- Being a house wife is perhaps one of the most difficult ‘jobs’ on earth especially for former working women who now become solely dependent on their husbands for every financial need.
- It is more ideal to be a stay-at-home mum who makes good money.
- By the end of this article, we should know the jobs/businesses to do to make money as a stay-at-home mum.
Stay-at-home mum status
There are a number of reasons why some women decide to sacrifice their professional careers and become stay-at-home mums; usually, taking up the responsibility of being the primary caregivers to the kids is a foremost reason. In some cases, it could be for health or psychological reasons, while at other times, it could be that your job search has yielded nothing at that time therefore, you have no other option but be a stay at housewife. Yet again, your hubby may be of the old school and not want you slaving under anyone and coming home at ungodly hours.
What then do you do as a graduate or a professional? What jobs or businesses are available for you to do that would give financial satisfaction? The answer is one and the same: you have to engage in something you are interested in and have passion for.
Coming up with a list of lucrative business ideas stay-at-home mums can implement is no mean feat, but the key factor during consideration is looking at windows of options available for the average sit at home mum. The underlying conditions that would guide this factor are: capital, space availability, the educational status, and the background/mental orientation of the individual.
There is no business that is ‘beneath’ anyone. It all depends on packaging and understanding yourself and what you want out of the business.
Making and selling pap
This product is gotten from different types corn and millet which are milled locally. It has a sour taste that makes people love drinking it often. It is usually combined with beans, akara or moin-moin during meals.
Start-up Capital required: N30,000
Target customers: These days pap is mixed for different types of people: Children with special needs and development delay have pap made with guinea corn , millet, crayfish, etc. which can be easily consumed by these babies. There are a lot of children with special needs in Nigeria who have trouble swallowing generic baby food products and parents are desperate to find food suitable for their kids.
People who are particular about hygiene are also potential customers, together with Nigerians in diaspora who miss it; these people would provide a huge market as they are willing to pay a lot to get pap. All one needs to do is supply your products to local supermarkets and make proper arrangements to export your pap to anywhere around the world.
The most important factor to this success of this business is proper packaging; ‘funkyfy’ your business and Nigerians would go crazy about it.
Possible Risk: Pap is easy to find in the market as many women sell it. It also goes bad if not prepared properly and can all go to waste without being sold in the first place.
Likely Profit: Profit margin is as high as N40,000 monthly for a start.
Payback period: One is likely to get their capital within a month barring any issues and given the right market.
Making of health foods and meal prep
Nigeria is currently agog with weight loss and this applies to both men and women. A considerable number of women are making money from the comfort of their homes packaging health fruits, vegetables, delicacies, meal planning diet food, coconut oil, etc. Most career women have no time to cook or eat healthy, so you would get a lot of customers by meal prepping for them and sending in fresh food to last them for the week.
Start-up Capital required: N100,000
Target customers: Women who are overweight, health enthusiasts and career men and women.
Possible Risks: Lack of creativity on your part and lack of interest of clients in your food, storage of food, delivery problems, hygiene and excessive expenditure.
Likely Profit: Food is still cheap and there is a lot of gain. Let’s say you have 10 customers who pay you about N25k weekly, it will total N250,000. Even if you use 100k for cooking and transportation of the food to your different customers per week, you’d have profit of N150,000 which would be N600,000 monthly as profit.
Payback period: within a duration of 3 months barring all unforeseen circumstances.
Making of beads and wire work
It is a business that is becoming popular in most major cities in Nigeria, and the market is still massively huge per targeting. You can buy few of the materials needed for the business, and start producing jewelry of different styles for commercial purposes. It is a business that picks up slowly but when people start knowing the quality of work you produce, more customers will patronize you.
Start-up Capital required: N15,000.
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Target customers: Women of all ages.
Possible Risk: Lack of creativity and zero marketing skills.
Likely Profit: The business is so profitable, that with just N1,500 worth of materials used in producing an ornament, a profit of N3000 to N4000 can be achieved depending on the type of design produced. On average, more than three pieces can be completed in a day depending on how complex the work is.
Payback period: Within a duration of 1 month barring all unforeseen circumstances.
Fashion and design business
Starting a fashion and design business is highly recommended. If you have a passion for creating brand new designs and you are able to turn ordinary fabrics into world class designer outfits, then this business is definitely for you.
Start-up Capital required: N80,000
Target customers: Men and women of all ages
Possible Risk: Getting clients at the onset could be tough as most people will find it difficult abandoning their familiar designers for a new one. Lack of creativity, zero marketing skills, dissatisfied customers are other risks.
Likely Profit: Your profit is the fee you charge and this depends on the type of design chosen, the materials used, and the status of the client.
Payback period: Within a duration of six months.
This is one way of making money that is unending, exciting and stable. If you have the time and also a flair for writing, all you need are clients and opportunity. Freelance writing is a new major source of income if done the right way. You can do this via blog writing; the thing about blogging though is to get the right niche. You could be a freelance writer for companies and other blog owners. Being a research writer can get way more than blogging but to write academic submissions, you have to be ready to sit down, research, read and do serious work.
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Start-up Capital required: N60,000
Target customers– Companies, blog owners, men, women, students.
Possible Risk: Blogging once in two months won’t get you anywhere. If it is your means to get money, you have to put in a lot of effort into your blogging. Almost everyone blogs but NOT everyone gets money from it. You also shouldn’t expect to start making money from day one; it is a gold mine that you have to cultivate to reap the fruits eventually. Give it six months and you start seeing results .Get writing jobs as a freelance writer takes chance and luck, you need a lot of patience as there are many other writers.
Likely Profit: Writing product reviews, putting up ads on your sites and AdSense, as well as other advert platforms can aid you in earning money in dollars which could be up to N400,000 for a small-time up and coming blogger. As a freelance writer for companies and other blog owners, having these writing gigs from 5-6 places a month could get you over N200,000 or more monthly. For a seasoned research writer, you could make well over 1Million Naira monthly. For a starter though, making 60,000naira is a big win and you’d be sure to grow within six months.
Payback period: A period of 8 months.
Being a stay-at-home mum need not mean that you have to be financially dependent on your spouse. With the execution of any of these lucrative business ideas, you would be on your way to being a work-from-home mum as well and while it is rewarding to watch your children grow under your care, your feeling of self-worth also gets a boost.
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What SME’s need other than Intervention loans
Since access to finance is a key constraint to SME growth, funding it has become paramount.
Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. According to the World Bank, they represent about 90% of businesses and more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies and these numbers are significantly higher when informal SMEs are included. The World Bank predicts that “600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
Since access to finance is a key constraint to SME growth, funding it has become paramount. This has birthed a myriad of programs ranging from incubators to accelerators both locally and internationally giving out loans, grants, and other resources to ensure that the sector is equipped to create jobs and stimulate the overall economy. There have also been federal grants and other forms of support given to SMEs. Since the outbreak of the Covid-19 pandemic, SMEs have been prioritized as recipients to loans and other stimulus packages. The CBN’s N50 billion Targeted Credit Facility (TCF) geared towards supporting SMEs and households whose economic activities have been disrupted by the COVID-19 pandemic, is just one of the different packages that have been put in place to cater specifically to it.
While there is data to back the impact SMEs have on our economy, it is true that even though small businesses help the economy, not all small businesses will contribute to the dream – or even survive past its early years. According to The Better Africa report, by Weetracker, an African digital media company, the top 5 countries that experienced the highest shutdown rates among start-ups between 2010 and 2018 were Ethiopia at 75%, Rwanda at 75%, Ghana at 73.91%, Zimbabwe at 66.7%, and The Democratic Republic of the Congo (66.7%). Failure rate for start-ups in Nigeria averaged 61% over the same period. What this means is that if small business loans are being given to businesses at random in Nigeria, 61% of those businesses are bound to fail and the monies given, completely lost.
The small business loans being offered by the CBN is a good step in the right direction. However, determining whether it ends up in the hands of the startups that are viable enough to scale and create the jobs or the larger percentage that will fail, depends to a large extent on how they are selected. In disbursing the loans, there must be clear methods of choosing the recipients. CBN’s N50 billion Covid-19 intervention fund for SMEs in conjunction with NIRSAL Microfinance Bank, simply noted that it would appraise and conduct due diligence applications before sending them to the applications to the CBN for final approval, to CBN for review. The results will tell their story.
Why the economy needs more than loans
The CBN giving out intervention loans is just one part of finding the solution – and this too does not say much about the amount in loans being given and their effect on the economy at large. If it’s too little to make any real difference, then it might only buy many of these businesses a few more months of dogged survival, after which all will be lost.
The overall operating environment must be able to stimulate growth either through favourable tax incentives for specific industries, moratorium on other forms of loans, or just the provision of basic infrastructures like electricity and speedy internet services.
Another important thing is to ensure there is a ready market for businesses within the country. Even with the right federal loans, a business having no ready market will sink its funds into inefficient marketing. This ready market, however, has a lot to do with the ease of local production to ensure competitive pricing, further curtailing the proliferation of imported items, and more.
In other words, economy will benefit even more from its overall development. The loans might help but, overall, there is unlikely to be sustainable exponential growth until the things that should be in place to expedite the development process exists.
How Nigerian SMEs can survive high mortality rate
SMEs are a very important economic catalyst in developing and industrialized countries.
In Nigeria where unemployment is a serious issue, the local businesses have a special position in the industrial sector because it has created employment and has been able to utilise labour. The local businesses, otherwise known as SMEs which means, Small And Medium Enterprise are everywhere, found on every street and corner as they surround us.
There is however no universal definition of SMEs that is widely accepted as it differs and varies from countries, but this is usually based on employment, assets or combination of the two. Institutions and organizations define SMEs in different ways depending on the purpose and the objective. Take for example, according to Organization for Economic Co-operation and Development OECD (2005) SMEs are considered to be independent firms that employ less than a given number of employees. However, SMEs were classified in terms of size, and financial assets.
The Small and Medium Industries and Equity Investment Scheme (SMIEIs), defined SME as an enterprise with a 200 million naira maximum asset base, with the exclusion of land and working capital and with a workforce of not less than 10 employees and not more than 300 employees. Akabueze,(2002).
The Third National Development plan of Nigeria (1975 – 1980) defined a small scale business as a manufacturing firm that employs less than ten people, or whose machinery and cost of equipment does not exceed N600,000
The Federal Government Small Scale Industry Development Plan of 1980 defined a small scale business in Nigeria as any manufacturing process or service industry, with a capital not exceeding N150, 000 in manufacturing and equipment alone.
These definitions give a clearer explanation as to how the meaning of SMEs differs and varies. However, just to give you a clearer understanding of what local businesses or SMEs mean, they are independently owned organisations that require less capital and less workforce and less or no machinery. They are ideally suited to operate on a small scale to serve a local community and to provide profits to the business owners.
Most enterprises in Nigeria, most of which are in the commercial sector are categorized as small businesses. The role of the small and medium enterprises towards the development of Nigeria is of great importance as it has contributed greatly to the country in terms of growth and development and also in providing employment opportunities.
From seminars to workshop initiatives for SMEs both locally and internationally, a lot is being said about SMEs all over the World.
According to the Central Bank of Nigeria report (2003), SMEs are a very important economic catalyst in developing and industrialized countries.
According to the United Nations Industrial Development Organization (UNIDO), developing countries can conquer poverty and inequality by democratizing, deregulating, and liberalizing the integration of the global economy. Recent studies have shown that SMEs contribute to over 55% of GDP and over 65% of total employment in high-income countries also that SMEs and informal enterprises account for over 60% of GDP and over 70%of total employment in middle-income countries (OECD, 2004).
However, considering the term “small”, there’s a whole lot of enormous challenges that come with it. In Nigeria, the factors working against the development and growth of local businesses are quite numerous, some of which include:
1. The issue of funding is a major problem with SMEs in Nigeria. However, the problem is not how to source it but the accessibility to either short or long term loans.
2. Lack of infrastructural facilities is a serious impediment to the performance of SMEs. The problem of inadequate infrastructural facilities includes electricity, good road network, availability of potable water, and solid waste management. These infrastructures are left to the business owners to provide themselves.
- Poor Management and Low Entrepreneurial Skill Base is a serious clog in the survival of small businesses as there is a lack of essential and required expertise in business which leads to wrong and costly decisions and mismanagement.
- Entrepreneurs often blame their failures on inadequate sales. However, the problem lies with poor marketing skills that could help promote their sales.
- Most entrepreneurs go into business without proper planning by taking a realistic view of what their strengths and weaknesses are, let alone giving careful consideration and analyzing the economic trends or business conditions in that particular sector of activity, which sometimes leads to mishandling when the business starts to expand.
- The root of most employee problems in Nigeria is poor personnel management. They put aside personnel matters till crises set in. Such crises usually pose serious threats to the firm’s survival if they are not promptly looked into.
- The harsh deteriorating macroeconomic environment in Nigeria has adversely affected the performance of small business enterprises and has posed as a major challenge to their survival and growth. Most small business enterprises are struggling with the problem of uncertainty caused by the unstabilized macroeconomic environment and policy shifts.
With all of this ongoings, some of the solutions preferred to ease these challenges include:
1. The need for government, and non-governmental organizations to create Seminars and workshops initiatives and other forums, to establish a platform for the interaction of SMEs owners/managers with others which can help to improve on their management capabilities.
2. Government should also provide the necessary infrastructures in order to ease the burdens and thereby encourage and promote rural industrialization.
3. The SME owners/managers should strive to develop effective marketing strategies in order to boost business operations which will become profitable.
4. It is important for SMEs to develop good personnel management policies to avoid crises that could affect their business.
5. Local business owners should take to proper planning, realizing his strengths and weaknesses before diverting into any business to avoid mishandling.
6. Goverments should help create a macroeconomic environment that is stable as it will enable these local businesses to make reasonable forecasts on costs, turnover, and return on investment.
7. The government should help in making funds easily accessible to SME owners/managers, be it short or long term loans that could help to encourage them to execute their business plan.
8. SMEs operators should also develop their competences in managing and sustaining their businesses by constantly engaging in training, research and development.
Emergency Fund: Can you raise N50,000 cash tomorrow?
Focus on building up your emergency funds before building a portfolio of assets.
Can you raise N50,000 cash tomorrow? Yes cash, without selling any asset of yours; Can you? This is a very important question you need to ask yourself. One generally accepted lesson from the 2020 economic downturn for both corporations and individuals is to always have an emergency fund (EF). So, what is an Emergency Fund? How is it set up? How is it used? Let us explore.
What is Emergency Fund
An EF is a savings account set up to pool and hold a minimum of three months of calculated Non-Discretionary Income (NDI). The EF is advised as the first activity any investors should undertake. Specifically, before even investing a cent, set up and maintain an EF because this fund acts as an “insurance” or stop-gap for your income or investment portfolio.
How is an Emergency Fund set up?
An EF captures a minimum of three months of Non-Discretionary Income (NDI). What is NDI? These are expenses incurred that must be settled irrespective of income. For instance, rent must be paid, groceries must be paid, we cannot simply stop paying utility bills because we lost our job and thus income.
Once we decide on an investment plan, the first thing to do is to list out all expenses we will incur and attach a cost to them per month or annual basis but corresponding to the period of payment. We do this to identify the necessary expenses which we refer to as the NDE.
List of expenses
- Rent N1,500
- School fees N500
- Camping/Holiday N300
- Go to Movies N100
- Groceries N400
- Cable TV N200
- Gas for cars N200
- Phone Bill N300
- Eating out Dinner N200
Total expenses for the month are 3,500
Next, decide which of the expenses listed above are Non-Discretionary. In other words, which of these expenses must be settled irrespective of income? Let us assume our client chooses the following as NDE:
- Rent N1,500
- School fees N500
- Groceries N400
- Gas for car N200
- Phone bills N300
These expenses above come to a monthly NDE of 2,900, with a three months minimum of 8,700. This minimum sum means that should the client lose his job or suffer any other income interruption, these necessary expenses will be paid from the emergency fund, without the need to sell down investment assets at fire-sale prices just to raise income.
How is it used?
The Emergency Fund is simply a piggy bank. Once it is set up, you can increase the minimum saving from 3 to 4 and as high as you want to go. What is does is insulate your investment portfolio from losing any compounding or dissipation in principal because you must sell. So, if there is income interruption due to job loss or you simply want to take a long holiday and write a book, you can do so and still meet your expenses from these savings.
An EF is not only for downturns, as it is also good for opportunities. A friend of mine bought an almost brand new car from a work colleague that was emigrating abroad because he could pay cash immediately in short notice. Cash is always king when you are in a tight negotiation with a seller.
Your Emergency Fund should be kept in cash or near cash investments. Return on investment for the EF is secondary to access to those savings. Also, you want your EF in an investment class with fixed income with no variation in returns. this means in practical terms do not invest your EF portfolio in equities that pay a variable return or even any asset which may need documentation and visits before you can access your funds. I am also wary of a commodity like gold, which does hold value, but cannot easily be converted to cash. The recommended asset classes to invest your EF are:
- Call or Fixed Deposit in Banks
- Sovereign Treasury bills, they are easily discounted and converted to cash
- Certificates of Deposit with bank
If the asset call cannot be converted to cash in one activity should be avoided. Also, ask the institution if they charge fees for early withdrawal and what those fees are.
What can I do tomorrow?
- Start an emergency fund immediately. Do the expense exercise, determine your Non-Distortionary Expenses, start to build up a savings pot.
- Focus on building up your emergency funds before building a portfolio of assets.