When it comes to launching a new business, one of the biggest barriers to entry is gathering the funds needed to get the business up and running. Startup businesses can get expensive quickly, between the cost of property, supplies, inventory, employees and more. However, not every business has to come at a high cost up front.
There are a surprising number of business ideas that have low startup costs and ongoing overhead. For example, many service-based businesses are capable of starting with low costs and can remain low in overhead for a long time, since they usually don’t require a physical location or product inventory.
For aspiring first-time entrepreneurs, launching a business with low startup costs can help you develop good business management skills and grow your company gradually without a lot of risk or debt.
Types of businesses with low startup costs
If you’re interested in owning your own company but don’t have the resources to launch a business with lots of overhead, consider entering one of these industries with low startup costs.
- Event planning: Event planners are typically one-person businesses that can be operated out of your home, not requiring a physical storefront. Most event planners rely on their knowledge of the event industry, industry connections and planning skills to secure clients and deliver their services. Some storage may be necessary if you decide to keep an inventory of your own décor, but many planners can build a thriving business with just a computer, phone and organizational skills.
- Digital marketing: Digital marketing and content creation companies also use a business model that can be operated from your own home. By building a network of clients, you can operate as a single employee creating content and managing marketing campaigns for businesses large and small. Startup investments might include a computer and a range of software programs to create the deliverables your clients need.
- Handmade product sales: Do you enjoy making art or household items people might be interested in buying? If you already have the equipment and starting supplies, you can start a business selling items you make. A little more investment is required for this business type, since you will have some inventory, but you can still start your business at home while saving money with a good website and marketing campaign. Custom creations can help you minimize inventory and improve cash flow, as well.
- Education and training: Companies in the education and training spaces typically sell training services to other businesses. This might entail visiting a business and conducting a specialized training program with their employees or hosting a training program online. Because the business is largely conducted on location or virtually, this type of company does not need a physical location, equipment or product inventory.
Many franchise systems follow a similar approach and offer low-overhead business models. However, these will typically come at a higher upfront cost because you’ll be buying into the franchise’s pre-established network and benefitting from brand recognition.
No matter which business or franchise brand you choose, access to available funding should not be overlooked. Whether you need a loan or can access working capital via a Rollover or Unsecured Lines of Credit, Tenet Financial Group is well-prepared to help you begin your business in a financially responsible position. Contact our Senior Consultants by calling (888) 901-3335, Option 9 to begin the funding conversation today.