9 Strategic And Effective Ways To Start A Small Business with N5000

The following are the 9 strategic and effective ways Solomon used to start a small business with N5000.

  • His motivation
  • Start a small business as a jobber
  • Start a small business As a hawker
  • Solomon bought a Truck
  • Rented a store
  • Bought a sales van
  • Registered a business name
  • Built a small factory
  • Incorporated a limited liability company

While many people like paid jobs, others do not due to:

  • Fear of failing
  • lack of startup capital
  • lack of skills
  • lack of experience
  • lack of entrepreneurial skills

One of those who did  not like paid jobs is Mr. Solomon, who was my class mate in the primary school many years ago. To start a small business, Solomon used the following strategies:

His motivation

Solomon was motivated to start a small business after chatting with his childhood friend, Simon.

Consequently, his first thought was how to start a small business with little or no startup capital.

Secondly, his next thought and perhaps one of the most important to him was how to start a small business that will succeed.

Thirdly, his most difficult task was how to raise the required amount to start a small business.

However, after a series of oral interviews, asking questions and getting answers, he decided that he would go into the business of selling insect and rat killers.

Start a small business: As A jobber

He had a vision to start a small  business, but lacked the funds to do so. He could not get financial support from his friends and family members.

Solomon decided that the only way he could raise money to start a small  business was to do manual jobs for whoever needed his services.

Luckily for him, Solomon was not the proud type. He was ready to do  any legit job provided he was paid to do so.

After several months of hard work, Solomon was able to save N5000.

Solomon As A Hawker

At first, the idea of hawking insect and rat killers did not appeal to him.

Because, he was focused and determined to start a small business, he decided to give it a try.

Solomon’s target customers were people living in the outskirts of the city.

They people who were suffering from the menace of insects and rats.

He knew when his target customers would be at home; that is as from 5.00 pm.

To kick start a small business, Solomon bought:

  • a basket,
  • some bottles of insect and rat killers
  • and a whistle.

With the above materials, he was able to sell his wares from street to street, blowing whistle.

With time, Solomon’s small business became so popular in the whole area.

It was the sound of his whistle that called customers out from their homes.

Bought  A Truck

With time, Solomon’s products became so many and heavy that he could no longer carry them on his head.

Consequently, he decided to buy a truck that could carry many stocks.

Furthermore, the truck helped him in the following ways:

  • he was able to carry many more stocks
  • It relieved him of carrying heavy loads on his head.

Most importantly, Solomon still continued to blow his whistle even as his small business started to grow astronomically.

Rented A Store

Another strategy Solomon used to start a small business was by renting  a store in the neighborhood.

His strategy was boost sales by:

  • selling from street to street
  • and to sell to those who may need to buy from his store.

As he could not possibly do everything all alone, he employed a sales boy to be in charge of the store.

He gave his sales boy all relevant instructions on how to attend to customers.

Bought A Sales Van

Still another method Solomon used to boost sales in his small business was to buy a sales van.

The van was fitted with a loudspeaker. So instead of blowing whistle, he was now playing a recorded cassette to pass the message to the public.

Consequently, he was able to cover a wider area, serving more people. His business continued to grow.

Registered A Business Name

Solomon decided that to start a small business, he will need to register his business name with the Corporate Affairs Commission.

The corporate Affairs Commission the government agency responsible for registering and regulating the activities of companies and small businesses.

Solomon eventually registered a business name: Solomon Enterprises (Nigeria). 

Before that, he had attended a training workshop where he was thought how to make insecticides and rat killers. He used locally sourced materials.

Built A Small Factory

Solomon’s business was flourishing. So he decided to build a small factory where he produced insecticides and rat killers in large quantities.

His production costdè was now lower than what he used to pay when he was buying from whole sellers and middle men.

Consequently, he was now able to sell insecticides and rat killers at competitive prices.

Incorporated A Company

To fulfill his ambition, Solomon’s decided that to start a small business was the way to go.

He eventually decided to incorporate a private limited liability company – SOLOMON ENTERPRISES LIMITED.

His business began to grow at a fast rate. At the time of putting this article together, he already has 10 employees on his payroll.

In conclusion, Solomon is an exemplary entrepreneur because he knew how to start a small business from the scratch.

Most importantly, he has achieved his dream of:

  • owning his own business
  • being his own boss
  • creating jobs for school leavers
  • giving back to society
  • and enjoying financial security.

Related: 26 Best And Most Effective Small Business Management Tips Entrepreneurs Need To Succeed In Their Businesses:

 

Samuel Ijenhi

CEO of Ijenhi Business Solutions

info@samuelijenhi.com.ng

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