12 Low-Cost Business Ideas with High-Profit Potential

All successful businesses have different stories. Some started as small business ideas, ideas with high-profit potential. As a budding entrepreneur wanting to have an own business, limited resources should not hinder your pending success. Here in the Philippines, you can find many low-cost business ideas with high-profit potential.

Low-business ideas are sometimes overlooked and are super underrated. If you want to make a high-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. Filipinos love food in general, 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 10,000 – 50,000 PHP 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 low startup cost, but if you don’t have a working laptop or computer, you would need at least 15,000 – 30,000 PHP capital for your equipment.

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 5,000 – 50,000 PHP. 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.

3. Online Reselling of Products

One of the best online business ideas to earn money is online reselling of products. The e-commerce market in the Philippines is skyrocketing compared to the past year, but it has seen significant growth during 2020 and until now. 

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 business ideas. You can start with this business for as low as 5,000 – 50,000 PHP. 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 Philippines 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 Philippines 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 20,000 – 100,000 PHP 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

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 5,000 – 30,000 PHP.

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 1 – 5 PHP per word. But it still depends on the quality of the content that you need to produce. Here in the Philippines, Freelance writers can earn 200,000 – 1,000,000 PHP per year, depending on the number of projects, clients, and other factors.

6. Social Media Management and Consulting

Social media management and consulting is also a profitable business in the Philippines. 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 10,000 – 50,000 PHP. This startup cost includes work equipment like a computer/laptop, social media management tools subscriptions, website building, branding, etc. 

The profit potential for social media management and consulting can range from 300,000 to 1,000,000 PHP 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 Philippines. 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 5,000 – 50,000 PHP 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 20,000 – 100,000 PHP or more per year.

8. Mobile Car Wash or Detailing Service

Operating a car wash business in the Philippines is super underrated, given that it is also a great business idea with high-profit potential. 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 30,000 to 100,000 PHP 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 annual income might go up to 200,000 – 500,000 PHP or more for car wash and detailing services.

9. Personal Tutoring or Coaching Services

Since Filipinos 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 5,000 – 30,000 PHP. This includes the working equipment and subscription to online course 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 annually is up to 100,000 – 500,000 PHP.

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 20,000 to 100,000 PHP.

Profits for this business model vary from the number of clients and how big the project is or even it is. Planners like you can earn up to 300,000 – 1,000,000 PHP or more annually. 

11. Pet Sitting Business

A pet-sitting business is also a tremendously lucrative business in the Philippines. Your startup cost may vary depending on the services that you may offer. If you are into pet sitting like a dog walking business, you only need a little startup capital because you can brand yourself to 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 10,000 – 50,000 PHP. This includes certifications and pet things (ex., Treats, leash, bed, toys, etc.).

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 20,000 – 100,000 PHP. 

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 200,000 – 1,000,000 PHP.

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 in the Philippines; you’ll never know if you won’t try. Good luck!