If you’re considering starting your own business in 2024, we’ll help you discover a great business idea. There are many types of online and offline businesses that you can start this year. But today, we will focus only on the 12 best low-cost businesses you can start and start earning immediately.
Things to Consider When Contemplating the Profitable Business Idea
A low-cost small business idea must align with your budget, skills, and availability. Additionally, the idea should address a market need and generate steady profits over time.
Here are key factors to evaluate for a robust small business idea:
- Market Demand: Effective small business ideas address problems for defined customer groups. Before proceeding with an idea, investigate your target market, customer needs, and the solutions offered by competitors. Examine industry trends, customer feedback, and sales data to gauge what consumers and businesses seek.
- Competitive Advantage: The method of addressing market demand is crucial. Successful businesses typically have innovative methods that distinguish them from the competition, whether through a novel product, a unique selling proposition, or an effective pricing strategy. Assess your competitors to identify their strengths and areas of vulnerability, and devise a business plan that takes advantage of these insights.
- Scalability: Consider whether your business can expand without being constrained by geographical, financial, or market-related limitations. Businesses that scale well often use ecommerce to access broader markets without substantial physical investments.
- Low Barrier to Entry: It’s easier to launch businesses that require lower start-up costs, have fewer regulatory hurdles, need less specialized training, and have basic technology requirements. For instance, businesses like freelance content creation or drop shipping can be initiated with little initial investment and a straightforward setup.
- Profitability: A small business must be profitable. Estimate potential earnings and construct a financial model based on anticipated sales and operational expenses.
- Sustainability: Evaluate whether your business will operate within a growing sector or a declining trend. Consider how your business practices will meet environmental, social, and regulatory standards. Businesses that maintain sustainable practices gain consumer trust and position themselves for enduring success.
Top 12 Low-Cost Businesses to Venture in 2024
Starting a business doesn’t have to come with high upfront costs in 2024. With careful planning (and little skills), you can venture into profitable, low-cost businesses that align with current market demands. Whether you’re interested in providing services like pet sitting or diving into digital fields like social media management, the opportunities are vast.
Below are the top 12 low-cost business ideas for 2024 that offer the potential for growth and sustainability without breaking the bank.
1. Pet Sitting
By 2024, 66% of households in the US, which amounts to 86.9 million families, have pets. When families travel for long periods, your pet-sitting business can reassure them. As a pet sitter, you’ll care for your clients’ cats, dogs, or other pets in their homes. Your responsibilities include feeding, watering, playing with the pets, and walking the dogs as needed. Regular updates to your clients about their pets’ well-being are crucial for customer satisfaction.
Source: Insurance Information Institute
If you have other income streams and need a laptop and an internet connection, pet sitting might be a good business option. Many pet owners value having someone in their home, which allows them to work remotely on another job while also looking after their pets, thereby managing two income streams simultaneously.
2. Bookkeeping and Accounting
If you’re skilled with numbers and have experience in accounting or bookkeeping, starting your own business can be cost-effective. You need a computer and client-specific accounting software.
Many individuals and businesses require the services of a skilled bookkeeper or accountant for tax preparation, business advice, or financial planning. Starting your practice can be lucrative if you are a Certified Public Accountant.
If you are not yet trained or licensed as an accountant, you should look into your state’s necessary education and licensing requirements. Many tax preparation companies offer training programs, courses, and seminars that prepare you for certification and employment with them.
Consider the scope of services you plan to offer:
- Will you focus on bookkeeping for small businesses?
- Do you plan to prepare detailed financial reports such as balance sheets and income statements?
Nevertheless, focusing on a niche market, like serving restaurants, retailers, or manufacturers, can give you a competitive advantage.
3. Cleaning Services
Cleaning services are crucial for residential and commercial settings, tackling tasks many find unappealing or lack the time to handle. These services can operate from a home base, providing weekly or daily support for businesses. In the U.S., over 1 million residential cleaning businesses exist, with 22% of households employing professional cleaning services.
Source: Gitnux
Starting a cleaning service can be advantageous as it doesn’t require a physical office, equipment costs are minimal and can often be charged to clients, and work hours are adaptable. This makes it an appealing sector for budding entrepreneurs.
Commercial cleaning services present a more significant opportunity for those looking to expand further. Securing contracts for office cleaning and other business-related jobs can be highly profitable, though it does require a larger initial investment for staff, specialized equipment, uniforms, and more.
4. Consulting
Consulting is a robust business choice that thrives in any economic condition. Businesses often seek consultants to scale their operations to new heights when the economy is expanding. Conversely, they look to consultants in a downturn to help navigate challenges and regain stability.
Starting a consulting business is notably cost-effective. Since your knowledge and expertise are your main assets, you can launch with minimal expenses. Essentials for beginning include a compelling consulting proposal and an understanding of how to price your services and locate clients.
The scope of consulting is broad, allowing flexibility to adapt to consumer demands. For instance, as AI’s relevance grows, there could be an increasing need for consultancy in both the technical and marketing aspects of this field.
5. Dropshipping
In conventional retail, the expenses associated with manufacturing, acquiring, storing inventory, and managing packaging and shipping can be substantial. Dropshipping has altered the landscape significantly. This model allows you to bypass these initial costs by partnering with a third-party supplier who handles product creation, packaging, and delivery directly to your customers. The global dropshipping market is anticipated to grow to $243.42 billion in 2024, a 23.5% increase from the previous year.
Source: Meteor Space
This approach enables rapid entry into e-commerce, offering access to a vast range of products ready for shipment. Dropshipping is also an economical method of evaluating product-market fit or exploring trending items.
6. Social Media Management
A young woman wearing glasses looks at her phone, smiling, with social media reaction icons around her. Managing professional social media accounts often involves optimizing and scheduling content to post during peak traffic times using well-chosen tags. Influencers frequently hire managers for their social media to tap into this lucrative market.
To become a social media manager, you need a strong online presence and a deep understanding of social media algorithms and digital marketing strategies.
Start by creating business profiles on all key platforms, learning about online marketing tools, promoting your services through freelance websites or your own portfolio, and keeping a record of your social media engagement as a reference.
Managing a few social media accounts is doable, but expanding your services to handle more accounts might require financial investment. Costs for social media management services can start at around $100 for basic tools and can soar into the thousands for comprehensive advertising campaigns.
7. Content Writing Business
Content writing stands out as a top choice for entrepreneurs today. While often confused with blogging, content writing encompasses a broader range of services. It covers diverse formats, including business, technical, video scripting, legal, PDF reports, white papers, academic writing, creative writing, web content, email communication, sketch writing, and more. Blogging is just one facet of this extensive field.
Starting a content writing business can quickly escalate to success if you adopt superior writing qualities. This type of business can grow rapidly, accumulating a robust client portfolio in a short time.
Content writers and bloggers share similar job functions due to the fundamental nature of writing required in both roles. Key responsibilities of a content writer include crafting flawless copy that aligns with a client’s business objectives, collaborating with sales, marketing, and design teams to produce integrated content, and promoting this content across social media platforms.
8. Print on Demand
Print-on-demand is a business model that benefits from low initial costs and minimal inventory requirements. You can sell your products on established platforms like Etsy or your custom website. As your business grows, your revenue can increase through existing product sales.
The key to starting a print-on-demand business is selecting a dependable supplier that fits your sustainability goals. With print-on-demand, you can:
- Launch a t-shirt line with your own designs
- Offer novelty socks with cat images
- Sell stickers aimed at dog enthusiasts
- Market merchandise featuring your original artwork
Your business should focus on design, marketing, and delivering superior customer service to convert your creative concepts into financial gains.
9. Tutoring, Consulting and Coaching
Tutoring, consulting, and coaching are effective ways to leverage your passions and expertise into additional income, whether through in-person or online engagements. These ventures often require low startup costs and can provide high-profit margins. You possess the necessary knowledge and must utilize platforms that help market your services and expand your client base.
If you’re considering a move into consulting, such as becoming a social media consultant, this path allows you to control your career trajectory using your existing skills and experiences. Starting small in consulting can be cost-effective, and there is potential for significant growth as you attract more clients.
To establish a successful business in tutoring, consulting, and coaching, consider promoting your services through platforms like LinkedIn and other social media. Encourage referrals from your network, including friends, family, and past clients. Offering virtual and in-person sessions will enable you to reach a wider audience. Developing a clear and engaging website can effectively convey what you offer and attract potential clients.
10. Web and App Development
Due to the rising demand for digital solutions in various industries, web and app development are low-cost, solid business opportunities. Effective online platforms and mobile apps have become essential for businesses aiming to remain competitive. As the global web development market grows, entrepreneurs can serve a broad range of clients, from small businesses to large corporations, all looking for customized, user-friendly digital platforms.
Starting costs are low. The only requirements are a computer, internet access, and coding skills, which can be learned through affordable online courses.
Businesses are willing to invest significantly in quality web design and app development, with project costs ranging from a few thousand to over $100,000 with corporate clients. This field also offers substantial potential for growth, enabling developers to begin with small projects and gradually expand their services. The availability of open-source tools and online resources further reduces the entry barrier, allowing aspiring developers to build their skills without large financial outlays. With the potential to reach a global market, web and app development are scalable and profitable business ventures.
11. Event Planning
Starting a small business in event planning can be a viable idea. Begin by managing events like birthday parties, family gatherings, and anniversaries. These smaller events are a good way to build a client base and develop event management skills. With an increasing reputation, you can gradually handle more detailed projects.
Event planning is a sought-after service, similar to the food industry. Creating a website and engaging in online marketing are effective ways to attract potential clients. Additionally, traditional advertising methods such as newspaper ads and radio spots help increase brand awareness.
Event planning can have profit margins as high as 40%, presenting a substantial opportunity for business growth and profitability. Starting with smaller events is a sensible approach to gaining experience and solidifying your business foundation.
Running an event planning business includes conducting thorough research and building networks with related service providers like caterers, decorators, and transport services. It requires coordinating with vendors, managing budgets, and ensuring every detail aligns with the client’s needs.
12. Airbnb host
Becoming an Airbnb host is a practical, low-cost business option, particularly for those with extra home space. You don’t need to own a separate property or make significant initial investments to start making money.
Starting as an Airbnb host requires minimal upfront costs. If you have an available room, basement, or guesthouse, you can begin listing it with basic preparations and some initial supplies. Initial setup costs, such as furnishing, cleaning, and basic supplies, are affordable, particularly if you use existing furniture and decor. Some hosts begin with as little as $2,000 to $3,000, covering these essentials.
Airbnb has a wide international presence with over 7 million listings, establishing it as a prominent platform for short-term rentals. This extensive network increases your likelihood of attracting guests, especially in sought-after locations or during busy periods like events and holidays.
Conclusion
Starting a low-cost business presents numerous opportunities across various sectors in 2024. From pet sitting to Airbnb hosting, these ventures share common traits—low startup costs, flexibility, and scalability. Whether leveraging digital platforms for dropshipping or using personal expertise in bookkeeping, the key to success lies in identifying market needs, offering unique value, and planning for growth.
Staying adaptable and informed about industry shifts will be crucial as trends evolve. These business ideas provide aspiring entrepreneurs with a solid foundation for building a profitable and sustainable venture with minimal initial investment.
