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While many reasons can lead to the closure of a small business, the most common trend is the lack of real market demand for the products or services been offered. Selling something nobody wants would definitely put you out of business. The size of the startup capital you’ve invested doesn’t matter. If no one wants what you’re selling, your doors would get shut for good.
What small business ideas then generate high profits if handled right? What small business ideas did many of the world’s millionaires venture into? And how can one successfully start a small business that creates millionaires?
Here Are 10 Lucrative Small Business Ideas That Can Make You The Next Millionaire:
1). Education:
The education sector runs in an endless cycle that leaves a revenue channel permanently open. When kids are born, they’re first put into daycare, then nursery school, primary school, secondary school, the university, and other institutions if they choose to advance their knowledge. The wide spectrum of the education sector only shows premium potential for every investor that takes a dive in the right direction.
While not every investor in the education sector focuses on the common educational institutions, some others invest in special education, adult education, educational websites, educational technology, and even educational resources.
With a very wide scope to cover in this industry; whether it’s simply school education, higher education, or the unconventional education sectors, picking the right niche to focus on from a small scale will eventually make you a millionaire.
Small business ideas like the education sector can never be overlooked.
2). Agribusiness:
The agribusiness sector is one of the largest industries in Africa, India, and the world at large. Since everyone must feed everyday of their lives, the sector would never run short of demand. An increasing world population even makes agriculture a lot more lucrative. Nigeria for instance has a population of over 170 million people, and is expected to exceed that of the United States by the year 2050. This population explosion only makes the agribusiness industry more profitable for new and existing players.
Already, many sub-sectors of the agribusiness are already churning in millions for successful farmers in their fields. Great examples are poultry farming (chickens, turkeys, eggs, etc grown for sale), fish farming (a sub sector of aquaculture with the fastest selling breeds such as catfish and Tilapia fish), cassava farming, palm oil farming, and several others.
With thousands of small business ideas in agriculture to venture into, any new entrepreneur can easily do a robust market research and pick a high yield in the agribusiness sector to focus on.
3). Retail Stores:
When an average individual thinks of purchasing clothing, groceries, medication, and a lot more, their initial inclination is to get up, dress up, and head out to a trusted store in their neighbourhood to purchase these items.
The retail store industry in Nigeria and many other places in the world is only getting larger. Every year, thousands of stores start up to cater to the needs of their local community. While some are larger than the others, every retail store entrepreneur still generates varying revenues.
As a new entrepreneur, you could choose to setup a brick and mortar store that focuses on selling groceries, fashion items, or one of the other diverse categories. Starting a grocery store, fashion boutique, or supermarket carries it’s own cost implications. But it’s important to start small, so you can understand the market, know what sells better, and how to reposition yourself to claim a bulk of the customers.
With retail store success stories in Nigeria like PEP, Shoprite, SPAR, or Health Plus, you can be darn sure you’re headed for success.
4). Web Design Agencies:
Every small business needs a website. The problem with African businesses is that millions of them are yet to jump on the online scene to reach more potential customers. This gap in the web design space poses an opportunity for several web design agencies or aspiring entrepreneurs looking to go into web development.
As a web designer, you can promote your web design company through SME events, blogging, social networks like LinkedIn, and several other channels. Taking advantage of the millions of small businesses yet to come online by offering them a great website design for their businesses makes this one of the most lucrative small business ideas new tech-oriented entrepreneurs can start up.
With a computer, good web design skills, a portfolio, and various channels to reach potential clients, you can start earning an average of $500 to $10,000 for every project built.
5). Mobile App Development Agencies:
Many organisations use custom-built mobile applications to engage with their customers. From restaurants to media companies, mobile applications are built to cater for different needs.
While not just organisations use mobile apps, thousands of individuals are constantly looking for skilled mobile app developers to bring their ideas to life. This need has slowly made mobile application development in Nigeria get more and more lucrative. In countries like the United States, the demand for mobile applications have more than skyrocketed, and the revenue from each built mobile app is extremely high, depending on the project.
An average mobile app in America could cost anywhere from $10,000 to $200,000. In Nigeria for instance, it could cost between $1000 to $10,000. While the cost of building mobile apps in the two countries may differ, handling multiple projects at the same time is the ultimate key to success in the field.
As one of the most lucrative small business ideas to venture into in the tech industry, mobile application development is a skill many new tech savvy entrepreneurs must acquire.
6). Mobile Phones:
Retail stores selling mobile phones online or offline have over time proven the extreme viability and profitability of the sector. In Nigeria for instance, many entrepreneurs have made millions from just selling mobile phones to the ever growing market.
A great mobile phone retailer with a remarkable success story is SLOT. The mobile retailer has over the years grown to be the largest player in the Nigerian market. They’ve not just built an unshakeable reputation, but have the largest customer base of mobile phone buyers.
One way to get into the mobile phone market is to start by selling cheap mobile phones. Majority of the population prefer low budget phones. While many other people prefer to buy only the latest mobile phones, it’s important you try various marketing strategies like offering mobile phone deals to entice many more individuals to patronise your smart phone business.
Mobile phone sales is one of the most popular and lucrative small business ideas not just in Nigeria, but in Africa as a whole.
7). Digital Advertising Agencies:
With hundreds of competing businesses cropping up in every sector, staying afloat as number one or in the top league can be a huge task. This is where advertising agencies come in.
Advertising agencies practically help businesses grow by creating compelling campaigns, whether online or offline to not just increase the business’s customer base, but to make their brand name have a meaning to millions of people.
Companies search for the most creative digital agency they can find, and when they do, they pay them a lot of money so they can help their brands grow right, and faster.
If you’re an experienced copywriter, partnering with a few other copywriters and a really good artist could get your creative agency running in a short time. What determines how you acquire clients and at what speed, are the quality and success of the campaigns you execute.
If you can build a little app, game, or any creative campaign that goes viral, your client base would rise faster than you expect. An example of such companies that have successfully done this in Nigeria are Wild Fusion, and Anakle. Today, they’re growing faster than many expected they would.
8). Real Estate:
The real estate industry is currently one of the largest world wide. With several real estate companies focusing on either residential real estate or commercial real estate, the wide span opportunities the industry poses only simply grows.
While many real estate companies focus more on the offline sales channels, there are several others focusing on the online channels by setting up real estate websites offering thousands of properties for sale. The property search on these websites are in thousands, and the comfort they give a prospective customer buying a house makes it a lot easier. Examples of some successful online real estate companies in Nigeria are Private Property,ToLet, and Lamudi.
No matter the channel real estate companies offer houses for sale or rent through, there’s always a buyer lurking around to buy at a good price.
As an individual, you could act as a real estate agent and collect a commission on every sale you bring to the real estate company. Successfully acquiring a lot of customers to purchase properties through you would make you gain some considerable income. It’s important you stay up to date with daily real estate news, so you would always be aware of any policy changes or market vices attempting to shift the market.
9). Small Business Loans:
If you have a little extra cash to spare, you could start up a small business that focuses on just providing loan services to other small businesses that need them.
Many small business owners hit gridlocks while trying to secure loans from banks and other financial institutions. These institutions set heavy loan requirements which are mostly difficult for small business owners to meet. As a professional money lender, you could provide short term loans with far lesser restrictions to multiple small businesses.
Money lending is usually overlooked by many mostly because of the risk of a non-repayment, but is still one of the few modest small business ideas to venture into.
10). The Stock Market:
The stock market has both created and destroyed the fortunes of millions of people. But irrespective of the inherent risk, a well seasoned stock trader mostly makes good bets, and also knows the stock market is one of the most profitable small business ideas to venture into.
Trading stocks can result in heavy losses for your investments if you don’t have a clue of what’s going on. Before you decide on what stocks to buy, it’s important you study the company’s short and long term progression, talk to your stockbroker, a financial expert, or even a friend that’s been trading successfully in the stock market for a long time.
Investing in stocks doesn’t just make you a millionaire overnight. The equity market is not that nice. But stock trading pays experienced entrepreneurs that understand the market trends, and know how to accurately (or almost accurately) predict how a certain stock’s price direction may go.
The stock market today in Nigeria may not be as favourable as 7 years ago, but a universal law still applies that states that “the higher the risk in business, the greater the potential financial reward is for the business owner”.
Stay up to date with stock market news, constantly monitor various stock market quotes, and sooner or later you’d make the right trade.
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