Seeking the best business ideas you can start in your local area that can take off your responsibilities? You are in the right place.
Most times, when we hear the word local business. Our thoughts are businesses that operate in one remote village with little to no profit.
But it is actually not so. You can be in the best cities in the world and we still refer to your business as local.
So a local business is a type of business that serves a particular community, region, or state.
The term local is more about the people you serve than the profit you make.
A common belief among Nigerians is that, except you have a mega store with many people working for you, you are not making money.
But that’s not true.
Many of these local businesses are not only profitable but also easy to start.
Also, they grant you your freedom and give you enough time to yourself.
Any country with more functioning retailers than big monopoly companies will do better, economically.
Here is a list of the best local business ideas in Nigeria
7 Local Business Ideas In Nigeria You Can Start With Low Capital
1. POS Business
POS is one of the best local business ideas you can start today in Nigeria. It is a very profitable business.
How profitable is the POS business? Very profitable.
The Point of Sales system (POS) started in 2013 when the CBN implemented the agent banking system.
Then, only top businesses had access to it in the collection of money. So, customers through can pay for goods without the need to carry cash.
It indeed simplifies our payment processes and helped business owners manage inventory better.
Today, the POS has gone beyond the four corners of business stores and find its way into every corner of its local.
Successful entrepreneurs now use the same device to help people have cash at hand without going to the bank.
They charge as little as N100 as a service fee, depending on the amount of cash you want.
So, let’s check what makes the business profitable.
Since these POS stores stay at strategic places within the locals, you can expect they come in contact with many people every day.
Let’s say a 100 people withdrew N5,000 from you per day (some will withdraw more) and you charge N100 per person.
And 20 persons came to do transfer and you charge N200 per transactions.
So we have;
- Withdraw: N100 x 100 persons = N10,000
- Transfer: N200 x 20 persons = N4,000
- Total Revenue: N10,000 + N4,000 = N14,000
Let’s get to profit
- Profit = Revenue – Expenses
- Profit = N14,000 – [ 700 (5% bank charges) + 1500 (feeding fee) + 500 (miscellaneous fee)] = N11,300
Your profit in a day is N11,300. I understand all days will not always be this way.
But most will be and even more on weekends and festive periods.
The POS business remains one of the easiest ideas you can start with in your local areas.
2. Bar Business
If you are not in for the corporate world and love talking to new people, then the bar business is for you.
According to Statista, the revenue in the Nigeria alcoholic drink industry is over $30 billion, with an expected 11.5% increase per year.
Wouldn’t it be a good thing to get your share of the national cake?
When I see the number of people going into the bar store, I ask myself, “What is taking them there?”
Nigerians spend so much to either forget their sorrow or have this good life via drinks.
And I also notice the bar business has one of the highest customer retention rate.
What does this mean?
It means, customers hardly change to a different bar. It rarely happens except something serious happened or change of business location.
Some of them (customers) go as far as having special seats reserved for them daily at the bar. Can you imagine?
Also, I noticed that the most successful businesses in this drink industry have more females as workers.
So, this is a business you can start and become profitable in no distance time.
Get a suitable location in your neighbourhood and design it to look attractive using woods and trees.
Also, ensure you get all licenses needed to avoid interruptions.
The bar business is profitable if you know your game.
3. Sell Shoes and Bags
I have a friend who is into productions and sales of leather wears. She is good and makes lots of sales and I mean it.
What she saw as one of the local business ideas then has become a fortune connecting her to prominent persons.
If you have a thing for fashion, please choose this idea.
A good thing about the shoe business is that it sells itself and doesn’t go out of trend like clothes.
You will always get a buyer. People will always patronise you.
So, how do you start with this business:
Research about the business. Identify your niche, business strength and weaknesses.
Go on a walk for available locations favourable to the business. It does not have to be a big shop. All you need is a space where you are welcome.
Immediately, start with branding. Branding, in this case, can be painting and drawing shoes on your wall. Don’t underrate this, it helps.
It is time to locate suppliers who can sell the shoes to you at wholesale prices while you resell at retail. Also, you can walk to companies and buy from them.
A good supplier is BooBae Creatives Limited. The CEO shares ways to overcome your challenges as an entrepreneur.
Sell, observe and adjust.
This is also a good business idea for housewives.
4. Electrical Wiring
One of the local business ideas in Nigeria, you can start with low capital.
If you can work with landlord and contractors, you will always be in demand as an electrician.
Very few know about electricity; this makes your skill valuable.
Sometimes, you don’t have to wait for damage before someone calls you for repair.
You can meet to discuss potential damage to their current wiring and appliances.
- You will need to be good at the cost of materials for a proper quotation.
- Work with builders to install wires in new houses.
- Meeting deadlines and having a neat work culture will help you earn your client’s good side.
5. Computer Repair
One of the top 10 business ideas in Nigeria for ICT lovers.
In today’s digital world, it becomes of necessity to have a computer.
If you don’t use it for business, you will for a school project or personal purpose.
This makes everyone your potential client for training or repairs.
As a tutor, you need a wide range of skills such as Microsoft Office, Corel Draw, Photoshop, and more.
As a repairer, you need an excellent knowledge of both the hardware and software components of a computer.
- Communicate problems to your clients in non-techie words.
- An excellent presentations skills will set you apart in your training.
- Have training materials to avoid repeating the basics with every student.
6. Disc Jockey (DJ) Services
There are no doubt live bands cost a lot more than DJ service.
Hence, many party owners prefer to hire DJs to handle the entertainment of their party.
DJs have been around playing as far back as the availability of playing equipment.
To start as a DJ, you need to have your speakers.
But if you don’t, you can always rent one when you have a show.
As a DJ, your best days are weekends, since this is when most events take place.
- Understand your audience and know their style of music.
- Have a wide selection of music from old school to the latest.
- Be in touch with key figures in the entertainment industry for show slots.
No matter how good a phone camera is, people will always have this unexplained respect for standard cameras.
One wonderful thing about this entertainment business idea is you can start without having your camera. You only need to rent.
- Get or rent good cameras and laptops for editing. Knowledge of Photoshop is vital.
- Be active on social media and display your work often so potential clients tend to spot you.
- When you are not working, go into the street and snap creative random pictures to sell online.
Photography is one of the local but digital business ideas in Nigeria that would earn you quick money.
Conclusion on Local Business Ideas In Nigeria
A study has it that 64% of local businesses in Nigeria have a website and marketing strategies in place. What does this tell you?
You need to work with one of the best e-commerce and digital marketing agencies in Nigeria
That, because you are starting or operating locally, does not mean you should remain that way.
There is always room to improve, expand and do much better each year.
Start within your local any of the business ideas mentioned above and you also will someday share your entrepreneur’s journey.