Are you ready to take that leap and become an entrepreneur? That’s amazing! Running your own business has a plethora of awesome benefits. It can help you find that perfect work-life balance and realize your all greatest passions and dreams.
Most importantly, it allows you to enjoy a steady stream of income, on your own terms. Plus, what’s better than choosing who you get to work with? There is nothing worse than an overbearing boss or a needy coworker.
When most people think of starting their own business, they are deterred by the thought of how much money it will cost. But, starting a business that is not capital intensive can be a great starting point for any entrepreneur. Earning huge profits doesn’t necessarily require big investments. In fact, there are many types of businesses that you can start that require little to no funding at all. And for the most part, these types of businesses are really really cool.
If starting a small business has always been a dream of yours, then you’ve come to the right place. Let’s discuss how to start a business with a low investment and some key tips to keep in mind along the way. We’ll also go over some of the most popular low-cost small business ideas to show you just how easy it is to jump into the world of business today.
How To Start A Business With Low Investment
First, let’s take a quick look at how to go about starting a business with a low investment. Below are some key tips that will help guide you through the business planning process. And, more importantly, make your business journey as stress-free and exciting as possible!
Start saving now.
First and foremost, the start-up cost of a business is a super important aspect to consider. Even with low up-front costs and investments, starting a business takes time and energy. Time and energy that you might not be able to devote to other methods of making money. Especially if your business of choice is labor intensive. So, if you’re ready to start your own business, start saving now!
This way, you will have the capital, the time, and the energy to devote to your new endeavor without feeling stressed about where your next paycheck is coming from. Save yourself a little nest egg for bills, regular expenses, and for any unforeseen costs you might incur along the way.
Try to save anywhere between 3-6 months worth of expenses before quitting that daytime job and devoting all your energy to your new business. With a nest egg like that, you can confidently begin your journey with minimal worries.
Don’t be afraid to take the leap.
Sometimes, the hardest part of starting a business is the actual starting part. Taking the big leap, as some might say. So, this is the point where you need to build up that self-confidence. You got this! We believe it and you need to believe it too. Take the risk!
But, how can you build up this confidence? Well, there are several ways. First things first, take some time to listen to these confidence boosting podcasts or these amazing podcasts for female entrepreneurs. Sometimes, the best way to gain confidence is to hear from people who are just like you. People who have been in your shoes.
Other ways to build confidence include stating positive confidence-building affirmations each and every day, reading relevant books and articles, listening to TED talks, or watching free online videos. You can also attend online classes or seminars or attend a confidence-building seminar in-person. With a quick google search, you will find that your options are endless.
Choose something you’re passionate about.
Can you turn your favorite hobby or pastime into a business? Start there! Hobbies like video editing, photography, blogging, and even pet sitting are some of the most lucrative small businesses out there today.
If you’re not sure if your hobby has real market potential, check out these hobbies that can help you make some serious cash. But, we totally get it. Some hobbies should just stay hobbies – that way, you continue to reap all the best benefits from them, without constantly worrying about money.
If this is the case for you, just remember to still choose a business path that you’re passionate about. When you’re passionate about what you do, you will have more motivation and energy to put towards it.
Know your audience.
In order to be able to truly connect with your business and what you put out, you have to know what audience you’re promoting to like the back of your hand. This includes things like knowing their likes, their dislikes, which tone of voice to adapt to, their preferences—all aspects of keeping an audience engaged.
This is a much easier thing to do than you may be anticipating. You can do surveys, you could talk to potential customers directly, you can even interact via social media. The important thing here is to avoid guessing, and just ask people directly where their expectations lie.
The more you get to know your consumers, the better you can serve them. Also, the more likely you are to create something that not only you’re proud of, but that your customers are proud of, too.
Educate yourself.
Once you’ve chosen the business you’d like to pursue, educate yourself! Educate yourself deeply on your product or service, your market, your audience, your new duties as a business owner, and more. You can accomplish this through free online videos, by taking in-person classes, listening to educational podcasts, or by simply doing internet research.
And don’t forget to also educate yourself on things like small business insurance, health insurance, business taxes, payroll, and so on. Remember to also check for any local, state, or federal laws that might affect your business, now or in the future. It’s extremely important to know the ins and out of your business before diving right in.
Pro tip: Try to gain experience with someone in your chosen field. If you want to become a pet sitter, volunteer at your local animal shelter. Maybe you want to get into digital marketing? Apply for marketing internships in your area. If you have the time and resources, try to get some real, hands-on experience. This will have huge benefits in the long run.
Look into other marketing revenues.
There are tons of ways to monetize your business over time, and some of them require almost little to no effort to maintain—so it’s no extra stress on you.
For example, becoming an affiliate marketer is a passive income dream. It’s a great way to promote products and earn commission from sales you generate, all at the same time. Another great thing to add is email marketing. It’s useful for anything from getting a message across to a large group of customers, increasing brand awareness, incentivizing loyalty, or even just simply building relationships with your customers.
If you see fit, using podcasts for marketing is another successful way to reach a wider audience. You may be asking, “why should I start a podcast for my business“? Digital marketing is on the rise—this opens up the possibility for you to engage with your customers, and form deeper, more trusting relationships.
Think about things you want to add as you build your business.
It isn’t a bad idea to go ahead and pre-plan things you want to add as your business grows (because it will!) These will eventually be things you integrate into your business model over time, that will simultaneously increase your revenue.
Think of things opening an online store and paying attention to things that will drive sales—search engine optimization being one. The more you’re able to find those key words that search engines will grab onto, the more likely it is that your products will pop up on the first page.
You could even eventually consider something like a subscription option with a barrier to entry, such as a monthly fee. This may seem like more effort than it’s worth at first, especially if you’re doing a one-time-cost as opposed to a monthly cost, but it’s well worth it. The more niche products and services you offer, the more consumers become interested in what’s behind that subscription, the more money you make.
Look into the possibility of drop shipping.
When you start a dropshipping business, you’re selling products without ever holding onto physical inventory yourself. So how does that work, exactly?
You partner with specific suppliers, and they’ll be the ones who ship your products directly to the customers. This is extremely helpful when you want to focus more on your business models, marketing strategies, building an online store—basically everything on the backend of things.
You’re essentially just hitting a virtual middleman who works for you. It’s a low initial investment, low-risk, and can end up being extremely profitable.
Create a realistic timeline.
Next, it’s time to create a realistic timeline of how you will start your business. A timeline will help you stay on track and better achieve your goals. This goes for your short and long term goals, both of which you should have when starting a business.
First, choose where you will create a timeline. You can use a regular wall calendar, a planner, Google Calendar, or any organizational tool that can help you keep track of events, dates, and to-dos. Form your routine on how you can best organize your day to be more productive.
Then, map out your short and long-term goals. Long-term goals might include a set date for getting all your paperwork done, your official launch date, preparing inventory, creating marketing materials, etc. And your short-term goals will include all the small steps in-between. For advice on setting good goals and achieving them, click here!
When it comes to creating your timeline, here are some tips to keep in mind:
- Be as specific as possible
- Always write neat and legible
- Don’t overbook yourself
- Be flexible
- Leave days for rest, relaxation, and maybe even meditation
- Schedule time for self-care
Make a reasonable budget.
Even though your business requires a low investment, it’s still a good idea to create a budget. Your budget should include, but shouldn’t necessarily be limited to:
- Start up costs
- Supplies, materials
- Equipment, technology
- Payroll
- Marketing/advertising costs
- Software subscriptions
- Travel
- Fees incurred by your business
It should also include a section for your everyday expenses to ensure that you’re setting aside enough money to take care of things like rent, bills, and insurance. And, of course, there should also be a section for emergency and unforeseen expenses. With an in depth budget, you can keep those up-front investments low and make sure you stay on the right financial track.
Listening to financial podcasts for beginners is a great way to get ahead in figuring out budget aspects!
Know your backup plan.
As with any big decision in life, you should have a backup plan just in case your small business doesn’t flourish in the way that you’d hoped. Whether this is a backup full time job, part time job, or other small business, it’s good to keep something in your back pocket that can help you continue to make money in the future.
This is also where saving that initial nest egg we talked about earlier can really come in handy. It takes time to build up clients and really get things rolling. During this time, that 3-6 months of savings can be a real life-saver. At least until the cash starts rolling in.
Think about future partnerships.
Small business owners are great to connect with, especially when you’re first starting out. Partnerships and collaborations are good ways to advertise your products and services, while also building some strong relationships from the start.
Maybe you’re already eyeing another business that has products or an audience that may align with yours—reach out and see if they’d be interested in collaborating, or even comparing and contrasting great business ideas!
Word of mouth is also a huge contender when it comes to starting and growing a business. Even if the business you had your eye on isn’t open to a collaboration, they may know others who are.
Embrace trial and error.
One of the hardest lessons to accept when becoming an entrepreneur is that you are bound to face some level of trial and error. Not everything will work the first time around, and that’s okay! It’s all apart of the learning process.
Whether it’s marketing, connecting with your customers, or maybe even the product itself time to time—don’t be afraid to experiment. You learn from your failures just as much as you do from your successes, if not more. Using a high-performance mindset is the best course of action here. Test your ideas, make mistakes, and use those as building blocks as you move forward.
Get comfortable with uncertainty.
The road to success is rarely linear. You’ll have to expect plenty of ups and downs, some of which probably won’t make sense at the moment. Become comfortable with uncertainty and practice staying adaptable for what’s to come.
Knowing that not everything is going to make sense as you build your business is part of the excitement. It allows you the freedom of adjusting your course of action, without feeling like you’re failing.
Reflect and adapt.
Finally, as you get closer and closer to your official launch date, remember to take time to reflect and adapt. Reflect on your budget, your plan, and your overall business idea and see what improvements you can make. Where can you create more efficiency? What can you do to better reach your audience? Are your marketing efforts working?
And don’t be afraid to ask for feedback. This feedback can come from customer comments and reviews and even special focus groups. It’s also a great idea to ask friends and family for feedback. These are usually some of the most honest and supportive people in our lives, so their feedback is usually the most constructive.
Business Ideas With Low Investment
Now that you’ve got some awesome tips in your back pocket, a plan of attack, and your budget, you’re all set. Just go for it! We can’t wait to see the amazing things you accomplish!
If you’re still wondering what type of small business you will open, we’ve totally got you covered. Let’s go over some super popular small business ideas that can point you in the right direction and give you the inspiration you need to dive into the world of entrepreneurship!
Digital Marketing
Do you excel at creating cool visuals and awesome widgets? Try your hand at digital marketing! Businesses everywhere need someone just like you to help them create appealing marketing campaigns that draw customers in.
If your knowledge of digital marketing is slim, take a free online digital marketing course or do some exploring on the internet. Next, gather all your best work and maybe even create some faux marketing campaigns. Then, get ready to market yourself online. As you market yourself online, remember to market towards the type of customer you want.
Podcaster
Always dreamed of creating your own podcast? Here at Dear Media, this is a small business we know a little something about. And, we have so many resources for anyone looking to make their podcasting dreams come true.
If this is the small business you’d like to pursue, start by reading How To Monetize A Podcast, What Do You Need to Start a Podcast? and Podcast Tips for Beginners. But, those are just the tip of the iceberg when it comes to our expansive library of podcasting material. For a more in depth look at podcasting and what it takes to be an amazing podcast host, head on over to the Dear Media Blog!
Content Creator
Do you love creating content, either for yourself or for other people? Great! Then, this is totally the small business for you! Content creation is fun and exciting and allows you to let those creative juices run freely.
To become a content creator, start by creating a portfolio of your work. Showcase your most popular pieces and be sure to note if any of your work is ranked on Google or published by any popular agencies. Then, market yourself online. You can do this through social media, Upwork, or Fiverr. You can also market yourself in local magazines or in your local newspapers.
Personal/Virtual Assistant
Are you great at getting the job done, no matter the task? Maybe virtual assisting is just what you’ve been looking for. A virtual assistants’ duties usually include managing emails, posting on social media, scheduling, event planning, or anything else that your client needs help with. But, don’t worry! These duties are always discussed and agreed upon before beginning any work.
To become a virtual assistant, you simply have to market yourself and then perform good work. Start by creating a profile on one or many virtual assistant websites. These websites connect you with clients that are in need of an extra hand. These include websites like TaskVirtual, Va Va Virtual, and FreeUp. Once you’ve built a strong client base, you’re good to go!
Photographer
Whether it be for capturing breathtaking nature stills or capturing beautiful and amazing event moments, photography is an amazing small business idea that requires very little upfront capital. Costs include a nice camera, some camera accessories, a few solid memory cards, and a laptop. And while this technology is not cheap, it’s much less than say…the cost of restaurant supplies or the equipment required to start a landscaping business.
So, how can you get started as a freelance photographer? Like many other small businesses on this list, the first step is to gather your portfolio. Show off your best work and highlight your talents to potential customers. If you don’t have a big portfolio yet, take some more photos! You can ask friends and family to model, take a quick trip to a beautiful state park, or hit the beach for the weekend. Go wherever your inspiration takes you!
Then, market yourself online to potential clients. When it comes to photography, the best way to market yourself is through social media, Facebook Marketplace, and even websites like Craigslist. Post your work and let it speak for itself. Sooner or later, you’ll have clients lined up out the door for a chance to get in front of your lens.
Interior Designer
Do you have an eye for interior design? This is your sign to go for it! Interior design requires little to no up front costs because you’re simply designing different spaces. This can be done on pen and paper, in a design studio app, or on a variety of online platforms created just for interior designers like you (SketchUp, Floorplanner, or SmartDraw). Thus, you don’t need to break the bank to create awesome designs for people in need of a little feng shui.
To become an expert interior designer, we definitely recommend taking a few online or in-person classes. A little extra education on your chosen business path will never steer you wrong. Then, put together a portfolio of your best designs and market yourself. This portfolio can include online designs and real designs that have actually come to fruition.
Pro tip: Start by offering free consultations and estimates. This is a great way to connect with clients and show them what you’re all about. Then, once you’ve landed a few jobs and built up your reputation, you can start charging for your consulting time.
Personal Trainer
Do you love fitness? Would you like to make fitness your full-time job? Well, you totally can! With a few simple (and cheap!) certifications and a dedication to helping others, you can become a personal trainer in no time! Requirements vary by state, so be sure to research your own state’s requirements for jumping right in.
To start, you’ll want to take a personal training course. This course will prepare you for the certifications and tests you must pass to become a certified personal trainer. Once you’ve passed these tests, you are good to go! You can start taking on clients, building your portfolio of success stories, and creating a positive reputation for your business. The more happy clients you have, the more likely you are to be recommended to the next person.
Event Planner
Do you love event planning? Does seeing everything come together perfectly for a special event just fill you with joy? Try your hand at event planning! Because you’re simply planning the event, you don’t have to come out of pocket for anything – only your client. Talk about low investment!
Key skills needed for event planning include organization, time-management, customer service, punctuality, and trustworthiness. You’ll also need some light design skills to make sure you can create an awesome, visually appealing event for any occasion.
Start by hosting events in your local area. You can volunteer to help host fundraising events, school events, and even church events. And as you do this, be sure to catalog your success, take photos, and start putting together your portfolio. Then, like many other businesses on this list, you will market yourself to other potential clients via social media, newspapers, flyers, or paid advertisements.
App Developer
Are you a coding genius? Have you always wanted to create your own app? If so, you definitely have to give app developing a shot. The most expensive part of creating an app is paying someone to do all the coding. So, if you can do this part yourself, you are staged to have a super successful business.
When it comes to developing an app, you will, of course, need to invest in the necessary technology. Then, the rest is up to you. You get to choose the idea for the app, how it will run, and what it will look like. How cool? Just keep in mind…the more useful the app, the more downloads it will garner!
Consulting Services
Do you enjoy helping people through hard times? Do you thrive in environments where you can help others get through their hard times? Then take that skill set and use it to your advantage! Consulting services reflect high earnings, lower start up costs, endless growth opportunities, and lots of work.
Becoming a life coach, for example, is an incredibly rewarding business—especially if you enjoy helping other feel good. It’s a great way to contribute yourself positively, while also earning some income.
Pet Sitter
Calling all animal lovers! Last, but certainly not least, we have pet sitting! Pet sitting is one of the easiest small businesses you can start. Pet owners are always looking for someone reliable and trustworthy to babysit their little loved ones. And that’s where you come in!
Duties of a pet sitter usually include caring for an animal while the owner is away. Walking, washing, grooming, feeding, watering – the whole nine yards. Duties can also include administering medications to animals, but this is only in certain situations.
If you already have a ton of experience with animals, you’re probably good to go! But, if not, definitely take some time to research proper animal care. There are tons of free online courses and seminars that help get you up to speed on all things animal care and safety.
Don’t break the bank to start your first business!
Instead, start with a low investment small business! Here at Dear Media, it’s our hope that this article gave you the motivation and inspiration you needed to just go for it! With a solid plan, you can start a wildly successful small business, irregardless of the amount of upfront capital you have to invest.
If you guys have any additional questions or comments, feel free to drop them below. Don’t forget to keep yourself updated on all of the podcasts from Dear Media! For more tips on entrepreneurship, head on over to the Dear Media Blog. Until next time, we wish you all the best of luck with your new business!