35 small business ideas for every skill and budget

Published Friday 17 October 2025

Table of contents

• Benefits of starting a small business
• Low-cost business ideas you can start today
• List of small business ideas
• List of side hustle ideas
• How to come up with your own small business idea
• How to assess your small business idea
• Recession-proof business ideas: are they real?
• How to execute your idea
• FAQs on small business ideas

Key takeaways

• Match your existing skills and passions to business ideas that require minimal startup costs, such as freelance services, virtual assistance, or cleaning services, rather than pursuing ventures that demand large initial investments or unfamiliar expertise.

• Validate your business concept by honestly assessing whether you have the necessary skills, passion, time commitment, and financial resources, while also confirming there's genuine market demand and profit potential before launching.

• Consider starting as a side hustle to test your business idea and generate additional income while maintaining financial stability, as most successful businesses begin this way and allow you to learn without significant risk.

• Focus on execution over having the perfect idea, since simple concepts executed well consistently outperform complex ideas with poor implementation—write a solid business plan, set profitable pricing, and meet all legal requirements to launch successfully.

Benefits of starting a small business

Starting a small business gives you control over your working life and income potential. You build something from the ground up while setting your own schedule.

The main benefits are:

• Autonomy: Complete control over business decisions and operations
• Flexibility: Set your own hours and work arrangements
• Personal satisfaction: Build something meaningful from scratch

Consider these factors:

• Time commitment: Often requires more hours than traditional employment
• Income variability: Earnings can be unpredictable, especially in early years
• Skill alignment: Success depends on matching your abilities to market needs

Low-cost business ideas you can start today

You don't need a large amount of money to get started. Many businesses start with a simple idea and your own effort, not large loans. If you use your skills and work consistently, you can start a business with low upfront costs.

Choose ideas where you use your skills instead of spending a lot of money. This could include freelance services like writing or design, starting an online store with a dropshipping model, or offering local services such as pet sitting or home organising. These options help you start small and keep costs low.

26 small business ideas

Small business ideas are proven business models you can start with your existing skills and budget. These opportunities range from service-based businesses requiring minimal startup costs to product-focused ventures with higher initial investment.

The following ideas are organised by startup needs and skills.

Inventor

Becoming an inventor means creating and selling your own products, from simple improvements to everyday items to completely new solutions.

The invention process:

• Product development: Create prototypes using 3D printing or hire designers for technical drawings
• Manufacturing: Use contract manufacturers to produce inventory cost-effectively
• Market targeting:Online retail lets you reach specific niche audiences efficiently
• Low barrier to entry: Simple improvements to existing products (like better kitchen tools) can be highly profitable

Franchisee

Many popular products and services are available as franchises. To open a franchise, you pay the parent company (franchisor) to open a store, depot, workshop or office in their name. They give you access to their branding, products and trade secrets you need to run the business. They may also help you with business advice or funding. Costs and support vary depending on the franchise. You can find franchises in restaurants, consulting, leasing and window washing. Learn more about franchising.

Transcription

If you type quickly and can understand speech well, transcription is a good business idea. You might write notes from recorded meetings, work for a local court or provide closed captions for television and films.

Virtual assistant

As more people work online, the need for virtual assistants grows. You manage schedules, set up meetings, take notes and respond to emails – all remotely. The work can be challenging but pays well. Building strong client relationships is rewarding.

Cleaning services

The cleaning sector is a growing opportunity for startups, especially as residential and commercial customers seek out environmentally sustainable providers. It is also affordable to start a cleaning business. If you plan well, set high standards and keep a good reputation, you can succeed.

Coffee cart or food truck

Hospitality is competitive and challenging, but also rewarding. You can help build community in your neighbourhood. Starting with a truck or cart helps you keep costs low.

Catering

Catering is a great small business idea for talented cooks or bakers. You do not need a restaurant. A clean kitchen is enough. You usually work from advance orders, so you can plan your supplies and schedule. You can focus on specific events, such as dinner parties, office events or morning pastries.

Online selling

You can set up an online store easily. A Xero survey found they cost less to run than a physical shop and can be more profitable in the first years. You can sell your own products or stock well-known brands. Learn how to start an online business.

Dropshipping

Dropshipping is a form of online retail where you don't have to handle the products you sell. Just make sure you choose a good dropshipping supplier. You add product photos and descriptions to your online store. The goods stay in the manufacturer’s or wholesaler’s warehouse. When you get an order, you send it to the supplier. They pack and ship it to your customer. You do not need to buy inventory or manage storage and shipping. This simple model is good for beginners. However, you may face problems if there are supply issues or if customers need support.

Sell a digital product

Digital products include songs, jingles, images, videos, templates, e-books and other files you can send by email. Like dropshipping, selling digital products does not require storage or shipping. You don't need storage or logistics. You need to create valuable digital products or buy licences for existing ones.

Affiliate marketing

Digital marketing can be a cost-effective way for small businesses to reach specific audiences. However, many business owners do not know how it works. You could run social advertising or search engine marketing campaigns for them.

Freelance copywriter

A good writer can find many writing jobs for businesses. Common jobs include writing websites, corporate blog posts, emails, articles, social posts and ads. You might even get to work on taglines, product names, or whole advertising campaigns. It helps to specialise in certain types of writing. The faster you work, the more you can earn per hour.

Freelance designer

Designers can find many types of work, depending on their skills. You might help lay out newsletters for local government, design awards and certificates for schools and sports clubs, help small businesses with websites, flyers and business cards, or pick up overflow work from agencies. Build a strong online portfolio to attract new clients. You need to manage your time and costs well.

Photographer

Photography is a good business idea if you enjoy taking photos. You often photograph important events, such as weddings and award ceremonies. You need to stay calm and focused to succeed. Equipment can be expensive, but you may already own it if you are a keen hobbyist.

Clothing boutique

Opening a clothing boutique is a way to start in the fashion industry. You can recycle clothing, resell second-hand items or import hard-to-find garments. The second-hand market is growing as more people look for affordable and sustainable options. You can run this business online, in a physical store or both.

Clothing label

You can create your own clothing label. You can target specialist categories such as sportswear, maternity gear, fair trade, baby wear and sustainable clothing. You can make the clothes yourself or hire contractors to produce your designs. Start with one or two product lines to see if customers are interested.

Beauty business

There is always demand for beauty products. Large companies and celebrities sell beauty products, but you can still find niche opportunities. Some people prefer unique products. You can develop your own approach and select products that match it. You can make products yourself or buy them from craft suppliers.

Pet care

There are over 1 billion pets worldwide, with ownership growing among millennials. Some pets need more attention than others, so there may be pet care opportunities in your area. Dog walking and grooming are popular. You can also care for pets in their homes when owners are away. You can also sell pet accessories.

Podcasting

Podcasting can be enjoyable and may generate income. There are already many podcasts, and some are produced by professionals. You may succeed by focusing on a niche topic and offering valuable insights. You can also use your podcast to sell training or educational resources. Podcasting may work better as a marketing tool than as a standalone business.

Print-on-demand

Print-on-demand lets you create and sell merchandise without large upfront costs. You can sell your cat poems on mugs, cushions and calendars. When you get orders, a third-party printer handles the printing and shipping. You do not need to buy equipment, so it is an affordable business idea.

Printer

You can also buy your own equipment and offer printing services. You can print custom Christmas cards, wedding invitations, flyers and t-shirts. You can attract more customers if you also offer design services.

Teaching online courses

If you know a subject well and can explain it clearly, you can teach online. Websites such as Udemy make it easy to teach courses on many topics. Demand for online courses has grown since Covid-19. Many people like learning at their own pace.

Tutor

In-person tutoring lets you earn money while helping others. Tutors can help students of all ages, from young children to university students.

Teach languages

Many people want to learn new languages, and you can teach them. You do not need to know other languages, but it helps. You need to be patient and encouraging, as some students may find it difficult. You can find many training and certification program to help you teach. Teaching languages helps people communicate in new countries. It is rewarding work.

Childcare

You can work as a nanny or au pair for one family. You can also provide after-school care for several families in your neighbourhood. Check health, safety and licensing requirements if you care for children outside their home.

App developer

With the right coding and user experience (UX) skills, you can work as a freelance app developer. You can find work from businesses that need apps or from app development agencies. You can also develop your own technology business idea.

9 side hustle ideas

Most businesses can start as a side hustle. Side hustles are more likely to become successful businesses. These side hustle ideas are easy to do alongside your main job for extra income.

Join a focus group or take surveys

Marketing companies often ask people to try new products or answer questions about what they buy. You may try new food for a restaurant or watch a television show before it is released. If you give useful feedback, they may ask you to take part again. You can join several research companies to earn extra income.

Mystery shopping

Mystery shopping is another way to earn money through market research. You are hired to shop in certain stores and report on your experience. The demand for mystery shoppers depends on your location. It is a way to earn money and learn how large brands create a good customer experience.

Rent your spare room

If you enjoy meeting new people and sharing your space, you can rent out your spare room. You must own your home and have a spare room. If you meet these requirements, renting your room can be profitable and help you meet new people.

Rent out your car

If you have a vehicle you rarely use, you can rent it out. Renting your vehicle can earn you money instead of leaving it unused. You may need to increase your insurance, as your current policy may only cover you as the driver. Your insurance must cover guest drivers. Check that anyone hiring your vehicle has a valid licence.

Gig work

Gig work is popular for people who need a flexible schedule. Gigs include driving for rideshare services, delivering food or running errands. You can use apps like TaskRabbit to find work, but you will pay fees for these services. You may have extra costs for travel or equipment, so plan your budget carefully.

Deliver groceries or food

Delivering groceries or food is an easy way to earn extra money. You need your own vehicle, so include fuel and maintenance costs in your budget. It is difficult to turn this side hustle into a full-time business, so treat it as extra income.

Flipping items for profit

Reselling items for a profit is a common business model. The internet has made it easier to find bargains and resell products for a profit. You need to spot bargains, research well and be patient. Not every deal will succeed, so you may lose money sometimes.

Handmade crafts

If you enjoy making crafts, you can sell them online or at markets and fairs. You may know people who sell homemade jewellery, screen-printed shirts, scented candles, soaps or wood crafts. Other ideas include metalwork, pottery, paintings, organisers and furniture. You can work with other artisans to sell related products.

Blogging

Skilled writers can earn a full-time income from blogging. You can earn money by posting on platforms like Medium, where you are paid per read. You can also use platforms like Substack to sell subscriptions. You can also earn money by adding paid links to your blog posts. Blogging takes time to build an audience. Good writers may need to post regularly before they see results.

How to come up with your own small business idea

You can come up with business ideas by brainstorming and giving yourself time to think.

Why brainstorming works: Your brain keeps working on problems even when you are not focused on them. This is why you may get new ideas while relaxing or before sleep.

Try this approach to brainstorming:

• Set parameters: Define what you're looking for before starting
• Active session: Spend focused time generating possibilities
• Mental processing: Let your subconscious work between sessions
• Capture insights: Keep notes handy for when ideas strike unexpectedly

When brainstorming small business ideas

Successful business ideas should meet four key criteria to maximise your chances of success:

• you have the skills to create the product or service
• you can afford the startup costs
• you are passionate about the idea
• you can make a profit

How to assess your small business idea

Test your business idea by asking tough questions before you invest time and money.

Essential validation questions:

1. Do you have the skills?

You may not have money to hire staff, so you will need to do the work yourself or find a partner with the right skills.

1. Do you have the passion?

Running a business is hard work and you may face setbacks. It is easier if you enjoy what you do.

1. Do you have the time right now?

Running a business takes a lot of time. If you cannot commit now, wait until you can focus on it.

1. Do you have the cash?

Work out the costs to set up and run your business for the first year. If you cannot afford it, consider starting as a side hustle, launching online or using a pop-up store.

1. Will it make money?

Work out the direct costs of your product or service and compare prices with competitors. Make sure you can earn a profit.

1. How will it grow?

Plan how to grow your business and increase profits over time.

1. Can you compete?

Check who your competitors are. Make sure you can attract customers in your market.

Recession-proof business ideas: are they real?

Recessions happen when people spend less. Most businesses see lower sales and less cash flow. Some businesses can survive economic slowdowns. Some business ideas are considered less affected by recessions.

Essential products or services

Even in a recession, people need to buy essentials like food. Businesses that sell these products may do better during tough times. However, even in essential categories, people may change their buying habits, so your business may still face challenges.

Small luxury items

During the 2009 global financial crisis, chocolate sales increased. People who could not afford expensive items still bought small treats. Small luxuries are sometimes considered less affected by recessions, but you still need to understand what customers want.

Exporters

Exporting can help your business by selling in different countries. If your home market slows, you may still sell overseas. However, exporting is complex and requires you to compete globally.

The truth about recession-proof business ideas

Every recession is different, and a business that does well in one may not do well in another. Experts do not always agree on which businesses are safest. You can still make your business stronger, whatever your idea. You can find tips in the guide to recession-proofing your business.

How to execute your idea

Ideas only matter if you act on them. Good execution is what makes a business succeed.

How you run your business matters more than the idea. Most successful businesses use simple ideas and do them well.

Next steps to launch your business:

1. write a business plan with your goals and finances
2. create a budget for startup and ongoing costs
3. set prices that cover your costs and make a profit
4. choose the right legal structure for your business
5. register your business and meet legal requirements

You can find detailed guidance in the business startup guide.

FAQs on small business ideas

Below are answers to common questions about finding the right business idea.

What is the most successful small business to start?

There is no single answer. Success depends on your skills, local demand and passion. However, service-based businesses such as consulting or digital marketing often succeed. Government program offer one-on-one digital advice to help these businesses. They usually have lower startup costs and can grow with your business.

Which business is best for a beginner?

If you are new to business, choose an idea that does not cost much to start. You can start with freelance writing, virtual assistance, pet sitting or selling handmade goods online. These ideas help you learn about business without spending much money.

What is the best business to start with $1000?

With a budget of $1,000, you can start several kinds of businesses. You can start a dropshipping store, a mobile car cleaning service or a home cleaning business. This amount covers equipment, marketing and registration fees.