So, you want to be your own boss? Maybe you’re dreaming of starting a successful business but feel concerned about the risks and challenges of funding your idea.
You’re right to think about this carefully. Only about half of new businesses make it to the five-year mark. These days, though, many entrepreneurs are succeeding with businesses that need little initial investment, like freelancing or consulting.
While low-cost business ideas may not seem the flashiest, they’re often safer, easier on your wallet, and provide valuable learning experiences you won’t get from working for someone else.
Here are some low-risk business ideas to kickstart your entrepreneurial journey or fund your current venture:
1. Boats as Event Venues
People love spending time near water, and events on boats are increasingly popular. One exciting idea I saw was a craft beer-tasting cruise around Manhattan.
How can you start without much capital? Begin by getting local craft breweries interested in your event. Then, reach out to boat rental companies and negotiate for boat rentals based on the time, day, and expected number of guests. Finally, sell tickets in advance to cover the cost of the boat. While you might need a small deposit, you can often negotiate a low rate if you shop around.
2. Create Content and Earn on Patreon
Do you enjoy creating video tutorials, writing stories, or making music? Patreon is a platform where creators can charge a subscription fee for exclusive content. Fans, or “patrons,” pay a monthly fee to access your work, and typical fees range from $1 to over $10. Many creators are now making a full income through this type of subscription service.
3. Freelancing (Design, Development, Writing, Marketing)
Freelancing is an excellent low-cost business if you have skills in areas like design, writing, or marketing. To get started, build a strong portfolio (WordPress is a good free option) and focus on selling your services based on the value you bring, rather than the time you spend. This approach helps you grow your income without being limited by your available hours.
4. Dog Walking or Pet Care Service
If you love animals, a pet-walking or pet-sitting business could be perfect for you. Set up a simple website through Weebly, Squarespace, or WordPress, and optimize it for local searches. You can also run a small Facebook ad targeting local pet owners.
5. Party Promoter
If you know a great bar or venue and have a large social network, party promoting could be a profitable option. Negotiate a commission with the bar or venue, then focus on bringing people to the event. Some promoters also earn a portion of the cover charge from guests.
6. On-Demand Tire Repair
On-demand services are highly sought after, especially in cities. If you can partner with a local mechanic or learn the basics of tire repair, you could offer a mobile service where you go to the client. This is especially valuable for busy people or those stranded with a flat tire.
7. On-Demand Services for Busy People
Busy clients, like artists and executives, often need services brought to them, such as haircuts or dog grooming. You could create a website to book these services for clients and partner with local businesses to fulfill them. The on-demand trend is still growing, making this a great option.
8. Blogging or Vlogging
If you enjoy creating content and have a specific interest, starting a blog or vlog can be a fulfilling business with the potential to earn money. Choose a niche, like travel or cooking, and consider targeting underserved audiences. Revenue can come from affiliate marketing, sponsorships, or ad placements.
9. Selling Custom Products via Facebook Ads
Selling custom items like mugs, t-shirts, or posters online is another great low-cost business idea. You can design these items, advertise them on Facebook, and only purchase the items after receiving orders. This approach, often called dropshipping, means you don’t need to store inventory.
10. Broker Bottles for Breweries and Wineries
Craft breweries and wineries have a steady demand for bottles, which presents an opportunity to work as a broker. Partner with a packaging manufacturer and earn a commission on each sale you arrange. This business doesn’t require special licensing, just some knowledge of bottling.
11. Car Service for Hotels and Airports
Partner with Uber or Lyft drivers to set up a car service for local hotels, transporting guests to and from the airport. The concierge in high-end hotels often gets a commission for booking services for guests, so you could offer them a share of your earnings to promote your service.
12. Internet Bots for Data Collection
As more businesses rely on data, web scraping bots have become increasingly popular. These bots can help businesses collect contact lists or market data. Creating custom bots for businesses or offering updated data lists could be a valuable service.
Just Get Started
When it comes to launching your business, Nike’s advice rings true: “Just do it.” The more you wait, trying to make everything perfect, the longer it’ll be before you start earning money. To help you with your startup idea, tools like Looka’s business name generator can be a great start.
Test and Validate Your Idea
How can you be sure your business idea will work? Seek feedback from trusted friends or advisors, or read more about online business ideas to help refine your vision. Even if you’re not ready to launch one of these business ideas, hopefully, they inspire you to dream up your own low-cost startup.
What are some of the best business ideas you’ve come across recently?
