In this article, we will be taking a look at the 10 most profitable businesses with low startup costs. For our detailed analysis, you can go directly to the 30 Most Profitable Businesses With Low Startup Costs.
10. Consulting Business
Average Net Margin: 25%
The consulting industry is currently thriving and exhibiting decent year-over-year growth. The global consulting industry holds significant market value within the professional services sector, estimated at approximately $250 billion. Consultant fees vary greatly depending on the area of expertise, ranging from $100 to $500 per hour.
9. Affiliate Marketing
Average Net Margin: 27.50%
Affiliate marketing is an online method of earning money by promoting products and services of other companies, whereby a commission (rates usually vary from 1% to 50%) is received for each successful sale. This form of marketing typically requires an average initial cost of around $425.
8. Career Coaching
Average Net Margin: 30%
With increasing unemployment, there is a considerable demand for individuals who assist in job search endeavors. Starting a job-finding assistance service can be accomplished with as little as $188 in startup costs, and potential clients can be found on Facebook groups or platforms like Coach.me.
7. Website Development
Average Net Margin: 32.50%
Web development/designing also counts among the most profitable businesses with low startup costs. In 2022, the global market size for web development was valued at US$60.7 billion, and it is anticipated to exhibit a CAGR of 8.08% during the forecast period, reaching a value of US$96.7 billion by 2028.
6. Baby or Pet Sitting
Average Net Margin: 33.70%
As the travel industry gradually recovers from the effects of the pandemic, the demand for home and pet care services is increasing as people resume travel, with individuals seeking reliable assistance for pets and childcare while they are away. Starting a pet or babysitting business does not require high capital investment; mandatory expenses would include local advertising.
5. Video Production
Average Net Margin: 36%
In the US, 85% of internet users watch online videos on a daily basis using their devices, as noted by Oberlo. This growing trend of video consumption is creating a high demand for individuals skilled in recording, editing, cutting, and publishing videos. Platforms like Fiverr International Ltd. (NYSE:FVRR) and Upwork Inc. (NASDAQ:UPWK) have an enormous number of clients who are looking for freelance video producers.
4. Personal or Virtual Assistance
Average Net Margin: 38.75%
Many professionals opt to hire virtual assistants (VAs) or personal assistants (PAs) for assistance in organizing emails and documents, scheduling appointments, and handling other administrative tasks. The high rate of companies getting online has led to a higher demand for VAs and PAs. The average rate for a VA typically falls within the range of $15 to $30 per hour.
3. Dog Walking Business
Average Net Margin: 40%
The overall pet industry is valued at over $100 billion, and there is a significant demand for various pet-related services. One such service is a dog walking business, which can be started with an average initial cost of $750, according to Lending Tree. Depending on the location, an average earning of $45 per hour can be achieved in this market.
2. Social Media Influencer
Average Net Margin: 43.30%
Social media influencers can reach a global audience without investing substantial capital (as low as $1,000). One of the remarkable aspects of social media is its accessibility to everyone. According to a HypeAuditor’s survey, the average influencer can earn around $2,790 monthly through their Instagram account.
1. Online Tutoring
Average Net Margin: 65%
The online tutoring business tops our list of the most profitable businesses with low startup costs (approximately with $250 initial investment). Online tutoring business can boast gross margin of 90% on the higher end, per calculations from StarterStory and Step by Step Business. Individuals with a teaching background have the opportunity to sell their courses on platforms like Amazon.com Inc. (NASDAQ:AMZN).
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