How To Identify Profitable Investment

Identifying Profitable Investment is one important skill you must have if you would not lose your money in a place like Nigeria.

You must first know how the businesses make money and then work towards adding value in that area

How then do we identify a profitable business? There are some tips I would share…

First, I would say that any business can be viable. All you need to do is to think of a better way to do it


Identifying Profitable Investment is one important skill you must have if you would not lose your money in a place like Nigeria.

How many of us remember MMM, the Ponzi scheme

Well, I remember it very well

Why do I remember it?

One of my friends fell for the scheme. That my friend is a secondary school teacher so his salary was about 50,000 naira or thereabout.

That is about 600,000 naira annually if he does not remove anything from his salary

So I chatted up my friend one time like that and he told me he was sick and had a stroke

Now, when a young man in his early thirties or late twenties tells you he has a stroke, you know it is a serious matter.

I used to think stroke affects elderly people. So I had to push further to ask what happened

He then revealed that he invested about 1 million naira into MMM.


The first thing that came to mind was how did this my friend get that kind of huge money since his annual salary is just about 600k.

Well, the implication of that is if he should continue his present job, he would need at least two years to recover from the shock of what MMM did to him.

By the way, I remember that about a week before MMM crashed, I was ministering in a church at Abeokuta.

And I shared some things about why I believe MMM would soon crash. I also posted it on my Facebook...

Some of my friends who had invested in it felt that I was judgmental and I was not a risk-taker

I became like an investment Prophet when the scheme crashed.

I am not surprised that it crashed actually... Rather I would have been surprised if it did not crash

What did I know?

That is one of the things we would be sharing together. Life is all about risks and you must make some financial risks if you want to advance financially

However, in taking risks, you must take calculated risks. There is an acid test to know if any investment is lucrative or profitable.

Ask yourself this one question, and you would save yourself a lot of stress.

What is the business model of this particular investment?

In a layman language... How does this business make a profit?

If you cannot explain how they make a profit, please keep your money in your pocket or just send it to me.

So let me give us a quick assignment...

How does a school make money?

How does your school make a profit?

Does anyone want to make an attempt?

Should I tell us how Schools make their money?

Schools make their money through the following means

  1. School Fees
  2. Extra lesson fees
  3. Uniform Fees
  4. Lesson Fees
  5. PTA donation from parents
  6. Textbook fees
  7. Payment for extracurricular activities

So if you are a school administrator, you might want to explore some of these things I mentioned or add more to it.

Let's do another test, and I would not give an answer to this one. I would leave you to think deeply.

How does Facebook, Whatsapp, Instagram, and Twitter make money?

From digital ads or Advertisements

You have been on these social media and you are using it for free but is it really free?

So the fact that you are not paying these social media does not mean they are not making money.

If you see any business at all, always ask yourself what is the way this business make her money.

If you want to develop your financial intelligence, always ask this question even if it seems not to be your business.

Yes, some people might not really tell you the answer but you can explore.

For instance, let me ask, how does MacDonalds make her money. I might give a gift to anyone that gets this correct. MacDonalds is like Mr Biggs abroad.

A lot of people used to think that MacDonalds was making money from selling snacks until they explored further and realized something.

MacDonalds make their money from real estate. MacDonalds sells Franchise to others

So MacDonald would rent a building to you and give you a franchise to sell their products...

On the outside, you see burgers and pies but within, what is being sold is real estate

Now any business you see has a trade secret. If you know that trade secret, you would be able to learn so much

Now my question is...  How does MMM make her money

Yes... They actually make money but how do they make money?

There is no business they involve in. They make money by asking people to donate money, they now share their money with you and you are happy...

One day after people have trusted them, they would freeze everything and then many people lose their money.

They collect money from Peter to pay Paul. They keep circulating the money until the last set of people lose or the business crash when no money is coming in because they do not render any value

If you see any business that does not render any value, do not invest in it.

So now you know why all those people who send messages to you that you should pay 10000 naira and you would be credited with 20000 are scammers.

See, even if someone shows you evidence that they have been credited, do not fall for it

The moment you drop your money, even if they credit you, you would still lose it if you remain in the scheme. So much business is not legit and anyone who wants to go far financially would not do such

This is why I also discourage people from doing bet. Free money is not too good

There is a creative ability in you... When you sweat and think of how to make money legitimately, your thinking capacity develops.

If you work in any organization and you want to be promoted easily, let me tell you what you can do

Discover their business secret and then try to see how to help them make money through that means.

Let's say you are a teacher, and your school make money through school fees, encourage someone in your street to put their children in your school.

You have helped them to make more money. They would soon see you as an asset to their organization

Let me give a practical example. I might be leaking a bit of my trade secret though but I believe it would be an opportunity for you to learn

I run an online gospel radio called Wisdom Gate Radio, you can listen to us 247 via www.wigradio.com.

Therefore, the question is how do we make our money? One of the ways we make our money is through event coverage.

We cover programs for churches and organization that have their vision consistent with ours

So we used to have a staff years back called Tolubooks. He is outside the country now

Tolubooks knew how we make our money...so he would approach churches and negotiate with them for WiGRadio to come and do coverage there.

After he negotiates with them, he would come and meet me and say, Mr Perfect, I have discussed with this church and they are going to pay 60,000 for the coverage but you would pay me 40% of that amount since the business is from me.

Then I would have to negotiate with him that 40% is too much since we have to also develop the business. He was a staff and was on salary but he saw himself as more than a staff. He saw himself as a business partner.

And it was a good deal for us because we all gained from the transaction. That is a piece of advice for someone here

Stop sitting down and waiting on salary alone, start thinking of how to add value where you work.

Therefore, you must first know how the businesses make money and then work towards adding value in that area

How then do we identify a profitable business? There are some tips I would share…

First, I would say that any business can be viable. All you need to do is to think of a better way to do it

Selling water can be viable, but selling pure water on the street of Lagos might not yield as much profit as I want.

But if I supply 1000 bags of water daily at 120 naira and my profit on each bag is just 40 naira. That would mean I am making 40,000 naira daily. That is somebody's one month salary.

So in business, you need to do a lot of thinking. How can I do this thing better?

Most businessmen might not tell you their real trade secret but if you become a friend to businessmen and they tell you their secret, you would learn much.

For instance, anyone would think I really make my money from online radio but the truth is that I make more money from real estate. By the way, I sell lands in case you have goals to become a landowner this year.

And I have very flexible payment plans. Plans as cheap as 1000 naira or less daily

You can DM me for more details later. So let me rush and share tips on knowing the viability of a business

  1. Do a lot of research about the business. Don't assume... Meet mentors and those who have successfully run the business. There is a secret about that business you might need to know
  2. Find out the cost and calculate the markup cost. I traveled to Abeokuta recently to inspect some of our lands... And I saw a bag that sells for N1500 in Abeokuta, so I bought it and bring it to Lagos to sell at N2000. How much is my profit?

You might easily say 500 naira but it is not true. Exactly... I made no profit

Why? Transport fare from Lagos to Abeokuta is 500 naira, Transport fare back is 500 naira

Then because of the stress, I drank extra bottled water and bought snacks to keep my stomach. I need to factor all these things in. Many people who are in business are not making a profit because they do not calculate mark up.

Finally, let me share some business areas that would always make money no matter what

  1. Food business: No matter how bad the economy is, people would eat food. By the way, I would be rounding off soon because I can smell the sweet food my wife prepared for dinner.
  2. Education: People would want to learn
  3. Shelter: People want to live in houses that are comfortable, they want to buy their own land and houses.
  4. Transportation: Don't just buy a car for comfort, buy it for business if you can
  5. ICT: We live in a generation where people are digitally compliant and many make their money online. Think of a way to make money online legitimately too.


A brother of mine brought a business about real estate and said he needs marketers and that the job has benefits also, and he needs 50 people.

Now I shared it with my friends and on groups and people have been reaching me that they can't take the job if its marketing and seems they only pay in commission, some of them need jobs so much, is it wise for them to ignore it or to accept it?


Very interesting question ...

A lot of people these days say they are not into a marketing job. The people who bring in the money are the ones willing to market so they should be paid higher.

If you really want to go far these days, you must develop your marketing skills.

So there is nothing wrong with your brother wanting marketers. If they are not able to do the marketing job, there are others who can do it and it is those people that would get paid.

A lot of people these days want to sit down inside the office and be paid salary but it might not make much sense in the long run since marketers are needed for the products or services in the office.

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