- Take advantage of the increasing trend of customers sourcing services online
- Combine an online presence with a service that meets customer needs
- Low-investment, high-profit business ventures
Most businesses require high investments, meaning it can take longer to see a return on the profits. On the other hand, some business ideas require a low investment with a higher yield. This article looks at six of the best business ventures to consider if you have a small amount to invest but expect to make a high profit.
These high-profit business opportunities combine having an online presence and taking advantage of the opportunities provided by the increasing presence of potential customers who prefer to source these services digitally.
1.    Affiliate Marketing
With affiliate marketing, your upfront investment is minimal since you only need a website. Yet, it provides one of the fastest ways to make money online. In addition, profits are high since your affiliate marketing business has almost no monthly running costs.
Besides a website, you also need a social media presence, and a bonus is that your business requires no inventory. Instead, your responsibility is to promote products and services for others, earning a commission on sales.
More on how affiliate marketing works:
- The company you work with provides an affiliate link that you place on your blog and or social media channels. You can even use more than one social media channel.
- The customer purchases according to your recommendation by clicking on your link.
- Cookies track the clicks and conversions, ensuring you receive a commission for each sale coming from your affiliate link.
Affiliate commission incomes depend on the product and company. They generally range between 1 and 50%.
A website or blog is not essential for affiliate marketing but is recommended for promoting your links. Besides social media channels like Facebook, Instagram, Twitter, and YouTube, you can also use podcasts to promote the products of the companies you work with.
If you’re unsure how to develop your affiliate marketing business, you can take a course to familiarize yourself with how it works. Choose your affiliate program carefully and grow your online followers to ensure a profitable business. According to reports from Payscale, the average affiliate marketer makes over $57,000 per year, with some reaching six figures.
2.    Dropshipping
Another great way to start an online business with a low investment is dropshipping. With drop shipping, you essentially have an e-commerce business without needing inventory. Instead, you sell other people’s products from your online store.
Here’s how to start a dropshipping business:
- Build an online store with a list of the products you sell.
- Your customers purchase products from you, which you, in turn, order from the manufacturer, paying wholesale prices.
- The manufacturer ships the products directly to your customers.
- You are responsible for customer service and returns.
- The profits from the sale come to you.
Your only upfront costs with dropshipping are creating your e-commerce store and marketing your products. You don’t need money for inventory; you only pay the manufacturer once you receive the money from your customer. You also don’t need to have storage space, nor do you have expenses for packaging and shipping your stock.
3.    Become an Influencer on Social Media
Creating a social media account and reaching a global audience costs nothing. Influencers with an Instagram account make an average of $2,700 monthly, according to a recent HypeAuditor survey. Micro-influencers with an audience of 1,000 to 10,00 followers make about half that, and those with a million plus followers rake in an average of $15,356 monthly.
And, if you’re one of those people that are shy in front of a camera, the animal niche is another high-earning category. So, create a social media page for your adorable cat or dog, and watch it monetize.
As an influencer, you can make money in several ways:
- Brand partnerships or sponsorships
- Affiliate marketing
- Advertising and promoting
- Selling products or services
It will take some time to build followers when you start your page from scratch, but there are several tricks that you can use to grow your followers quickly. These include:
- Asking your friends and family to get the momentum rolling
- Follow influencers and share your links on their pages when commenting
- Hold a contest or poll
- Cross-promote your presence on your other social media channels to drive audiences to your main social media page
4.    Airbnb Host
If you travel a lot or have extra space in your home, an Airbnb business is a great way to have a high-profit return. Whether you rent your entire home when you are away on business or holiday or your spare room throughout the year, you can make money from the property you own.
Here’s how to make your home Airbnb-ready:
- Declutter the space you plan to rent out
- Cleanliness is of utter importance
- Always provide clean bedding and towels
5.    Go Online to Tutor, Podcast, or Sell Online Courses
If you are an expert in your field, there are several ways that you can turn your knowledge into a high-profit-making business.
Tutoring – If you have an academic background, tutoring provides a low-cost business idea with high-profit potential. You can teach scholars individually around the globe, charging between $35 – $55 an hour. You only need a laptop and video calling software to impart your knowledge to others from the comfort of your home.
Podcasting – There are several ways that you can monetize with podcasting. Ensure you know your subject well and have a passion for it. Furthermore, use your podcast to network and learn from industry members by interviewing them. Monetize your podcast by incorporating sponsored content and adverts or charging a fee for your premium content. You can also include affiliate marketing, merchandise, or product promotion. For example, if you are a gardening expert, you can include sponsored content from nurseries or promote your products.
Sell Online Courses – Online learning continues to grow in popularity. Start an online course on anything you want to share your extensive knowledge or skills with others. Of course, it will take some work to create the course, and you will require the correct software. But once it’s ready, the course continues to provide you with a passive income since you can carry on selling it infinitely. Some examples of online courses include cooking classes, a language course, how to live a homesteading lifestyle, how to follow a weight-loss diet, a yoga course, etc.
6.    Start a Car-Washing Service
Another low-cost, high-profit business idea is starting a car washing service. This type of business allows you to tap into residential and commercial markets, providing customers with reliable services at competitive prices. Living in areas with significant demand for this service, such as in a city or beach town, can be lucrative.
Ensure you understand the process for setting up a car-washing business, and also check what licenses your local authority requires. Invest in quality cleaning products to provide excellent services that will leave customers wanting more. Furthermore, you should consider offering special discounts and promotional deals to increase sales.
• Research your local market and the competition
• Choose a suitable location with adequate parking space
• Invest in quality cleaning products, tools, and equipment
• Market your business using effective strategies such as digital marketing, etc.
• Offer special discounts or promotional deals to gain repeat customers
• Create an efficient workflow to ensure timely services
• Hire reliable staff who are knowledgeable about car washing techniques
• Focus on customer satisfaction for long-term success.
Final Take
The best way to start a low-investment business with high-profit potential is to identify your skills and talents. Then find ways to monetize them while keeping your costs low. You can also research business ideas that have worked well in your area and develop innovative ways of offering these services or creating new products. You can set up a highly lucrative business venture this year with dedication, hard work, and commitment!
Starting a profitable business does not require a huge budget. These six low-cost business ideas are just a tiny sample of how you can turn a profit and become the next success story!
FAQs
What are some low-investment high-profit business ideas?
Some low-investment, high-profit business ideas include influencer marketing, Airbnb hosting, tutoring/podcasting/selling online courses.
What is the potential profit of an influencer?
The potential income of an influencer can depend on the number of followers they have. For example, those with 50K followers make about $6,000 monthly, and those with a million plus followers rake in an average of $15,356 monthly.
How do I get started with Airbnb hosting?
To start with Airbnb hosting, you’ll need to declutter the space you plan to rent out and ensure it is clean. You’ll also need to provide clean bedding and towels for guests. Additionally, you should create a detailed listing of your rental property on the platform that includes photos, house rules, amenities provided, etc.
How can I monetize my podcast?
You can monetize your podcast by incorporating sponsored content and adverts or charging a fee for your premium content. Additionally, you can include affiliate marketing, merchandise promotion, or product promotion related to the topic of your podcast.
How do I start selling online courses?
You must have extensive knowledge or skills in a specific topic to start selling online courses. You’ll also need the right software to create and launch your course. Once it’s ready, you can begin selling it online and make a passive income from it for an indefinite period.
What are some examples of online courses?
Some examples of online courses include cooking, language, how to live a homesteading lifestyle, weight loss diets, yoga, etc.
What other low-investment high-profit business ideas exist?
Other low-investment high-profit business ideas include dropshipping, app development, content creation (like blogging), virtual assistant services, building eCommerce stores/websites/blogs, and more.