Owning and running your own business continues to be a dream for many people. But for many, realizing that dream can be daunting. After all, “it takes money to make money” is a popular mantra in the business world.
The reality is that while you may need some start-up capital, it may be much less than you think. In fact, there are many small businesses you could start with $500 or less.
Key Takeaways
- Some small businesses require a minimal initial investment of $500 or less.
- When considering your options, focus on key factors such as startup costs, tools you will need, and certifications.
- It’s best to select a small business idea that matches your skills and interests.
- Before moving forward, analyze the potential market demand and profitability of your business idea.
To give you an idea of the businesses available to start with limited funds, here is a list of 17 small business ideas that require less than $500 to get off the ground.
1. Personal Trainer
Getting and staying in shape remains a top priority for many, and they often rely on personal trainers to help them get there. In fact, Fortune Business Insights reported that personal training accounted for 46.38% of the global health and fitness club market share.
To get started as a personal trainer, your initial start-up costs will include:
- Certification
- Basic equipment
- Location for services (your home or your clients’ homes)
- Marketing (website, business cards)
Potential market/clients: Friends, former coworkers, gyms, fitness centers
Potential earnings: $29/hour on average
2. Mobile Notary Service
A notary public serves as an impartial witness to the signing of important documents. Many people who need a notary cannot travel to a notary’s office, so the demand for mobile notary services is on the rise. To get started, you will need to apply with your state’s secretary of state office or county clerk’s office and meet the qualifications. Initial start-up costs typically include:
- Filing fee
- Training course and exam fees (if required)
- Background screening (if required)
- Pay for surety bond (if required)
- Notary stamp
- Notary journal
- Marketing (notary directory listings, business cards, website)
Potential market/clients: Anyone needing legal documents witnessed during signing (real estate documents, wills, financial documents, business documents, and more)
Potential earnings: Varies by location, but nearly two-thirds of full-time mobile notaries in business for at least three years earn $4,000 or more per month
3. Non-Medical Home Care Helper
As more seniors stay at home longer, the need for help increases. This could entail running errands, cleaning, helping them dress or bathe, cooking, and other tasks. Many non-medical home care helpers list their services on sites such as Care.com, or advertise in local newspapers or community groups. To get started, they likely will need:
- State caregiver license
- CPR certification
- Caregiver certification
Potential market/clients: Private individuals, senior living communities, senior care agencies
Potential earnings: $44,000/year (median)
4. Holiday Decorator
If you’ve always had a flare for holiday decorating, becoming a holiday decorator could combine your passion with earning an income. Because your clients will supply or pay for the necessary decorations and materials, you won’t need much more to get started than tools that help you do the job, such as a ladder, extension cords, and tape, among others.
While Christmas remains the most popular holiday for decorating, you can expand your services to include other holidays and seasons, such as St. Patrick’s Day, Fourth of July, and fall. Keep in mind, too, that the job also entails taking down those decorations. Also, you can expand your services to include decoration designs.
Potential market/clients: Friends, neighbors, local businesses
Potential earnings: $16/hour on average
5. Transcriptionist
A transcriptionist converts audio or video content into text. While artificial intelligence is leading to a rise in automated transcription, these transcripts often are not yet 100% accurate. So if you are a good typist, have strong spelling skills, and pay close attention to detail, this could be a good business for you. Plus, you can get started with just a computer and a pair of headphones if you are transcribing digital files. AI transcription software could also help you improve your speed.
Potential market/clients: Lawyers, medical offices, podcasters, YouTubers, insurance agents, and many more
Potential earnings: $23/hour on average
6. Small-Scale Rental Business
Depending on where you live, there could be demand for storage space, a parking spot, or even your back yard. If you own your own home, you could make money by renting out a closet, part of your driveway, or your yard. It’s important to have a rental contract in place even if the rental is just for a few hours or a few days. In addition, you should check to ensure you follow any relevant state and local laws. Once you’re ready, start-up expenses could be minimal:
- Cleaning costs
- Marketing (website, app)
- Legal contracts (many legal sites offer low-cost contract templates)
Potential market/clients: Friends, neighbors, college students
Potential earnings: Varies based on rates, how often you rent
7. Home Repair Services
People always need help with home repairs, home improvement projects, and home maintenance. In fact, the handyman service market is expected to dramatically increase from $390.0 million in 2023 to $1.8 billion in 2033. If you’re handy with tools and have a working knowledge of electrical systems and plumbing, you could launch your business with start-up costs for:
- Tools
- Business license (if required)
- Marketing (business cards, flyers, website)
Potential market/clients: Friends, neighbors, local communities
Potential earnings: $24/hour on average
8. Dropshipping Business
Online shopping continues to be a preferred way to shop in the U.S. In fact, online retail sales are expected to hit $1.2 trillion in 2024. You can start your own dropshipping business to leverage this growing market and generate passive income. Essentially, you will take orders for products and pass them along to sellers such as Amazon or Shopify to fulfill them. And it won’t cost much for you to get started.
- Computer
- Website building and hosting
- Internet
- Business registration
Potential market/clients: Anyone
Potential earnings: $20/hour on average
9. Personal Concierge
People today are busy, and they want help getting things done. As a personal concierge, you can help with their workload. Running errands, caring for pets, and making doctor appointments are just a few of the tasks a personal concierge handles. If you are organized, pay attention to details, and love problem-solving, this could be the right business for you. And it doesn’t require a lot of money to get started. You’ll need:
- Computer
- Phone
- Business license (if required)
- Business registration
- Marketing (website, business cards, registration on sites such as TaskRabbit)
Potential market/clients: Neighbors, local community and businesses
Potential earnings: $17.73/hour on average
10. Residential Cleaning Services
With their busy schedules, many people don’t have much time to clean their homes. As such, cleaning services continue to be in demand. If you’re prepared to work hard and like to neaten things up, this could be a great business for you. You can start right away with just the following:
- Cleaning supplies
- Marketing (business cards, website)
- Business license (if required)
Potential market/clients: Friends, neighbors, local communities
Potential earnings: $19.88/hour on average
11. Home Painting Services
If you are good at painting ceilings, walls (inside or out), cabinets, and other elements in a house, a home painting service could be your new business. You will need to provide your own supplies, such as paint, painting tools, ladders, scaffolding, buckets, and drop cloths. Other expenses could include:
- Business license (if required)
- Insurance
- Marketing (business cards, website)
Potential market/clients: Friends, neighbors, local communities
Potential earnings: $22/hour on average
12. Pet Sitting
People love their pets. According to the American Veterinary Medical Association, 45% of households own dogs and 26% of households own cats. Pet owners often need a pet sitter to watch their furry friends while at work or on vacation. So if you have a love for pets, starting a pet sitting business could be a great choice. The only start-up costs would be marketing materials such as business cards and a website, if you want them. Advertising on social media and in local neighbor networks such as NextDoor could help you find your first clients.
Potential market/clients: Friends, neighbors, local community
Potential earnings: $16/hour on average
13. Dog Walking
Another option for those who love dogs is a dog-walking service. Again, you wouldn’t have any start-up costs unless you want to purchase business cards, set up a website, or print flyers. You could start simply by advertising your services with neighbors and expand your business as your client list grows.
Potential market/clients: Friends, neighbors, local communities
Potential earnings: $17/hour on average
14. Freelance Writing
If you love to write, writing web copy, social media content, articles, and other content could become a successful business. You won’t need anything more than a computer and internet connection to get started. To begin, you could sign up with such sites as Fiverr and Upwork, but these often have low-paying opportunities. Reaching out to local newspapers or magazines could provide better opportunities. Networking with other writers and joining online writers groups could also lead to better opportunities. Start-up costs could include:
- Computer
- Internet
- Business license (if required)
- Business registration (if required)
- Marketing (website, business cards)
Potential market/clients: newspapers, magazines, online publications, local businesses
Potential earnings: $23.27/hour on average
15. Social Media Management
Are you a whiz at posting on Facebook, Instagram, Tik Tok, YouTube, and other social media networks? You can leverage those skills into managing the social media accounts for businesses. You don’t need anything to get started other than a computer and Internet service. As you establish your business, you may need to pay for the following:
- Business license (if required)
- Business registration (if required)
- Marketing (website, business cards)
Potential market/clients: small businesses, local organizations
Potential earnings: $22.25/hour on average
16. Virtual Assistant
If you’re computer savvy and well-organized, working as a virtual assistant can be a lucrative business. More and more people are outsourcing routine tasks like invoicing, scheduling appointments, and making travel arrangements. In fact, the virtual assistant market is projected to grow 22.3% by 2029. You could start with a computer and Internet service, but knowing such programs as Microsoft Excel, Calendly, and Google docs also can help. Initial costs could include:
- Business license (if required)
- Business registration (if required)
- Marketing (website, business cards)
Potential market/clients: business professionals, small-business owners, sole practitioners (lawyers, real estate agents, freelance writers, etc.)
Potential earnings: $26.72/hour on average
17. Tutoring Services
Do you have a love of math, science, history, or another school subject? Do you like to help others learn these subjects? If so, tutoring could be a great business opportunity for you. There are no costs to get started. You can meet with students at their home or yours, or in a public meeting space like the library. You can market your services at local schools and universities simply by posting and sharing flyers.
Potential market/clients: students at local schools and universities
Potential earnings: $24/hour on average
What Do I Need to Consider When Starting a Business?
Determine what your interests and passions are. Research to see if these could become a viable business. Learn about the basics of running a business, such as billing, marketing, and paying taxes. Are you willing and ready to handle these aspects of running a business? It’s important to remember that running a business is not limited to doing the work you like; it also may involve doing work you don’t like.
What Are Some Common Challenges Faced by Low-Cost Startups?
One common small-business challenge is a lack of (or ineffective) marketing, which can lead to a lack of clients. Failure to manage cash flow can affect your ability to pay yourself and such recurring bills as internet service and your cell phone service. Underestimating how much work and time is involved also could lead to burnout or feeling overwhelmed.
How Can I Research the Industry to Know if My Business Idea Is Viable?
To see if your business idea is viable, do a search online to see if there is demand for it and the potential for growth. Talk with trusted friends to get their thoughts on your business idea. Talk with potential clients to see if your business is something they see a need for in their industry or the community.
How Can I Market My New Small Business Effectively on a Tight Budget?
Take advantage of free advertising such as social media networks, posting flyers in places where clients are, and asking friends, family, and current clients to spread the word.
What Business Can I Start With $0?
Examples of businesses you can start without spending a cent include pet sitting, tutoring, and dog walking.
The Bottom Line
Running your own business can be both satisfying and financially beneficial. However, it’s important to choose a business idea that aligns with your skills and interests. Not only does that lead to enjoyment in your work, but it also goes a long way in achieving success.
Before embarking on any business endeavor, it’s important to research the industry to determine if there is a market and need for the business. Learn the ins and outs of running a business that go beyond just the work. Doing so will help you set up a business on a firm foundation and could lead to success.
