We all want to make more money, right? Starting a business is one way to bring in another stream of income.
You may come across various business opportunities on a regular basis. Particularly, MLM (network marketing, social selling, relationship marketing, blah, blah) you get the point.
Most businesses require a significant investment to launch. I’ll share with you how to start a business with little money using two online business models with low start-up costs.
Best of all, they are not related to network marketing. Let’s dive in, shall we?
Why an Online Business?
When you consider the types of businesses in which you can start, an online business is often the ideal solution.
That is because most businesses require a large up-front investment. If you look into opening a physical storefront, you’re looking at overhead costs such as:
- Renting a space
- Ordering and storing inventory
- Hiring employees
- Utility costs
Even MLMs and network marketing companies can be costly. Although they sound like ideal home based business opportunities, most require you to buy hundreds (or thousands) worth of products to get started.
Online Businesses are Typically Low-Cost
An online business has very little overhead costs in most cases. You can often start with a domain name ($12) and web hosting ($80 a year or less).
The two business models I share below can be started well under $350 in most cases. In comparison to other business models, they are some of the lowest-cost businesses you can start.
An Online Business is Convenient
The great thing about these business models is that you can work from anywhere with a WiFi connection.
They provide location independence. Many successful online business owners operate their business while traveling or living abroad.
An online business is a perfect side-business for anyone that is working full-time. You can work on your business in your free time.
You Can Start an Online Business By Yourself
An online business doesn’t require partners or employees to get going. Many full-time online business owners are operating their businesses by themselves.
This keeps your costs low and keeps more profits in your pocket.
Low-Cost Business Model #1: Create a Niche Website
Creating niche websites is one of my all-time favorite online business models.
You can literally start your own niche website today by registering a domain name and getting web hosting.
First, here is a brief definition of a niche website:
The barrier to entry is low. If you have a topic that you have a genuine interest in and you can communicate, you can be a niche blogger.
Of course, there are some skills you should learn and develop. However, they are not difficult at all and will only help to boost your earning potential.
Niche Websites are Fun and Can Be Lucrative
What is awesome about niche websites is that you get to pick what you want to create a niche site about.
Do you have an interest in drones? Are you handy at fixing things? Does personal finance get your juices flowing?
Whatever you like to talk about and would feel good about helping other people with that are also interested in your niche is a good niche to be in.
You can earn income with any niche so you may as well choose one that is fun for you. The more authentic your website is, the more it can earn.
Authenticity builds trust and visitors will be more willing to buy products or services you recommend (which earns you commissions – more on that below).
Work Anywhere with an Internet Connection
An online business lets you work from anywhere in the world so long as you have an internet connection.
This makes it so easy and convenient to maintain a niche website. You can fit your business in around your schedule.
Various Monentization Methods
You can earn money with your niche blog in a variety of ways. You can place banner ads, place Adsense ads, or my favorite: affiliate marketing.
Here is a graphic representation of how it works:
There are tons of affiliate marketing programs that you can join so there is sure to be products or services that you can promote on your niche website.
Joining an affiliate program is free. The company that you are an affiliate of will provide special tracking links that you can place on your website.
When visitors click on your links and make a purchase, your sale is tracked and you receive credit for the sale.
Imagine having a significant amount of targeted visitors to your website. Your earning potential really is unlimited as you develop and grow your business.
Low-Cost Business Model #2: Start a Dropshipping Business
The dropshipping model is another great low-cost online business. What makes it low-cost is the fact that you do not need to buy inventory to get started.
The way it works is simple. You need an eCommerce (shopping cart software) platform that works with the dropshipping model.
You also need dropshipping suppliers for the products you will carry in your store. When customers order products from your store, you then buy those products from your suppliers.
The big difference is that you do not have to ship anything. You pass along your customer’s shipping information to your suppliers and they ship the item directly to your customer.
The difference in price between what you charged your customer and what the supplier charged you is your profit.
Here is a flowchart graphic:
No Inventory to Buy or Store
In a typical eCommerce business, the biggest expense is often buying and storing inventory. It is also a huge risk as you have your money tied up in products that may or may not sell.
With dropshipping, you do not order products until someone has ordered it from your store. This greatly reduces your overhead costs as there is nothing to buy or store.
No Shipping or Handling
Shipping products to your customes is also out of your hands which not only saves money but saves time as well.
Your suppliers handle all of the shipping and provide you with order tracking information. You can pass along tracking numbers to your customers manually or automated through your store.
Automate Your Dropshipping Business
You can have all of the essential functions of your dropshipping store automated by using dropshipping software like the AliDropship Plugin.
This plugin works with WordPress and creates a dropshipping store that sources products from AliExpress.
There is no doubt that either one of these online business models will be ideal for anyone seeking to start a low-cost business of their own.
Both business models take time to develop and both require consistent effort in order to achieve success.
Is either of these online businesses attractive to you? Which one would you consider? Leave your feedback below.
I wish you all the best in your entrepreneurial journey!