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Wednesday, September 22, 2021

Low risk businesses

Oluwatosin Adeeyo &
Elisha Lawrence


The strained economic situation in the country has, more than ever, called for a secondary source of income, or as it is popularly known, side hustle. The requirements for this business are flexibility and affordability.
The regular office worker and shopkeeper will need a business that is affordable and can be easily incorporated into his/her daily life. An individual who is considering fulltime business is however spared this headache.
It is usually difficult to raise capital for a business. It is even more problematic to start business with little capital and keep the said business afloat.
An entrepreneur must consider the nature of a business, the target customers, the best location availability of capital, and operation expenses, among others, before starting a business.
There are however, a handful of businesses that are cheaper and easier to start.
Point of sales services, as explained by a practitioner of the business, Miss Oluwabusayo Adenusi, involves using a Point of Sales machine to transfer money to a bank account and withdraw money with an ATM card from a bank account. Cable television bill, electricity bill and air time can also be paid for through this means.
Miss Oluwabusayo explained further that the business can be started with N200,000. “There are some POS that require payment to process” “This fee can be the sum of N25,000 for maintenance and processing. The remaining N175,000 can be managed till one gets more funds”
Speaking on the possible profit that can be made from the business in a day, Miss Oluwabusayo said, “You can’t really put a figure to it. There are times in the business when you will experience a dearth in customers.
Talking about the cost of maintenance, she revealed that there is really nothing much to maintain in the business.
In her words, “The only thing to worry about is charging the POS machine. If you have power bank, you can charge the power bank so as to provide backup energy for the POS machine. The POS machine on its own has a strong battery. Other things that cost money are the paper that print out transaction, rent and possible maintenance fee charged by the POS provider every month. A start-up will however have to buy table and chairs and the business can be situated at the roadside.
Miss Oluwabusayo said further that with the situation of things in the country, anyone in POS business must be mentally sound to avoid being robbed. One must also avoid keeping a lot of money around and learn to deny service to some people just to be safe.
She explained that sometimes, people come for huge amount of money like N100,000 but you will have to not only refuse them but also examine them for possible danger. She added that mental capability is necessary to avoid the mistake of sending money twice to a person because getting a refund is not likely.
A draper is someone who deals in clothes. As explained by a draper who combines footwear with her business, Itunuoluwa Adekunle, the business needs a startup capital as little as N200,000. With this capital and good management, the business will grow.
Miss Adekunle went on to say that for people who are already into a form of employment and simply want to go into the business as a secondary source of income, N50,000 may suffice, as they can market their products through the internet and among close relations. For this category of people, she revealed that the only repetitive costs they have to worry about are the cost of transportation to make delivery to their customers and data subscription to advertise their products.
She revealed that in a good business week, a draper care make N8,000 or more, depending on the size of the business and the effectiveness of the entrepreneur.
A confectioner is someone who makes and sells sweet foods.
A confectioner, Mr Morris Ogan of Stomach Care, said for someone with a prior knowledge of the business, N50,000 is enough but for an individual starting afresh, it is advised to get a capital of N100,000.
He added that with the proper management, the business is capable of generating a 30 per cent return of investment within a month.
According to him, the major expenses in the business apart from the ingredients used are the cost of packaging and the cost of delivery for home services.
Mr. Ogan however advised that a prior knowledge of finger food production is important. Otherwise, it is better to restrict oneself to marketing.
A laundry service is a profitable business in Nigeria given the tight schedule that has forced many people to resolve to dry cleaners.
The business is low risk and it is highly profitable. In a good business month, a dry cleaner can make a profit of N30,000 or more.
The cost of starting the business is location specific. A dry cleaner at Igoba, Mr. Kayode Adeyemi, revealed that anyone considering the business should have at least N200,000 The amount it will cost to rent a shop in Akure, for example, cannot be compared with what is obtainable in places like Iju-Itaogbolu and Igoba.
A start up in the business will need washing machine which may cost up to N80,000 or N100,000, pressing iron which may cost up to N25,000, washing table, chair, hangers, pressing tables, power generating set, drying rack, detergent, starch, shelves, bleach and stain removers, packaging polythene bags, and washing bowls. The best part is that not all the equipment need to be purchased of once. One can improvise and then gradually get other necessary equipment.
A launder can also expand his business by offering additional services like washing of rug, curtains and other household items.
The business is easy to maintain because the equipment used are not prone to damage. A washing machine is not likely to have a serious fault and some brands come with 2-year warranty. A pressing iron may last up to five years before it is damaged the major risk a dry cleaner will have to be cautious of is damaging his customer’s clothes.

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