Table of Contents
For decades, the top model for starting a business has been to have $500 or more. That’s because you can at least buy some inventory and maybe pay someone else who doesn’t know how to make something yet. But what if you don’t want your company to fail? What is the best way start with little capital but generate a lot of revenue? The answer might be surprising: Start as low as possible.,
The “cheapest business to start with high profit” is a business that can be started for less than $500. This is an opportunity for those who want to start their own businesses, but don’t have the capital.
Let’s be honest: who doesn’t fantasize about owning a company, making all the decisions, and reaping the rewards?
Fortunately, the low cost of digital technologies is making it simpler than ever for entrepreneurs to launch a successful firm. For a few bucks, anybody can build a website, and widely accessible marketing, communications, and graphic design tools ensure that would-be entrepreneurs have access to the majority of what they need to begin a business. It’s no wonder, therefore, that entrepreneurship has exploded as a consequence.
According to the Kauffman Index, half a million new entrepreneurs entered the market each month in the United States in 2017. According to the Chamber of Commerce [https://www.chamberofcommerce.org/small-business-statistics/], this represents a 25% rise from 2009. According to the SBE Council, more than 60% of those new firms are home-based, thanks to the profusion of digital tools available from home.
This got us thinking: What kinds of enterprises may be created for a little initial investment? Which of those enterprises would be the most profitable for entrepreneurs? To find the answers, we looked into businesses that cost $500 or less to start, don’t require an advanced degree or a lot of experience, have a proven income potential in an existing market, can be started from anywhere in the country, can generate profits all year, and can be launched in three months or less.
The weighted criteria we utilized to create our final ranking are as follows:
- Cost (20%): To be included on our list, a company must have a minimum viable product and launch costs of $500 or less. This upfront cost covers a company’s investment in materials, equipment, and labor, as well as a website (with at least a year’s worth of content), marketing, and other expenditures associated with launching a product or service. The cost of business registration varies widely from state to state; some jurisdictions, such as Massachusetts, require $500 to register for limited liability corporation (LLC) status.
- Average earnings (20%): Additionally, each company must have average earnings that are higher than the national average adjusted gross income of $35,000 per year (according to the IRS Statistics of Income). Because average wages by company type aren’t readily accessible, we calculated income using pay data from popular employment sites like PayScale and Glassdoor.
- Opportunity (20%): The companies on our list do not demand substantial training or advanced degrees (post-graduate). They may also be launched in any state in as little as three months and operate full-time and all year.
- Existing market size (20%): Businesses must be in sectors with existing markets; otherwise, they would take more marketing than the average to create clients, lowering the potential return on initial investment. We used data on industry-wide revenue to assess market size; each firm we rated is part of an industry with a minimum value (revenue) of $1 billion.
- Industry growth (20%): While industry growth isn’t always predictive of a company’s success, it does suggest the possibility of success. As a result, we looked for companies in sectors whose earnings-based growth rates were higher than the historical average of 2.5 percent year over year.
In 2019, these are the five greatest companies to start for under $500.
The best 15 companies to start for under $500 (rated by revenue potential) are shown below:
1. Staffing Agency
$103,000 is the average yearly income. The first investment should be between $150 and $200.
Staffing service is the best company to start for under $500.
Staffing service organizations, which link employers with skilled employees, are ranked first on our list because their average six-figure wage is $103,000 per year, which is 98 percent more than the national average. It’s no surprise that it’s so high; according to Staffing Sector Analysts, the worldwide staffing industry is worth $466 billion. It also predicts a 6% industry growth rate in 2019 (140 percent higher than the average industry growth rate of 2.5 percent).
Starting a staffing service company is also highly cost effective. Job listings, resume submissions, interviews, and hiring may all be done remotely these days, saving money on office space. A website will be required, but one may be designed and launched quickly and affordably using a drag-and-drop website builder for roughly $12 per month. If you’re serious about this career path, choose a specialist employment site, such as staffing for overseas nannies or children’s summer camps, to set yourself apart from the competition.
2. A marketing firm that makes use of white-label services
$100,000 is the average yearly income. The first investment should be between $300 and $350.
White Label Marketing Agency is the best company to start for around $500.
These days, marketing firms are all the rage—and they’re really rather simple to create. You don’t even need a lot of marketing expertise. Instead, you may pay a white label marketing business to do the job for you, and then just give the results to your customers. Sounds too good to be true, doesn’t it? It isn’t the case. According to Digita Global, agency owners at companies like these earn an average of $100,000 and are part of a $192 billion digital advertising sector with a predicted 7.7% growth rate.
Another advantage is that there are no upfront employment expenditures since you’re engaging white label professionals to manage your task. Your firm may also be handled remotely, and all you need to get started is a website, some basic marketing credentials (which you can readily get online), and some good old-fashioned networking skills. Paid search, social media marketing, and search engine optimization are common services provided by these white label marketing businesses.
3. Auto Detailing Company
$75,000 is the average yearly income. The first investment ranges from $35 to $400.
Auto Detailing Business is the best business to start for under $500.
Although having a car polished is costly, you may be shocked to find that an auto cleaning firm can make approximately $75,000 per year, according to Chron. According to CleanLink, it is part of the $78 billion cleaning sector, which is expected to increase at a 6% annual pace from 2014 to 2020. The expansion in the ridesharing economy may have contributed to the increase; after all, having a clean vehicle is vital for rideshare drivers.
This might be a fantastic business idea for you if you have an eye for detail and love doing some physical work. It’s quite affordable to get started, since it just requires basic cleaning equipment and supplies, a website, and some marketing—which can be done for free using directories like Google My Business and social networking sites like Facebook. To save the cost of hiring commercial space, several new car detailing firms pick up clients’ automobiles and clean them at their homes.
4. Childbirth Educator
$72,000 is the average yearly income. The first investment should be between $300 and $350.
Birthing Coach Business is the best business to start for around $500.
A birthing coach, often known as a doula, is a non-medical labor helper who assists the woman during and after delivery by providing comfort and support. Though it isn’t a one-size-fits-all company, it is a one-of-a-kind opportunity for individuals who are sensitive about helping others and have expertise with birthing and baby care. According to the International Doula Institute, it earns an average of $72,800 per year and is part of a $23 billion baby business, according to MarketWatch.
A Ph.D. or years of expertise in a hospital birth room are not required to start a doula company. It also does not need a significant financial investment. All you need to do now is educate yourself with the function of a doula, which you can accomplish for only $77 by taking an online educational course like the Doula Business Owner Certification from IAP Career College. It will also need a rudimentary website and rely on recommendations and your professional network to get business.
5. A web design firm
$69,000 is the average yearly income. The first investment should be between $150 and $200.
Web design agency is the best company to start for under $500.
Every company need an online presence in the form of a professional website, and although several platforms exist to make it easier for individuals to create their own site, many people still choose to employ a web designer. According to the Bureau of Labor Statistics, web developers earn an average of $69,430 a year, showing the potential revenue for moderately tech-savvy entrepreneurs who wish to start their own business. According to IBIS, it’s part of a $38.3 billion industry in the United States with a forecast growth rate of 6% in 2019.
To pursue this entrepreneurial route, you must have a basic understanding of web design, but you do not need a computer science degree or expertise as a developer. Websites may now be created without coding using WordPress, as well as drag-and-drop website builders like Wix and Weebly. It’s also feasible to hire professionals to do the task for you. You’ll need a personal website (for marketing), company listings in internet directories like Upwork and Fiverr, and advertising of your services to your local network to get started.
6. Shipping & Logistics Company
$64,000 is the average yearly income. The first investment should be between $250 and $300.
Shipping and logistics company is the best business to start for under $500.
You probably haven’t explored a job in shipping and logistics. The shipping sector handles everything from temperature-sensitive foods and fruit to ancient barns and zoo animals, so it’s all around you. A logistics and shipping firm is behind every product, and the high demand equals excellent income. According to PayScale, the average income for a logistics manager is $64,182 per year. It’s also a fast rising business, due to increasing ecommerce.
Those interested should have prior industry experience and a thorough understanding of logistics and analysis in general. You won’t need a large fleet or a lot of warehousing space. Instead, subcontracting drivers who own their own cars may get you started for about $500. You’ll need to get contracts with firms that transport things regularly, such as auction houses or regional or national ecommerce sites, to be successful.
7. Painting Services for Homes
$60,000 is the average yearly income. The first investment should be between $400 and $500.
House painting company is the best business to start for under $500.
If you’re searching for a game-changing company concept, don’t turn to home paint. However, it is a tried-and-true industry that has lasted for decades and employed many painters; according to PayScale, the average annual income is slightly under $60,000. According to HomeAdvisor, it’s part of a $383.3 billion home renovation sector with a projected 3.85 percent annual growth rate, according to Chron.
It also doesn’t cost a lot to start a home painting company. You’ll need some painting and home renovation expertise, as well as a website, a flair for networking, a dedication to self-promotion, and some basic tools like paint, brushes, tape, and ladders. Additional supplies may be purchased as required to meet each client’s specific painting requirements.
Property Management Firm No. 8
$57,000 is the average yearly income. The first investment should be between $150 and $200.
Property management company is the best business to start for around $500.
The rise of the sharing economy in the property sector, as exemplified by the success of businesses such as Airbnb, has ushered in a new era of property management. Once upon a time, landowners owning several properties were responsible for the upkeep of various residences. Homeowners are now looking for property managers to assist them in managing their second houses, which they have turned into Airbnb holiday rentals. According to Compensation.com, the average salary for property managers is $57,628, however these statistics are likely higher since vacation rental property managers sometimes get commission on reservations.
So, what exactly is property management? In summary, property managers oversee all service providers, including home cleaners, gardeners, and grass care, as well as plumbers and electrical contractors, as well as check-ins and check-outs. They also work with the Airbnb booking platform to handle rentals. You’ll need to create a website and advertise your company online to get started. While marketing might be costly, it can also be inexpensive; try using free directories, social media, and direct contact with Airbnb hosts.
9. Life & Business Coaching
$51,000 is the average yearly income. The first investment should be between $220 and $270.
Life Coaching Business is the best business to start for under $500.
If you’re the sort of person who always comes to you when friends and family have a problem, you could be a good match for beginning a life coaching company. Coaches are comparable to mental health counselors in that they do not need professional schooling and do not require in-office appointments. According to the Universal Coach Institute, a life coach’s average compensation is roughly $51,000. According to Market Research, it’s part of the $9.9 billion personal development business, which is expected to increase at a 6.7 percent annual pace from 2016 to 2022.
So, how do you go about starting a life coaching business? Online schools such as ExpertRating offer life coach certificates for as low as $70, while certification is not necessary. However, you’ll need to create a website and register with life coaching directories like Coach.me and Noomii. As with most companies, networking is essential, so become engaged in your local community—as well as online communities—and attend relevant events, such as personal development seminars, to meet like-minded people.
Business of Event Planning
$50,000 is the average yearly income. The first investment should be between $200 and $250.
Event planning company is the best business to start for under $500.
Whether individuals are saying their “I do’s,” celebrating a birthday, introducing a new product, or team building on a work retreat, events are huge to-dos. There are many different sorts of events, and event planning businesses are engaged to create them from start to finish. According to Chron, an event planner’s average compensation is slightly under $50,000, and the field is predicted to expand 10% from 2016 to 2026, according to the Bureau of Labor Statistics. It’s no surprise, given our love of parties, that event organizing is now a $4 billion business, according to Socialtables.
It is quite inexpensive to start an event planning firm. Work remotely and visit your customers to save money on a high-ticket business facility. A website will be required for the company, preferably with work examples. These may be earned while you’re just starting out by providing free event planning services to attract your initial customers. List your company on event sites like WeddingWire and Meetingpages to increase recognition. Those in a niche may wish to consider utilizing Google’s sponsored search to be noticed.
Web Hosting Company No. 11
$48,000 is the average yearly income. The first investment should be between $300 and $400.
Web hosting company is the best business to start for under $500.
Owning a web hosting firm seems to be both costly and technical. Reseller hosting and server leasing, on the other hand, is a low-cost enterprise that doesn’t need an MIT degree or decades of expertise. According to Lifewire, it has a mid-range salary of roughly $48,000, but for many, it is a six-figure income. According to MarketWatch, between 2016 and 2022, the web hosting services industry is estimated to increase at a compound annual growth rate of 16 percent.
All you need is a reseller hosting package to get started. Reseller programs are available from all of the major web hosting firms, allowing businesses to sell their hosting plans directly to customers, many of which are white labeled. Start with a $25 per month reseller hosting account, then design a marketing strategy to begin attracting customers.
12. Education & College Prep Services
$45,000 is the average yearly income. The first investment should be between $175 and $200. (not including the cost of a degree)
Education and College Preparation Services are the best businesses to start for around $500.
With standardized test prep, class tutoring, and college advice, college preparation programs help kids get ready for admissions success. According to Recruiter, the average tutor income is $45,600. According to CNBC, many instructors earn between $70,000 and $120,000 a year, with others earning more than $1 million. It’s also not going away; according to The Journal, the sector is anticipated to increase 12.75 percent from 2017 to 2021.
While there are no formal qualifications, outstanding teachers usually have degrees from well-known and respected institutions and universities. After all, if you haven’t attended college, you are unlikely to have a good understanding of the admissions and standardized testing procedures. You will need to advertise your company with a website and increase exposure via networking and digital advertising after you have a formal degree and an aptitude for teaching.
Business of Commercial Photography
$44,000 is the average yearly income. The first investment should be between $400 and $450.
Commercial photography is the best business to start for under $500.
Starting a photography company could be easier and less expensive than you think. If you have an artistic bent and a keen eye for photography, you may want to think about beginning a professional photography company. According to PayScale, the average compensation for a photographer is $44,219 per year. And, according to Zion Market Research, photography is a rising business—especially in the era of digital and social media—with a 6.1 percent growth rate between 2016 and 2021.
Traditionally, the expense of starting a professional photography company has entailed the purchase of costly equipment, which may cost several thousand dollars. Not only has equipment gotten considerably more affordable, but it is now also available to rent photographic equipment at reasonable rates. You don’t even need an arts degree; thanks to the multitude of instructional tools available on YouTube, Udemy, Coursera, Creative Live, and other online platforms, you can obtain professional photography training for around $100.
14. Beauty Services on the Go
$41,000 is the average yearly income. The first investment should be between $475 and $500.
Mobile Beauty Services is the best company to start for around $500.
Instead of going to the salon, start a mobile beauty services company, such as a mobile blow-dry service. According to the Bureau of Labor Statistics, the typical salon owner in the United States earns roughly $41,000 per year—but that’s after a lot of overhead. According to Grand View Research, being mobile lowers the costs of renting commercial space and purchasing expensive equipment, allowing you to take a bigger slice of the $211.1 billion market, which is expanding at a strong 3.1 percent compound annual growth rate (CAGR).
Blow-dry-only services are a significant trend in the beauty business. According to Forbes, salons like Drybar, a $100 million franchise, are springing up that specialize on this service. Unlike typical salon services, you don’t need a license to wash and blow-dry hair, so there’s no need for pricey training. Furthermore, by putting your company on the road, you may give a more convenient service to your consumers while also lowering the expenses connected with salons. With a mobile point of sale (POS) system, you may even process payments on the move for a low price.
15. Travel & Tourism Agency
$40,000 is the average yearly income. The first investment should be between $400 and $450.
Travel and tourism agency is the best company to start with $500.
As travel becomes more accessible and inexpensive, the globe seems to be shrinking, and although some people prefer to take things into their own hands and plan their own vacations, others prefer to rely on professional guidance from travel agencies. According to Forbes, the average compensation of a travel agent is $40,840 per year, however travel agency owners make millions in the $5.29 trillion sector, according to TravelWeek.
Acting as a third-party sales firm for big-name travel companies like Carnival Cruises and Royal Caribbean is the cheapest method to start into the market as a travel agency. This implies you might offer cruise packages to your customers and profit from them without incurring any costs. To begin, you’ll need to form a partnership with a provider, such as Cruise Inc., and become an affiliate; create an ecommerce website where clients can book your packages; get a travel planner certification; and, most significantly, advertise your company to attract customers.
Methodology
The 15 greatest companies to start for under $500 were ranked using six broad categories and 14 criteria in all. Each indicator was then given a weighting based on its relative relevance.
The following elements were taken into account while determining our ranking:
Cost: 20%
Each company must have launch expenditures of little more than $500 to be included for our list. This covered all initial startup expenditures, such as tools and equipment, educational fees, mandatory licenses, labor, a website (with a minimum year-long plan), and marketing. The price does not include the costs of registering a firm, which vary widely from state to state, with some jurisdictions, such as Massachusetts, charging $500 only to file for an LLC.
20% of the population has an average income.
Each company proposal has to earn more than the national average adjusted gross income of $35,000 to be considered (according to the IRS Statistics of Income). Average income may be discovered on sites like PayScale and Glassdoor, and although they are mostly indicative of employee wages and earnings, they can be used as predictors of potential profit for new company owners. When applicable, average company revenue was substituted for average employee pay.
20% chance of success
Businesses have to meet certain minimum requirements in order to be included for our list. To assure this, each of the businesses we evaluated takes little more than a bachelor’s degree or a few years of relevant experience; each may lawfully be established in any state in the United States and is not location-specific; and each can be managed full-time, year-round. This eliminates company concepts that are overly specialized and so exclusive, as well as side jobs.
20 percent of the market is already occupied.
Businesses must operate in marketplaces that are already well-established. This is because creative and experimental company concepts often need considerable marketing efforts to develop product knowledge and recognition, making them unlikely to be launched for less than $500. We looked at the worth of each industry to determine market size; to make our list, a company had to be in an industry with at least $1 billion in sales.
20 percent industry growth
We looked at industry growth as a predictor of future profitability and business durability to avoid gimmicky and fad-type company concepts. We looked for companies in sectors that grew at a faster pace than the 2.5 percent average year-over-year growth rate.
The Bottom Line: The Best Business Ideas for $500 or Less
Although technology is best recognized for making people’s lives simpler, it is also making it easier than ever to start a company as technology becomes more inexpensive and accessible. That’s why we looked for companies that can be started for $500 or less in 2019. Profitability was calculated using average income and earnings, market size, and market growth. What we discovered was unexpected, but certainly encouraging. Examine our list of the top 15 occupations above and get started on your ideal job now for very little money.
The “i want to start a business, but have no ideas” is a problem that many people experience. The article will help you find businesses that are worth investing in with less than $500.
Related Tags
- 42 business under $100 dollars
- low stress businesses to start
- which business can i start with 500
- low-cost service businesses to start
- cheapest business to start from home
