Are you a young Nigerian looking for a profitable business to start with 500k in Nigeria? Or maybe you’re tired of looking for a white collar job right. So, you want to start your own business and have control over your life and your income.

Of course, this is a good decision indeed.

However, you should know that every business comes with its own ups and downs. For that reason, I will suggest that you should validate your business ideas as well as the one I recommend in this post.

Most of these profitable businesses to start with 500k in Nigeria are high in-demand. Meanwhile, small business owners who are into these ventures are making a lot of profits on a daily basis.

If you venture into any of these profitable businesses with a good entrepreneurial foundation, you will definitely generate return on investment consistently.

But I’m not going to flood you with a lot of options to choose from.

Instead, I will pick the best option, and provide you with in-depth analysis on why it’s the best business for you as long as your investment budget is 500k and you want to run the business in Nigeria.

I know that after investing 500k in the business you won’t like to start spending another 300k on hiring staff or purchasing machinery to run the business.

That’s why you should be careful about the information you read on the internet when it comes to choose a profitable business model.

Read Also: How to choose a good profitable business model (A-Z guide)

Some of these bloggers who don’t have clue on business will publish 13 best businesses to start in Nigeria just to generate traffic and finally, leave you with the consequences of your decisions.

Below are the most rated 13 profitable business to start with 500k in Nigeria (in 2023)

1. POS Agent Business
2. Beauty Salon Business
3. Barbing Salon Business
4. Selling Fashion Items
5. Logistics & Courier Business
6. Block Moulding Business
7. Food Business
8. Printing Business
9. Used Books Business
10. Car Wash Business
11. Launch a Digital Publication
12. Start an Online Store
13. Start affiliate marketing

There’s no harm in trying but as an entrepreneur, you should learn how to take calculated risks and investigate before making any final decision on any of these 13 profitable business to start with 500k in Nigeria.

Eventually, I have done the investigation for you by researching and comparing top business models that you can start with 500k in Nigeria.

Your own is to make the decision to start the business and calculate your risk of running the business until you start generating revenue. So, let’s get started.

My best pick: Logistics and courier business

The first few questions that will come to your mind is, can I start a logistics and courier business with 500k in Nigeria?

Yes of course you can. The next question that will pop up through your forehead is, can I make millions with logistics and courier business in Nigeria?

Of course, why not. But that can only be possible when you develop an entrepreneur’s mindset to run the business.

Anyway, these are not the questions I expect from you because they’re less important than knowing the challenges you might face while running any local business in Nigeria with just 500k.

Those challenges are what fueled my decision to pick logistics and courier business as the best profitable business to start with 500k in Nigeria.

Nevertheless, we would be comparing logistics and courier business with other profitable business models you must have read before landing on my blog.

This will help you to quickly validate the idea of starting logistics and courier business in Nigeria with 500k naira.

Read Also: How to start official business in USA

Make sure you wear your seatbelt and take a quick ride with me. I want us to be on the same page as I ride you from different angles. Are you ready for this journey? If yes, then keep on reading!

First of all: What’s logistics and courier business?

According to Corlettexpress, logistics is a kind of service that strategizes, executes, and controls the transport of products in the supply chain from the starting point to the point of delivery. Usually transporting heavy loads from one country to another.

While a courier service deals in delivering small packages, important documents, etc that are usually less in weight majorly to people who reside in a nearby location or even to national locations.

They are preferred by individuals and businesses looking for quick, reliable, and door-to-door operations.

From this definition it’s obvious that you cannot start a logistics business with 500k in Nigeria but you can start a courier business with 500k in Nigeria and grow it to a multimillion naira logistics company and deliver your services globally.

From a profitable business to start with 500k in Nigeria to a multimillion naira company. That’s awesomely possible.

Logistics and courier Vs POS business

According to major publications, bloggers and local investment advisors on the internet, POS is the number on their list of recommended profitable businesses to start with 500k in Nigeria.

Now, let’s compare POS with courier business. POS business is known to be the best business model for graduates, aspiring entrepreneurs and stay-at-home moms who are looking for alternatives to survive in this harsh economy.

If you search all over the internet, the first petty business recommended by bloggers is POS or Salon business.

Butthey never tell you the challenges you might face while running these two businesses.

In my opinion, it’s not about the business you can afford to start but the business that can stand the test of time and the business that can give you more control and leverage.

Now ask yourself this question, how much leverage would you have running a POS business in Nigeria? Can you grow it to a multimillion naira company with little effort and investment?

With all the government regulation about naira transactions, would you be able to have control of your business both in net profit and asset value?

How about the salon business? After investing 500k to rent a shop, buy equipment and decorate your shop.

Do you have extra money to hire hairdressers to work with you or only you can attend to 100 customers in a day?

Honestly, you need manpower to run a salon business which will cost you more money apart from your initial investment of 500k. Unless you want to take another a loan from Lapo. I guess this is not what you’re looking for right.

I believe you’re looking for a business model that can cover 500k to start, launch and profit without upfront investment.

Even if you must invest more money in the future, that investment should come from the profit you’ve made from the business.

If this is the kind of suggestions and ideas you’re seeking on the internet, then you should stick to my recommendation.

But before then, let’s discuss what makes Logistics and courier business better than POS and Salon business.

3 reasons why you should start a logistics and courier business in Nigeria

The first reason is because it’s one of the scalable business to start with 500k in Nigeria. You can start solo and grow it into a venture (Logistics company).

Asa dispatch rider, you can deliver products to 50-80 customers in a day within one location or state.

By partnering with logistics companies, such as FedEx, RedStar Express, Gig Logistics, AB Logistics, etc. You will have the opportunity to learn how to execute and manage logistics companies.

While you’re working with them as a dispatch rider, you’re also learning and gathering the experience needed to start and scale your own logistics company.

Do you learn banking and finance while working as a POS business owner? Nope!

POS is a SlowLane business model because it’s very difficult to grow a POS business to a multimillion naira company.

Logistics and courier is a FastLane business model. And many are yet to take advantage of this opportunity. Logistics industry is still untabbed, especially in a country like Nigeria.

With 500k investment in courier business, it’s easy to move from a solopreneur to a 9 figures business mogul with proper planning and proven strategy.

As you generate income you can purchase more vehicles and hire dispatch riders.

You can leverage technology to track your vehicle and expand your business Nationwide. You have the ultimate control and leverage to generate income.

The second reason is because it’s one of the profitable business to start with 500k in Nigeria without upfront expenses.

Less cash in, more cash out. Imagine you bought a dispatch ride for 200k, use 100k for registration, partnership and branding, keep 100k in your bank account to buy fuel, keep 50k for maintenance.

That’s450k spent!

You still have 50k left which you can use to buy cold minerals to chill the heavy sun. If you run around for 30 days you will make 100k-150k profit within your first month.

With the new regulation of 500k weekly withdrawal, how much do you expect to make from POS business per month.

Due to the new naira change in 2023 and the scarcity of new naira notes, many POS attendants have started charging N100 per 1k withdrawal instead of the usual N100 per 5k withdrawal.

A lot of aspiring entrepreneurs will fall into this trap and start a POS business because they think that it’s another opportunity to make a huge amount of money working in a 4 square meter kiosk.

But they don’t think about the future of the business model. With the trends of fintech like Chipper cash, Paystack, etc, and digital currencies such as crypto and e-naira, I can tell you that the POS business will not stand the test of time.

Don’t venture into business because of instant gratification. Start with the one that you can leverage compound interest to grow your income for a long time.

The third reason is because it has no location barrier like POS and Salon.

Whenstarting a salon or POS business with 500k in Nigeria, you’re limited to some locations. And this will either make or break your business.

If you intentionally site your business in a wrong location you will gladly accept the financial penalty.

Not all locations are favorable to establish a salon or POS business. But as a courier business owner, you can deliver goods to your customers in any location within your town.

Even the e-commerce business owners that leverage logistics and courier to distribute their goods make more money in their business than those who solely depend on customers visiting their shops.

As you grow your courier business you can dominate the 36 states in Nigeria with different branches and hundreds of dispatch riders.

Read Also: 9 pro tips to consider before starting agribusiness in Nigeria

Grow locally and scale internationally. The opportunities are absolutely massive but only for those who do it through one lens — FOCUS!

Final thoughts

If you’re looking for a business to start with 500k in Nigeria, make sure you scrutinize other business models and go for the one that will give you more control and leverage. Hence, I recommend Logistics and courier business for anyone who has a low investment budget. With proper business planning and proven strategy, you can grow your logistics and courier business into a multimillion naira company.