Digitalization paved the way for entrepreneurs to launch online businesses with low startup costs. Moreover, many people that have little-to-no capital are participating in this transformation. Remote work, though, isn’t for everyone. Plenty of entrepreneurs still prefer to do it the old fashioned way, but there is one obstacle in the way: Money.
Opening a physical brick-and-mortar business requires a lot of funding. Startups need to secure an accessible location, purchase office supplies or equipment, and stock up on inventory. All of this needs to happen before they even open their doors. After that, new firms must also effectively outpace competitors, including large corporations that employ armies of workers.
Entrepreneurs who are motivated by face-to-face interaction, nonetheless, still have plenty of options. There are many offline businesses with low startup costs. Above all else, proven companies may be willing to provide ambitious candidates with the marketing materials, products, and support that can help their business succeed.
The Top Five Traditional Businesses With Low Startup Costs
Financial Services Contracting
Companies in the financial sector, including insurance providers and money managers, rely on growing their human capital. Because of this, their business model revolves around hiring independent contractors that can get new clients and recruit employees.
More specifically, financial firms will give entrepreneurs marketing materials, lists of potential customers, and the ability to sell products under the larger corporation’s brand.
As an independent contractor, you set your own work hours and daily schedules. Additionally, after training and recruiting other employees, many companies will give you a share of the profits that your workers generate.
In other words, an insurance agency or investment consultancy firm functions exactly like a small business.
To participate in the financial sector, however, candidates must undergo testing and get licensed. Each line of work and job title has its own exams and prerequisites.
Examples of home services providers include cleaning, gardening, and other types of professionals that offer similar forms of work.
These types are amongst the best businesses with low startup costs. Firstly, entrepreneurs don’t need to rent an office location since they will work out of their customers’ homes. Secondly, apart from registering the company with the local or state government, home services professional don’t need to get licensed.
The only expenses that they have to worry about, however, are related to buying equipment. A cleaning machine or gardening tool, though, isn’t anywhere as expensive as a truck or warehouse.
If you specialize in a certain field or aspect, becoming an independent consultant is amongst the options of businesses with low startup costs. Your only initial expenses, to begin with, are printing business cards and transportation.
Examples of this work include marketing consultations, branding advice, and career coaching services. However, even though the financial barriers are minimal, only professionals that have a proven track record in a technical or specialized field can become successful consultants.
Nonetheless, this is another firm that entrepreneurs with little-to-no capital can start, whether its in the immediate future or at a latter stage in their career.
Another important factor to consider is connections. Without having an established network, consultants may struggle to find clients.
Supplemental and Health Products
Unfortunately, because of the aggressive sales tactics that these brands deploy, many entrepreneurs are intimidated to work with a supplemental or nutritional provider.
Yet there are still many reputable companies that offer high-quality products and valuable training programs. Above all else, by passing on their experience to others, entrepreneurs can recruit new salespeople and earn revenues when their trainees become successful.
The only expense, in this example, would be purchasing the products. Most suppliers will require you to buy the supplements or health nutritions, which would can cost a few hundred dollars.
Nonetheless, this is considered minimal when compared to other capital-intensive businesses. Skilled salespeople can also make more money than they spent within a few days or weeks.
Event and Brand Promotions
Certain brands will pay you money just to wear their t-shirt or display their logo in a public setting. Moreover, they allow entrepreneurs to earn profits by independently selling tickets or recruiting workers.
One of the main downsides to this is that it only offers a limited room for growth. However, it is still a great way to learn how to work independently, develop salesmanship skills, and operate as a business.
This type of work is especially useful to college students and young aspiring business owners.
Plenty of Backing
The common theme amongst our examples is that large corporations with a proven business model are willing to back entrepreneurs. Businesses with low startup costs are even better when you receive free training and marketing material.
In other words, entrepreneurs don’t have to go through the costly trial-and-error process. Instead, experienced companies train them on how to implement successful and already proven sales techniques.
Similarly, new business owners don’t need to vet the right marketing professionals, let alone pay them, for promotional content. Larger corporations will supply you with the right graphics and brochures.
Above all else, most of these professions allow you to set your own hours and schedule. This enables you to enjoy the flexibility and independence that come with owning a business.
Online work is not for everyone. Many people thrive when they work with a team and serve customers in a face-to-face setting.
Luckily, there are plenty of businesses with low startup costs that operate offline. Equally as important, entrepreneurs may receive support and backing from large corporations that have been in business for years.
If you are looking to start a new company but lack the needed capital, this list should provide you with ideas and worthwhile options. After all, you may end up with more than what you bargained for.