In the bustling streets of Lagos, Tayo sat on a park bench, counting the last N5,000 he had. It wasn’t much, but Tayo was determined to turn it into something bigger. He had just been laid off, and with a family to support, his back was against the wall. His dream of starting a small business was now more necessary than ever. With minimal income and no access to large loans, Tayo faced the challenge most Nigerians know all too well: how to start a business on a shoestring budget.

The Lightbulb Moment

As Tayo wandered through his local market, he noticed how the demand for vegetables, particularly tomatoes, was constantly high. Vendors were selling out quickly, especially when tomato prices soared during the dry season. Tayo’s entrepreneurial spirit kicked in, and he thought, “What if I start small, selling tomatoes and gradually growing?”

With his modest savings, Tayo began researching the tomato business, focusing on how to stretch every naira. He didn’t have a large farm, nor did he have access to major capital, but he had determination.

Step 1: Start Small and Leverage Local Resources

Tayo’s first move was to connect with local tomato farmers in Ogun State. Instead of buying in bulk immediately, he partnered with a farmer who agreed to supply him with fresh tomatoes on credit, allowing him to start selling without needing upfront capital. This partnership was crucial, as it ensured a steady supply while keeping his initial costs low.

• Tip: In Nigeria, forming relationships with suppliers can allow for credit arrangements, which is helpful when starting with limited funds.

Step 2: Focus on Marketing & Location

With his first batch of tomatoes, Tayo knew he needed to attract customers. He set up a small stall at a busy bus stop. He realized that in Lagos, foot traffic is king. By positioning himself near the market, he had access to commuters who were always in need of quick purchases on their way home.

He invested a portion of his savings in printing a simple but catchy banner to advertise his products and began offering free samples to attract passersby.

• Tip: In Nigeria, small businesses thrive when they understand the flow of human traffic. Position yourself strategically to capture customer attention.

Step 3: Control Your Costs

Tayo's next focus was managing his overhead. To avoid renting expensive space in the market, he used a portable wooden table. This eliminated the need for a formal shop, which would have added to his costs.

Instead of hiring staff, he relied on himself and his younger brother. The duo worked together to sell the tomatoes, splitting the hours between them.

• Tip: When starting small, every expense matters. Look for ways to reduce your overhead, such as avoiding unnecessary rentals and relying on family members for initial support.

Step 4: Embrace Digital Tools

Though Tayo’s business was small, he knew the power of social media. He created a free Instagram account and began posting pictures of his fresh tomatoes every morning, with prices and deals for bulk buyers. He also joined local WhatsApp groups to announce when he had fresh stock available, encouraging bulk orders and home deliveries for a small fee.

• Tip: Digital tools like Instagram, WhatsApp, and Facebook are invaluable for small Nigerian businesses. They allow you to reach a larger audience without incurring significant marketing costs.

Step 5: Scaling Gradually

As his customer base grew, so did Tayo’s profits. After just two months, he was able to save enough to buy larger quantities of tomatoes directly from the farm. With more product, he expanded his stall and introduced other complementary items like peppers and onions, further boosting his income.

• Tip: Scaling gradually allows you to grow your business without the pressure of high debt or major capital investment.

Other Small Business Ideas with Minimal Capital

Tayo’s story is just one example. Here are other small businesses in Nigeria that can be started on a shoestring budget:

Car Wash Business: With just a few buckets, soap, and towels, a car wash can be started with as little as N10,000. Choosing a busy road near commercial offices or estates guarantees a steady stream of customers.

Mobile Food Vending: Selling small chops or snacks like puff-puff at bus stops, construction sites, and outside office buildings can be started with as little as N8,000.

Recharge Card Business: Buying recharge cards in bulk and selling them at a markup is another low-capital business idea. Starting with N5,000, you can purchase cards and sell them for small profits that accumulate over time.

Freelance Digital Services: If you have skills in writing, graphic design, or social media management, you can offer freelance services online. Websites like Fiverr and Upwork don’t require much capital to get started.

Final Thoughts

Tayo’s journey is a testament to the fact that, with ingenuity and perseverance, starting a business with minimal funds in Nigeria is achievable. It takes creativity, a willingness to learn, and the ability to leverage local opportunities and digital tools.

If you're like Tayo, sitting on a park bench wondering how to make that small savings work for you, take heart. Start small, think big, and remember: every successful business was once an idea in someone’s mind, just waiting to be realized.