10 Low Cost Business Ideas with High Profit: 2024 Edition

financialgigs.com March 29, 2024

1 2,695 14 minutes read

In recent years, the global freelance industry has been experiencing a rapid surge in growth, with freelance platforms valued at an impressive $4.39 billion in 2022 ¹. This trend is further supported by Upwork’s recent freelancing research study, which reveals that more than one-third of the U.S. workforce is currently engaged in freelancing activities in some capacity ². Moreover, the United States witnessed a record-breaking 5,388,000 new businesses started in 2021, and QuickBooks predicts that over 17 million businesses could be established in 2022 ³. These statistics highlight the immense potential for entrepreneurs to explore low cost business ideas with high profit margins in the coming years.

As we move into 2024, the landscape of business opportunities continues to evolve, offering aspiring entrepreneurs a wide array of options to choose from. From digital products and affiliate marketing to freelancing services and content creation, there are numerous avenues to explore for those seeking to make passive income or establish a profitable venture with minimal investment. In this article, we will delve into 10 low cost business ideas with high profit potential, covering various domains such as social media marketing, video editing, consulting, blogging, and more. Whether you’re looking to start a home-based business, sell digital downloads, or venture into print on demand products, this comprehensive guide will provide valuable insights and inspiration to help you embark on your entrepreneurial journey in 2024.

Table of Contents

Creating and Selling Digital Products

Creating and selling digital products has become an increasingly popular low-cost business idea with high profit potential. Digital products are in high demand due to their affordability and educational value ⁴. One example of success in this area is a shop that made $4,000 in just two months with a 12-month old listing ⁴. To stand out in this competitive market, consider using real-life photography mockups to provide an edge ⁴. The difficulty level of creating digital products is relatively low (1/5), as tools like Canva make it easy to design and produce these items ⁴.

Some popular digital product ideas include:

Printables: The rising trend of entrepreneurship and small businesses has led to a growing demand for printables ⁴. One listing made an impressive $9,000 in two months with an 11-month old shop ⁴. Creating printables may require knowledge of Google Sheets or Microsoft Excel, and the difficulty level is medium (3/5) ⁴.
Device-specific templates: There is a growing demand for electronic tablets like Remarkable, and shops catering to this niche have seen success ⁴. For example, one shop made over $5,000 in three months with a 14-month old shop ⁴. Creating device-specific templates requires knowledge of specific tools for compatibility, and the difficulty level is medium (3/5) ⁴.
SVG digital products: The rising trend of SVG digital products has been fueled by the demand for customization ⁴. A shop making over $8,000 a month with a 17-month old shop demonstrates the potential in this area ⁴. Canva allows for easy creation of customizable frames, and the difficulty level is relatively easy (2/5) ⁴.
Notion templates: Influencers needing organization tools have driven the demand for Notion templates ⁴. One listing made over $3,000 a month with a 6-month old shop ⁴. Creating Notion templates requires specific knowledge, and the difficulty level is medium (3/5) ⁴.
Forms and contracts: Easy-to-create templates for forms and contracts have wide applicability ⁴. One listing made $2,800 with a 10-month old listing ⁴. Canva allows for easy creation of these products, and the difficulty level is low (1/5) ⁴.
Wedding checklists: The evolving wedding space provides opportunities for new sellers ⁴. An 8-month old listing making over $3,000 a month showcases the potential ⁴. Canva makes it easy to create checklists with various aesthetics, and the difficulty level is low (1/5) ⁴.
Crochet patterns: This new trend in the crochet pattern market has seen shops making significant profits, such as $23,000 in four months with a 7-month old shop ⁴. However, creating crochet patterns requires specific skills, and the difficulty level is high (4/5) ⁴.

Other popular digital products include courses, e-books, photography, music, web elements, research, tutorials, software, recipes, apps, podcasts, swipe files, templates, patterns, graphic arts bundles, and coaching packages ⁵ ⁶. When creating digital products, consider using a resolution of 300 DPI and common file formats like JPEG, PNG, and PDF ⁶. Platforms like Etsy allow a maximum of 20 MB per file ⁶.

Emerging technologies like Gemma, a family of lightweight, state-of-the-art open models by Google, can be utilized for various business applications, such as text classification, simple question answering, complex tasks like summarization and code generation, and more ⁷. This presents an opportunity for entrepreneurs to create and sell digital products that leverage these cutting-edge tools.

Offering Freelancing Services

Freelancing offers flexibility, independence, and the opportunity to pursue your passion while earning a significant income ¹. To start a successful freelance business, choose a niche that aligns with your skills and expertise, such as:

Web design or development
Photography
Video editing
Graphic design
Copywriting
Data analysis
SEO consulting
Art ¹

Conduct a SWOT analysis to assess the potential for success in your chosen niche ¹. Once you’ve decided on your niche, take the following steps to establish your freelance business:

Choose the appropriate business entity (sole proprietorship or Limited Liability Company) ¹.
Obtain necessary licenses and permits ¹.
Set up a separate business bank account ¹.
Define your service and offering, understanding how your skills can help prospective clients ².
Identify your target audience and the types of clients that will be a good fit for your service ².
Develop a pricing structure by researching your competitors in the market ².
Create a portfolio showcasing your past projects and accomplishments to establish your work quality ².
Write compelling proposals that outline the client’s needs, how you can help, and your credentials and qualifications ².

To expand your reach and land more referrals, attend local events such as Chamber of Commerce meetings, BNI chapters, Meetup.com groups, and Eventbrite events ¹³. Focus on building your network and making it clear that you can solve their problems ¹³. Keep in touch with your contacts by sending personalized follow-up emails, creating a newsletter with curated content, and encouraging engagement ¹³.

Streamline your processes by scheduling time for marketing and relationship-building tasks, developing procedures for qualifying leads, structuring sales meetings, writing proposals, onboarding clients, and soliciting referrals ¹³. Utilize tools like Bidsketch for proposals, Freshbooks for invoicing, Client Portal or Basecamp for project management, ConvertKit for email/marketing automation, and Noko for time tracking ¹³. Obtain legal documents, such as a master services agreement and statement of work contracts ¹³.

As you grow your freelance business, focus on providing value to your audience and encouraging referrals ¹⁴. Continuously develop your skills, adapt to changes, and expand your knowledge ². Popular freelancing jobs in 2024 include software development, writing, digital marketing, web/mobile development, and graphic design ². Platforms like Upwork can help you connect with clients and find meaningful work projects, with over 10,000 freelance opportunities posted daily ².

Launching a Dropshipping Business

Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. When a store sells a product, it purchases the item from a third party and has it shipped directly to the customer ²³. In this model, you don’t need to handle any products yourself. Instead, a third-party supplier stores and ships products to customers on your behalf [Webpage 2].

To start a successful dropshipping business, follow these steps:

Conduct market research and identify a niche with potential ⁷ ²¹ ²².
Choose the right eCommerce platform, such as Shopify, which provides solutions for creating a website, selling products, marketing, managing, and accepting online payments ¹⁸ ¹⁹.
Find reliable suppliers and partner with them to source products ⁷ ²¹ ²² ²³.
Build a professional and user-friendly online store ¹⁹²¹²².
- Create a general store on Shopify ¹⁹.
- Purchase a domain and download a theme ¹⁹.
- Build the homepage and add a logo ¹⁹.
Develop effective marketing strategies to promote your store ⁷²¹²²²³.
- Run effective marketing campaigns and stay up-to-date on trends ²³.
- Expand to other sales channels ²³.
Process orders and provide excellent customer service ⁷²¹²².
- Nail down a seamless order fulfillment process with your supplier(s) ²³.
Monitor and optimize your dropshipping business ²²²³.
- Set realistic expectations and track your results ²³.
- Offer competitive prices and build a strong brand ²³.

When starting a dropshipping business, it’s essential to verify product demand using tools like Google Trends ¹⁹. Additionally, stay up-to-date on trends, offer competitive prices, run effective marketing campaigns, build a strong brand, and track your results to optimize your business ²³.

Starting a Print on Demand Business

Starting a print-on-demand (POD) business is an attractive low-cost, high-profit venture for entrepreneurs in 2024 ²⁸. POD businesses operate on an ecommerce model where custom products are made only after an order is placed, eliminating the need to buy or store inventory in bulk ²⁵. Platforms like Printify allow users to create and sell custom products without the need for inventory or upfront costs ²⁴.

To launch a successful print-on-demand business, follow these steps:

Decide on your target audience and a profitable niche ²⁵.
- Use personal interests and expertise, analyze market trends, and explore existing successful stores to find your niche ²⁵.
Pick a reliable POD fulfillment service ²⁵.
- Consider factors such as product quality and variety, printing and shipping costs, integration capabilities, customer service and support, and user reviews and reputation when choosing a POD service ²⁵.
Choose where to sell products (online marketplace or ecommerce platform) ²⁵.
Build your print-on-demand store ²⁶.
- Set up billing and get to know your Printful Wallet ²⁶.
- Select print-on-demand products ²⁶.
- Create unique designs, ensuring they don’t infringe on trademarks or copyrights ²⁶.
- Decide on pricing ²⁶.
- Optimize product descriptions, photos, and SEO for your online store and product listings ²⁶.
Create a marketing strategy ²⁶.
- Focus on targeted marketing, reducing competition, building customer loyalty, enhancing expertise, and ensuring a better product fit ²⁵.

Managing orders and providing excellent customer service is crucial for the success of your POD business ²⁷. Building strong relationships with customers can lead to increased sales and a stronger brand ²⁷. The POD model offers several advantages, including no inventory management, flexibility with product offerings, and reduced financial risk ²⁶. With minimal startup costs and the ability to sell a wide variety of products, such as posters, phone cases, custom hoodies, and mugs, starting a print-on-demand business is an attractive option for entrepreneurs looking to monetize their brand in 2024 ¹⁷ ¹⁰ [Webpage 2].

Becoming an Affiliate Marketer

Affiliate marketing is a low-cost, high-profit business model that involves promoting other people’s products or services and earning a commission on sales made through your affiliate links ⁹ ²⁸. This model requires no upfront investment and allows you to focus on the selling aspect without the associated risks of creating your own products ²⁹ ³². Major brands claim they generate between 5% to 25% of overall online sales from affiliate marketing, demonstrating its significance ³³.

To start an affiliate marketing business, follow these steps:

Choose a niche based on personal interest, potential profitability, and the ability to create content without significant upfront investment ²⁹. Examples of profitable niches include business, technology, health, lifestyle, home, and alternative ²⁹.
Select an affiliate program from brands directly or through affiliate networks such as ShareASale, ClickBank, Awin, FlexOffers, Amazon Associates, CJ (Commission Junction), and Rakuten Advertising ¹⁰ ²⁹. Consider the reputation, commission rate, and earnings per click (EPC) rate when choosing a program ²⁹.
Create high-quality, valuable, and relevant content for your target audience on free traffic sources like social media platforms (Facebook, Instagram, YouTube, TikTok, LinkedIn), blogging, and forum-based sites like Reddit and Quora ²⁹. Include affiliate links in your content and add a disclaimer explaining the links are affiliated ²⁹.
Build an email or SMS list to leverage affiliate links and own your contact lists ²⁹. Use free email marketing software providers with free plans, such as Shopify Email, Mailchimp, and MailerLite ²⁹.
Engage with your audience through comments and responses to build authority in your niche and encourage social media algorithms to show your content to more people ²⁹.

Affiliate marketing offers several benefits, including a low barrier to entry, low-risk business model, high potential profits, and no global restrictions ³⁰. The industry is valued at around $27.8 billion and is anticipated to grow, with successful affiliate marketers earning hundreds of thousands of dollars per month ³⁰. By focusing on authenticity, sharing things you genuinely love and believe in, and consistently promoting affiliate partners, you can build strong relationships and increase your chances of success in this lucrative business model ³².

Initiating a Consulting or Coaching Business

Initiating a consulting or coaching business is a low-cost, high-profit venture that allows entrepreneurs to leverage their expertise and help clients achieve their goals. There are several models to consider when starting a consulting business, including:

Solo Consultant Model: Work closely with clients and complete projects independently ³⁴.
Consulting Firm Model: Run the firm and manage a team of consultants who implement projects for clients ³⁴.
Productized Consulting Model: Turn expertise into a productized service with a repeatable process and predictable outcome ³⁴.
Hybrid Consulting Model: Combine elements of the above models to create a unique business ³⁴.

To establish a successful consulting or coaching business, follow these steps:

Identify your niche and ideal client by using the Niche Scoring Method ³⁴. Validate your ideal client by talking to people in the industry and learning about their problems and desired results ³⁴. This requires years of experience and deep knowledge of the field ³⁵.
Create a magnetic message that speaks to your ideal client’s specific problems and desired results ³⁴. Apply this messaging to your email signature, LinkedIn profile, and consulting website ³⁴.
Set your consulting fees using the hourly or project-based method ³⁴. Create three options for your clients, each offering increasing value and results ³⁴. Package your services, determine appropriate pricing, send invoices, and keep track of all expenses ³⁵.
Brand your offer to make it memorable, unique, and intriguing ³⁴. Determine who you want to speak to and what you want to speak about, and then figure out how to reach your ideal clients ³⁵.
Focus on outreach, follow-up, and authority-building to create relationships with your ideal clients ³⁴. Develop a daily, weekly, and monthly plan to ensure consistent progress towards your marketing goals ³⁴.
Use the Consulting Sales Conversation Framework to have meaningful conversations with potential clients ³⁴. Address objections truthfully and minimize risk for the client ³⁴. Track your progress through the consulting sales pipeline ³⁴.
Handle necessary paperwork, including checking local laws, registering your company name, choosing your business structure, opening a separate business bank account, nailing down licenses and permits, understanding tax obligations, and considering liability insurance ³⁵.

An organized workspace is essential for a consulting business ³⁵. Tools like Copilot can help manage everything from contracts, invoices, files, messaging, intake forms, and more in one place ³⁵. Building solid relationships with clients is crucial for acquiring more clients ³⁵. This can be done by developing genuine connections, maintaining strong bonds even after projects end, and acing customer service ³⁵.

Employment of management analysts, which includes consultants across different industries, is projected to grow 10% from 2022 to 2032 [Webpage 5]. Service-based agency/consulting business, personal training, test prep and other educational services, and personal organization and junk removal are 15 low-cost high-growth business opportunities for first-time founders ⁸. If you have particular subjects you are passionate about, tutoring and coaching (in-person and online) are easy, low-cost ways to add another revenue stream to your monthly earnings [Webpage 2]. Life coaches assist individuals in navigating life and career-related transitions and problems, requiring certification and building a client base through social media, local advertising, and word-of-mouth marketing [Webpage 2].

Monetizing Content through Social Media or Blogging

Monetizing content through social media or blogging has become a popular low-cost, high-profit business idea for 2024 ²⁸. Platforms like Shopify provide a comprehensive solution for building your brand, creating your website, selling, marketing, managing your business, accepting online payments, and shipping orders ³⁷. Online courses, personalized tutoring, and podcast/YouTube video summarization services are potential business ideas to explore in this domain ³ ²⁸.

Social media monetization is a strategy to earn income from your social media audience by promoting digital products, exclusive content, or using various methods based on the platform’s capabilities and your understanding of the target audience ⁹. To successfully monetize your content, consider the following strategies:

Paid influencer marketing: Get paid for posting content about other brands’ products and offers ⁹.
Paid memberships: Create exclusive content that followers have to pay to access ⁹.
Sponsored posts and videos: Create promotional content for brands and get paid per post or commission on sales made via your posts ⁹.
Sell using built-in social media shops: Set up a shop on Instagram or Facebook and sell physical products directly to your followers ⁹.
Send traffic to your website: Use social media to drive traffic to your site, landing pages, or booking calendar ⁹.
Generate niche sales indirectly: Share information, tips, and related news to create conversations and encourage followers to remember you when a relevant need comes up ⁹.
Create your own product to sell: Develop a unique product that appeals to your target audience and aligns with your brand message, values, and goals ⁹.
Host events: Organize online and in-person events, such as Q&As or workshops, and charge a small fee for participation ⁹.
Build an app: Building an app can help you grow your ability to engage and earn ¹⁷.
Patronage: Patreon gives people who believe in you the chance to support you ¹⁷.
Utilize chatbots: Set up automated chat sequences for initial interactions with potential customers and offer incentives for subscribing to newsletters or completing quizzes ¹⁷.

Blogging is another avenue for monetizing content, with various strategies such as:

Advertising: Display ads that pay per impression ¹¹.
Sponsored Posts: Brands may approach bloggers to feature their products in exchange for payment ¹¹.
Podcasting: Turn your blog into a podcast for audio content consumption. Monetize with ads, sponsorships ¹².
Video blogging: Produce video versions of blog posts on YouTube or social media. Higher monetization potential than text ¹².
Online courses/video trainings: Sell in-depth video courses/trainings on topics covered in your blog ¹².
Paid newsletter: Create a paid subscriber-only email newsletter with bonus/exclusive content ¹².
Sponsored content: Collaborate with companies to create content about their products ¹⁰.
Selling ad space: Sign up with ad networks like Google AdSense, InfoLinks, or Monumetric ¹⁰.
Creating a podcast: Connect with subscribers in a new way. Monetize through paid subscriptions, sponsorships, or ad space ¹⁰.
Offering webinars or tutorials: Monetize through admission fees or as free demos for products or services ¹⁰.

This business model can include becoming a social media influencer, creating a podcast, or building a YouTube channel. Once an online presence is established, monetization can occur through ads, affiliate marketing, online courses, or a paid membership for your community to access exclusive content [Webpage 2].

Conclusion

In conclusion, the evolving landscape of business opportunities in 2024 presents aspiring entrepreneurs with a wide array of low-cost, high-profit ventures to explore. From creating and selling digital products to offering freelancing services, launching a dropshipping or print-on-demand business, becoming an affiliate marketer, initiating a consulting or coaching business, and monetizing content through social media or blogging, there are numerous avenues to pursue. By leveraging the power of technology, tapping into emerging trends, and focusing on delivering value to your target audience, you can build a successful and profitable business with minimal upfront investment.

As you embark on your entrepreneurial journey, remember to conduct thorough market research, identify your niche, and develop a strong brand identity. Stay committed to continuous learning, adapt to changes in the market, and prioritize building strong relationships with your customers and clients. With dedication, perseverance, and a strategic approach, you can turn your passion into a thriving business and achieve financial success in the years to come.

FAQs

What are the most profitable businesses expected to be in 2025? The future business landscape in 2025 is expected to be dominated by several profitable ventures, including outsourcing businesses, online tutoring, 3D printing, co-working spaces, the Internet of Things industry, real estate, the healthcare sector, and consulting firms.

Which business can I start with low investment but has high profit potential? You can start a variety of businesses with minimal investment that have the potential for high profits. Some examples include becoming a personal trainer, creating online courses, starting a dog-walking or pet-sitting service, offering social media management, event planning, opening a car wash, starting a photography business, or providing freelance writing services.

Which small business is known to generate the most revenue? The most profitable small businesses tend to be food trucks, car wash services, auto repair shops, personal training services, newborn and post-pregnancy services, enrichment activities for children, mobile apps and entertainment for children, and businesses that offer shared accessories and attire.

Which industry is projected to have the highest profit margins in 2024 in the US? In 2024, industries in the US that are anticipated to have the highest profit margins include stock & commodity exchanges, private equity, hedge funds & investment vehicles, cigarette & tobacco manufacturing, land leasing, credit card issuing, and credit bureaus & rating agencies.