How to Start a Business With Minimum Investment; the simplified guide
One of the most desirable things an aspiring entrepreneur wants, is to start a business with a low initial investment, and high long-term profits. For achieving something like this, they seek every possible way to make their business run smoothly and increase revenue – thus, profitability.
If you accidentally landed on this article, chances are you are looking for a business idea with low investment.
Not only you, nowadays we find several young and dynamic individuals who aspire to start a small business and follow their dreams than work under someone else. They are looking for low investment business ideas and high profits. ‘Return on Investment’ or ROI has become a predominant factor in setting up any kind of business. It’s a weighing scale that ultimately decides whether to go ahead or not. Are you brave enough?
By default, entrepreneurs develop common misconceptions when considering capacity building and money talks. Most of them think that earning big profits requires huge investment in the form of money, labor, equipment, etc.
But that’s definitely not the situation if one is aware of the variety of business ideas that can be started with minimum investment. Do you have less capital to invest or even zero? Are you looking for most profitable business with low investment? Here, in this article, I have compiled business concepts with low investment and high returns. These may help determine the most profitable low-cost business ideas with high profit. With upgraded technology and machinery, now it’s also easy to start a manufacturing business with low investment. So, here’s how to Start a Business With Minimum Investment!
A Cost-Effective Reasoning
Starting a business can seem like a mountain of a task. But the amount of time, money, and risk involved all depends on the business idea you chase. Contrary to popular belief, there are actually many ways to start a business that let you focus less on the logistics and upfront costs and more on getting started.
Dear Mr Bootstrapper. Would you like to consider a few business ideas that won’t cause you to drop everything else? It isn’t that easy a process you know. You still need to come up with a solid idea, build a brand, put effort into marketing, and provide excellent customer service. But, there are ways you can bypass many traditional start-up costs, such as initial inventory, warehousing, and retail space.
Even today, we see a lot of young and dynamic people wanting to quite the 9-to-5 grind. They want to start their own business, but the truth is, a majority of this bunch is running out of good business ideas. What’s going on here?
Starting a business, they say, is not about ideas; it’s about making ideas happen. But aspiring founders often find themselves struggling – with investments and ideas – before they join the hustle. You may have a bunch of ideas in your mind, but there are times when those ideas lack proper direction and you potentially find yourself switching plans. This is the period where most aspiring founders struggle to find a balance.
Starting a business needs determination and confidence, but you also need to be very clear about your business idea before you step into the entrepreneurial arena. Here’s a list of a few business ideas that could help you get to that place.
Designing And Selling Print-On-Demand T-Shirts
Another drop-shipping model, print-on-demand puts inventory, shipping, and fulfilment in the hands of a third-party supplier. But unlike the drop-shipping idea above, the focus here is on customizing these products with your own designs to create something original.
T-shirts, hats, phone cases, hoodies, tote bags, and more become canvases for your creativity. You can think up witty slogans for developers or references that resonate with cat owners—if there’s passion and pride within a community, there’s a potential t-shirt business you can start.
With many print-on-demand services, you’re paying per-product, so the base price per unit will be more expensive than if you were to order in bulk. But the advantage is that if a certain t-shirt design doesn’t sell, you haven’t actually paid for the item yet (only the design if you outsourced it).
Even if you’re not a designer, you can find a designer to work with using freelance sites like Fiverr, Upwork, Dribble, or 99Designs. There are a variety of print-on-demand platforms you can work with, many of which can be integrated with your local store setups for seamless order fulfillment. However, be sure to always order a sample of your product (often offered at a discount) to make sure your custom products look good.
Do You Like Making Posters, Greeting Cards and Prints?
If you’re artistically inclined or know how to use a camera, there’s a chance you could dropship using print-on-demand business models – allow others to physically own a piece of your work. Just make sure you have the rights to the content you intend to print, unless you have access to public domain assets that you can easily monetize. Sounds interesting and simple, yes?
If you’ve already got an engaged online following, say you’re a cartoonist or an urban photographer, you’re in an especially good position to give this business idea a try.
Depending on the printer you work with, you can turn your work into products such as posters or framed wall art, even greeting cards. There are plenty of digital templates and mock-up generators like Place.it that you can use to showcase your products without having to print out each item and conduct your own photo shoots.
Side note: As we go along with the pace of this article, it is possible to sometimes pause and think about what you just read. Brainstorm a bit and locate your thoughts. You need to be in the right state of mind to pursue something worthwhile.
A Business Model Inspired By Charity
No, charity isn’t a person here. Just pay attention, alright?
Starting a non-profit company isn’t the only solution to a better world. If you lead with an open heart and aim to set aside some profit for a cause, this helps the social network to develop a unique way to position itself in the market while addressing the issues it cares about.
Play with destiny, a bit. (Again, not addressing anyone here!)
Around 91% of the consumers we’ve surveyed have stated that they are likely to switch to a new brand with similar products and price-range if it was associated to something good. It is true that many social enterprises offer their own products, but it is also possible for you to come up with a business idea and partner with a non-profit. You may also act or choose to execute that social good with your own hands, as long as you maintain a certain level of regulated transparency.
As part of your marketing, you can share the impact that your customers are having by supporting your business, such as a blog post covering your work in the community or a real-time impact calculator on your website. You can set it up to donate a specific amount or a percentage of sales, or ask your customers to add a donation at checkout.
An Intangible Service
Ever thought about how time could also be a part of your inventory? With service-based businesses, time is your biggest and safest investment. You’ve only got a limited supply of hours in your day. However, that makes it easier to get up and running if you’ve got skills that are in demand.
Writers, designers, developers, photographers, house cleaners, fitness trainers, and more can build a business around their skills. They can also expand their business with unique ideas, to create additional revenue streams by “productizing” their services through physical or digital goods. It sounds fancy like a bit of wordplay, but, surely the possibilities certainly seem endless! For example, a photographer can service a local event while selling prints online through an Instagram account – or any social-networking account. A copywriter can sell a copy-writing swipe file of high-converting sales copy. Coupling your service-based business with physical products can give you another source of income that isn’t directly tied to your time.
You can also offer your services through freelance marketplaces like Upwork. An open-sourced marketplace helps increase your chances of getting discovered by people who require skills offered by someone as experienced as you!
Inspiring a Futuristic Fashion Sense
Do you love fashion? Do you think you have a unique sense of style? If you aspire to work online for the sake of ‘preaching’ fashion, consider creating your own online fashion boutique. You don’t need to become a fashion designer either—you can simply curate items from other vendors into your own online store (using the drop-shipping model we discussed earlier).
From dresses, shoes, swimwear, accessories, and more, you can build your own fashion brand using one of the several product sourcing apps offered online. Or you can opt for a big-risk ideology and code your way towards something of your own. Model it with your own product photos and social media posts, and attract an online following that sets a new trend.
From Your Own Blood and Sweat – Soul Crafting
If you’re a maker—whether you DIY soap, candles, sauces, or pottery—you’re in a unique position to find an online business idea since product development and procurement are literally in your hands.
Unlike many of the other ideas on this list, you will need to consider shipping and inventory management, but you can start out simple on a per-order basis or with a small batch until you start generating consistent sales.
Initially, many people – or makers – start with a part-time home-based business model, selling from their homes, managing local logistics, and – being first timers – focusing on building their supply chain by relying on trusted contacts. Eventually, such businesses tend to grow into a full-time venture after the demand for their products has been successfully established.
If such a situation arrives at your end, be mindful of any regulations in your product category. This includes anything that a consumer might eat, inhale, or apply on their skin.
Event Management – Do You Like Planning Weddings?
In Pakistan – no, in the ENTIRE WORLD – wedding is a big, BIG industry.
It is something which is never off season. With just some of your managing skills and brains, you can easily earn a lot. The best part of this business idea is that all you need to do is take, give and earn in between. A wedding business can be started with minimal investment, and you can surely expect to receive high returns in this line of work.
You can plan to set up a team that comprises logistics, social media networking, operations & strategy, etc.
A Little Science and Magic – The Survey/Captcha Puzzle
An earning mechanism not at all painstaking; completing surveys and solving captchas can generate revenue while staying at home. The skills require basic English knowledge, knowledge about numbers and internet. The earnings may seem small, but when accrued, the time and efforts show results. It’s important to know that scammers are widespread in this domain. So, do careful research before signing up for some survey company, to avoid indulging in the illegitimate ones. Also, if the company is asking for registration fees, then that’s your cue to know it’s a fraud site. You can also Google “scam” after mentioning the website name and you will get all the information needed.
The .COM Scenario
Hmmm. What does it mean to trade domains on the World Wide Web?
Did you know, that selling of .com and other web domains is a lucrative field? But expertise and initial investment are required before stepping into the shoes of a domain trader. The job revolves around identifying domains that hold potential, waiting for the right opportunity, and then selling it to interested parties, usually companies and organizations. Here you have to be creative and also have to research a lot. You need to search for the brands which you think is going to be popular after one or two years, then buy a domain name by the name of the brand. That way when the brand becomes popular, they will have to buy the domain name from you at the price decided by you, and that’s how you will make money. You can buy domain names from GoDaddy, Namecheap or any other websites. It is one of the most profitable businesses in Pakistan with a low investment.
Note: You may not appreciate the waiting game – as is the case in all businesses – but the essence of acting on the right time generates results much suited to your expectations; no, far exceeding the goals you set initially. As mentioned earlier, time is the biggest product in your inventory – but in this case, time is the best way to achieve a desirable set of outcomes.
Breathe – Sell Your Wisdom
Podcasts are an exciting alternative to developing physical products. In essence, audio and video sessions constitute podcasting – although it’s generally an audio-file that accounts for the service, they’re also digital files that subscribed users can download or listen to online.
You can start your Podcasts just by using your smartphone and earphones. But before starting your Podcast channel, make sure that you have something that can add value to people’s lives. You can earn money by including advertisements either in the beginning, middle, or end of the session.
Essentially, audiobooks are another form of Podcasts.
People like to listen to audiobooks more than reading a book. You create your website where you can sell your audiobooks; that way, you can earn a huge amount of money both from the website traffic, and also by selling the audiobooks.
Become An Influencer – TED Talks?
Considering a situation where you have a humongous following on social media, your posts have attracted a lot of views from the reader-base. If you are looking to push a new product in the market – specifically another company’s product – then your promotions could get you paid a lot of commission-based mark-up. If you can generate more sales to the company, there are chances that you can turn out as their brand ambassador. People are getting heavily paid for it. Also, if you are a good model cum influencer, you can catch the eye of modelling companies and get a kick start to your career. Influence your way towards a successful career in third-party consumer building!
The creamy layer of wealth in our country – Pakistan – has a significant amount of people with a habit of spending heavily on expensive stuff. They are crazy about posh clothing, branded jewellery, high-end computing systems, and luxury in general.
Come to think of it, furniture is one of the most valued products as an interior. The amount spent on these luxury interiors are high and therefore the level of expectation is also high. The style, design and quality of the interior elements which make up the value of the product are the factors that every decoration store keeper should prioritize their focus on.
Interior designing business is a great deal, but something like this requires a potential suitor to have incredibly creative skills. An interior designer has a creative side for art and aesthetics, and gets paid for providing the same to its clients. Therefore, it must be of good taste and match the thinking of a potential customer. If you deal with the unique, fancy and stylish furniture and are able to target the right people, then the profit margins in this business tend to surge upwards. In special cases, you may opt for a work-from-home business model by offering up-to-date and expert consultancy to interested parties.
One’s Need is Another’s Gain
Perhaps the easiest part of a simple-minded, yet serial entrepreneur is working on a business that involves literally everybody. Grocery is the most needful of businesses for the selling of different goods that humans need on a daily basis. This is a profitable and no-loss business as grocery is the daily basic need for all humans. You just have to invest a few thousands to buy some inventory from a seller and resell it in the market. You can make profit on every product sold. You can start from a mall grocery shop and gradually expand as per need.
All you need is commitment to simplicity. Play the odds by being the bigger person and transform your way of thinking. Working on a grocery-based business doesn’t require a special skillset, but most importantly, one’s capability to get over the self-esteem barrier to do something that others refrain from doing.
Consultancy – Personality Study
Do you have what it takes to help people get things done? Try running your own consultancy for a change. Experiment!
Consultancy firms have agents who help people get things done. It reduces people’s decision making time, involves zero investment, and guarantees something inevitable: A Significant ROI. Put on a set of VR goggles and just imagine for a second…
Envision India’s TATA. The company works on a variety of high-end, yet affordable products that engulfs a huge stake of the Indian Retailer’s Market. But, the biggest asset of the company is its image of a pioneer consultancy. They have experienced agents who assist people getting the things they need. From a legal to financial to technical plethora of intangible services, you can imagine the kind of returns TATA generates on an annual basis.
Here’s a food-for-thought: Experience and success in your niche dictates the level of profitability you want to enjoy. The following two-pointer explains a few types of consultancies you can run:
Digital Marketing Consultancy
With more and more people coming online for the first time and deciding on who wants to rank number one on Google, Digital Marketing Consultancies are a trending SEO-based game. With a good knowledge of Search Engine Optimization or social media, you can easily setup a DM Consultancy Firm and help the business grow in minimum time required.
With more and more people trying to get fit and smart, dietary consulting has become quite the service to offer. If you can learn the principles of nutrition, you can make good money with little to no investment.
Have You Made Up Your Mind?
Look. You need to understand an important rule here.
The types of business ideas I’ve discussed here may NOT yield a 100% success. Business ideas and their success depend on trends, competition, demography and numerous other factors. Select a business based on your education. Consider the competency of your field knowledge and experience. I advise you to not jump into business as it is in high demand. Make a business plan, study all legal and commercial aspects before jumping into unknown ventures.
Remember, your success in business is determined by various skills possessed by you. Some important skills for a businessman are communication, financial knowledge, leadership, innovation and passion for excellence. Apart from all this, please understand that it takes time and money to establish a viable business. You need to mentally prepare yourself to invest not just money, but also time, before expecting profits.
Entrepreneurship is living a life – a few years – like most people don’t even dare to think about. This way, you can spend the rest of your life like most people cannot. Do your homework, select the best possible business idea, work hard and let success be the sound of your footsteps!