Starting a business without capital or with small capital leaves you with very few options. It does not mean it’s not possible. And it certainly does not mean you cannot start a decent business without capital. It takes more than capital to start and grow a business. Passion is fuel for your business. If you’re passionate about starting small and growing then you should consider businesses that require small capital. One of them is to start a roadside business, if you cannot afford renting shops.
Ghanaians Shop From Road-side Kiosks
Fortunately, the statistics are in favour of this scale of business. According to a Nielsen Survey, majority of Ghanaians, do their shopping at general stores or from road side kiosks that sell almost everything from beverages to mobile recharge vouchers. This is an opportunity that many vendors are milking, and you can dive into the huge market too. This
What to Sell
Consumer packaged goods categories form about 41 percent of total monthly household expenditure. Fast moving consumer goods are most profitable. Once you set up your shop by the roadside, having obtained the necessary permits, you should turn to fast moving consumer packaged goods. Margins are tiny but turnover is high. In no time, you will recoup your initial investment.
Starting a small business by the road side does not require big capital outlay. The kiosk and shelves are the major initial capital expenditure. Once you’re done, you begin to trade. Remember to obtain all necessary permits before you put up your kiosk or shop. And also obtain necessary business permits before you start. With as little as GHc1,000 (about US$250) you can start a business. Once it’s situated by a busy road, you’re in business.
For most road-side traders I have interacted with, profit margins range from as little as 5% to as high as 100%. Items with tiny margins are those that move fast, allowing you to turnover your stock more than 50 times a year. This basically puts you in a 250% per annum bracket, allowing you to double your money.
It’s never too late to start a business, anywhere.