Investments are important, making smart investments is more important. smart investment ideas are the solid foundation upon which successful businesses are built. To be a successful investor, you must invest smartly. A smart businessman knows it is not all business ideas that should be invested in or he is headed for doom. For a better understanding of the subject matter, let us take a careful look at some of the components (of smart investment ideas).
There are many synonyms for the word “smart” which includes wise, knowledgable and so on. In a nutshell, to make smart investment decisions means to make wise investments decisions. There are four(4) key components which make a business idea smart, they are time, required capital, business location and returns on investment.
Time: A good investment made at the wrong time is a waste of resources. There is a good time for every investment decision. For instance, some investment are seasonal. Selling sweater in summer is a wrong investment especially if you need quick returns on investments. Selling umbrellas as well maybe a good or a bad investment depending on the season it is sold. That does not mean all business responds to seasons, but most business does and investing in them at the wrong time might cost the investor a fortune.
Required capital: capital determines the kind of business an entrepreneur can and cannot venture into. Imagine someone starting a flour milling business with 2 million Naira investment. Even if he or she is able to start anything, he/she will soon go out of business because flour business requires a huge sum of capital. available capital is of the important factors that make a business idea a good or a poor one.
location: Pork meat is a good business, but selling pork meat at Saudi-Arabia is a poor investment decision. Imagine selling skippy dresses in Iran, you don’t need a prophet to tell you you are in the right business at the wrong location. A business idea may be great, but the location of the business matter a lot.
Returns on investment: The revenue and consequently the estimated profit of an investment decision after time, location and required capital has been put into consideration is very important. Let us take a case study of two businesses (1) a bottled water factory (2) a Chinese cloth production factory. The two businesses are located at Lagos Nigeria where there is a very high population, high heat and many low-income earners. At Lagos, it is always hot, but not many people are interested in Chinese cloth. A water factory in Lagos is a gold mine and a Chinese cloth factor is not exactly a smart choice.
For a business to be successful, all aforementioned factors should be considered even while a business is still at the point of just an idea. This will help the investor avoid stories that touch.
Smart investment ideas that require small capital
Dropshipping: Dropshipping is the act of selling other peoples products. for better understanding of how to be a successful dropshipper in Nigeria, read this article.
POS services/Paga: Cashless policy is beginning to take over Nigeria. Helping people to withdraw and send money without visiting the bank and stand on a queue for many hours has become a lucrative business. The best thing about this business is that you don’t need much capital, all you need is a POS machine, a mobile phone, a few chairs and a small amount of money. All this business entails is helping people withdraw money from their bank account and helping them send money to other people and you charge a commission for helping them carry out the transaction.
Ecommerce website: It must be very interesting to know you can make money right from the comfort of your room. All you need is an e-commerce website where you can display your products and people will start contacting you for purchase. You will be amazed by the number of people that will get in contact with you especially if you are using the right channel of advertisement.
Recharge cards, data bundle and pin registration sales: Selling recharge cards online is a hot business online. A large number of people are making sustainable income selling recharge cards data bundle and registration pins for jamb, waec e.t.c.