5 Best Low-Investment Business Ideas You Can Start Online
Contrary to popular belief, there are actually many ways to start a business that let you focus less on the logistics and upfront costs and more on getting started.
These low-investment business ideas make a great entry point for beginners, bootstrappers, or anyone with a busy schedule, letting you pick up a side business without having to drop everything else.
You still need to come up with a solid idea, build a brand, put effort into marketing, and provide excellent customer service. But you can bypass many traditional startup costs, such as initial inventory, warehousing, and retail space.
Here are some of the low-investment business ideas you can start today.
Best low-investment business ideas you can start on the side
To think of emerging low investment business ideas you can start today, you need to assess your strengths, skills, assets and financial scenario. Once you figure these out, you will have a foundation with which you can assess the business models that work for you. Let’s begin by understanding a useful framework that keeps your business investments low.
A framework for thinking about low-investment business ideas
Think about what makes a business idea a low-investment one. What are the ways in which businesses can drive their costs down today? Some of the ways are discussed below:
- Sell without holding inventory
Buy stock, store it, pick it, pack it, ship it. Managing inventory can be a big commitment when you’re running a business, not to mention the expense. You can significantly bring down your investment and operational expenses by eliminating the hassles of inventory altogether with third-party fulfilment models like dropshipping.
- Sell a service
As opposed to products, which require development, manufacturing, sourcing, stocking, shipping etc., services are by and large businesses with lower overheads and operational costs. Essentially, you would be selling a skill or expertise multiplied by time. Therefore, depending upon the service you choose, you will have greater opportunities to drive down your upfront investment and running expenses.
- Create and sell digital assets
Products and assets that are entirely in the digital realm are a special case, where once created, they can be replicated an infinite number of times into copies without any additional expense. This means, your marginal cost of scaling is effectively zero. And the cost of production is limited to your computer and the tools you may use to create the digital product.
- Turn a hobby/passion into a business
If you already spend time doing something as a hobby or a passion, and if there’s a market for the things you do/create, you can turn it into a business without too much additional effort or investment.
- Explore emerging niches
The success of any business depends ultimately on reaching its consumers and making sales. Therefore, marketing is quite a significant expense. Targeting emerging niches is a great way to bring down your marketing investment since your potential customers will be easier to reach and convert online, even if your market size is limited by the niche.
You may use more than one of the above methods to keep your investments low. For example, if you choose online teaching as a low-investment business idea, you will be creating and selling digital assets while turning a hobby into a business and exploring an emerging niche in the subject you teach.
Also, do note that the businesses discussed in this article exclude less active options of making money on the side which may be considered as opportunities to earn a passive income – for example, renting out your property. You could check out our blog about passive income fundamentals to learn more about how you can earn money even while you sleep.
So, let's walk through the business ideas listed below keeping the above considerations in mind.
1. Dropshipping
[Sell without holding inventory] [Explore emerging niches]
Dropshipping is a fulfilment model where a third-party supplier stores and ships inventory to customers on your behalf. You just need to make the sales and pass orders on to your supplier; you don’t need to handle the products yourself.
Therefore, dropshipping is the very definition of selling without holding inventory – the way to make almost any business selling physical products to consumers, a relatively low-investment business.
To lower your investments further, you can curate products from one or more suppliers into your own online store under a theme that focuses on a specific emerging niche, like gear for yoga enthusiasts or water bowls for dog owners. When a customer buys a product from you, the order is sent to your supplier who fulfils it on your behalf. However, you are still responsible for your own marketing and customer service.
There are both local and overseas suppliers you can work with, as long as you can establish a relationship with them built on trust—an unreliable supplier will reflect poorly on your brand.
Dropshipping is a low-investment way to test product-market fit and launch a business before you invest in your own original products. Just be sure to always order a sample for yourself to make sure that your supplier is reliable and that the quality of the products is fit for selling to your customers.
2. Design and sell print-on-demand products
[Sell without holding inventory] [Explore emerging niches]
Another dropshipping model, print-on-demand puts inventory, shipping, and fulfilment in the hands of a third-party supplier. But unlike the dropshipping idea above, the focus here is on customising these products with your own designs to create something original. If you have an eye for creative graphics and aesthetics, you could easily leverage this into a profitable business.
T-shirts, hats, phone cases, hoodies, skirts, tote bags, and more become canvases for your creativity. For example, if you can think up witty slogans for developers or references that resonate with cat owners—if there’s passion and pride within a community, there’s a potential t-shirt business you can start. This would also help you reduce your marketing costs by targeting a niche.
Even if you’re not a designer, you can find a designer to work with using freelance sites like Fiverr, Upwork, Freelancer, Toptal or even LinkedIn.
With many print-on-demand services, you’re paying per product, so the base price per unit will be more expensive than if you were to order in bulk. But the advantage is that if a certain design doesn’t sell, you haven’t actually paid for the item yet (only the design if you outsourced it).
If it’s a print-on-demand t-shirt business you want to explore, you can even use t-shirt mockup templates so you don’t actually need to spend money on a full photoshoot for every new design.
Source: Printrove app on Shopify
There are a variety of print-on-demand platforms like Printrove and Owlprints you can work with, many of which can be integrated with your Shopify store for seamless order fulfilment. However, be sure to always order a sample of your product (often offered at a discount) to make sure your custom products look good.
3. Start a customised gifting store
[Create and sell digital assets] [Explore emerging niches]
Personalised gifts have their own merits as a business idea. You can find your niche and have multiple occasions to boost your sales. The idea of custom gifting is exclusive as it helps people celebrate important dates and conveys close affection. As an emerging niche, where you have multiple small players. However, as mentioned before, you can find your forte in various niches in two broad categories:
- Individual ideas, such as photo frames and key-chains
- Group gifts, such as commemorative gifts which can be considered a B2B prospective.
You can distinguish your business by offering speciality items and customisable packaging. Customised gifts can provide a viable business option for those with creativity and tenacity.
Confetti Gifts is one such business that has curated a unique collection of gifts for all occasions. You can choose and make your own gift box if needed or can buy their creative gift ideas.
14 Best Low-Investment Business Ideas You Can Start Online
Contrary to popular belief, there are actually many ways to start a business that let you focus less on the logistics and upfront costs and more on getting started.
These low-investment business ideas make a great entry point for beginners, bootstrappers, or anyone with a busy schedule, letting you pick up a side business without having to drop everything else.
You still need to come up with a solid idea, build a brand, put effort into marketing, and provide excellent customer service. But you can bypass many traditional startup costs, such as initial inventory, warehousing, and retail space.
Here are some of the low-investment business ideas you can start today.
Best low-investment business ideas you can start on the side
To think of emerging low investment business ideas you can start today, you need to assess your strengths, skills, assets and financial scenario. Once you figure these out, you will have a foundation with which you can assess the business models that work for you. Let’s begin by understanding a useful framework that keeps your business investments low.
A framework for thinking about low-investment business ideas
Think about what makes a business idea a low-investment one. What are the ways in which businesses can drive their costs down today? Some of the ways are discussed below:
- Sell without holding inventory
Buy stock, store it, pick it, pack it, ship it. Managing inventory can be a big commitment when you’re running a business, not to mention the expense. You can significantly bring down your investment and operational expenses by eliminating the hassles of inventory altogether with third-party fulfilment models like dropshipping.
- Sell a service
As opposed to products, which require development, manufacturing, sourcing, stocking, shipping etc., services are by and large businesses with lower overheads and operational costs. Essentially, you would be selling a skill or expertise multiplied by time. Therefore, depending upon the service you choose, you will have greater opportunities to drive down your upfront investment and running expenses.
- Create and sell digital assets
Products and assets that are entirely in the digital realm are a special case, where once created, they can be replicated an infinite number of times into copies without any additional expense. This means, your marginal cost of scaling is effectively zero. And the cost of production is limited to your computer and the tools you may use to create the digital product.
- Turn a hobby/passion into a business
If you already spend time doing something as a hobby or a passion, and if there’s a market for the things you do/create, you can turn it into a business without too much additional effort or investment.
- Explore emerging niches
The success of any business depends ultimately on reaching its consumers and making sales. Therefore, marketing is quite a significant expense. Targeting emerging niches is a great way to bring down your marketing investment since your potential customers will be easier to reach and convert online, even if your market size is limited by the niche.
You may use more than one of the above methods to keep your investments low. For example, if you choose online teaching as a low-investment business idea, you will be creating and selling digital assets while turning a hobby into a business and exploring an emerging niche in the subject you teach.
Also, do note that the businesses discussed in this article exclude less active options of making money on the side which may be considered as opportunities to earn a passive income – for example, renting out your property. You could check out our blog about passive income fundamentals to learn more about how you can earn money even while you sleep.
So, let's walk through the business ideas listed below keeping the above considerations in mind.
- Dropshipping
- Design and sell print-on-demand products
- Start a customised gifting store
- Sell your digital creations online (music/photography/digital art)
- Sell courses or webinars
- Turn your skill/ expertise into a service
- Start your own curated fashion boutique
- Sell handcrafted and homemade goods
- Grow an audience you can monetise in multiple ways
- Cloud kitchen or bakery
- Start a lending library of your own books
- Self-improvement coaching
- Create an app
- Digital Marketing
1. Dropshipping
[Sell without holding inventory] [Explore emerging niches]
Dropshipping is a fulfilment model where a third-party supplier stores and ships inventory to customers on your behalf. You just need to make the sales and pass orders on to your supplier; you don’t need to handle the products yourself.
Therefore, dropshipping is the very definition of selling without holding inventory – the way to make almost any business selling physical products to consumers, a relatively low-investment business.
To lower your investments further, you can curate products from one or more suppliers into your own online store under a theme that focuses on a specific emerging niche, like gear for yoga enthusiasts or water bowls for dog owners. When a customer buys a product from you, the order is sent to your supplier who fulfils it on your behalf. However, you are still responsible for your own marketing and customer service.
There are both local and overseas suppliers you can work with, as long as you can establish a relationship with them built on trust—an unreliable supplier will reflect poorly on your brand.
Dropshipping is a low-investment way to test product-market fit and launch a business before you invest in your own original products. Just be sure to always order a sample for yourself to make sure that your supplier is reliable and that the quality of the products is fit for selling to your customers.
Additional resources:
- How to Use Dropshipping as a Low-Cost Way to Test Product Ideas
- Why and How to Start Dropshipping in India as an eCommerce Business
- How to Start Dropshipping: The Easiest Way to Sell Online
2. Design and sell print-on-demand products
[Sell without holding inventory] [Explore emerging niches]
Another dropshipping model, print-on-demand puts inventory, shipping, and fulfilment in the hands of a third-party supplier. But unlike the dropshipping idea above, the focus here is on customising these products with your own designs to create something original. If you have an eye for creative graphics and aesthetics, you could easily leverage this into a profitable business.
T-shirts, hats, phone cases, hoodies, skirts, tote bags, and more become canvases for your creativity. For example, if you can think up witty slogans for developers or references that resonate with cat owners—if there’s passion and pride within a community, there’s a potential t-shirt business you can start. This would also help you reduce your marketing costs by targeting a niche.
Even if you’re not a designer, you can find a designer to work with using freelance sites like Fiverr, Upwork, Freelancer, Toptal or even LinkedIn.
With many print-on-demand services, you’re paying per product, so the base price per unit will be more expensive than if you were to order in bulk. But the advantage is that if a certain design doesn’t sell, you haven’t actually paid for the item yet (only the design if you outsourced it).
If it’s a print-on-demand t-shirt business you want to explore, you can even use t-shirt mockup templates so you don’t actually need to spend money on a full photoshoot for every new design.
Source: Printrove app on Shopify
There are a variety of print-on-demand platforms like Printrove and Owlprints you can work with, many of which can be integrated with your Shopify store for seamless order fulfilment. However, be sure to always order a sample of your product (often offered at a discount) to make sure your custom products look good.
Source: Owlprints
Additional resources:
- How to Start a T-shirt Business
- Think Pup T-Shirt Store [Case Study]
- Printful (Shopify app)
- Printify (Shopify app)
- Printrove (Shopify app)
3. Start a customised gifting store
[Create and sell digital assets] [Explore emerging niches]
Personalised gifts have their own merits as a business idea. You can find your niche and have multiple occasions to boost your sales. The idea of custom gifting is exclusive as it helps people celebrate important dates and conveys close affection. As an emerging niche, where you have multiple small players. However, as mentioned before, you can find your forte in various niches in two broad categories:
- Individual ideas, such as photo frames and key-chains
- Group gifts, such as commemorative gifts which can be considered a B2B prospective.
You can distinguish your business by offering speciality items and customisable packaging. Customised gifts can provide a viable business option for those with creativity and tenacity.
Confetti Gifts is one such business that has curated a unique collection of gifts for all occasions. You can choose and make your own gift box if needed or can buy their creative gift ideas.
Source: Confetti Gifts
4. Sell your digital creations online (music/ photography/ digital art)
[Create and sell digital assets] [Explore emerging niches]
Digital products like music, courses, ebooks, and templates are unique on this list of ideas. Unlike the others, they’re not tangible products. As a result, there aren’t recurring manufacturing or shipping costs to worry about so your margins remain high.
The trick is figuring out what makes for a good digital product. The answers range from original instrumental beats to stock photos that can be licensed to other creators, to information products and templates that help people level up their skills in a particular field.
Even books – cookbooks, picture books, comic books, poetry books, photo books, coffee table books, and novels—if you’ve got the knowledge or the creativity, there are a variety of original books you can bring to the market. Launching your own book can be a great way to monetise a blog if you have one or are looking to start one.
You can consider pre-selling or crowdfunding your book idea to ensure that there’s demand, and guarantee a certain number of customers for a bulk order. Check out the multiple crowdfunding platforms available.
If you’re artistically inclined or know your way around a camera, you can dropship using a print-on-demand business model to let others physically own a piece of your work. Just be sure you have the rights to the content you want to print, unless you’re using public domain assets that you can freely monetise.
If you’ve already got an engaged online following, say you’re a cartoonist or an urban photographer, you’re in an especially good position to give this business idea a try.
If you’ve got a talent that can be turned into a digital product, you can think about packaging it into a new stream of income.
Shopify offers a free digital downloads app that lets you offer digital products in your store as easily as physical products.
5. Sell courses or webinars
[Create and sell digital assets] [Explore emerging niches]
If you consider yourself having a skill set or abilities that are transferable and teachable, you could look at this as a serious venture. Your expertise can help others and build them that essential skill set.
People look at online courses to majorly upskill themselves and achieve a career change or promotion. However, some people now look at courses because they are interested in the subject and want to pursue it passionately. You have a dedicated audience ready to pay and commit to the course.
You can select a niche topic in the category or trending skills in the market currently. All you need is a qualifying certification or expertise to show, a camera and editing software.
Various platforms list your courses, like WordPress plugins and Udemy. If you do not want to invest in a course, you can consider webinars or workshops.
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