By Sometimes we think of launching a business as a massive, dangerous, life-changing expense that would necessitate a large debt or significant capital from investors.
But this is just not the case.
Sure, if you want to create a downtown restaurant or a retail location, you’ll need a lot of money to get started.
However, numerous low-cost small company ideas do not require nearly as much investment. With some tiny company ideas, you can start for less than $1,000.
This may not be a life-changing business at first, but it could be enough to sharpen your entrepreneurial skills in preparation for a long-term firm that grows over time.
11 Small Businesses You Can Start for Under $1,000.
Remember that when you start your own business, you may believe you need to go all out and buy everything brand new. However, the objective here is to start small and gradually increase your business earnings. That’s when you may be able to improve your materials and equipment.
For the time being, the goal is to employ what you already have that is appropriate for the job. Then, buy only what you need while keeping your prices to a minimum.
1. Pressure Washing.
The beautiful thing about running a pressure washing service is that everyone will someday need it. And it applies to both residential and commercial properties that require clean exterior walls, driveways, decks, walkways and so on. There is also an option to pressure wash commercial vehicles, such as semi trucks.
A high-quality pressure washer is essential to success in this situation. Unless you already own one, this will be your major buy. An excellent, commercial-grade washer costs between $500 and $3,500 at Home Depot. You can select between gas and electric.
The only caveat? If you do not already have a reliable mode of transportation, you may require a truck or van to convey your equipment from one location to another. This might cost you at least a couple of hundred dollars per month for a truck lease. You may even consider getting a short-term rental and working hard for a week or weekend every month until your business grows enough to merit a vehicle lease or buy.
2. Carpet shampooing.
One significant advantage of running a carpet washing business is its ease of mobility. Because you are working remotely, you do not need to invest in office space. You simply need a place to put your equipment, such as a garage or laundry room.
New carpet extractors are not inexpensive, costing at least $1,150, but you can get professional cleaners for under $500 on Amazon. You will also require other equipment and cleaning supplies, so keep that in mind.
Similar to the pressure washing company, you will require some form of transportation. Ideally, you will already have a spacious vehicle or SUV. If so, you may need to buy a used choice, which would drastically increase your starting costs.
3. Handyman
Most neighbourhoods have one: a reliable friend or neighbour who can assist you with a leaking tap, a hole in the plasterboard or a broken appliance.
If that’s you, why not start a handyman business? Because most legitimate handymen already have their own tools, your start-up fees may be minimal. Maybe you need to upgrade some specialised tools and invest $20 here and there, but the majority of what you’ll need is already in your garage.
However, you may want to put aside a monthly budget for new tools or commonly used materials, such as caulking and nails.
4. Etsy Seller
Selling on Etsy is the most cost-effective online business idea. You can sign up for free and set up your online store in minutes.
However, that is only the internet shopfront portion of the equation. You will, of course, incur fees relating to what you offer online, but these can range from art, stickers, jewellery, handcrafted clothing, digital files, and much more. We’ll leave that alone because the associated expenses vary so widely.
However, Etsy requires you to disclose whether you are running a business or a hobby. Here’s how Etsy describes it:
“If you don’t anticipate making a profit from your Etsy sales, your shop may be considered a hobby. If you devote time to your Etsy shop regularly (and the time you spend is not insignificant), and your major goal for the shop is income or profit, it qualifies as a company.”
In that scenario, you should consider forming an LLC, just like any other firm. More about that later.
5. Personal trainer.
The initial costs for starting a personal training business are low. In most circumstances, if you’re thinking about starting a small business, you’ll already have all you need in terms of supplies.
Make a list of everything you’ll need, including training mats, kettlebells, balancing balls, a first aid kit, and resistance bands, and then budget for everything you don’t already have at home.
Personal trainer certification is optional in the United States. However, from a marketing sense, you’ll probably want to become certified. Furthermore, most gyms will not hire you or let you use their facilities if you are not qualified. Personal trainer certification can cost anywhere from $200 and $2,000, depending on the degree of instruction desired.
If weights and balancing balls aren’t your thing, or if you prefer easy exercise such as running, you could consider becoming a certified running coach.
6. Travel Planner
Going the typical travel agent approach might be quite costly in the beginning. Having said that, there is a new generation of company models that allow you to get started at a significantly reduced cost.
Thatch, for example, offers a free mobile app that enables travellers to start their own travel businesses. Over the last decade, posting a trip experience on Instagram or TikTok has resulted in numerous pop-up company ideas.
Thatch has formalised the experience, enabling users to create, share, and sell interactive trip guides and planning services. It’s free to get started with Thatch, and the company will take 10% of your earnings.
Trova follows a similar paradigm, but is more group-oriented. Not only do users arrange the vacation, but they also accompany their group as hosts.
So, yes, you’ll spend more than $1,000 on excursions, but since you’re going anyhow, you’ll only have time to reflect and share your experiences. That itinerary you created for yourself could sell multiple times on Thatch. Welcome, passive income!
7. Tour Guide
If you live in or near a town with sightseeing attractions, you may start a tour guide business with relatively cheap overhead expenditures.
You can simply start up shop from home, so your biggest expenses would be ensuring you have transport, unless you’re only offering walking tours, which would, of course, be much cheaper if you live in a metropolitan area suitable for a walking tour.
If not, old vans may be purchased for less than $3,000. Alternatively, you could collaborate with a local bike shop to organise bike excursions. You’ll also want to spread the word about your business using basic marketing, such as social media, Airbnb experiences, tour sites, or a free website hosted by a firm like GoDaddy or Squarespace. (More on it also.)
If you need more assistance getting started, you can also offer your skills on tour guide sites. Basically, you may apply for free, they may perform a brief interview or two, and you will be listed as a guide in your region. They may take a cut from each client you service, which is normally between 15% and 20%.
8. Laundry Service
Yes, you can start your own laundry business. This is an excellent suggestion if you’re the type of person who utilises laundry as a form of therapy.
The simplest method to accomplish this is to use a service such as TaskRabbit, Care.com, or Laundry Care, which may require an initial registration cost ranging from $25 to $100.
A washing service is considerably more feasible if you already have a washer, dryer, and some mode of transportation. Aside from that, consider investing in washing bags and hampers, garment coverings, bag tags, and a hanging scale.
Your initial investment in a laundry business will be minimal, assuming you already own a washer and dryer and a car if you intend to offer pick-up and delivery.
9. Dog Walking
Talk about nearly zero setup costs! A dog walking service will cost you virtually nothing. All you need is the ability to walk and the patience to keep up with Rover — or to slow down for the frequent potty breaks.
Though dog walking businesses have been around for a long time, they have taken off in some metropolitan locations, such as New York City, with some workers earning more than six figures per year. According to the ASPCA, more than 23 million American families adopted a pet during the pandemic. That equates to approximately one in every five households, as well as a large number of pets in need of exercise.
Starting a dog walking business is simple using internet platforms such as Rover and Wag. You’ll choose your rates, pay an initial profile evaluation charge ($35 on Rover and $29.95 on Wag), and Rover or Wag will deduct a percentage of each walk as well. A search in the Nashville region revealed people earning $15 to $30 per stroll.
10. Professional organiser.
If you can organise, you have already completed half of the battle in launching a firm.
To give your new firm credibility, try joining an organisation such as NAPO (National Association of Productivity and Organising Professionals). A provisional membership costs $319 (plus a one-time $25 application fee) and provides numerous benefits, including access to many of NAPO’s certification courses. These credentials will only improve your organisational CV.
After that, you can promote your new company. Consider starting with friends and neighbours so you can showcase a few success stories on your website.
11. Bookkeeper
Bookkeepers are a vital aspect of any business; they are always in demand. They help small business owners understand how much money is coming in and going out.
Bookkeepers maintain track of income and expenses, handle accounts, and document daily transactions for both local firms and remote clients. Bookkeeping is such a popular vocation that firms like bookkeepers.com exist to teach bookkeepers and help them find work.
Bookkeepers.com provides a free masterclass as well as a variety of other online courses, ranging in price from hundreds to thousands of dollars,s to help bookkeepers establish and grow their businesses.
Everything Else You Should Know About Starting a Small Business
If you are serious about starting a low-cost business, you should form a limited liability company (LLC) first. You may also form a sole proprietorship or a corporation, but most experts agree that an LLC is the simplest and best option for single business owners starting.
What You Should Know About an LLC.
The most significant component of an LLC is the liability protection it provides to you as a business owner. Essentially, your personal assets and net worth are secured from any legal action launched against your firm. LLCs also provide more tax benefits than corporations, which are subject to corporate taxes as well as dividend taxes on the owners.
You don’t always need a lawyer to form an LLC. Depending on your state, you may be able to register your LLC online. Once your business entity is established, you will have less constraints on how you can operate your company than you would with a corporation.
Depending on your state, an LLC might cost anything from $100 to $700 each year. Some states will also need annual renewal costs.
However, that is not the only legal consideration you will face.
What about Liability insurance?
While an LLC protects you personally, your business may still be sued. General liability insurance can help protect you against lawsuits for bodily injury or property damage.
The more risk you assume as a business owner, the more liability protection your company will require. For example, if you drive clients in your tour guide van or perform pressure washing, you may want liability insurance. Selling crafts on Etsy? Probably not.
General liability insurance can range from $30 to $100 each month, depending on your business.
What about marketing?
You’ve founded a business. You have one or two clients. But now you have to share the word.
The simplest and cheapest way to accomplish this is through social media accounts. Instagram and TikTok are visual platforms that can be quite effective when used strategically. You can also use LinkedIn to make professional relationships.
To keep costs low, consider using one of the various DIY website-building platforms available. Options include IONOS, Wix, SquareSpace, and GoDaddy. These site builders can cost you anything from a few dollars to roughly $25 each month, but you may promote your business without investing too much money up front.
You can also employ a freelance designer to create your small business website, but expect to pay several hundred dollars.
Get Started for Cheap.
Starting a business does not have to be expensive. Begin with the fundamentals and gradually expand as your business grows.
You don’t need a brand-new van to start a tour guide business, and you don’t need every cleaning product on the market to get your carpet shampooing business off the ground.
Keep it simple and sensible, increase your client base, and watch as your $1,000 investment grows into a viable company idea.
