Low Cost Business Ideas

Low cost business ideas are great for starting entrepreneurs with tight budget or limited capital to begin with. You might be surprised that big c...

Low cost business ideas are great for starting entrepreneurs with tight budget or limited capital to begin with. You might be surprised that big companies today like Hersheys, Microsoft, YouTube and even the ever so cool Apple started out in their garage.

Unlike big start ups, a low cost business idea can be set up quickly and easily. No need for a formal business plan or series of negotiations with banks to get your loan approved. It carries a minimum risk and you don’t have to mortgage your properties to get it running. To give you some idea, here are some very practical business ideas you may want to consider:

Duct cleaning business
Personal shopper
Musical instrument (piano, guitar, drums, etc) tutor
Academic (Math, Science, English, etc) tutor
House or Window cleaning ventures
Garage sale
Personal accountant
Notary public
eBay seller
Online marketing (also known as affiliate marketing)
Foreign language tutor
Insurance agent
Sports (basketball, martial arts, tennis, golf, etc) instructor

What makes this venture really great is you can start this business at the comfort of your home. With Internet access and phone line, you’re good to go! Save money from renting office space and other small business related expenses. And because your financial investment is quite small, it will give you the opportunity to try out different business ideas that suit you and your skills. Time is a major investment, though.

Low barriers to entry
This is perhaps the main drawback of low cost business ideas. It simply means anyone can easily enter and compete with your small business simply because the financial investment is very low. If other people notice you’re idea is profitable they will join right away. This is quite particular if you’re operating in a small community or limited customer base. Be prepared for high competition.

Your Main Weapon
Since barrier is low and competition can be potentially high, the best way to survive is to make your business stand out from the crowd. As one business guru once said: Differentiate or Die! Be superb in one important aspect of your business. You can be the fastest, most efficient, friendliest, or coolest.

Try not to engage in price war for there’s no winner in that game. Check out what your major competitors are doing and look for an angle where you can find a way to make your business unique. In the words of Apple, Think Different.

Marketing on a Budget
Promoting your business need not be expensive thanks to the growing power of the Internet and social networking sites like Facebook and twitter. If you’re budget is very limited, do not consider any expensive advertising like TV and radio. Instead, exploit the power of word of mouth advertising and free online tools.

These are some free yet very effective marketing tactics you implement today:

Set up a twitter account
Design a fan page of your business in Facebook
Do a quick video of your services and post in YouTube and other video sites
Create ads in Craigslist and other free online classified sites.
Use your network of family and friends to spread the word
Post your ads in community centers

Do not underestimate the potential of low cost business ideas. with hard work, perseverance, and knowledge, your venture can be as big as major corporations we know today!

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