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Starting a business doesn’t have to break the bank. Many small business owners start low-cost business ideas with high profit and become extraordinarily successful. We’ve talked to hundreds of small business owners to find out the recipe they used to turn small business ideas into a profitable business model. My personal favorite interview was with the candle business owner, who’s a phenomenal success story! She lost her job in the pandemic and turned $500 into $150K within 3 months.
We share some of the most successful small business ideas with you. Just click on the category you like to find out more.
Make sure to read them all to find a low-cost business idea you’ll love. Authors NoteMany businesses that are cheap to start have low average profit margins. This is because people will attempt to start them and not put in the time or money to market them and implement useful business systems. These business owners earn a negative profit margin, which brings down the average profit margin. We rank these businesses based on what business owners make when they dedicate themselves to implementing industry best practices. 7 High-Margin Businesses That Are Cheap to Start #1. Cleaning business• Average Annual Revenue: $74,880 A cleaning business is one of the most profitable business ideas that you can start from your home with just a few hundred dollars. All you need is basic equipment like a vacuum, broom, and mop, and standard household cleaners—things that most people already have. While 6.7% doesn’t sound like a lot, many of the costs are items like your salary and home office expenses, which help with your cost of living. If you have more cash available, you can invest in marketing to grow your customer base faster. That was part of Chris Mondragon’s $5,000 startup budget for Bumble Bee Cleaning Services (formerly Queen Bee). Today, his cleaning business averages $1.5 million a year in revenue. Chris shares his business model and how to get started step-by-step in his 7-figure Cleaning Business Blueprint. He also shares some of those insights in this YouTube interview:
• Average Annual Revenue: $182K+ Vending business operators earned more than $10 billion in revenue in 2022, a market increase of 3.8% compared to 2021. That growth is projected to continue, making it one of the top profitable business ideas for entrepreneurs looking for a flexible schedule and passive income potential. The cost to start a small business in vending depends on a few factors. The cheapest way to start is by buying a few used machines and finding high-traffic places to put them. If you have a larger budget, you can save yourself some time and work by purchasing an existing route. Adam Hill of Hill Vending explains how he built a $60,000-a-month vending business in The Vending Bootcamp. He also talked to UpFlip about how to start such a business the right way in this YouTube interview:
Another nice thing about vending is that it doesn’t require any previous knowledge or a large time commitment. You can make good money in vending with just a few hours invested each week, making it a great low-cost business to start as a side hustle. #3. Consulting business• Average Annual Revenue: $363,049 Consulting can be a very profitable business idea, and you don’t need to invest much to start a successful business. The main thing you need is expertise, either in a specific industry or in key areas like leadership, technology, or business systems and management. Ryan Gromfin turned his experience managing 5-star restaurants into a $35,000-a-month restaurant consulting business. Hear how he did it here: The most challenging part of starting your own business as a consultant is building your brand and reputation. Leveraging your professional network can help grow your consulting business faster. You can also build authority online through your social media accounts or by sharing knowledge on a blog, podcast, or YouTube channel. #4. Event planning business• Average Annual Revenue: $34,380 Planning events can be stressful and time-consuming, even when it’s something fun and exciting like a wedding or a kid’s birthday party. That’s why people often pay professionals to do the planning for them, and what makes this a great business idea for skilled planners and multitaskers who can rise to that challenge. Event planning is a low-overhead business and a cheap business to start from home. The client is the one who pays for the space and supplies, and there’s no need for expensive equipment or complicated licensing to get started. What you will need are connections, both with other businesses in your area and with people who will book your services. That’s why an event planning business is a good business idea for people with experience in hospitality, tourism, and food service who already have a professional network they can build on. You can still start a profitable business without this background, but it will likely take longer to grow your client base and revenue. #5. Floor coating business• Average Annual Revenue: $1,291,480 Epoxy floor coating is a popular way for businesses and homeowners to protect their floors in spaces like garages, basements, warehouses, or factories. It’s also a with a projected CAGR of 5.5% through 2030. This growth and revenue potential puts it among the top new business opportunities for entrepreneurs with backgrounds in construction and similar areas. While the startup expenses are higher for a floor coating business than some on this list, it still deserves a place among low-cost business ideas. You can expect to spend around $5,000-$8,000 for the equipment and initial inventory, plus another $1,000-$2,000 for your license, permits, and insurance. Once you’re up and running, you can expect to see margins of 38-45% on the revenue you make. You can learn more about starting an epoxy business in this interview with Wise Coatings founder Brandon Vaughn: #6. Wedding photography business• Average Annual Revenue: $50K Though it took a big hit during the height of the pandemic, the wedding industry has bounced back in a huge way. The number of weddings in the U.S. spiked to 2.47 million in 2022 and is expected to remain above 2 million a year through 2025. That makes this the ideal time to start a profitable small business as a wedding photographer. If you’re starting from scratch, you will need to budget around $3,000-$5,000 for equipment. The basic supplies you’ll need and their average cost are below: Professional camera ($1,000-$2,000) Camera lenses ($1,000-$1,500) Lights and backdrops ($500-$1,000) Memory cards and storage drives ($100-$150) Tripod and other accessories ($200-$250) Photoshop or other editing software ($20-$25 per month) If you already have high-quality photography equipment, though, it’s a very low-cost business to start. Connecting with event planners, caterers, and other small business owners in the wedding industry is the best way to start building your client list as a wedding photographer. It’s also smart to make your own website where you can showcase your past work. You can find more advice on starting a photography business in this how-to post on the UpFlip blog. #7. House painting business
• Average Annual Revenue: $76,857 Unlike other jobs in the home construction and repair business, you don’t need specialized training or certifications to start a painting business. In fact, all you really need is basic equipment like a ladder and some brushes. As you grow, you can invest your earnings into more sophisticated equipment like scaffolding or paint sprayers. You can make even more with a painting business if you have specialized skills like painting murals or using trendy painting techniques and styles. There’s a big demand for basic painting services too, though, in both the residential and commercial sectors. The variety of customers available is what puts painting among the most lucrative businesses to start. The industry grew at a CAGR of 4.1% from 2018-2021 and is expected to grow another 5.8% through 2030. You can learn more about how to start a painting business by listening to this interview with Arizona Painting Company owner Doug Caris. He’s grown the business to more than $2 million in monthly revenue since he bought it in 2014: 6 Easy Start-Up Businesses to Own Your Own Business Today
• Average Annual Revenue: $241,230 Like other cleaning businesses, a mobile detailing or car wash business has a low barrier to entry. It doesn’t require any specialized knowledge or prior experience. It’s also a low-cost start-up business, and you can get all the tools and supplies you’ll need to start for around $500-$1,000. You can make good money with a car wash business, too. The industry has fairly high profit margins, especially if you operate as a solopreneur. To give one example, GoDetail averages 60% profit on their $900,000-a-year revenue. Hear how they started in this video:
• Average Annual Revenue: $16,867 Being a personal trainer is a lucrative business idea for athletes, fitness instructors, and people who love going to the gym. Your knowledge of health and exercise is the main value you bring clients, and it’s an easy start-up business if you already have this expertise. Just look at how Bedros Keuilian used his passion and expertise in fitness to build several successful franchises and a business coaching company to help motivate others to unlock their true potential.
One reason a personal trainer is a low-investment business is that you don’t need a physical space or your own equipment. You can start off working with clients in gyms, community centers, or their own homes. Some states do require a personal training business owner to have certification through an organization like NASM or ISSA, which costs between $500 and $2,000 depending on the program. It’s also smart to get liability insurance, which will cost around $200-$300 a year on average. Those are low costs compared to many profitable business ideas, though, and the ongoing costs of running a personal trainer business are minimal. #10. Landscaping and lawn care• Average Annual Revenue: $272,790 Landscaping is among the best small business ideas for people who love being outside. Lawn care has a low barrier to entry because you don’t need specialized training or equipment to get started, just a lawn mower and a few other basic garden tools you can get at any home improvement store. The downside of working in lawn care is that it can be a physically demanding job that sometimes means working in unpleasant weather. For some people, though, the chance to work outdoors is a pro, so it all depends on what you want from your employment. As far as what you can make, a landscaping or lawn care business owner can easily earn $10,000 or more a month. Trevor Kokenge started Plan-It Vision with $300 out of his apartment, and now he makes around $22,000 a month with 30% margins. Hear his story in this interview:
• Average Annual Revenue: $34,380 Similar to dog walking, a pet sitting business is among the best small business ideas for animal lovers to start with little money. The only expenses to start your own business as a pet sitter are the license and branding materials like your own website or listings on sites like Craigslist and Yelp. Being able to care for a range of different animal species expands your potential for pet sitting clients. While dogs and cats are the most common, you can charge a premium to watch exotic pets like birds, reptiles, or tropical fish that have unique, specific care requirements. #12. Pressure washing business• Average Annual Revenue: $64K Pressure washing is another top option for people who like physical work seeking low-cost business ideas to start. Just invest a few hundred dollars into a professional power washer, and you can start cleaning people’s homes, sidewalks, and driveways. Chase Lilie started his power washing business, Wizard Wash, with $3,000 as a teenager. In his first year, he grew to $12,000 a month with margins up to 60%—and that’s just the beginning. Hear how Chase did it in this interview:
• Average Annual Revenue: $147K Custom apparel is a huge market. It’s already a $3.2 billion industry, and it’s expected to grow by another $1.8 billion by 2027. That’s because lots of people need these services, from individuals and community groups to sports teams, small businesses, and corporate clients creating marketing and branding promotions. You can start a custom apparel business for just a few hundred dollars if you do it as a print-on-demand online store. A brick-and-mortar location has higher start-up costs but also opens up the potential for more revenue, so it all depends on your growth goals and budget. Sanford Booth makes around $500,000 a year with his t-shirt printing business, and that’s a very achievable revenue in this industry. Hear how he got started in this interview:
• Average Annual Revenue: $60K-$160K Affiliate marketing is among the top low-cost business ideas with high profit and the potential to earn passive income. As an affiliate marketer, you promote other people’s products and services, earning a commission whenever a customer buys through you. Being an affiliate marketer is a great way to earn money working anywhere, anytime. That makes it ideal for travelers and digital nomads, and it has low ongoing costs since you don’t need to worry about inventory, shipping, or other costs associated with eCommerce businesses. It’s also a profitable online business for people who are active on social media platforms or otherwise have a large online presence. Matt Diggity earns around $400,000 a month from affiliate marketing. Listen to this podcast interview to hear his advice on how to succeed in this space: #15. Social media marketing or digital marketing business• Average Annual Revenue: $817K Social media marketing is the best way for small business owners to engage with customers. Not every business owner has the time or skills to get the full value out of their social media accounts, though. That’s what makes being a social media manager such a lucrative business idea. With a digital marketing firm, you can earn money from your knowledge of social media platforms while helping other businesses expand their brand and business. Not only is there a high demand for social media management services, and the potential for high profit margins, but a digital marketing firm is among the best low-investment business ideas. You can run it easily from home and don’t need any specialized tools or equipment. All you need is to attract clients and you can start making money online from your skills. Jason from Socialistics shared his advice on how to start a social media marketing firm in an interview with UpFlip. Check out his interview if you want to learn how he makes $500,000 a year from providing social media management services:
• Average Annual Revenue: $36K-$50K If you’re looking for the best business to start with little money, dropshipping is a great choice. All you need to start is to set up an online store—no need to worry about inventory, shipping, or the other expenses and hassles of selling products. Building a customer base is often the most challenging part of starting a dropshipping business. The most lucrative businesses in this niche are run by people who excel at digital marketing, though you can also learn those skills as you grow if you don’t have them from the start. Heather Johnson started her online business as a dropshipper as a side hustle when her hours were cut during the pandemic. She quickly grew it into her full-time business. Find out how she did it in this interview: #17. Offer online tutoring services
• Average Annual Revenue: $18,170 If you’re skilled at explaining complex concepts and are looking for low-cost start-up businesses, a tutoring business can be a great choice. While the average rate for an online tutor is around $20 an hour, that includes student and part-time tutors. Those who have expertise in advanced subject areas can earn $50 or more per hour for their time and knowledge. Not only is being a tutor a low-cost business idea, but it’s also incredibly easy to get started. You don’t even need to create your own website to run with this successful business idea. Just set up a profile on one of the tutoring websites that already exists. Some of the most popular include: #18. Online course business• Average Annual Revenue: $30K-$50K Making and selling online courses can be a successful business idea on its own. It’s also an excellent way to add an extra income stream to another business model, like a podcast, YouTube channel, or other online business. If you make the online course yourself, the startup costs are minimal. Course hosting platforms like Teachable and Coursify.me have free plan options and make it easy to upload and sell your online courses to students. The flip side of this is that making an online course can be a big time investment. Once it’s finished and uploaded, though, it’s mostly passive, save whatever time you put into marketing and promoting it. Jacques Hopkins is living proof that online courses are a lucrative business idea. He makes an average revenue of $40,000 a month with 50% profit margins from his online course business. Hear how he did it in this interview: #19. Search engine optimization (SEO) consulting business
• Average Annual Revenue: $415,840 Experienced SEO consultants charge an average rate of $100-$150 per hour. That’s $200,000-$300,000 a year if you work full-time as a solo entrepreneur, and the profit potential jumps up even more if you start an agency. What really makes being a search engine optimization consultant one of the best online business ideas is the high demand for these services. SEO services were a $46.7 billion industry in 2021 and are expected to grow at a CAGR of 17.6% through 2030. You don’t need deep pockets to start this kind of business, either. You can start off using free tools and expand your systems as you grow. All told, that puts an SEO agency among the top low-cost business ideas with high profit potential. #20. Start your own online store• Average Annual Revenue: $60K-$120K Opening your own online store is among the best online businesses because of the variety of people who can thrive with this business model. You can sell pretty much anything in an online store, from hand-crafted goods like jewelry or home decor to collectibles and vintage clothes you buy in thrift stores. Regardless of what you sell, your costs will be much lower with an online store than with a brick-and-mortar retail space. You’ll also enjoy the flexibility of working when and how much you choose, and you can earn money faster since you can start selling as soon as you have your initial inventory. The exact startup costs for an online store depend on what you sell. Vlad Kuksenko only spent about $500 to start TagPup. Two years later, he was earning $60,000 a month with 50% margins. Hear his advice in this interview:
• Average Annual Revenue: $400K-$1M+ Helping people solve a problem is always a great way to earn money with a business. Starting a software-as-a-service (SaaS) company lets you do that on a global scale. It’s also one of the top businesses with low startup costs if you have the developer skills to build the software yourself. The average revenue of publicly-traded SaaS companies is $190,000-$210,000 per employee per year, so there’s certainly high potential for profit in this sector. Workello founder Nick Jordan is living proof of how profitable an SaaS company can be. He pivoted his content agency into an SaaS business model in 2022 and is now bringing in a revenue of over $70,000 a month. Find out how he grew his business in this podcast interview: #22. Website design or development
• Average Annual Revenue: $239K+ In this day and age, a website is a must-have for small businesses and entrepreneurs in just about every industry. Not all of them have the skills or time to create and maintain their own online presence, though. If you do have those skills, you can start a very profitable business designing websites for them. Web design is an easy business to run from home as a solo entrepreneur and ideal for people who want to work on their own schedule. It also doesn’t cost much to start. In fact, you can start for free as a freelancer by creating a profile on a marketplace like Upwork or Toptal. Having a portfolio of work to show potential clients will help you land those crucial first clients and start growing your business. Making your own website is a good start, or you can talk to friends and family who need a website (or an upgrade to their current one) to flesh out your portfolio with more examples of your work. #23. Sell stock photography• Average Annual Revenue: $50K The only expense to start a business selling stock images is the camera you’ll use to take the photos. If you already have that, you can start making money right away for no extra investment. It’s also incredibly easy to start a stock photography business. Just take the pictures, upload them to a stock photo platform, and let the revenue start coming in. Each time someone buys one of your images, you’ll get royalties that can range from 15–50% depending on the site and image. Many stock photo platforms also don’t require exclusive rights to images, meaning you can have them on multiple platforms at the same time to maximize your earning potential. Here are some of the top platforms for selling stock photos: 10 More Low-Cost Businesses to Start
• Average Annual Revenue: $241,230 There are a few reasons someone might get their car wrapped. For people who own luxury cars, it’s a way to protect their paint or quickly add graphics like racing stripes. Business owners and corporate clients often instead use car wrapping as a form of branding and marketing. That diversity of potential customers is what makes car wrapping a profitable business idea. You can expand your revenue streams if you also throw services like ceramic coating or detailing into the mix. Learning to wrap a car can take a bit of practice, but the tools are easily accessible and affordable, and you don’t need training or a specialized license to run this kind of business. While most new car wrapping businesses have an initial budget of around $2,000-$5,000, you can start one for less if you need to. Fred Roman spent about a hundred bucks to start WrapCo, and he’s grown it to a revenue of around $70,000 a month. Find out how he did it in this interview:
• Average Annual Revenue: $389,500 A test prep business is similar to working as a tutor but with a more specific focus: helping students prepare for tests like the SAT, ACT, GED, or similar standardized exams. The consistent demand for these services is what puts it among the best low-overhead business ideas for educators. More than 1.7 million high schoolers took the SAT in 2022, for instance, many of whom used test prep services to get ready for their test. High school-level standardized tests aren’t the only exams students need to prepare for, either. If you have the right knowledge and skills, you can also help people prepare for college-level exams, like the GRE or LSAT. Experienced test prep tutors can charge anywhere from $30-$100 per hour depending on the test and where they’re located, so there’s definitely a high profit potential in this industry. #26. Handyman business• Average Annual Revenue: $204,700 Homeowners know that a good handyman is hard to find. There’s a consistent demand for reliable, qualified handymen across the United States, and the market is growing. Handyman salaries have gone up 11% over the last 5 years and the industry’s expected to grow at a CAGR of 6% through 2028. Best of all, the revenue you earn as a handyman is mostly profit. You get paid for the time you spend on the job and can bill the client for any required parts or supplies. Caleb Ingraham makes around $1,000 a day as a handyman—and he could make more if he had a team. He’s consistently booked up about 6 weeks in advance. See how he built his business in this interview:
• Average Annual Revenue: $63,400 If you’re the person your friends and family always turn to for advice, then being a life coach is among the top low-cost business ideas with high profit potential. The average life coach makes between $500 and $1,500 per client per month, and the overhead costs are minimal, especially if you meet with clients in their home or via online appointments. Like with other kinds of consulting, the challenge with starting a life coaching business is convincing clients that you’re worth the investment. Getting certified as a life coach can go a long way toward building this trust. Some of the top programs include the following: #28. Candle making business• Average Annual Revenue: $60K-$120K Candles are a consumable product, which means customers will keep coming back for more if they like what you do. They’re also very affordable and easy to make right in your home. Jazmin Richards started making candles as a hobby. When she decided to turn it into a business, she spent around $100 on Instagram ads and quickly grew a following, making more than $300,000 in revenue in her first 18 months. She explains how she built her business in this interview:
As far as where to sell your candles, you don’t need your own retail space. You can open an online store, get booths at farmers markets and art festivals, or talk to local stores about carrying your candles on their shelves. #29. Tax preparation services• Average Annual Revenue: $1.57M Lots of people feel instant stress and anxiety at the thought of filing taxes. That’s why Americans spend more than $14 billion on tax preparation in an average year. A good portion of that is for simple returns with a 1040 that anyone can learn to file without needing special training. While you do need to be certified to become a tax preparation professional, it’s a very simple process. You can get a preparer tax identification number (PTIN) online for about $30, and most people can complete the application in about 15 minutes. If you want to file more complicated taxes for self-employed people or businesses, the IRS offers virtual tax workshops that can give you the skills and knowledge you need. #30. Offer mobile notary services• Average Annual Revenue: $552,900 A notary public’s role is to make oaths, contracts, and other legal documents official by confirming the identity of the signers. You may be surprised by how much you can earn as a notary. Roughly 66% of full-time mobile notaries earn $4,000 or more a month, and the overhead costs are minimal. Each state has its own process for becoming a notary public. Normally, it involves attending a few hours of classes and paying a small licensing fee. This can often be done online, making the process of getting started even easier. #31. Childcare business
• Average Annual Revenue: $143,110 During the pandemic, 19.6% of working-age adults had to leave the workforce because they couldn’t find child care. While schools have since reopened, this illustrated the need for childcare services in the United States. That’s part of the reason for the childcare industry’s recent growth. The industry is valued at over $60 billion in 2022, and that’s expected to grow at a CAGR of 4.18% through 2030. The cost to start a daycare, nanny service, or other childcare business varies, but they tend to be cheap businesses to start, especially if you start it from your home. Combine that with most of the revenue is your own personal salary and business expenses related to your home, Home-based daycare centers also often don’t need to obtain the same licenses and certifications as other childcare businesses. Check your state’s laws and requirements to see what’s required to legally operate in your region. (责任编辑：) |
