Low-Cost Business Ideas With High Profit [19 Examples]

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It’s a widespread belief that starting a business is a complicated and costly process. But in today’s economy, there are numerous low-cost business ideas with high profit you can realize to turn a profit. If you’re interested in starting a business with minimum investment, this article addresses the best low-cost businesses to match your interests and skills

Starting a Business

Starting a business can sometimes be complicated—some of the most lucrative businesses can be difficult to get off the ground and running. But not all businesses have a complicated start-up process

If you opt for starting a small business, you need to keep things simple and costs to a minimum. First and foremost, you should create a business plan for your future endeavor—a strategy that needs to specify the business operations and outline how your business will be different from other competitors on the market and in which way you plan to turn it profitable. If you don’t know how to go about the business plan, you can learn how to compose a business plan or turn to a software for making business plans.

With low-cost startup businesses, you need to be careful with the funds you have available. If you’re self-funding, you need to consider an additional 20% of the sum for any incidentals that might pop up during the process. (Filing all the necessary paperwork costs a significant amount of money.) But before filing any official documents, you need to decide on the type of entity you want your business to be, such as an LLC, a sole proprietorship, a partnership, or some corporation. (C corporations are recommended for new businesses.)

Whichever of these inexpensive startup businesses you choose, you need to keep the business finances separate from your personal ones, which will make your life easier come tax time. One of the most common structures for small businesses is a Limited Liability Company because it has the tax benefits of a partnership while retaining legal protection equal to that of corporations. In addition, you can learn more about how to start an LLC or find the perfect LLC service that can form the company for you.

Make sure you’re informed about all aspects of the business available to you—for example, to form an LLC, you need to list a registered agent on the formation documents, so you need to find an ideal registered agent

NOTE: The owner of a single-member LLC is not personally responsible for any legal actions taken against the company or any accumulated debt—the liability is limited only to the company’s assets

A High ROI Business

Investors are primarily interested in one thing: return on investment (ROI). The return can depend on numerous factors: the type of investment, the risk-level of the business/industry the money is invested in, and the timing and the state of the market at the time of the investment. 

To ensure that you’re making an intelligent investment in businesses with low startup costs, you need to calculate the business ROI by dividing the return of the investment by the cost of investment. The result is expressed as a percentage—the higher the percentage, the better the ROI. 

What Is a Good ROI for a Startup?

The average ROI in the past few years has been around 10%. But one needs to be aware of constant fluctuations due to various factors, such as the state of the industry the business is operating in and the rate of inflation

Determining whether an ROI is reasonable depends on the investment itself. A double-digit ROI is generally considered a good return for startups. Before investing, do your research, get to know the business, and have an in-person meeting with the business owners. 

NOTE: 10% ROI is considered an outstanding return for large corporations, but anything between 15 and 30% is regarded as a good return for small businesses. 

Key Takeaways

Starting a business doesn’t have to be costly. There are numerous low-cost businesses you could form.
The process of starting a small business is not too complicated; you need to decide on the type of business and file the necessary paperwork.
A good return on investment (ROI) for small businesses ranges from 15% to 30%.
You can consider any of the 19 offered business ideas (below) for a high profit at a low cost

Low-Cost Business Ideas With High Profit

Now, look at 19 businesses ideas that might work for you:

Tutoring Services

Teachers can take on the role of tutors. To become a tutor, you need to have a degree in a particular discipline and have an educational background. Besides a degree, there are no specific requirements for this business endeavor. If you were wondering how to start a small business without money, tutoring is a good option. And the development of video software has made in-person lessons redundant—so you don’t even have to have a space to conduct classes. Depending on your education level and location, you could earn somewhere between $25.00 and $65.00 an hour tutoring. 

Cleaning Services

Cleaning is a most profitable small business, regardless of whether it’s a general cleaning service or specializes in a specific type of cleaning (office, residential). Although cleaning supplies are costly, you have no other expenses than the supplies and some maintenance equipment. Additionally, you don’t need any specific qualifications to start this business and don’t need qualified personnel—and labor costs are low. Smaller cleaning businesses can make between $50,000 and $100,000 per year, which are substantial profits, especially if you’re operating alone. 

Personal Training/Fitness

Fitness centres and gyms are high profit business ideas. But they were heavily impacted in 2020 due to the COVID-19 pandemic. Fortunately, fitness instructors had overcome the barriers of the pandemic and adapted to the new normal of their clients’ needs. Many classes were moved online and outdoors to accommodate the increased demand for exercise amid quarantine. 

To become a trainer or fitness instructor, you can take a course and pass a formal certification exam—but this prerequisite is not set in stone. Some of the most popular social media instructors are self-taught. The fees for hiring a personal trainer range from $25.00 to $100.00 an hour, depending on expertise and location. 

Digital Marketing

Becoming a digital marketer doesn’t require a formal degree in marketing; you simply need to show some expertise in the field and have a good internet connection. If you were wondering, ‘what business can I start with no money,’ then digital marketing is the answer for you. 

Digital marketing agencies often provide a variety of different services. But if you’re running the company as a solopreneur, you should focus on the one area you excel in. You can even run your business from a home office and earn more than $60, 000 per year.

Resume Service

One of the most profitable small businesses in 2021 includes a resume writing service. The large number of people seeking employment leads to market oversaturation. A good resume can be the deciding factor in whether you’re hired or not. So, many turn to professionals to write their unique resumes, a role taken on by writers who’ve decided to specialize in this field. Depending on how advanced you want your resume to be, you can expect to be charged between $100.00 and $400.00

Online Course Sales 

If you specialize in any area, you could always create an online course for it and teach others how to get better in your specialty—it’s the easiest business to start with no money. You don’t need advanced qualifications to do this; you simply need to have a certain amount of experience and present it to an audience. The startup costs are insignificant, and you could generate a very high ROI if your course is successful. Some have made up to $1 million in the first year of launching their course. 

YouTube Videos

A popular low investment business with high profit is YouTube video creation. Video creators earn a small portion of the ad revenue their videos bring in. To get into this business, you don’t need any specific qualifications; you need to invest your time and effort and have simple video equipment

Then start a YouTube channel, where you’ll be able to post the videos you’ve created. If you post high-quality content (and often), you’ll attract a larger number of subscribers and get more views. You could earn substantial profits if your channel is successful—some have made millions from YouTube. 

Delivery Services

One of the low-cost ideas for a business with a high profit for 2021 includes starting a delivery service. As a result of the pandemic, many are shopping online and ordering take-out. Although there are some equipment and hiring costs to start this business, it’s usually low.  And you could always opt to make deliveries yourself (with your own vehicle), earning up to $40,000 per year. 

Real Estate

Real estate is among the high margin businesses. You could earn a lot of money dealing with realty—simply take an online exam to get certified. The best realtors make more than $100.000 per year. New realtors can learn what they should do to achieve this kind of success, or they can opt for using one of the real estate lead generation companies to help them turn a profit. 

App Development

One of the businesses with low startup cost includes app development, which requires no specific level of education; you simply need to have experience in app development. Then, you can create your own innovative product or outsource your services to other companies. If you’re a successful app developer, you can make up to  $7, 500 per month. 

Translating

One of the low-cost high profit business ideas includes translation services. The only requirement for this is that you have good knowledge of the languages you’re translating to and from. You don’t need anything else to start this successful business. A translator’s median salary is $51,000 per year or more.

Accounting Services

The accounting business often tops the list as the most profitable business in the world. Businesses and individuals hire accountants for bookkeeping, financial planning, and filing tax returns. If you have an undergraduate degree and some practical experience in accounting, you can start a business for almost no cost. You can even base your business from home. Accountants’ wages range from $55, 000 to $95,000 per year. 

Reselling Hosting

If you’re wondering how to open a business with no money, good reseller hosting is a nice option. You won’t have any startup costs; you simply need a computer with ample hard drive space to rent out to other parties while staying at home. You can make from $8.00 to $12.00 an hour

Event Photography

Photography is a business you can start with no money. If you own a camera and are good at capturing moments, then this might be the right choice for you. Local economies rely heavily on event photography (weddings, proms). Photographers can make between $11.00 to $175.00  an hour, depending on skills

Vacation Rentals

One of the best business ideas with low investment and high profit includes renting out your unused property as a vacation home, in addition to an extra bedroom. Making sure the space you’re renting is clean and tidy, you could list it on such sites as Airbnb or VRBO Plus. You could expect to make between $11,000 and $33,000 per year, depending on the location of your property. 

Catering

When thinking about what business makes the most money, catering comes to mind. To start a catering business, you need a kitchen, a form of transportation, and a love for food. Catering is one of the jobs in which you can earn a significant amount if you’re good at it. Top caterers often make more than $80,000  per year. 

Home Improvement

Home decor is at the top of the list when considering the best businesses with low startup cost. But this innovative service requires some training and equipment and an eye for detail. Even though some costs are required to start the business, decorators and interior designers make from $42,000 to $54,000 per year.

In-Home Senior Care

If you want to know how to start a business from nothing, you should consider senior care. Many seniors need help around the house with various errands. You could establish an in-home senior service, provide assistance for your recurring clients, and charge them around $27.00 an hour. 

Life Coaching

A life coaching business is among one of the low-cost business startups. If you’re adept in giving advice and providing help for clients, you could start this kind of business, work with people one-on-one (in person or online), and earn up to $100,000 per year. 

Conclusion

There are many small investment ideas you could turn into profitable businesses. But before you venture into this, do some market research and ensure that the business you’ve chosen can be profitable in today’s economy. Then, whatever you choose, make sure that you’re qualified for it and that it’s the right fit for you. If you’re a dedicated and persistent entrepreneur, you should be able to operate a successful business.

FAQ

What is a good ROI for a business?

Large businesses are successful with a 10% ROI. Smaller, part time business ideas with low investment should have at least 15%  ROI to be considered successful—although it’s better if they have up to 30% ROI.

What are the most profitable small businesses?

A highly profitable small business includes accounting, app development, digital marketing, online course creation, YouTube content creation, and several other businesses that can turn high profits, depending on current trends.

What is the cheapest most profitable business to start?

Small businesses that make the most money with no significant investments include tutoring, translating, resume writing service, online courses, life coaching, and other similar services that require only time and effort.

What business can I start for $1000?

Many small businesses with low startup cost (up to $1,000) require only a small sum of money to get started, including cleaning services, in-home senior care services, vacation home rentals, and delivery services, as well as other businesses of this kind.

What business earns the most money?

Low-cost business ideas with high profit include accounting, real estate, marketing, and app and software development. These businesses generate the most significant return in the small-business world.

ABOUT AUTHOR

I’m an entrepreneur by profession and an artist by passion. I do business to pay the bills and make music to bring the thrills. Thanks to a bachelor in Business Administration, I'm well-versed in all things business. Owning a construction company certainly helps, too, but it also brings out my love for building and home protection.

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