Running a home-based business gives me the freedom and fulfillment I’ve always wanted. Today, starting a low-cost startup is easier than ever. This guide will show you 20 business ideas that can start with $500 or less.
Online selling, service-based businesses, and dropshipping are just a few options. You don’t need a lot of money or experience to start a business now. With creativity and the right mindset, you can make your dream of home-based businesses, side hustles, and passive income streams come true.
Key Takeaways
- The average initial investment for starting a home-based business is $500 or less.
- Online selling, service-based businesses, and dropshipping offer low-cost startup opportunities.
- Leveraging digital platforms and technology can help reduce overhead costs for home-based businesses.
- Pursuing side hustles and passive income streams can provide additional financial security and flexibility.
- Exploring small business ideas and work from home opportunities can lead to rewarding entrepreneurial ventures.
Online Seller Business
Starting a business by selling products online is easy and cheap. You can list your items on big sites like Amazon and eBay or create your own website. This way, you can make good money through online selling.
Selling Products on Marketplaces
Amazon and eBay are great places to start online selling. They already have lots of customers. You just need to list your products and pay a small fee for each sale.
Building an E-commerce Website
You can also sell directly to customers through your own e-commerce website. This gives you more control over your brand and how customers see your products. It might cost more to start, but it can be worth it for more control.
No matter how you start, the secret to making money is to buy your products cheaply. You can do this by buying in bulk or using things you already have. Then, sell them for more to make a profit and start a successful online business with little risk.
| Selling on Marketplaces | Building an E-commerce Website |
|---|---|
| Leverage established platforms with built-in traffic | Greater control over branding and customer experience |
| Pay a commission fee per sale | Requires higher upfront investment in website development |
| Minimal effort to set up and start selling | Potential for long-term benefits of owning your online store |
“The key to success in online selling is to purchase your initial inventory at low cost, whether through bulk purchasing or utilizing items you already have at home.”
Service-Based Businesses
Service-based businesses are a great choice for affordable entrepreneurship. They often need little money to start, making them easy for new entrepreneurs. For example, online cooking classes have become popular. A chef who lost their job during the pandemic started teaching cooking online. They only needed a computer and internet.
Online Cooking Classes
People can turn their skills into service-based businesses by using online platforms. This way, they can make money and have a good work-life balance. Adding gamification to these classes makes learning fun and helps students interact more.
Freelance Services
Freelance services are another good option for service-based businesses. You can offer freelance writing, virtual help, or manage social media. These businesses need little money to start, letting you use your skills to earn.
“Freelance and service-based businesses typically require minimal startup costs, providing a sustainable income stream with flexibility.”
By entering the service-based businesses field, entrepreneurs can find many opportunities. They can teach online cooking or offer various freelance services. This sector is full of chances for those ready to dive in.
Dropshipping Business
Starting a dropshipping business is a great way for new entrepreneurs to begin with little money. This e-commerce model lets you create an online storefront or use e-commerce platforms without worrying about inventory. Products go straight from the manufacturing partnership to your customers after they order them.
To start a dropshipping business, you just need to pay for a domain and e-commerce or dropshipping fees. This means you don’t have to deal with the usual problems of finding, storing, and shipping products. You can focus on picking great products and making sure customers are happy.
Dropshipping has many advantages. You don’t need to invest in inventory upfront, so you can start your online storefront with little money. It also lets you offer many products without worrying about having too much stock or not enough sales.
The dropshipping industry is expected to grow a lot in the future. The VR/AR products niche could be worth $209.2 billion by 2022. With more people buying smart devices, plant-based foods, and health products, there are great chances for dropshipping entrepreneurs to make money from new trends.
“By 2027, online marketplaces are projected to play a role in 59% of purchases, making dropshipping an increasingly viable and lucrative business model.” – Industry Analyst
If you love gaming accessories, smart home devices, or beauty and wellness products, a dropshipping business could be perfect for you. It offers a flexible and low-risk way to start your business and make your dreams come true.
Social Media Consultant
In today’s world, social media is key for businesses to reach their audience and boost sales. As a social media consultant, you help companies make strong social media plans. You create engaging content and manage their online presence on platforms like TikTok and Instagram.
Content Creation Strategies
Creating content that speaks to the audience is a big part of being a social media consultant. This means:
- Doing market research to know what the target customers like and need
- Coming up with content that looks good and is full of information, like posts, videos, and infographics
- Making sure content fits each social media platform to get more engagement and reach
- Planning a content calendar for a steady and strategic posting schedule
Platform Management
You’ll also manage the client’s social media platforms, including:
- Keeping an eye on and answering comments, messages, and mentions quickly and professionally
- Looking at platform analytics to see how social media campaigns are doing and making smart decisions
- Keeping up with the latest social media trends, algorithms, and best practices to improve the client’s online presence
- Working with the client’s marketing team to make sure social media strategies match the business goals
With your social media skills, you can help businesses reach their audience, grow brand awareness, and get real results. Whether it’s getting more engagement, finding new leads, or increasing sales, a skilled social media consultant is a big help for any company aiming to succeed online.
| Social Media Platform | Key Features for Businesses | Potential Strategies |
|---|---|---|
| TikTok | Short-form video content, viral trends, user-generated content | Use trending challenges, make fun and educational videos, work with influencers |
| Visual storytelling, shoppable posts, Instagram Reels | Make a visually consistent feed, show off products with shoppable posts, create engaging Reels |
“Effective social media marketing is not about selling; it’s about connecting with your audience and providing value.”
Freelance Writing and Editing
If you’re good at editing and writing, you can start a small business. With more online content and social media, there are many chances to make money with your skills. You don’t need much money to start, but you must show off your skills to find clients. But, with AI tools making content, it’s key to stand out and show your work is better.
The freelance writing and editing world is growing fast, with writers making about $73,000 a year on average. More businesses want great content, so there’s a big need for skilled writers and editors. The marketing industry is also growing, spending about 13% of its revenue on marketing.
To do well, make a strong portfolio and have a professional online presence. Networking with potential clients is also important. Many freelancers offer more than just writing and editing. They also do social media management and more. This way, you can make more money and work with different clients.
| Freelance Writing and Editing Insights | Statistics |
|---|---|
| Percentage of editors and freelance writers who feel the need to know everything before starting their freelance journey | High |
| Median duration between attending a conference and making the decision to start an editing business | Three years |
| Recommended amount of savings to have before becoming a full-time freelancer | Three to six months’ worth of expenses |
| Ratio of individuals who feel unready to start their own business despite attending relevant educational programs | Considerable |
| Percentage of new freelancers who turn to online groups for business advice and guidance | Significant |
| Rate at which freelancers consider different website builders before deciding on one | High |
| Percentage of freelancers who opt for sole proprietorship as their business structure | Common |
| Proportion of new freelancers seeking guidance from business coaches | Increasing trend |
| Occurrence of freelancers seeking legal assistance in drafting contracts and setting up business structures | Prevalent |
| Prevalence of freelancers seeking advice on managing finances and tax-related matters | Noteworthy |
You can specialize in a niche or offer many writing and editing services. The freelance world is a great chance for those who love writing. With the right skills, plan, and hard work, you can have a successful career as a freelancer.
“The key to success in freelance writing and editing is to consistently deliver high-quality work and build strong relationships with your clients. It’s not just about the writing or editing itself – it’s about understanding your client’s needs, meeting their deadlines, and going the extra mile to ensure their satisfaction.”
Direct Selling Opportunities
Looking to start a business from home with little money upfront? Direct selling might be perfect for you. Companies like Rodan + Fields, Avon, and Beachbody let you become a seller for just a few dollars to $45. This makes it easy to try out selling products without spending a lot.
Avon made over $11 billion in sales in 2011, becoming the top direct sales company worldwide. Tocara, a jewelry company, even lets consultants start for just $1. Magnabilities offers a virtual chance for $12.95 or a $50 kit with $100 in products and supplies.
- Aloette has a social influencer starter kit for $16.95. Influencers can earn 25% on sales and get a 25% discount on products.
- Crowned Free’s digital kit is $19.99, and the stylish kit is $49. It comes with $400 worth of products.
- Java Momma’s kits range from $20 to $145. Baristas make a 20% commission on sales.
- Jordan Essentials costs $24.50 to start, with a 25% commission on sales.
Interested in selling makeup or cookware? Direct selling is a great way to start a business with little money. By joining big brands, you get to use their customers and marketing help to begin your business journey.
Crafting and Handmade Products
The pandemic showed us that Americans are creative and resourceful. Many started businesses selling [a href=”https://bykennethkeith.com/small-business-ideas-start-your-own-venture-today/”]crafts, desserts, and handmade items[/a] from home. They only had to pay for materials. [a href=”https://bykennethkeith.com/small-business-ideas-start-your-own-venture-today/”]Facebook[/a] helped them market these products well.
Starting a business making crafts or handmade items at home can be fulfilling and profitable. You can make [em]wax melts and candles[/em] or [em]ceramics and pottery[/em]. There’s a big demand for unique, personalized items now.
The trend against fast fashion has made [em]handmade fashion accessories[/em] popular. Also, people are into [em]floral arrangements and dried flower art[/em] more than ever.
For those looking to start a business, making food and drinks is a great choice. You can make [em]cakes, craft wines, beers, and spirits[/em]. Other good options include [em]glass blowing, making cosmetics, soft furnishings, jewelry, and lighting crafts[/em]. These areas let crafters reach different customers and show off their unique items.
When starting a business, it’s key to research the market, plan well, and build a strong brand. Choosing the right business type, getting the right licenses, and finding funding are also important for success in [a href=”https://bykennethkeith.com/small-business-ideas-start-your-own-venture-today/”]crafting and handmade products[/a].
“The pandemic taught us that Americans are resourceful and innovative, with many people taking advantage of time at home to start businesses selling crafts, desserts, and other handmade items.”
Lawn Care Services
Starting a lawn care business can be profitable, especially if you aim for a seasonal business with low costs. Success comes from careful planning and investing in the right equipment and marketing strategies.
Experts say starting a lawn care business in Florida can cost between $500 and $8,000. You’ll need basic tools like a lawn mower and leaf blower at first. As your business grows, you can add more tools like trimmers and aerators.
To begin, think about getting a basic website and using social media, like Facebook, to show off your services. A good marketing plan, including flyers and online ads, can help you find customers and build a good name in your area.
Lawn care might be seasonal in some places, but you can work all year by offering services like snow removal or holiday lights. Diversifying your services and keeping up with local trends can make your lawn care business successful and lasting.
With the right equipment, marketing, and drive, the lawn care industry is a great chance for starting a low-cost online business from home.
| Startup Cost Range | Key Considerations |
|---|---|
| $500 to $8,000 |
|
“With the right mix of equipment, marketing, and entrepreneurial spirit, the lawn care industry presents a lucrative opportunity for those looking to start a low-cost online business from the comfort of their own home.”
Airbnb Host
If you have a spare bedroom, a vacant unit, or an entire property, think about becoming an Airbnb host. It’s free to list your property and start hosting guests. You just need the space. This can be a great way to make extra money.
Airbnb has over 5.6 million listings worldwide, with more than 900 million stays booked. Hosts make about $9,600 a year on average. This makes it a great side job or even a full-time business.
The property rental market had tough times during the pandemic. But now, things are looking up. A 2020 survey showed 70% of guests were hesitant to stay at an Airbnb. Yet, about 62% of people are planning to travel again.
Starting an Airbnb business can cost between $3,900 and $30,000. Most people spend about $6,000 to start. You can make a good income, with US hosts earning $41,026 a year on average. But remember, you’ll have ongoing costs like cleaning, repairs, insurance, and management fees.
Before becoming an Airbnb host, do your homework. Learn about the market, local laws, and how to make your place welcoming for guests. With careful planning, this can be a profitable and fulfilling venture.
“Airbnb’s IPO was a defining moment for the company, and it marked a challenging year for the travel industry due to the global pandemic’s impact. However, the recovery of the travel industry, including Airbnb, is now in sight, with approximately 62% of people planning to travel.”
Handyman Services
More people are spending time at home, making skilled handymen more in demand. If you’re good at fixing things and doing small projects, you could start a handyman business. Some states require a license for big handyman jobs, so check your local laws.
Handymen in the US usually charge $60 to $85 an hour. Some can earn up to $200 an hour. With smart pricing, you can make about $100 an hour and earn a six-figure income.
There’s a limit on what unlicensed handymen can do in most states. For example, in California, it’s $500, and in Nevada, it’s $1,000. They avoid tasks like plumbing or electrical work without a license but still find plenty of work within the rules.
To start, you’ll need to pay for a few things:
- Business registration (about $90)
- Establishing an LLC (around $129)
- General liability insurance (between $500 to $2500 a year)
- Contractor’s licenses and permits (up to $1,000)
- Tools and equipment
- Transportation (monthly costs can be $523 to $735 for truck payments, $100 to $150 for gas, $100 to $300 for insurance, and more for maintenance)
An LLC protects your business from liability. It’s smart to have $10,000 in general liability coverage and personal injury protection. Also, worker’s compensation insurance is a good idea to cover medical costs and lost wages for employees who get hurt.
With the right skills and pricing, you can make your handyman business successful. Focus on handyman, home repair, and small projects. This industry is full of opportunities for those willing to work hard.
Pet Sitting and Dog Walking
If you love animals and want a business that’s easy to start, pet sitting and dog walking could be perfect. You don’t need much to begin, just a love for pets and a good plan to market your services. With careful planning, you can grow your business without spending a lot.
Starting a pet sitting business is cheap. You’ll need to pay for business registration ($10 to $1000+), open a bank account (free to unknown), and get a business license ($0 to $550+). Joining groups like the National Association of Professional Pet Sitters (NAPPS) and Pet Sitters International (PSI) costs $165 and $150 a year. These groups offer great resources.
Don’t forget about insurance, which starts at $139 for pet sitting businesses. Creating a website is also affordable, from $15 for a basic site to over $100 for more advanced ones. Domain and hosting are $10 to $20 a year and $5 to $15 a month, respectively.
Marketing doesn’t have to be expensive. Business cards from Vistaprint start at $17.99 for a hundred. Sites like Local Pet Care offer free profiles and ads for pet care services.
To improve your pet sitting and dog walking business, take courses on pet care. These courses cover nutrition, exercise, first aid, and disease recognition. They’re usually online and help you give top-notch care to pets.
| Startup Cost Category | Estimated Range |
|---|---|
| Business Registration (LLC or DBA) | $10 to $1000+ |
| Bank Account Opening | $0 to Undetermined |
| Business License Acquisition | $0 to $550+ |
| Professional Organization Membership | $0 to $500 |
| Insurance | $139+ |
| Website Creation | $15 to $100+ |
| Domain and Hosting | $10 to $35 per year |
| Marketing Materials | $10+ |
With a pet sitting and dog walking business, you can make money doing what you love. Dedication, training, and smart marketing are key. This business can be rewarding and last a long time.
cheapest business to start from home
For those dreaming of starting a business from home, there are many low-cost options. These ideas let you use your skills to make money with little initial cost.
Low-Cost Online Businesses
Online selling is a great way to start a business cheaply. You can set up an e-commerce site or sell on platforms like Amazon or Etsy. Starting costs are low. For example, online stores can make $60,000 to $120,000 a year, with profits around 5-15%. The initial cost is just $5,500.
Dropshipping is another cheap choice. You sell products without holding any inventory. Dropshipping businesses can earn $36,000 to $50,000 a year. They start with only $300 and have a 5% profit margin.
Home-Based Side Hustles
There are many home-based side hustles that don’t require much money to start. Freelancing in writing, editing, or virtual assistance is one option. You just need a computer and internet. The digital marketing and social media management field makes about $967,000 a year. It has an 8.8% profit margin and starts with $30,000.
You could also try handyman work, lawn care, or pet sitting. These jobs have low start-up costs and can be run with minimal overhead.
“The key is finding an idea that aligns with your interests and expertise, allowing you to provide value to customers while enjoying the flexibility and income potential of running your own business from home.”
By choosing low-cost online businesses and home-based side hustles, you can turn your passions into profitable ventures. These options offer the freedom and income potential of entrepreneurship from home.
Conclusion
Starting a business from home offers a great chance for those who dream of being their own boss. You can choose from many options like online selling, service-based businesses, crafting, and handyman. These choices let you use your skills and interests to make money.
Success comes from doing your homework, making a strong business plan, and working hard. Knowing how much money you might make and what challenges you might face is key. This helps you make smart choices and pick the best business idea for you.
With the right attitude and a desire to learn, anyone can start a business, even with little money. The path may be tough, but the benefits are huge. You could gain financial freedom, feel fulfilled, and make a difference in your community.