So many people don’t consider starting a business because they believe they don’t have the money to do so. But the truth is, you don’t need a large sum of cash or venture capital to get a business off the ground. There are plenty of examples of hugely successful businesses that were started with no or very little money. 

Steve Jobs and Steve Wozniak sold their prized possessions for $1,500 and used it as seed money to start a business that would become Apple. British entrepreneur, Richard Branson, used $1,500 from an inheritance to keep his student magazine going, and today the founder of Virgin Records, Virgin Atlantic, Virgin Money and the other Virgin companies is developing the world’s first space tourism company.

Of course, not all businesses will end up making the owners multimillionaires, but is that really the aim? All most people need is a chance at earning a decent income and being their own boss. 

The world economy runs on the effort of small business owners. You can certainly be part of that engine. Here is a list of profitable businesses you can start with $5000 or less. In fact, according to the U.S. Small Business Administration, most microbusinesses can be started with only $3,000. 

Here is a list of 10 businesses you can start with 5k or less

1. Electronics repair service

The ubiquitous use of technology has created several business opportunities. People spend an inordinate amount of time on their devices and very often something goes wrong. 

With so many people constantly using electronic devices, high demand for electronic repair services has developed. If you understand the inner workings of computers and mobile phones, know how to fix a broken phone screen, or can replace a laptop battery, you are in business. Consumers are often flummoxed by minute problems that they don’t know how to handle, but are easy for someone with some know-how to fix. And they are prepared to pay for the service. 

This is a business you can run from home to limit your overhead costs. 

2. Sell digital products

Digital products like Ebooks, online courses, worksheets, templates, MP3s, PDFs, videos, and plug-ins can be created and sold with just an internet connection, limiting overhead costs and with the possibility of scaling built in.

Do some research online to discover what digital products would solve some issues for consumers. Facebook groups, industry forums, product reviews, and blog posts are good resources. You can also do a keyword search to see if people are searching for the subject you are considering, or consult Google Trends to see what topics are surging. 

Once you have identified a topic, create a digital product and start testing it to find out if it’s worth scaling. The idea is to get your product out as soon as possible so consumers can start using it and give you some feedback. Then you can take it from there, improving your product or changing it completely. 

What makes digital products such a good business idea is the fact that you create them once and then keep selling them.

3. Digital marketing agency

There is a big demand for digital marketers. All businesses need to market themselves, but many business owners are either not interested in marketing or don’t have the time to market their business while they are focusing on growing it.

A digital marketing agency is invaluable to these business owners. Your agency can help them create practical online marketing strategies to promote brand awareness and attract customers. The actual work would involve promoting a product or service, launching online marketing campaigns, creating social media ads, and honing search engine optimization (SEO) for the business.

Online marketing is a growth engine for companies across industries and it’s not going to diminish. If you can find a way to become a marketing expert and offer your services online, you’ll be in business for life with a chance to make a really good income. Your only capital outlay would be the cost of a marketing course, which can range from $500 to $2,000.  

Check out our article on How to Create Multiple Streams of Income in Your 20s.

4. Start a dropshipping business

Dropshipping is another low-entry business opportunity that has been enabled by technology. It is really a clever idea that enables people to start a business with very little money. 

It works like this. You sell products, but you don’t have to keep an inventory of products. You don’t need to make or buy products in order to sell them. Instead, a third party holds them (a wholesaler or manufacturer) and you only buy them once a customer has placed an order with you.

To do this, you need to have your own eCommerce store as a platform for your sales. You can open a store through Shopify, BigCommerce, eBay, and Wix to mention a few. There are countless options to choose from. As soon as someone places an order, you let your supplier know and your supplier will fulfill the order on your behalf.

Dropshipping is an excellent business model because you are not responsible for shipping or manufacturing, yet you can earn a good profit, provided you find reliable suppliers.

5. Offer a service as a search engine optimization (SEO) expert

There are more than 1 billion websites and each of them wants to rank on the first page of Google. That feat requires the specialized knowledge of SEO experts, who are in high demand as companies and businesses vie for consumer attention. 

An SEO professional specializes in understanding with workings of the algorithms behind search engine results, which is necessary to ensure that the organization ranks high on Google search. If you have skills in data analytics, keyword research, marketing, research, HTML, link building, and competitor analysis, and expertise in using different SEO tools, you are in a prime position to start your own SEO consultancy.

SEO professionals are in high demand, and if you can prove that you have the necessary skills, you can certainly build a business by helping companies increase their web traffic and conversions. An SEO consultancy offers exciting opportunities and tremendous potential for growth.

6. Start a research business

This is another business you can start with only your skills, a computer and an internet connection. In this day and age where all business decisions are based on data, companies hire research consultants to gather and analyze information from credible sources.

If you are good at research, you can make money doing online studies for individuals and organizations. If you are an expert in a specific field, it’s even better, because you will be in a better position to interpret the information you come across online. This will enable you to provide a high-quality service, which will build your reputation among clients. 

You can also get hired to do market research for entrepreneurs who need in-depth market data before launching a product or service. For example, a new business can hire you to collect market data for use in developing a marketing strategy. 

If you have established relationships with experts in a specific field, it would be of great benefit to your business and your clients. Your potential clients include individuals, businesses, and organizations that need accurate data to inform their business decisions. 

There is a high demand for this kind of service and the earning potential is promising.

7. Develop mobile apps

If you are a software developer with experience in UI design, cross-platform development, and back-end computing, you are in the pound seats. The global mobile application market size was valued at $106.27 billion in 2018, and is projected to reach $407.31 billion by 2026, making mobile app development one of the best business opportunities for those with the necessary knowledge and expertise.

The top five industries creating a need for mobile apps are eCommerce, food service, entertainment and media, healthcare, and finance. The possibilities in the food industry are inexhaustible, and include, table reservations, on-demand food delivery, food tracking, online reviews, and customized meal options, to mention a few.

You can earn money developing apps for businesses, or you can create your own and sell them for a fee or subscription on an app store. You will boost your income if you can sell your app on more than one platform.

If you are a developer, you can start the business with no capital. Depending on the app you develop, you can potentially earn thousands of dollars. To improve your chances of a good income, consult some of the many good resources online about developing apps that really make money.

Check out our article on How Much Does a Personal Assistant Cost.

8. Begin a print-on-demand business

The global market for personalized products has exploded and is estimated to be worth $38 billion. You can capitalize on this development by having your own print-on-demand business.

With a print-on-demand business, you work with a supplier of white-label products like tote bags, t-shirts, or caps to customize those products and then sell them on a per-order basis. The designs can be your own, or the choice of your customers. 

You can work with a third-party like Printful to print designs onto inventory and ship it to customers. Suppliers like Printful only charge you after your customer pays you, which benefits you by eliminating the need for significant startup capital.

This is indeed similar to a dropshipping business where the risk is low because you do not need to hold inventory and only pay for the service after receiving payment. In addition, you don’t have any storage costs to deal with.

A print-on-demand business creates an ideal opportunity for creatives to sell their artwork. If you are interested in this type of business but lack artistic skills, you can hire a freelance designer to assist you. 

9. Sell your handcrafted goods online

Arts and crafts products are always popular with buyers because they tend to be unique. If you are artistically inclined and enjoy creating, you can start a small business selling your products online. 

You can start by selling your products on a platform like Etsy. Although Etsy sells millions of products by a host of makers, there is still room to make a living out of products you make yourself. You don’t have to spend a lot of money in the beginning, you can start with a small inventory and grow it as your orders increase. If it goes well, you can open your own store. This has been the route that many successful makers on platforms like Etsy and eBay have taken. 

And you can learn from them. To stand out from other sellers, make sure you present your products in a professional way, styling every product carefully, no matter what it is. When you see the product image among others on a webpage, it must immediately jump out at you.

In addition to making quality original products that stand out from the rest, you have to promote your work on social media and your website if you have one. Also, don’t forget your customers. Consistent interaction with customers will help you rake in the dollars.

10. Start a consulting business

If you are an established expert in your field with a long career during which you encountered and resolved many challenges, you have what it takes to be a consultant.

This is definitely a business you can start with less than 5k as there are minimal overheads; you can run this kind of business from home. Working as a consultant brings with it flexibility in determining what jobs you take on and the people you work with. In addition, this is a job that can offer you work/life balance.

The success of this kind of business doesn’t only depend on expertise, but the ability to communicate in a meaningful and helpful manner. The key to a successful consultancy business is the ability to network and form strong business relationships. If you already have a reputation in your field, starting should not be too difficult. However, to build a successful business, you will have to promote yourself and the benefits of your service to businesses and individuals. 

Consultancy business is a highly profitable business niche that has earned many individuals hundreds of thousands. However, some unscrupulous people have given the business a bad reputation, so make sure that you are authentic and can deliver what you promise.