open a Bar
This business moves crazily but unfortunately not for everyone. However, for those interested, with 500k, you can set up a bar store and stock it with a variety of beverages which includes local and international drinks.
In addition, you can create a relaxed ambiance, organize live music or themed events to attract patrons, and encourage repeat visits.
26. Start a Soft Drinks Business
Soft drinks remain a popular choice among Nigerians, making it a viable business option.
Allocate your 500k to purchase a range of soft drinks like coca cola, 7up, bigi, lacasera, and beverages in bulk at wholesale prices.
Sell these products in your retail shop, at events, or through distribution to local stores.
Consider offering promotional deals and discounts to attract customers and stay competitive in the market.
27. Sales of Motorcycle Spare Parts
Motorcycles are a common mode of transportation in Nigeria, and the demand for motorcycle spare parts is constant.
With a capital of 500k, you can source a variety of motorcycle spare parts, including tires, engines, brakes, and batteries. Establish partnerships with mechanics and motorcycle dealers to secure a steady customer base.
That is the 27th on the list of most profitable businesses to start with 500k in Nigeria.
28. Start buying and Reselling Cocoa Business
Nigeria is one of the leading cocoa-producing countries, making cocoa buying and reselling a lucrative venture. The sum of 500k or less is enough to purchase cocoa beans directly from farmers or cocoa markets.
Properly store the cocoa beans to maintain their quality and resell them at a higher price to exporters or manufacturers.
29. Open an Agro Store
As an agro store owner, you can cater to the needs of farmers and gardeners by providing agricultural inputs like seeds, fertilizers, pesticides, and farming tools.
With 500k you believe you can do it. You will need to use your 500k capital to stock different kinds of agricultural products and offer expert advice to customers on crop cultivation and plant care.
30. Start a Blog
Last but not the list of profitable businesses to start with 500k in Nigeria is starting a blog.
If you have a passion for writing and a specific area of expertise, starting a blog can be a fulfilling business venture.
Invest your 500k in a domain name, web hosting, and website design. Create valuable and engaging content that resonates with your target audience.
As your blog gains traffic and popularity, you can monetize it through advertisements, sponsored content, and affiliate marketing.
Those are the list of profitable businesses to start with 500k in Nigeria right now.