18 Low-Cost Business Ideas with High Profit Potential

All successful businesses have different stories. Some started as small business ideas with high profit potential. 

As a budding entrepreneur wanting to have a business, limited resources should not hinder your pending success. Here in the US, you can find many low-cost business ideas with high-profit potential.

Low-cost ideas are sometimes overlooked and are super underrated. If you want to make a highly profitable online business, you should dive deeper into this article, as we give you a lucrative business idea. 

Let’s get started.

1. Home-based Baking or Catering Services

Home-based baking and catering services are one of the most profitable business ideas for food. This type of business idea does not require you to have a brick-and-mortar store and a high startup cost. Americans love food in general, especially foreign cuisine and fast food, but you need to do market research to know your target market and research your area of residency since this kind of small business is done mainly in your home.

These home-based business ideas do not require you to have a high startup capital. You can start this profitable venture with $200 – $1,000 capital. This has already included your kitchenware, ingredients, packaging, permits, and marketing tools (banners, printed brand name, etc.)

2. Dropshipping Business

Dropshipping is a great online business idea if you plan to have a low-cost business. If you have your work equipment like a laptop and computer, then you are suitable for a low startup cost.

After settling on your work equipment, you only need a stable internet connection for market research. After identifying your niche, you can partner with a good retailer/manufacturer and set up your online store or website. Dropshipping is one of the best online business ideas; your startup capital can go for as low as $100 – $1000. All the tools you need for ecommerce dropshipping are included (website, subscriptions, marketing promotions, etc.). 

You would also need to do social media marketing in this business model, so use your social media accounts. Just don’t underestimate the competition – some dropshipping niches are particularly saturated, which means the ones most adept at creating unique marketing campaigns will take the cake.

However, if you ensure a steady relationship with your supplier, you’ll have plenty of leeway for experimentation. Then find your exact tone of voice and value proposition that will drive your sales.

3. Online Reselling of Products

One of the best online business ideas to earn money is online reselling of products in your own online store. The e-commerce market in the USA has been on an upward trajectory and isn’t showing signs of slowing down.

Unlike dropshipping, where you do not need to handle the products physically, with online reselling, you will have the products at hand and will be the one to ship them out to your customers.

Your startup capital varies depending on the product you sell and the platform you use. Before doing this business venture, you must do market research and collect your own business ideas. You can start with this business for as low as $100 – $1,000. This includes the initial product inventory, marketing expenses, and your materials for packaging.

Advantages of being an online reseller:

• Low startup cost
• Flexibility

Online retailers’ profit margins vary depending on the product, too. It depends on your pricing strategy, marketing efforts, and capital cost. Most of the resellers in the US aim for a 20% – 50% margin, but this can still change into high profit margins based on market demands and other factors.

4. Digital Marketing Services for Small Businesses

Digital marketing services for small businesses are also another great online business idea. Small businesses in the US are continuously growing, and the rise of the digital age is constantly seeing significant growth. Due to that, many businesses wanted to have an online presence to brand their products or company more. That’s where digital marketing services enter.

The startup cost for this business venture depends on the service you will provide, but generally speaking, you would need at least $300 – $5,000 with this business model. This includes your equipment, software, website, certifications, etc. 

List of services that you can offer to small businesses:

• Search Engine Optimization (SEO);
• Social Media Management;
• Video Marketing, and others.

The high-profit potential still varies depending on the services you would provide, your number of clients, your pricing strategy, etc. But generally, you can earn a profit margin of 20% – 50% or more.

5. Content Creation and Freelance Writing

This is one of the best low-cost business ideas that could give you high-profit potential. Why? You only need a good internet connection, working equipment such as a laptop or computer, and your brain to earn money. If you do not have any working equipment, you would need a startup cost of $100 – $600.

After getting your working equipment, you must set up your writing portfolio and make accounts on freelance job-seeking sites such as Upwork, Indeed, Jobstreet, LinkedIn, etc. You can also create your website and social media accounts for your branding/writing business. 

Your profit depends on your services and your pricing strategy. As a start, you can charge content per word and up to $0.2 to $0.10 per word. But it still depends on the quality of the content that you need to produce. Here in the US, Freelance writers can earn $50,000 – $200,000 per year, depending on the number of projects, clients, and other factors.

Freelance writing is known for its competitiveness, but that can even be a good thing. What you need to do is find a specific service (find a niche) and stick to it. You could be a copywriter who only writes websites, a script writer for YouTube videos, a resume writer, a short-form copywriter, a press release writer and so much more. 

Just find what you like doing the most and develop a portfolio of “mock pieces” to prove your competence and start rocking.

6. Social Media Management and Consulting

Social media management and consulting is also a profitable business in the US. Since the demand for social media presence is significant for businesses to reach their target markets and drive engagements, social media managers/experts are sought to provide consultations and strategic guidance to these businesses/companies.

If you are knowledgeable in this field, you are on the right track and could try to have this kind of profitable small business venture. Your startup capital for this business model depends on the resources you already own, but in general, you would need up to $200 – $1,000. This startup cost includes work equipment like a computer/laptop, social media management tools subscriptions, website building, branding, etc. Extra points if you know how to run social media ads and understand data analytics – you’ll be indispensable for businesses.

The profit potential for social media management and consulting can range from $35,000 to $100,000 per year. This also varies depending on the number of clients, the project’s size, and other factors

7. Handmade Crafts and Etsy Store

Starting a handmade crafts business, especially on a global e-commerce platform like this, is a great business idea venture in the States. Handmade crafts have a unique and lovable appeal that makes them attractive to handmade crafts lovers, and that is why e-commerce platforms like Etsy provide a space for artisans to showcase and sell their works.

The startup cost for this business model varies from the product that you would create and the materials that you would use. For decent handmade crafts, you can start with $100 – $1,000 or more, depending on the complexity of the design. 

Profit margins in handmade crafts vary depending on the complexity and material cost of the product. Some artisans earn up to $2,500 – $6,000 or more per year. While it’s possible to make a full-time living with this business model, most home-based jewelers treat this as a side income with great potential.

8. Mobile Car Wash or Detailing Service

Operating a car wash business in the US is super underrated, given that it is also a great business idea with high-profit potential. It’s also one of the most consistently successful small business ideas as car washing is a necessity for many local residents. The startup cost will vary if you have a space in your home or plan to create a space for this business. Your startup cost for this type of business model may range from $500 – $2,500 or more, depending on the types of equipment that you will need.

Regarding your profit potential, you need to do market and feasibility research before you push through with this business model. Your profit would depend on the number of your customers, pricing, and material cost (ex., water bill, soap, etc). Your weekly income for a car cleaning business might go up to $2,000 – $50,000 or more for car wash and detailing services.

Owning a car wash is a wonderful foundation for creating additional sources of revenue. Many car wash businesses upsell additional items such as car accessories, certain parts, and even drinks and food to snack on while waiting for their ride to return to its shining glory.

9. Personal Tutoring or Coaching Services

Since Americans value education, online tutoring is an excellent, profitable business idea. In this business model, you need to identify your niche and which fields are your expertise that you can share your knowledge of. With this business gig, you would need a stable internet connection and good working equipment. Generally, in this business model, you would need a startup cost of $100 – $500. This includes the working equipment and subscription to an online course or two you might need.

For personal tutoring and coaching, the annual income varies depending on your client and the complexity of services, but generally, the profit rate monthly is up to $10,000 – $50,000. 

Note that expanding into a test prep business, especially for SATs, ACTs, LSATs, GREs, and GMATs can bump your hourly rate significantly, as they are very impactful tests.

10. Virtual Event Planning and Coordination

Since the pandemic, virtual event planning services and coordination have become a successful small business idea. Many companies have seen the potential of work-from-home setup. Many companies would want to organize an event virtually and need an expert.

If you are an expert in this field, you should have your initial investment in working equipment such as a computer/laptop, technology tools subscriptions, or paid tools you may need. Your startup cost may range from $2,000 to $5,000.

Profits for the event planning business model vary from the number of clients and how big the project is or event it is. Wedding planners, for example, can earn up to $50,000 or more annually. 

11. Pet Sitting Business

A pet-sitting business is also a tremendously lucrative business in the US. Your startup cost may vary depending on the services that you may offer. If you are into pet sitting, you only need a little startup capital because you can brand yourself on social media and buy minimal supplies. 

After all, it is client-based. But for all the types of pet sitting, you would need a startup cost of at least $200 – $500. This includes certifications and pet things (ex., Treats, leash, bed, toys, etc.).

Again, think about upselling. You can double down on this and integrate your own dog-walking business and house-sitting business into it. You may also offer to wash and groom the animals, which saves owners time from setting appointments with groomers and allows you to maximize revenue from individual clients.

12. Graphic Design Services

Graphic designers are in demand as the need for projects or branding is rampant. Startup costs vary depending on the work types of equipment you already own, but generally, you would need a startup capital of over $500 – $1,000. 

Since graphic design and digital banner design is in demand, your profit will vary depending on your client base and how big the project or task is, but annually, graphic designers earn up to $30,000 – $70,000.

Designers can create business assets like logos and typography and even help organizations decide on their brand colors and artistic direction. On top of that, graphic designers can be key members of a team’s ongoing operations – for example, whenever the marketing team needs visuals for their campaigns and social media posts, they can turn to the designer. 

This means that an expert can be employed by multiple companies on a freelance basis as long as he meets the deadlines for deliverables.

13. Personal Training Business

Another low-cost business idea with a high profit potential is getting into the training niche. Personal trainers can make good money even from the comfort of their homes. This includes creating diet regimes for clients, personalized workouts, and leading group exercises. 

It requires low startup costs because you only need a camera and a bit to fund your initial marketing and branding. However, a personal trainer can make upwards of $70,000 per year. On top of that, you can be an affiliate marketer for supplements and even create online courses to sell en mass.

14. Stock Photography Business

This is one of the low-cost business ideas with high profit that people with creative skills and a keen eye can pick up in order to make money online. Stock photos, even with the rise of AI, are still in high demand by big and small business owners. Selling stock images is not just a one-time thing – the very same photo can be purchased by many users, hence providing photographers with a passive income.

A photographer can do many other things too – you can set up a wedding photography business or a photo editing business. However, positioning yourself in a specific niche will make you stand out from other businesses.

15. Consulting Business

Among the many profitable business ideas, consulting can be one of the most lucrative businesses in terms of hourly pay. Niche experts can charge thousands of dollars for just an hour of their time. However, even people without much social proof can still provide enough value in order to turn this into a successful business idea.

A consultant can help other online businesses by providing them with industry insights or ideas with high profit potential. For example, you can advise businesses on their marketing strategy, share your ultra-niche expertise with a brand looking to utilize it for a campaign, or create a better infrastructure for their everyday operations.

High-end consultants can make $150-$200 per hour.

16. Life Coach Brand

A life coaching business heavily relies on having a strong personal brand online. You need to convince people that you have something worthwhile to say and that you can lead them to a better life.

This can be, however, one of the most lucrative businesses out there. What makes this a good business idea is the many ways it can be monetized. One option is expanding into an online course business. You may also double as an affiliate marketing business and even have personal one-on-one coaching sessions with clients.

To succeed here, you’ll need your own website, as well as a good amount of content for social media and possibly YouTube. Many coaches pay for social media management services to get the ball rolling faster. But if you want to do this on your own, the startup and overhead costs are quite low. 

You can start with just your phone, but investing in better equipment like a microphone, green screen, and additionally, social media ads could go up to $500.

17. Digital Assistant

Personal assistants can have relatively dynamic workdays, helping out CEOs or other people in positions of authority or influence. This means that digital assistant work has a lot of weight and provides a fantastic opportunity for growth, infield learning, and networking.

Digital assistants schedule meetings, take meeting notes, and take care of their clients’ schedules, do administrative work, and communicate with business partners and clients to save precious time for the organization. This small business idea is perfect for individuals high in openness and conscientiousness.

This role can be flexible in terms of work hours but can make between $40,000 – $60,000 per year on average.

18. Translator

Do you speak a second or third language? This could be the gig for you.

Translators are very sought after in a variety of forms. Be it in live translation, or in writing/transcribing. They usually get paid by the word, between $0.1 to $0.10 per word. Keep in mind that the more languages you know, the more doors can open. Each language exponentially increases your hourly rate and the amount of opportunities that walk through your door.

Bigger projects like translating books, articles, website UI, or localizing websites can be especially lucrative and provide secure long-term work.

Did you find any business that you want to try? Every successful business has its own story, from minor to high. You might be the next big business; you’ll never know if you won’t try. Good luck!