Are you looking for a place where business startups can invest their money in Nigeria? You are on the right blog.
A business startup is a venture whose success will have a positive impact on the country’s economic growth. Investment is, therefore, the key to their prosperity and a source of significant passive income. As startups face many investment platforms in Nigeria, it is very hard to find the best platform where startups can invest their money.
In order to be sure, this article provides a list of a few businesses startups can invest their money in Nigeria. You can also learn what business is all about and all you need to know.
List of where business startups can invest their money in Nigeria
When you want to invest or grow a business in Nigeria as a startup, you need to ask: Where should I invest my money? Besides, look out for where the cost of labor and energy upkeep is low. You can invest in a business with as low as 20,000 or more. That depends on you, but you can invest in:
- Stocks
- Real Estate
- Agriculture
- Cryptocurrency Trading
- Treasury Bills
- Money Market fund
- Fixed Deposit
- Transportation services
1. Stocks
If you are the type of startup that is always ready to take a risk, invest your money and improve your profit, then you should start investing in a stock. You get a good return if you study the stock market well and everything works out well. Use an experienced broker to help you with the trading of shares, which involves buying and selling.
Read- Avoiding Bankruptcy and how to generate cash for Startups.
2. Real Estate
We know that real estate seems too good to be false, right? The idea of investing your hard-earned money in real estate in a country like Nigeria that takes its stability for granted might sound crazy at first. But if you are thinking of the bigger picture and how your status could change from an average John Doe to an entrepreneurial guru, then you will have to consider investing in real estate. Most of the businesses owned by international entrepreneurs come from emerging markets, including real estate in Nigeria.
Considering the mouth-watering ROI and the sector booming, real estate is a good investment opportunity to consider as a startup.
Raed- How to write a business proposal for investment as a startup.
3. Agriculture
The Nigerian economy is experiencing phenomenal hype in the cost of edible items, and so are its citizens looking for ways to get food cheap. But amid the relative hardship that most have suffered over the years, some people have gone to start up big-scale farming and other agricultural businesses. You can invest in such a business and be sure of returns monthly.
Now, Nigeria still struggles to feed the population and goes to import food yearly. In fact, these agricultural businesses have been lucrative for ages and people thrive with them. You can decide to major in livestock, crops, and other areas of interest.
Read- World Bank Grant for small businesses in Nigeria.
4. Cryptocurrency Trading
Cryptocurrency trading is the trading of digital currencies like Bitcoin, altcoin, XRO, Ethereum, and others. This business is perilous, but a good guidance opportunity to earn high returns is worth the trial. You can seek the help and guidance of an expert before you can venture into such a business.
Read 4 insightful ways to attract angel investors as a startup.
5. Treasury Bills
T-Bills, as it is fondly called, is a short-term bond issued by the federal government through the Central Bank of Nigeria. Their Major aim is to meet the demands and needs of the federal government over time.
You can buy this instrument from any bank in Nigeria or from any accredited retailer. As it involves the Federal Government and CBN, it is a secure investment.
Learn the 9 Legit small business loans in Nigeria.
6. Money Market Fund
There are plenty of resources online that can give you returns on an investment like MMF. They are open-ended funds and can give you a steady income if you bought quality money market instruments. MMF makes up the Certificates of deposits, bankers’ acceptances, collateralized repurchase agreements, and commercial papers.
Learn the 5 sources of business grants in Nigeria for startups.
7. Fixed Deposit
A fixed deposit investment is an investment done with the money you plan not to use any time soon. Look out for banks that offer up to 10% to 15% annual interest on fixed deposits.
You can fix the money in other trusted financial institutions aside from the bank, like Branche, Kids and so many of them out there. But you have to be wise and smart and read about them before investing. The longer your money stays, the bigger it yields income.
Read- Ponzi Scheme: How they hook startups and why you should be careful.
8. Transportation Services
Investing in a transportation business will yield you so much income because it is a very lucrative business in Nigeria. Especially investing in densely populated regions such as Lagos, Abuja, Anambra, Abia State, Port-Harcourt, and Ibadan.
An investment in this business will open your eyes to other aspects of the business, like courier services. You can add haulage to help people transport their items from one state to another.
Read- 9 strategies to help you stay out of debt for good!
What Startups Need to Know About Investment in Nigeria
A startup business would require a lot of money to invest in some businesses in order to get to the point where it will be able to earn a profit, and some of this money may need to be borrowed.
Startups need to also be careful with any investment platforms. Once they notice any fluctuation, they can request their money immediately.
If possible, startups should have their investments insured in case of bankruptcy or wind up. Anything can happen at any time and the money invested in the business can go down the drain. But with insurance, you can get your money back.
To borrow money to invest, startups should know that most banks these days are more receptive than they were in the past to lending money to an emerging brand such as this, but that doesn’t mean that everyone will be given loans easily. In fact, most of them will still have to go through the rigorous process of filling out various applications and providing proof of financial stability.
However, there is a way for businesses that are just starting out to get funding without actually going through a bank. This can be done through borrowing from friends and family members, and then, if the business becomes successful enough, it can actually start generating its own profits and paying back the money.
Conclusion
It is easy to get recommendations on where to invest money when you start your business, but not so much on where you should invest your money as a startup.
The pathway to investment is rough and there are several pitfalls startups have to be careful of. It is pertinent that you verify that the investment is legit and secure before venturing into it. The listed investment opportunities in this article are secure and can make you great returns annually or even monthly as a startup.
