We decided to create a list of 11 lucrative low cost startup businesses in 2016 to help people who are planning to ditch their 9 to 5 corporate jobs and become entrepreneurs. This list will sum up the previous year and offer an insight into the most profitable industries and the businesses you can start without huge investments.
Paul Graham, one of the most famous business writers, and a highly successful entrepreneur has defined the term ‘startup’ as a company which is designed to grow fast. Most people think that only tech companies can be called startups. Although many business schemes in the IT field are designed to grow fast, this term doesn’t only apply to them.
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Any business, from software development to barber shop can be called startup, if it’s featuring exponential growth, especially in the first phases of its development. Still, the problem with barber shops and other similar small and medium-sized enterprises is that they aren’t designed to grow fast, but to provide sustainable income to their owners, on a monthly basis. On the other hand, software and internet businesses, like social networks or cloud storages, are defined by their growth. If they don’t grow as fast as predicted, they won’t provide sustainable investment returns, and they will eventually fail. That is what makes tech companies, so successful. Their founders have only two options, to grow their business fast or to fail miserably.
Now after we have defined the term startup, we should pay attention to the word, ‘low cost’ in our headline. It’s hard to define low cost, especially in the digital era, when many people start home businesses, with almost no investments at all. If you want to read more about this subject, we recommend you the Insider Monkey’s 11 Most Profitable Home Businesses with Low Startup Cost article. We have used the Entrepreneur’s list of 101 Businesses you can start with less than $100, as the basis of our research. In our opinion, starting a business with $100 is a great deal, and it is definitely a low cost investment.
The next step was to combine the businesses on Entrepreneur’s list, with the results we have found in Forbes’ “Most Profitable Industries in 2016” article. Some of the industries from this list require huge investments, like dentistry, health care, warehousing, and construction. That is why we needed to use another source that will help us to find more startup ideas that are both low cost and possibly lucrative. After several hours of searching for the right source, we have found the Business News Daily’s 20 Fastest Growing Industries article.
Although this article is primarily written for people who are looking for a job, we can effectively use it in our survey, because business growth is often closely connected with the employment growth and major industry trends.
Industries from Forbes’ list have received 2 points for each ranking place on our list of lucrative low cost startup businesses in 2016, from the last to the first entry, while the industries from the Business News Daily’s list have received the number of points that is reversely proportional to their ranking. We have reviewed every business idea and described one or a few possible growth scenarios, for each entry. This way, our list of 11 lucrative low cost startup businesses in 2016 will help readers to find great business ideas and develop their growth plan at the very beginning.
11. Starting a blog
Industry: Internet publishing;
Ranking on Business News Daily’s list: #19;
We are continuing our list of lucrative low cost startup businesses in 2016 with blogging that is not as lucrative as it used to be, but this niche still offers solid returns, and it doesn’t require large investments. Most successful blogs are started by experts, who are targeting a very specific audience. There are many ways how you can build a lucrative business out of the successful blog. You can use the native advertising concept and promote various products and services. There are also many affiliate networks you can hook onto, the most popular of being the Amazon Associates, which allows you to sell Amazon products on your blog and earn a commission for each sold item. You can also offer consulting services to your followers or start your own eCommerce platform.
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10. Starting a vlog on YouTube
Industry: Internet publishing;
Ranking on Business News Daily’s list: #19;
Same as blogging, publishing interesting and funny video materials on your YouTube or Instagram, can grow from a hobby into a well-paid business. The video is currently the most profitable publishing form. If you have a popular vlog on YouTube, you can earn money directly from the platform and make native advertising deals that can later turn into a full-time sponsorship. You don’t need big investments for starting a vlog. You can film it with the regular camera, and use open-source software for video editing. Later, after the first returns start to pour, you can invest money in purchasing better quality DSLR camera, microphone, professional lights and other filming equipment.
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9. Starting a pet business
Industry: Pet care;
Ranking on Business News Daily’s list: #13;
There are many different types of pet care businesses you can start. Walking other peoples’ dogs is the most basic operation you can do, and it will help you to earn some angel capital. You can also open a pet grooming studio or a pet daycare. Both of these businesses can produce huge returns, especially after you find a steady clientele. Some people also decide to become pet trainers. If you enjoy working with dogs, and you know how to calm them down, this is another great idea that can be developed into a fruitful business.
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8. Tutoring
Industry: tutoring, schools, and instruction;
Ranking on Forbes’s list: #10;
The Internet offers excellent learning opportunities. Still, today the thirst for knowledge is so big that both online and offline tutoring have become incredibly profitable operations. You can start your tutoring career on platforms like Udemy or Coursera, where you can create and share online courses. If you are more into personal tutoring, try advertising your services in the local papers or on social networks. After you receive the first returns from your business, you can rent a classroom and organize courses and lectures for more students.
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7. Offer computer system design, repair, and maintenance services
Industry: Computer system design, repair, and maintenance;
Ranking on Business News Daily’s list: #9;
Your ability to design complex computer systems and conduct hardware repair and maintenance tasks will help you to open a computer service shop. If you decide to start this type of business, you should focus on attracting B2B clientele. Of course, providing computer repair services to individuals can also be very profitable, but you can expect solid returns from your computer shop, only if you find one or a few companies that want to outsource their IT field. This task is much easier than it sounds because today many successful businesses would rather outsource their IT segment than hire one or several steady IT engineers. Now, let’s see what else we have on our list of lucrative low cost startup businesses in 2016.
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6. Opening an interior design and decoration studio
Industry: Interior design;
Ranking on Forbes’s list: #8;
If you are good at interior design, you can easily open your own studio. Start by offering free or highly affordable interior design services to your friends, so you can build your portfolio and collect photos of the designs that you will later showcase on your website and social networks. According to BLS’s Job Outlook, only 5% of interior designers are regularly employed in the construction companies. Most others have their own studios and work as contractors. When advertising your interior design services, stick to the high-income areas, because wealthy people are more likely to spend money on interior renovation and remodeling.
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5. Opening a web design agency
Industry: Web design;
Ranking on Forbes’s list: #8;
We are continuing our list of lucrative low cost startup businesses in 2016 with the web design that is another special design service that can bring you a lot of money. Most independent web designers start their career on freelance market platforms, like Upwork, Fiverr and Freelancer. Here they can find lucrative projects, which they can later add to their portfolio. Although many web designers keep their freelance status for years, starting an agency can help you to find more high-paying clients. Cooperation with graphic designers, copywriters, UX designers, and developers is also very important because it can also allow you to offer more comprehensive offers to your audience.
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4. Working as a senior home companion
Industry: Senior care;
Ranking on Business News Daily’s list: #4;
Senior care is a probably the noblest occupation on the list of lucrative low cost startup businesses in 2016. Depending on your education this job can bring you from average to very high earnings. If you are a doctor or a nurse, providing home health care services to seniors can be incredibly lucrative. Still, even if you don’t have medical education or experience, helping senior citizens, and running their errands will definitely pay off. Later you can reinvest your profits and organize a network of caretakers or even open your own retirement home.
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3. Providing translation services
Industry: Translation and interpretation services;
Ranking on Business News Daily’s list: #2;
The wide availability of superb translation tools didn’t decrease the need for translators. The translation and interpretation are currently featuring huge demand in almost every country. You can start your translation career on freelance marketplaces like Upwork, or ProZ, which is the biggest online translation network. Later you can open a translation agency and hire one or a few translators who are starting their career in this field. Now, let’s see what’s next on the list of lucrative low cost startup businesses in 2016.
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2. Providing tax preparation services
Industry: Accounting, tax preparation, bookkeeping and payroll services;
Ranking on Forbes’s list: #1;
Tax preparation, together with accounting, bookkeeping and payroll services is by far the most profitable industry in 2016, according to Forbes’s list. These businesses gain 18.3% profit margins on average. If you are a professional accountant, you will earn much more money if you start your own company than by having an accounting ‘9 to 5’ job at a corporation. Even if you are not a professional accountant, you can earn money from freelance tax preparation. After some time try to diversify your agency’s business by introducing virtual assistant or payroll services.
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1. Starting a consulting
Industry: Management consulting, marketing consulting, etc.;
Ranking on Business News Daily’s list: #7 (marketing consulting), #15 (administrative and general management consulting);
The reason why consulting received such a high ranking on our list of lucrative low cost startup businesses in 2016, is because depending on your expertise you can achieve great profit margins and build a highly successful business career. When it comes to both marketing and management consulting, previous work is the best proof of your expertise. The best way to start the consulting business is to create a niche-specific website or blog, where you will share your knowledge. After your website gains following, use it as your online portfolio. According to Business News Daily’s list consulting in marketing is the fastest growing consulting niche. Since outsourcing is becoming increasingly popular, the consulting niche will become even more lucrative in the next couple of years.
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