7 Best Business Niches to Invest & Grow Your Wealth in 2024

Recently, a friend of mine asked me a very salient question that got me thinking deeply.

The question was, if I was given 50 million Naira as a hedge fund, what business niches would I invest the money in to have a balanced portfolio?

This got me really thinking.

There are many business niches to invest your money in Nigeria, but when you are entrusted with other people's money to find the best businesses to invest in, it becomes quite a difficult task to do.

Off the top of my head, the business that comes to mind is real estate. But then, the plan is to invest in a variety of businesses in order to have a balanced portfolio.

So, what are the best business niches to put your money in, if you want to grow your wealth this year?

Well, I've done my research and come up with 7 promising business niches that will really make your money work harder than you do.

Let's discuss them.

FMCGs

I'm really biased when it comes to starting businesses in the FMCG industry, as it is an evergreen niche.

With Nigeria's growing population, there's increasing demand for everyday goods and household items, and this will continue to grow.

The reason why this is my first choice is simple. After taking a look at my expenses, I discovered that FMCGs take a huge chunk of my monthly earnings.

So, if I was to invest in a business, it should be a no-brainer to invest in one where I use the product the most. Just like some stock market gurus will tell you to buy stocks of products you enjoy, I'm willing to put my money where my mouth is.

Not only is FMCGs a very lucrative niche, there's the chance of quick turnover, where you can quickly put in profits back in to grow the business.

Fixed Appreciating Assets

The second business niche I would consider is that of fixed appreciating assets.

I want to have money in stable businesses that can appreciate in time. So, I invest in businesses that have fixed appreciating assets such as real estate, precious metals, artifacts, antiques and collectibles.

These kinds of businesses are hidden gems when it comes to putting money to work in the long-term.

There's a particular governor from South East in Nigeria who owns an SPV that invested in a gold mining company in the North.

That governor is probably one of the secret richest men in Nigeria. No wonder he is no longer active in politics after completing his governorship tenure. You should probably know who I'm talking about if you follow Nigerian politics.

Investing in businesses that own, acquire or accumulate fixed appreciating assets is probably one of the safest ways to grow your wealth.

That is why even in the monopoly game, you are taught to buy houses and then flip them for hotels. You're basically taught to keep recycling your money in fixed appreciating assets.

Common sense, eh?

Recurring Income Ventures

The third business niche I would consider is what I call Recurring Income Ventures (RIV).

These are businesses that make recurring income with fixed assets. Basically, rental businesses that make rental income from assets.

Some of them include:

Article Rentals: For occasions and events. They rent items like chairs, tents, generators, speakers, etc.
Equipment Rentals: For construction or production. They rent heavy equipment such as cement mixers, ladders, scaffolds, tractors, etc.
Vehicles Rentals: They rent vehicles such as cars, trucks, boats, helicopters, etc.

These types of businesses are ideal for people seeking passive income in both the short and long term.

Digital Assets Businesses

The fourth business niche I would consider is digital assets businesses. According to a pwc publication, Digital Assets are now becoming an emerging trend in the capital market, with the asset class now worth over $3 trillion.

More savvy investors are now willing to bet on the future growth of digital assets, especially that of cryptocurrency.

These assets have huge potential for capital gains and could be the next money spinners.

But apart from crypto, there are other digital assets such as websites and mobile apps, tech startups, NFTs and digital arts, IoTs, etc that are changing the ways we do things.

These are assets that could power the next billion dollar industries and create new world billionaires. So, why not put money in that space?

Upskill Education

It is becoming clear that there is a democratization of formal education, especially in the area of upskilling and reskilling.

With the skill imbalance in today's job market, and the growth of digital freelancing, more and more people are seeking to either acquire new skills or update old ones.

Many new businesses are now springing up in this niche, and investors are pouring billions of dollars in funds to leverage the opportunity.

This would be one of the business niches I would consider if I want to put my money to work. Areas of opportunities includes digital skills, organizational skills, vocational skills, safety and survival skills, etc.

You could start a business in one of these niche areas, and start providing educational services to employees of organizations or individuals looking to acquire skills in high income areas.

Essential Services

Another business niche where your money is guaranteed to grow is the essential services industry.

These are products and services that are compulsorily needed for everyday people, such as transportation, food, water, energy, etc.

I particularly like the idea of putting money into a transportation business, especially one that is structured.

I have a family friend who controls a fleet of cars and motorcycles via some of the e-hailing transport companies in Nigeria.

All vehicles on his fleet are tracked in realtime, and he receives a daily report of the mileage covered by his fleet and the earnings made.

This is more like a passive income for him, as he employs someone to manage the drivers, and the e-hailing apps does all the tracking and analytics needed to keep the business running smoothly.

Cool business, right?

Cosmetics & Beauty Ventures

This is one of the hidden money spinning businesses you can start today in Nigeria. New data from Statista shows that the beauty and personal care market in Nigeria is worth $9.7 billion in 2024. That's a humongous figure right there.

There are so many profitable sub-niches in this niche that you almost cannot go wrong putting your money there.

Here are some of them: