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Thursday, October 10, 2013

What kind of business and How Much Capital do I need to start in Nigeria?

This question keeps repeating itself in many ways from people asking what kind of business can I start with N1 million or N500,000? etc. Or I have N50,000 what kind of business can I do with it?

There’s a problem with this kind of thinking which is that the person asking it is looking for a business he can start with a certain amount of money in order to make profit. If it’s that simple then any kind of business is suitable for anyone but that is not the reality on ground. 

The problem isn’t with the amount of money or the kind of business it’s more like is the business in question right for you to do? Forget about the capital needed to start but ask this question: what kind of business is suitable for me to start? Once you can answer this then finding the capital to start should follow suit.

On the other hand if you have money but don’t know what to do with it and haven’t found a profitable way to invest it, do the wise thing which is to put it into an interest yielding deposit like treasury bills or buy real estate with it till you can truly say to yourself this is the kind of business I want to do because I understand it well.

Dangote owes the success of his business to understanding it like he was once quoted as saying “I don’t invest in any business I don’t understand” same applies to Bill gates, Mike Adenuga and any other successful business man you know.

To answer the second question “how much capital do I need to start?” that also depends on the kind of business. Some businesses require no start-up capital like the service based businesses while others such as retail businesses require start-up capital ranging from a few thousands to even millions of naira.

Good luck as you search for your next big business venture to set up.