Low Cost Business Ideas With High Profit
Small businesses are not just found in the tech industry. They employ people from dozens of industries, and their contribution to the local economy is enormous. In this post, you will learn low-cost business ideas with high profit.
It’s not all sunshine and rainbows for small businesses. In 2020, many business owners were forced to shut down their companies to stay afloat during the economic downturn we experienced last year. If you are thinking about starting a company this year, you need to know how your customers will receive it.
- The Department of Labor defines a small business as one with fewer than 500 employees.
- What is the number of small businesses in North America as of 2020?
- In 2021, I thought that starting a small business would be worth it. Some ideas are
Starting a business? We have prepared a list of low-cost business ideas with high profit that you may use.
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What’s considered a “small” business?
The Small Business Association (SBA) defines a small business as any company that employs fewer than 500 people or falls beneath an annual receipts cap. Most companies in the U.S., especially smaller ones, hire 1 to 19 employees.
How many small businesses are there in the United States and Canada as of 2020?
The US has over 31 million small businesses, which is 99.9% of the total number in America. 60.6 million people work for these companies, and they employ almost half. This makes up nearly 50%. There were 1.2 Million Canadian small businesses last year, but they make up 97% or 98% if only the private labor force.
14 low-cost business ideas with high profit
This article was initially published in 2018, before the COVID pandemic. To make this list relevant for 2022, numbers 1-8 come recommended by the U.S Chamber of Commerce as viable business opportunities to start during a COVID outbreak because they are based on Sageworks’ report about small businesses that have been successful despite a recession.
1. Home improvement services
In 2020, the housing market was booming with a surge in new homeowners. The demand for home improvement services has been steadily increasing as people look to buy homes and upgrade their current residences.
Home improvement services are essential when it comes to low-cost business ideas with high profit. Home improvement services can include interior design, carpentry, contracting, or landscaping. These businesses usually require training and access to equipment or materials, which means they are not the cheapest type of business startup.
2. Cleaning services
Cleaning services are not just for homes. They can be used in commercial buildings, which is an essential service that many people do not have time to complete or enjoy doing themselves. There’s also a cleaning service in our low-cost business ideas with high profit if there are home improvement services.
The nature of the cleaning industry is that it does not require a physical office, which means that you can set up shop anywhere. The equipment needed to start your own business is low-cost and quickly billed back to clients or customers; hours of operation for this type of company are flexible because they work around client needs instead. Labor costs in this field tend to be very affordable with no education required, so hiring employees doesn’t cost much.
3. Tutoring services
The school year never ends, and it can be difficult for students to find the time or resources needed to complete their homework. Starting a tutoring service is one way to help those struggling with core concepts or learn more about an area of interest. This one belongs to our list of low-cost business ideas with high profit, especially during the pandemic.
- SAT/ACT prep
- College essay prep
- Some people would prefer the sciences to be taught in a way that they are not always focused on memorizing.
- Foreign languages
- Computer science
Thanks to technology, there is no need for tutoring lessons in person. All you have to do is download the software and purchase a phone or tablet that can be used as an outlet where students can call video chat with your service. Depending on location and education level, prices range from $25-$56 per hour.
4. Personal training and fitness instructors
After the government-mandated COVID-19 shutdowns, many gyms and fitness centers saw their customers disappear. However, people are very adaptable when it comes to staying healthy, so they turn to online workouts or outdoor exercises to avoid missing out on training altogether.
A trainer’s business will always be in demand because fitness trends come and go. A U.S Chamber of Commerce study found that personal trainers can build a following on social media, such as YouTube or TikTok, to find clients for customized workout programs at the desired cost.
When you are getting started in personal training, it is pretty simple. You can take a formal certification exam or be self-taught, and that will give you the credentials to break into this industry.
5. Delivery services
As a result of the influenza pandemic, more people stay at home to avoid contact with other people. This has created an opportunity for delivery services such as food and parcel deliveries.
Because of the pandemic, this one became essential on our list of low-cost business ideas with high profit.
To take advantage of this trend, you could offer your local courier service to deliver groceries or medications. You would charge a standard rate for the delivery and then additional fees depending on how long it takes, what time-frame they need it by (if there is urgency) if the items are heavy bulky etc.
6. Digital marketing services
Many small businesses are turning to digital marketing agencies for help with their brand building and web presence. If you’re interested in starting your agency, a few different types of services can be offered.
- SEO writing
- I need help with Facebook advertising.
- Web design
- Brand/creative consulting
- Content creation
- When managing social media, the goal is to create content that will engage followers. This can be done through organic posts or paid advertising
There are many people who can start a digital agency from home, which is easy to do with minimal startup costs. Running an agency as a solopreneur or hiring experts in areas you’re less knowledgeable about will get your business off the ground.
7. App development
Businesses are now looking to go digital, and some may even seek out app developers who can build custom iPhone or Android apps for them. These businesses want the help of an expert because they have a vision that needs to be made into reality.
There are several online resources for people who want to break into the app development field. These include coding boot camps and free, open-source courseware that can help you learn basic principles.
8. Accounting services
Starting an accounting business is a great idea for individuals looking to be their boss. You can get started with very minimal start-up costs, and the job requires only part-time work, so you have plenty of free time on your hands.
As the barriers to entry for accounting are high, accountants usually have at least an undergraduate degree. Some may be certified with a CPA license or IRS Enrolled Agent certification. Accountants who go above these requirements can charge higher rates because of their advanced qualifications.
9. Law firms
The legal industry is indispensable to many areas of personal and professional life. Like accounting services, law firms can provide a range of necessary services.
- Criminal law
- Business law
- Family law
- Trusts and estates
- Constitutional law
- Intellectual property law
- Personal injury law
- Employment law
The law is lucrative, but it has a high barrier to entry. To become an attorney, you have to attend undergraduate school for four years and then graduate from law school before passing your state bar exam. Even if someone practices in one specific area of the law, they might need additional staff.
10. Real estate agencies
The COVID-19 pandemic has created a housing shortage. City prices are skyrocketing, and people seek suburban properties to find cheaper homes with more space.
Even though the industry may be a downturn, it is still an excellent opportunity. With online classes and no degree requirements, anyone can become licensed with little overhead costs.
11. Outpatient care centers
Outpatient medical care offers patients the chance to receive treatment without staying overnight. It does not require a lot of specialized staff members or licensing and instead lets people go home on the same day.
Outpatient clinics have a lot of start-up costs, but the profit margins are still good because they get reimbursed for procedures and medical equipment.
12. Dental offices
Dental health is essential for overall wellness and self-care, so it’s recommended that you visit the dentist twice a year on average.
Dentists must earn both a bachelor’s degree and a doctorate in dentistry, while dental hygienist roles require at least two years of school. Dental equipment is expensive, with chairs costing $2,000 or more on average. However, the cost of treatment can be high; even an intermediate cleaning will set you back about $288, not including fillings, x-rays extractions, and root canal treatments, which are also costly.
13. Warehouse and Storage
With the eCommerce boom, there is a need for more warehouse space. This means that businesses will make money off of this opportunity.
It’s expensive to build a warehouse, but renting out space and storing goods can offset the investment. This means that time commitment is minimal.
14. Doctor offices
The demand for healthcare workers has increased due to the COVID-19 pandemic. As people search more frequently for specialized medical care, it is essential to ensure enough qualified personnel.
The list of skills and training required for a doctor is extensive—four years of undergraduate education, four years in medical school, three to seven-plus years residency. And the payoff can be huge if you’re willing to work hard: insurance reimbursement could cost thousands, meaning that your take-home pay would still leave with an exorbitant profit.
Positioning your business for success
It needs good planning and POS tools like experience and knowledge of the industry to be flexible, resilient, high demandable with good margins.
If you consider opening a business and need help with the POS, let’s talk.