Cheap Small Business Ideas You Can Start With Little Money

Tired of slogging away week after week to make money for an unknown CEO in a fancy office? Maybe you’re considering starting a small business to gain freedom and flexibility from the corporate world. But businesses cost thousands of dollars to start up, right?

Not necessarily. Many small businesses can be launched with basic skills, minimal equipment and a lot of motivation to find your first customers. You just need to do a little research to find the best small business that fits your interests and skill set.

Intrigued? Below are 25 cheap small business ideas to consider starting.

Easiest Cheap Businesses to Start

Some of the easiest businesses to start require little to no seed money. Consider these options to get started in your career as an entrepreneur.

Freelance Writing

If you’re a stickler for grammar and love typing out long posts on social media, a career as a freelance writer or editor could be the right fit.

All you need to get started is a computer. Freelance marketplaces like Fiverr or Upwork can help you find your first clients, or you could contact local businesses directly to see if they need help with their website content, blogs or marketing copy.

Startup cost: Under $100

Potential earnings: $10 to $52 per hour, according to Indeed

Virtual Assistant

If you’re organized and flexible, you could really shine as a virtual assistant.

Virtual assistants work remotely to provide a range of services to organizations, including administrative support, customer service, social media management, bookkeeping, data entry or transcription services. 

Look for clients online or within your professional network to get started.

Startup cost: Under $100
Potential earnings: $16 to $42 per hour, according to Indeed

Resume Writing

The right resume can help people get noticed by recruiters, increasing their chances of getting hired. But most people don’t know how to write a solid resume.

If you have strong writing and editing skills, you could start a business helping people zhuzh up their resumes. Ask your network who might need this service, and build your business from there.

Startup cost: Under $100
Potential earnings: $12 to $43 per hour, according to ZipRecruiter

Pet Sitting

Do you dream of getting paid to spend time with dogs, cats and other animals? Become a pet sitter, and your dream could come true.

All you need is a love for animals and the flexibility to visit clients’ pets for meals, walks or play time. If you want to stand out, consider taking classes in pet first aid and CPR.

Use a platform like Rover to find clients or just ask around your friends and neighbors to get started.

Startup cost: Under $100
Potential earnings: $14 to $49 per hour, according to Indeed

Dog Walking

Even if you can’t commit to pet sitting, you can still make money while enjoying the company of animals by becoming a dog walker.

Find clients using an app like Rover or Wag, or advertise locally by hanging flyers in your neighborhood.

Startup cost: Under $100
Potential earnings: $13 to $30 per hour, per Indeed

Tutoring

If you’re a math wiz or know multiple languages, consider tutoring local students for money. You can offer tutoring services in person or online, making it easier to find work.

Contact your local school district to see if you can be added to their list of local tutors. You can also register with a tutoring platform like Tutor.com.

Depending on the subject you want to tutor, you might need a degree or certification from the American Tutoring Association or the National Tutoring Association.

Startup cost: Under $100
Potential earnings: $13 to $50 per hour

Cheap Service Businesses You Can Start Locally

Starting a local service business can be cheap, though essential expenses like business insurance make it more expensive than starting a freelance writing or tutoring business.

House Cleaning

Do you love making your house shine and sparkle? Consider starting a local house cleaning business to monetize your passion.

All you need to get started is some basic equipment and supplies, like vacuums, mops and cleaning solutions. Ask around your circle if anyone needs cleaning services, or post your business information on local forums and groups to find clients. You’ll likely need a business license to operate in other people’s homes.

Startup cost: $475 to $1,650
Potential earnings: $14 to $32 per hour, according to Indeed

Lawn Care

Get paid to spend time outdoors by starting a lawn care business.

You’ll need some basic lawn care equipment, like a mower, trimmer, edger and leaf blower — spending less upfront keeps startup costs down, but investing in quality equipment can be a better long-term move for your business.

You’ll also need a truck, and possibly an equipment trailer, to transport your equipment to customers’ homes. Look for used items or bundle discounts to save money.

Startup cost: $1,350 to $6,100
Potential earnings: $12 to $163 per hour, according to ZipRecruiter

Pressure Washing

There’s nothing more satisfying than blasting a dirty patio with a pressure washer and watching the grime melt away. All you need to start a pressure washing business is — you guessed it — a pressure washer, plus a way to transport it.

Startup cost: $1,000 to $15,000 for equipment
Potential earnings: $12 to $25 per hour, according to ZipRecruiter

Mobile Car Detailing

Many people will pay big bucks to have their cars professionally detailed — and you can bring that service to their home or workplace.

Your biggest startup cost will be equipment like a bucket, pressure washer, vacuum, steamer, cleaning products and cloths. Then ask your family and friends for referrals to find your first clients and spread the word.

Startup cost: $800 to $5,000
Potential earnings: $10 to $20 per hour, according to ZipRecruiter

Personal Organizing

If you love taking a messy, cluttered space and making it neat and organized, you could have a future as a professional organizer.

To get started, you’ll need basic supplies like label makers — but you’ll also need a business website and marketing strategy to find a client base.

Startup cost: $1,300 to $3,800
Potential earnings: $12 to $40 per hour, according to ZipRecruiter

Event Planning

Does planning large events like weddings, parties and corporate events sound like a dream? Start an event planning business and you could make a living organizing events for other people.

You’ll need a computer, printer, scanner and potentially a digital camera to get started. And you’ll need to have impeccable organization and people skills.

Startup cost: $1,600 to $3,300
Potential earnings: $13 to $44 per hour, according to ZipRecruiter 

Consulting

If your brain is stuffed with specialized knowledge, you can monetize it by starting a consulting business. Consultants typically advise clients on marketing, finance or business operations to help them become more successful.

Consulting businesses are relatively simple to start, as long as you have in-demand skills and knowledge. As you make a name for yourself in the industry, you’ll have an easier time finding clients and pulling in some real money.

Startup cost: $0 to $500
Potential earnings: $93,069 per year on average, according to Indeed

Cheap Businesses You Can Start From Home

Starting a business from home helps you keep costs down since you don’t need to rent an office space. Here are some options to consider.

Social Media Management

Do you know how to make a social media post go viral? Consider monetizing your skills by helping businesses manage their Facebook, Instagram or TikTok presence.

All you’ll need to get started is a computer or mobile device. 

Startup cost: $0 to $1,000
Potential earnings: $12 to $53 per hour, according to ZipRecruiter

Graphic Design

If you know your way around Photoshop, InDesign and Canva, consider offering graphic design services to help businesses stand out. As a freelance graphic designer, you might create logos, ads or website graphics.

You’ll need a computer, design software and a strong portfolio of previous design work to get started. If you already have these, your startup costs will be minimal.

Startup cost: $0 to $7,000
Potential earnings: $13 to $43 per hour, according to ZipRecruiter

Podcast Editing

Your favorite podcasts require a lot of work behind the scenes to reach your feed. If you want to get into the podcast industry but don’t want to be on mic, consider starting a podcast editing business.

This job lets you work in the weeds to improve audio quality and get episodes ready for publication — and all you’ll need to get started is basic audio editing software and a set of headphones.

Startup cost: $100 to $5,000
Potential earnings: $11 to $58 per hour, according to ZipRecruiter 

Bookkeeping

Do you have a head for numbers? Put your math skills to use and help businesses organize their finances by starting a bookkeeping business.

At the very least, you’ll need a computer and some business accounting software to get started.

Startup cost: Around $3,000
Potential earnings: $17 to $34 per hour

Cheap Online Businesses

Online businesses are often the cheapest to start because they don’t require expensive equipment. In fact, you can start these cheap online businesses in your spare time as a side hustle and build it into a full-time gig over time.

Affiliate Blogging

If you often find yourself boring your friends with stories about your awesome new vacuum cleaner or that pair of sneakers that finally fixed your foot pain, consider starting a blog and earning money by recommending products with affiliate services.

Large retailers like Amazon and Walmart offer affiliate programs where you earn a commission when someone makes a purchase after clicking your affiliate link. 

Full disclosure: Most bloggers take months or even a few years to see their first $1,000, but the ceiling is incredibly high. If you can build a solid online following, you could make big bucks from affiliate programs.

Startup cost: $0
Potential earnings: $1,000 to $50,000 per month, according to Elementor, a website builder

Digital Product Shop

Selling digital downloads like templates, printables, guides or courses can help you make money with very little ongoing effort. Once you’ve created your digital product, you can earn income on downloads without ongoing production costs  aka passive income.

Start by thinking about your skills. Do you love making your own clothes? Create downloadable patterns for sale. Are you an avid woodworker? Make a series of downloadable how-to courses to help people build their own furniture.

Startup cost: $0
Potential earnings: $500 to $10,000 per month, according to Tevello, a digital course platform

Print-on-Demand Store

Sell T-shirts and stickers with your designs by setting up a print-on-demand store.

This business model only prints items when a customer places an order, so you don’t need to worry about surplus stock or inventory storage costs.

Startup cost: $100 to $1,200

Potential earnings: $100 to $3,000 per month, according to TrueProfit, a business-tracking app

Etsy Handmade Shop

Put your crafty side to work and set up a store on Etsy. You can list jewelry, crafts, home decor and more — just think about how you can use your skills to create goods that people will want to buy.

Your primary startup costs will go toward materials and shipping supplies. Other than that, you’ll pay a listing fee of 20 cents to Etsy per item, plus 6.5% of each sale you make. It might take a while to turn a profit, but you can easily start this as a side project and build it into a decent income.

Startup cost: $0 to $100
Potential earnings: $100 to $10,000 per month, according to TapStitch, a print-on-demand and dropshipping platform

Dropshipping Store

Dropshipping is a way to sell items online without keeping an inventory. When someone orders from your store, the order is sent to your supplier, who ships it on your behalf.

Since you don’t have physical inventory in your store, there are minimal upfront costs when setting up a dropshipping business.

Startup cost: Around $100
Potential earnings: $1,500 to $25,000 per month, according to ZenDrop, a dropshipping platform

Cheap Businesses You Can Start With $500 or Less

So you want to start a business, but you only have $500. Many businesses require little to no money upfront, making them ideal if you want to dip your toes into the business world without investing thousands of dollars.

Here are some ideas of businesses you can start with $500 or less:

• Freelance writing
• Virtual assistant services
• Pet sitting or dog walking
• Resume writing
• Personal organizing
• Social media management
• Graphic design
• Dropshipping store

Choose a business that aligns with your skills and interests. If you detest social media, don’t start a social media management business. 

How to Choose the Right Cheap Business Idea

Knowing about all the potential business ideas is all well and good, but how can you choose the right one to start? 

Consider your budget, skills and the amount of time you can afford to sink into your business in the beginning. Here are some must-ask questions.

How Much Money Can You Invest?

Some businesses, like freelance writing or pet sitting, cost little to no money to start. Others, like cleaning or lawn mowing, require a larger upfront investment to get the right equipment and supplies.

Make a budget to help you understand how much money you can put into your business. This will help you find the most realistic options available to you.

What Skills Do You Already Have?

If you’re a trained graphic designer, it’ll be relatively easy to start a freelance design business. But if you’ve never designed anything, you’ll need to build your skill set before you can offer professional graphic design services.

Choose a business model that aligns with your existing skill set to minimize your initial costs.

Do You Want Online or Local Customers?

If you want to work from home with minimal interaction with other people, an online business is the best fit. But if you want to get out in the community and enjoy chatting with others, a local business will be a better fit.

How Much Time Can You Commit?

Consider how much time you want to commit to your new business. Many people begin with a side hustle before turning it into a full-time gig. 

How Much Money Do You Need to Start a Small Business?

The amount of money you need to start a small business depends on the type of business you’re starting. 

Offering skill-based services, like resume writing or tutoring, can minimize your business startup costs.

But if you want to start a mobile car detailing or pressure-washing business, you’ll need to invest more money upfront to buy the necessary equipment and supplies.

Here’s a glance at how much you’ll need to start different types of businesses:

5 Steps to Start a Cheap Small Business

Once you’ve chosen your destiny, it’s time to make it a reality. Here’s how to start a small business in five simple steps.

1. Choose a Business Idea

Consider the best business idea for your budget, skill set and time commitment level. 

If you can’t decide, ask your friends and family to help you brainstorm. Often, they can identify strengths you might overlook.

2. Estimate Startup Costs

Make a list of the equipment, tools or software you’ll need to buy to get started. 

Do your research to find the best options in your budget, then shop around to find the best price. This helps you get quality equipment and supplies without blowing your budget.

3. Find Your First Customers

The best way to find your first customers is by asking your family and friends for referrals.

You can also advertise your business on social media, on neighborhood groups or at physical businesses in your area. Freelance platforms like Upwork and Fiverr can help you find your first clients.

4. Register Your Business if Needed

Your state or local government may require you to register your business and obtain licenses and insurance. Most experts recommend creating an LLC, which stands for limited liability company, for legal and tax benefits.

Even if it’s not legally required, it’s often advisable to get business insurance to protect you from liability.

5. Scale Gradually

It might take a few months, or even years, to see a profit. But once you start earning, consider reinvesting your profits into the business.

You can upgrade your equipment, invest in training or bring on additional employees to help scale your business and set it up for future success.

Common Mistakes When Starting a Cheap Business

We all make mistakes, but knowing about potential snafus before you start your business can help you avoid them. Some of the most common mistakes new business owners make include:

• Not making a business plan: A business plan covers how you’ll structure and run your business, including costs, marketing plans, marketing analyses and financial projections.

• Ignoring legal requirements: Starting a business without looking into the legality of doing so can lead to trouble down the road.

• Overspending early on: Before you spend any money, do some market research to make sure there’s a demand for your business services.

• Not using contracts: A contract protects you and your clients if something goes awry.

• Entering saturated markets: If your neighborhood has dozens of lawn care companies competing for business, it might not be the best move to add to that competition.

• Underpricing your services: It’s tempting to price your services low when you’re starting out to attract customers, but pricing them too low can make it harder to raise them once you’re more established.

• Ignoring local demand: Don’t start a mobile car detailing business if you live in an area with a low rate of car ownership.
• Not diversifying your client list: Overrelying on one customer for most of your business income will come back to bite you if that customer decides not to renew your contract.

The Path to Small Business Success

You don’t need thousands of dollars or a string of investors to start a successful small business. All you need is a few hundred dollars, a business idea and the drive to turn it into reality.

FAQ — Cheap Businesses to Start