500, 000 Naira: businesses you can invest your 500, 000 in Nigeria
Do you have 500, 000?
Are you looking for ways to invest it in Nigeria?
Well, we have some suggestions to help you make the right decision.
Note: this is not a financial advisor, but just trying to give you options to choose from. In the end, the decision is all yours.
So you have your first 500, 000 naira or have an extra 500, 000? Now what?
Well, am going to be showing you the businesses you’ll need to do in other to turn your 500k into profit.
I must insist as a reminder that; this is not a get rich quick ideas we’re giving you here. Just consider it as a guide.
It’s obvious, you may have several ideas popping up and saying this is what I will do when I get my first 500k, but often times changes when eventually you have the money already.
If that’s the case, you’re not alone. Many including me have been there and am going to show you the steps you’ll need to go through all that and show you some of the businesses we think can invest in.
Cashflow vs Capital gain
Before we look at some of the investment, you’ll need to determine whether you’re going in for cash flow or capital gain.
Whichever one you choose, it has its pros and cons.
Cash flow investment
Am not trying to introduce you to another financial statement, rather a cash flow investment is those form of investment that brings in consistent cash or you’ll receive a regular cash distribution from your investment.
- You don’t wait a long time to begin getting your return on investment
- Cash flow on a regular basis as long as the business is running effectively
- You’ll not be out of cash
- You have to keep the business running to get the cash.
Capital gain investment
Others may want to invest in capital assets and this is the assets that give it a higher worth than the purchase price. This can be the short, medium or long term.
Increase in the purchase value
You have to wait a long time in other to get your return on investment
Tip: whichever one you choose, it’s up to you. What you ought to do is to ensure that it’s what you’re willing to risk it for.
In our next session, we shall be discussing some of the businesses you can invest in and each we’ll tell you whether it’s a cash flow, capital gain or both investment.
Businesses you can invest your 500, 000 in Nigeria
Renting of building equipment
There is no one that does not have a dream of owning a house. This is because in this age, many people want privacy and that’s not guaranteed when you live in a face me and face your house.
So many are looking to have their own apartment in other to have privacy and run away from paying rent.
This is where certain building material will be required for such product. During the project, people will need a tank for storing water, daggers, shovels, pick up van etc.
An entrepreneur who wants to take advantage of the opportunity will set up a business where they’ll rent out building equipment.
But this business works well in a location that’s coming up. In other words in a location where new building are springing up.
So what do you need to start? You’ll need to do a little survey and know what people are looking for to rent a project.
Here are some of the equipment that you’ll need:
- Tank: The renting price will depend on the number of tank liters. The renting of 1000 liter tank will not be the same as that of 3000 litres.
- Building pan
Once all that you need are ready, you can find a location and drop them or even use your house (if there is the space) and keep them. Then begin to reach out to people by telling them about your new business.
The good thing about this form of business is, ones you make the first investment, you only keep making money from it from rentals. Because most of the equipment is durable.
This business is a cash flow business.
Selling of poultry eggs
There is no denying of the demand for eggs irrespective of where you live. The demand for the egg is on a daily basis from household, small business hawkers, caterers, restaurant, hotel etc.
Selling of poultry egg can be a viable business for anyone who ventures into it. Meaning there is already a market for it and it’s among the stable food in Nigeria.
You can start this business in two ways:
The first method is when you start by having your own poultry farm and begin to produce your egg and sell them by yourself.
This way you can have control of the price, because you know your expenses and owns the farm.
The only thing worthy of note is, you’ll need at least 6 months before you can begin to sell your eggs and also you’ll need to learn the how the poultry farming best practice works else you stand the risk of losing all your investment.
The second method involves finding a supplier of this eggs where you’ll need to negotiate a price and quantity you can afford.
Once you have found one, you can find a suitable location (you can call it a shop) where you can keep and sell your eggs.
The second method ensure sells begins instantly and reduces the risk that may arise when running a poultry farm.
Selling of egg is among the cash flow business that has a market year in year out.
Renting of event equipment
You may not be actively involved in event management business, but you can have a business that rents out event equipment.
Because the equipment is a bit expensive, many event management entrepreneurs look for and rent out equipment from those who already have the equipment.
Some of the event rental equipment you’ll need include:
- Sound equipment (speakers, microphone, mixers, etc)
- Lighting equipment
Selling of ice block
Dry seasons can be very unpleasing especially when the heat is at a high. The need for chill soft drinks, drinking water will also be high.
But due to the epileptic power supply, small businesses find it difficult to get a cold drink because it can be pretty expensive to provide a cold drink. So most of the time, they result in looking for ice block.
So the demand for ice block can be high and that’s why you need to start the ice block business to provide it to those in need.
To start the business, you’ll need to get the cold room refrigerator. Mostly they’re fabricated and a higher compressor is installed which makes the water turn into ice block within two to three hours.
You’ll need to get a standby generator and secure a location where you’ll use for the sell of the ice block.
- Frozen chicken business
Frozen chicken can be a profitable business. This is due to the demand for chicken in restaurant, hotels, household etc. Many will prefer to get a dressed chicken which makes it easier to prepare.
To start the business, you’ll need to get deep freezers, a suitable location, a standby generator and the raw material (which is the chicken).
The chickens will be dressed and freeze to ensure that it’s in a suitable sharp.
Instant noodles joint
This is a joint where noodles are served instantly. This join will prepare several dishes instantly for customers.
Making success in this business will require you to do the following:
- Get a great business location
- Develop your own recipes. This is one thing that makes you stand out from others.
- Make the business location attractive.
- Advertise your business
- Begin to serve your dish according to your customers need.
Patent medicine store
Drugs are in demand on a daily basis. We cannot run a day without having one or more looking for one drug to cure one ailment or the other.
But this form of business requires you to get the necessary license and this will depend on the start you’re staying.
But meeting the requirement for opening a patent medicine store is less when you compare it to a full-blown pharmacy.
Of cause, you’ll need a location and find a reputable drug supplier which will constantly supply the needed drug.
The only drawback is there are certain drugs you’ll not be allowed to sell. All the drugs you’ll be allowed to use in your patent medicine store are the normal drugs like pain relievers, cough syrups etc.
The business of importing from China
This is one business that is quite straightforward, but many are still confused about it. Some who have tried have been scammed. And thus are afraid to try again.
But the business of importing from China is lucrative, all you need to do is to find the right supplier, negotiate about the product and make your payment, which makes the supplier ship your product.
Importing from China will make it easy to buy a cheap product which you can sell at a price that it’s almost 100% profit.
Sell of water
Am not talking about the sell of package water here. But having a borehole and charge a subscription for the people who’re fetching the water.
However, this form of business works perfectly fine in a location where there is epileptic water supply. In such areas, people will construct
Business opportunities are enormous. You may not use all the business I have outlined above, but whichever one you decide to venture into, you’ll need to do your own personal research and find more information before jumping into it.