Best businesses to start with little money

It is not necessary to have a crazy idea or out of the box business model to start an online business. The crazy idea or new business model is eventually evolved during your experience of running a business.

Starting a business online is easier than starting a business offline. It is because you don’t need a physical location when working online and you can work from your home or anywhere in the world. Anybody can start, because an online business can be done part time very easily. The initial investment is quite low.

Here I have listed the online businesses that you can start with a computer and an internet connection and can scale it to a passive online income. There may be many other ways to earn money online but these are the ways which actually provide real value to our customers, clients and partners. Along with that you gain a lot of new skills in the process which helps you to grow in every aspect.

1. Dropshipping

The simplest form of business is buying at a lower price and selling at a higher price and making profits in between. That’s all you have to do in a drop shipping business. Dropshipping is an E-Commerce business in which the owner of the online store neither owns nor stores any inventory, rather the inventory is owned and stored by a third party supplier who also ships the products.

So exactly how it is done…

  1. First, you (dropshipper) have to open an online store (e-commerce website).
  2. Then you decide what products you want to sell and find a reliable dropshipping supplier for your products.
  3. The supplier will give you the directory of products with all the pictures and descriptions and delivery information.
  4. You then upload it to your eCommerce website.
  5. Now it’s time for marketing. Bring your online store in front of people who are searching for the products you are selling. You can do this by improving your e-commerce site SEO and by running Google ads, Facebook ads, and other online marketing practices.
  6. When a potential buyer lands on your store and places an order for a $10 product (say) and makes the payment, you will receive the payment and other details of the customer.
  7. Now you pass the order to your supplier by paying $6 (say). So you made a profit of $4.
  8. The supplier fulfills the order and ships the products to your customer’s address.

What is the benefit of the supplier… Why the supplier not directly sells to the customer and makes high profit…

It is because there are suppliers who don’t want to do the marketing stuff and are not good at handling the customers. So they don’t have to do that and they just sell the products to dropshippers.

Benefits of the dropshipper…

Don’t have to store any inventory.

Don’t have to purchase the products before selling.

Just need a computer, an internet connection and digital marketing skills to run a dropshipping business.

Drawbacks for the dropshipper…

Have to handle the customers if they are dissatisfied with the product.

Have no control over shipping process and time.

What will you learn in the process…

Digital marketing practices.

How to handle customers.

Building relationship with suppliers and customers.

You will have a taste of running a business.

2. Affiliate marketing

You must be thinking that what if I don’t want to buy and sell products or handle the customers. Well then you can make money by just promoting the products and services. That means you don’t have to buy and sell products instead you only have to bring customers to a merchant. Then after your referral or proposal if the customer buys a product from the merchant, you get a percentage of the total revenue from that customer as commission. That’s affiliate marketing.

So exactly how it is done…

  1. First, you (affiliate) have to make a blog around the specific nice. You can also start a YouTube channel, of course, YouTube has grown to the second largest search engine after Google, but most people today also search on Google for their queries and information about products and services. Youtubers are also earning through affiliate marketing but a big portion of their income comes from sponsored content. So my recommendation is to start a blog for affiliate marketing and after you drive a reasonable amount of traffic, then start a YouTube channel also.
  2. Then you have to write articles on your blog providing information on various topics in your niche and solving the queries of people.
  3. Now you can join affiliate programs of products and services in your niche.
  4. After you join you will get an affiliate link so that your performance can be tracked and you can get paid accordingly.
  5. You will insert the link on relevant keywords and call to action words on your blog post.
  6. Now optimize your site to rank higher in the search engine results and bring traffic to your side through all other online marketing practices.
  7. Whenever the visitors on your blog read your content and click on that affiliate link, they reach the merchant’s product or service page. If any visitor makes a purchase then the merchant gives you a percentage of that purchase as commission.

What’s the benefit for the merchants…

First of all the merchant doesn’t have to do the hard work to market the products.

Affiliate marketing is a performance based marketing i.e. the merchant pays the affiliates based on the number of customers they bring.

Therefore for the merchant no money is being wasted in marketing and it is lot more easier and less costlier for the merchant to pay affiliates for marketing.

Benefits for the affiliate…

Don’t have to involve in the customer service.

No need to purchase the products.

Minimal operating costs.

Drawbacks for the affiliate…

If you promote a bad quality or wrong product to your blog visitors, you will lose the trust of your visitors and your search engine ranking will decrease.

What will you learn in the process…

How to sell anything (a very important skill for every person).

Excellent writing skills.

How to analyse the best products and services.

Now, you must be willing to start an affiliate marketing business. So, check out this complete beginner’s guide to make your first $1000 dollars from affiliate marketing.

3. Online courses

You may have a passion for teaching or you may be good at explaining some stuff to people. If you want to teach something to people you can do that by making valuable online courses and then sell them.

So exactly how it is done…

  1. First, you have to prepare yourself to explain your subject in a way which is easy to understand by the students in the chances of doubts and queries are low. It is because you are not interacting with the students face to face so make your videos beginner-friendly so that the students don’t complain after purchasing the course.
  2. Now start recording the lectures and include ppt’s and other graphics if needed.
  3. Edit the videos and make it ready to sell and also decide your price at which you want to sell the course.
  4. If you have a blog or YouTube channel or social media audience then you can introduce your course to your visitors, subscribers, and followers. You can also run paid ads on Google or Facebook or partner with an influencer in your niche to market your course.
  5. Provide information about yourself and your experience with the subject so that students would know who will be their mentor. Also provide some sample video lectures.
  6. You will earn money when someone purchases your course.
  7. Always take feedback from your students and also answer their queries during and after the course.

Benefit for the students…

Can watch the lectures as many times as they need.

Cost is low as compared to the offline lectures.

Online courses usually have a lifetime access and support.

Benefits for the instructor…

Have to explain the topic once and get paid every time a student joins.

Can build an audience to monetize by keeping students engaged in your other products and services.

Drawbacks for the instructor…

Courses can get leaked.

What will you learn in the process…

Get more improved at the subject after teaching it.

Improve your communication skills.

How to make great quality content.

4. Freelancing

Freelancing can be part time work as you think in the starting, but when you grow and become really good at a skill that many clients need and are searching for at freelance platforms, then you can get paid even higher than a full time job. After some experience you can even start your own online services company.

  1. Selecting your niche: Your niche should be a combination of passion talent and market demand. You can have a passion, you can acquire talent i.e. knowledge and skills, but if there is no market that means no audience resulting in no money.
  2. Master the skills: If you are not professional enough in your skill no one will pay you for your service. You have the power of the internet to learn and master any freelancing skills.
  3. Be clear of what service you want to deliver: For. eg. you might be interested in graphic designing and have an aptitude for that, but no one will hire a random graphic designer. You have to identify your specialization in graphic designing, is it logo designing, Social media ads, or website design or mobile app designing or any other.
  4. Pricing: In the initial stages, you can charge your client a lower fee to build your portfolio or showcase your expertise. But make sure your client don’t perceive it as a cheap service.
  5. Learn how to get a client: Getting Your first client will be difficult but you will also improve your communication skills in the process. Show them that you care about their business. Always give more value to your clients than the amount you are charging from them. This will increase your personal brand value as well as the brand value of your services. Later on, repeat clients will come to you and you can also start a successful online company providing your services directly to your clients.

Benefits for the freelancer…

You have the freedom to work anytime.

You will get experience and will improve your skills

Drawbacks for the freelancer…

It’s not a job with a monthly income.

Sometimes clients pay you very late.

What you can learn…

How to talk with clients.

How to sell your service. 

So, now you must be willing to start any one of the above businesses with a minimum initial investment. Remember that the investment will be little, but the hard work and learning from your side should be insane to really achieve remarkable results. For that, you need a positive mindset and understand how to attract wealth in your life. Good luck!

Leave a Comment