Low Cost, Flexible Small Business Ideas to Start Now

Published Friday 13 February 2026

Table of contents

• Benefits of starting a small business
• Factors to consider before choosing a business idea
• Small business ideas to start in 2025
• Side hustle ideas to start today
• Manage your small business finances with Xero
• FAQs on small business ideas

Key takeaways

• Match your business idea to your current skills, available startup capital, and time commitment to reduce risk and increase your chances of success, as businesses using existing expertise launch faster and carry less financial strain.
• Start with a side hustle to test your business concept while keeping your steady income, allowing you to validate market demand and build skills before making a full-time commitment.
• Focus on service-based businesses like virtual assistant work, cleaning services, or consulting if you want to minimize startup costs, as these typically require under $500 to launch and generate income quickly.
• Research market demand thoroughly before committing to any business idea, since 34% of startups fail due to lack of product-market fit and 82% of failed businesses struggle with cash flow problems.

Benefits of starting a small business

Starting a small business gives you control over your working life, your schedule, and your income potential. You build something from the ground up while gaining the autonomy to run things your way.

Here are the key benefits of owning a small business:

• Flexibility: Set your own hours and work on your terms
• Autonomy: Make decisions without corporate approval chains
• Financial upside: Keep the profits you generate
• Personal fulfillment: Build something meaningful that reflects your values

Keep in mind that owning a business typically demands more time than a traditional job, especially in the early years. Income can be unpredictable at first, and managing finances is critical, as 82% of businesses that failed in 2023 did so because of cash flow problems. Choose an idea that matches your skills, budget, and lifestyle to set yourself up for success.

Factors to consider before choosing a business idea

Finding the right business idea means matching your personal situation to the demands of the opportunity. Before browsing the ideas below, assess these key factors to filter options that fit your life.

• Your skills and experience: What can you do well today without additional training? Businesses that use existing expertise launch faster and carry less risk.
• Available startup capital: How much can you invest without financial strain? Some ideas need under $1,000 while others require $50,000 or more.
• Time commitment: Can you work full-time, or do you need something part-time alongside your current job? Match the idea to your available hours.
• Market demand: Are people actively buying what you want to sell in your area? Research local competition and customer interest before committing, as studies show the most common reason startups fail (34% of cases) is a lack of product-market fit.
• Growth potential: Do you want a lifestyle business or one that can grow significantly? Some ideas cap out quickly while others can expand with demand.
• Risk tolerance: How much uncertainty can you handle? Service businesses often carry lower risk than product-based ventures requiring inventory.

Use these factors as a checklist while reviewing the business ideas below. The best idea is one you can actually execute given your current resources.

Small business ideas to start in 2026

These small business ideas work because they match real market demand with manageable startup requirements. Each option below has been chosen for its realistic profit potential, reasonable entry costs, and flexibility for different skill sets.

The ideas are organized by category to help you find options that fit your background. Browse the sections most relevant to your interests, or scan them all to discover opportunities you hadn't considered.

Inventor

An inventor business turns your original product ideas into sellable goods. You don't need to create the next iPhone. Simple improvements to everyday items, like a better bottle brush or ergonomic tool, can find profitable niches.

Here's how it works:

• Design phase: Hire freelance designers to create technical drawings, or use CAD software yourself.
• Manufacturing: Use contract manufacturers or 3D printing services to produce inventory without building a factory.
• Sales: Sell through your own website, Amazon, Etsy, or specialty retailers.

Startup costs: $2,000–$20,000 depending on product complexity and initial inventory

Best for: Creative problem-solvers who notice everyday frustrations and enjoy bringing solutions to market

Franchisee

A franchise business lets you operate under an established brand's name, systems, and support network in a sector that is projected to grow an additional 2.4% in 2025, outpacing the growth of the broader U.S. economy.

What you typically get:

• Brand recognition: Customers already know and trust the name.
• Proven systems: Operations manuals, training, and established processes.
• Ongoing support: Marketing materials, business advice, and sometimes financing.
• Supplier relationships: Access to negotiated pricing and approved vendors.

Startup costs: $10,000–$500,000+ depending on the franchise (fast food restaurants cost more than cleaning services)

Best for: People who want to own a business with less uncertainty and are comfortable following established systems

Franchises exist in nearly every industry, from restaurants to consulting to window washing. Learn more about franchising.

Transcription

A transcription business converts audio recordings into written text. If you're a skilled typist with an excellent ear for what people are saying, this could be the small business idea for you. This could include writing notes from recorded meetings, working for a local court, or providing closed captioning for television and movies.

Virtual assistant

A virtual assistant (VA) provides remote administrative support to entrepreneurs, executives, and small businesses. You handle the tasks that keep operations running smoothly while your clients focus on higher-value work.

Common VA tasks include:

• Managing calendars and scheduling meetings
• Handling email correspondence
• Making travel arrangements
• Preparing documents and presentations
• Basic bookkeeping and invoicing
• Social media management

Startup costs: Under $500 (computer, reliable internet, basic software)

Income potential: $25–$75 per hour depending on specialization and experience

Best for: Organized, detail-oriented people who communicate well and can work independently

Cleaning services

A cleaning business provides residential or commercial cleaning on a recurring or one-time basis. This is one of the lowest-cost businesses to start, with strong and growing demand in a global market projected to reach USD 616.98 billion by 2030.

Why cleaning works as a business:

• Low startup costs: $500–$2,000 for basic supplies and equipment
• Recurring revenue: Regular clients provide predictable income
• Scalable: Start solo, then hire cleaners as demand grows
• Growing market: The cleaning sector is expected to grow 10% through 2026

Income potential: $30–$50 per hour for residential; higher for commercial contracts

Best for: Detail-oriented people who take pride in their work and can build client relationships through reliability

Eco-friendly cleaning services command premium pricing and attract environmentally conscious customers in both residential and commercial markets.

Coffee cart or food truck

A coffee cart or food truck lets you enter the hospitality industry with lower overhead than a traditional restaurant. Hospitality can be extremely competitive and challenging but also rewarding. You get to feed people in the literal sense, but you can also add to the sense of community in a neighborhood. Starting off in a truck or cart will help keep your overheads lower.

Catering

A catering business is a great small business idea for talented cooks or bakers. You don't need a whole restaurant. You can get by with a nice clean kitchen. And you typically work from advance orders, which means you can plan your inventory and workflow accordingly. Plus you may be able to focus on certain niches, like house dinner parties, office events, pastry mornings, order-in sandwiches, and so on.

Online selling

An online store lets you sell products to customers anywhere without the overhead of a physical location. You can launch with minimal investment and scale as demand grows.

Three main approaches to online selling:

• Your own products: Create or source unique items and build a brand around them
• Reselling: Buy wholesale from established brands and sell at retail markup
• Handmade goods: Sell crafts, art, or custom items through platforms like Etsy

Popular platforms to consider:

• Shopify: Best for building your own branded store
• Amazon: Access to massive customer base, but more competition
• Etsy: Ideal for handmade, vintage, or unique items
• eBay: Good for reselling and auction-style sales

Startup costs: $100–$5,000 depending on inventory and platform

Best for: People who understand a specific product category and can handle logistics

Learn how to start an online business.

Dropshipping

Dropshipping is an online retail model where you sell products without holding inventory, operating within a global market that is projected to reach USD 1,253.79 billion by 2030.

How dropshipping works:

1. Set up an online store with product listings (images and descriptions from suppliers)
2. Customer places an order and pays you
3. You forward the order to your supplier
4. Supplier ships directly to the customer
5. You keep the difference between your price and the supplier's cost

Benefits:

• No upfront inventory investment
• No warehouse or storage needed
• Test products without financial risk
• Work from anywhere with internet

Challenges:

• Lower profit margins (typically 15–30%)
• Less control over shipping times and quality
• Customer service issues fall on you, not the supplier
• High competition in popular niches

Startup costs: $100–$500 for store setup and initial marketing

Best for: Beginners who want to learn ecommerce without significant financial risk

Learn more about dropshipping.

Sell a digital product

A digital product business sells downloadable items like songs, jingles, images, videos, templates, ebooks, and anything else you can send to a customer by email. As with dropshipping, a business that sells digital products is fairly light. You don't need storage or logistics. You will, however, have to create worthwhile digital products, or buy licenses to existing digital products.

Affiliate marketing

Affiliate marketing earns you commissions by recommending products to your audience. When readers click your unique tracking links and make purchases, you receive a percentage of the sale.

How affiliate marketing works:

1. Build an audience through a blog, YouTube channel, or social media
2. Join affiliate programs (Amazon Associates, ShareASale, brand-specific programs)
3. Create content that naturally incorporates product recommendations
4. Include your affiliate links in that content
5. Earn commissions when readers purchase through your links

Realistic expectations:

• Commission rates typically range from 3–30% depending on the product category.
• Average affiliate marketer income approaches $60,000 per year, but this varies widely.
• Most affiliates earn little in their first 1–2 years while building audience.
• Success requires consistent content creation over time.

Startup costs: Under $500 for domain, hosting, and basic tools

Best for: Content creators who already have (or are willing to build) an audience in a specific niche like travel, parenting, cooking, or hobbies

Personal trainer

A personal trainer helps clients achieve their fitness goals through customized workout programs, coaching, and accountability. You can work at gyms, in clients' homes, or online.

What you need to get started:

• Certification: Most gyms require certification from organizations like the National Academy of Sports Medicine (NASM), American Council on Exercise (ACE), or American College of Sports Medicine (ACSM) ($500–$1,500)
• Insurance: Liability insurance protects you if a client gets injured ($200–$500 annually)
• Equipment: Minimal if working at a gym; more if training clients at home or outdoors

Income potential: $30–$100+ per hour depending on location, specialization, and clientele

Niche opportunities:

• Senior fitness and mobility
• Post-rehabilitation training
• Sports-specific conditioning
• Pre/postnatal fitness
• Weight loss programs
• Online coaching and programming

Best for: Energetic, motivational people who enjoy helping others improve their health and are willing to get certified.

Life coach

A life coach (or wellbeing coach) helps people find balance and fulfillment in their lives. Oftentimes, clients feel stretched between the demands of family and career. Or they sense they're so task-oriented that they're missing the bigger picture in life. A life coach can lead them through exercises and discussions to develop new perspectives and hopefully improve their sense of contentment.

The journey can move clients to make big changes in their lives, so this career shouldn't be taken lightly. You can take courses to start building up your skills.

Handyman/contractor

A handyman or contractor business is an excellent small business idea for those who are good with tools and enjoy fixing things. Handyman skills are always in demand, no matter where you're located.

Landscaping and lawn care service

A landscaping and lawn care business lets you care for the green spaces people love. Most landscaping gigs comprise mowing, pruning and weeding so you probably won't need a ton of skills to get started with this small business idea. However, clients may eventually ask for your advice on trees, soils, watering systems, fertilizers and so on. You'll need to get some training if you want to grow your business by offering that sort of advice.

This sector is growing and there are lots of niches you could target. You could be the gardening contact for private residents, landlords, summer homes, commercial spaces or even public spaces.

Construction

A construction business lets you use trade skills like carpentry, joinery, plumbing, or electrical work. There's regular demand for new housing and, even when there's not, people will want to renovate their old home. Either way, someone has to do the work. Construction has lots of niches. You could be the door-hanging contractor, the staircase maker, or the patio person just to name a few.

Manufacturing, engineering and fabrication

A manufacturing, engineering, or fabrication business lets skilled engineers, builders, and welders grow boutique operations. Equipment and materials can be costly so try to identify a local niche that allows you to focus on a few core products or tasks. You might pick up contracts building components for other businesses in the area.

To make this business idea work, you'll need to be a good communicator in order to understand customer requirements. Some design or drawing skills will also be handy.

Consulting

A consulting business sells your expertise to clients who need specialized knowledge they don't have in-house. You diagnose problems, recommend solutions, and sometimes help implement them.

Consulting niches by client type:

For businesses:

• Marketing and social media strategy
• Operations and process improvement
• HR and hiring practices
• Financial planning and bookkeeping setup
• IT and cybersecurity

For individuals:

• Interior design and home organization
• Personal finance and budgeting
• Career coaching and resume writing
• Nutrition and meal planning

Startup costs: Under $1,000 (website, business cards, basic tools)

Income potential: $50–$300+ per hour depending on specialization and client type

How to start: Identify what you know well, research whether people pay for that advice, and start with your existing network. Most consultants build their client base through referrals and word of mouth.

Best for: Experienced professionals with deep knowledge in a specific area and strong communication skills.

Business advisor or troubleshooter

A business advisor or troubleshooter helps companies identify opportunities and overcome challenges. If you've been working in an industry for a long time, you can become an expert advisor. In this role, you'd help up-and-coming businesses identify new opportunities, overcome hurdles and unlock growth. You'll do well if you're experienced, analytical and a good communicator.

Webmaster

A webmaster business helps small businesses set up and manage their websites. An increasing number of small businesses feel they need a website but they don't know how to set it up or manage it. You could take that off their hands for a small monthly fee, promising to keep their site secure, implement content updates, and provide some search engine optimization (SEO) services. You could expand on this small business idea by adding ecommerce and digital marketing services.

Digital marketer

A digital marketing business helps other businesses attract customers online through advertising, content, and search optimization. Small businesses need this expertise but rarely have it in-house; for instance, research shows that 70% of small business websites are missing a call to action on their homepage.

Services you can offer:

• Social media management: Creating and scheduling posts, engaging with followers
• Paid advertising: Running campaigns on Facebook, Instagram, Google, or LinkedIn
• Search engine optimization (SEO): Improving website visibility in search results
• Email marketing: Building lists and creating campaigns that convert
• Content creation: Writing blog posts, creating videos, designing graphics

Startup costs: Under $500 for software subscriptions and basic tools

Income potential: $50–$150 per hour, or $1,000–$5,000+ per month per client on retainer

Skills you'll need:

• Understanding of major advertising platforms
• Basic analytics and reporting
• Copywriting fundamentals
• Willingness to stay current with platform changes

Best for: People who understand online marketing and can translate results into language business owners understand

Learn more about digital marketing for small businesses.

Freelance copywriter

A freelance copywriting business lets you pick up a variety of gigs writing 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.

While there's a good mix of things to do, it's not a bad idea to specialize a bit. The faster you get at certain types of work, the higher your hourly earning potential.

Freelance designer

A freelance design business lets you pick up all sorts of work, depending on your specialty. 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 up the right sort of online portfolio and your good work will win you plenty of new opportunities. But you need to get good at time and cost budgeting so sharpen up those skills now.

Photographer

A photography business can be a good small business idea for visually-minded creatives. It's worth noting that the stakes are generally high as your photos record key events like weddings and award ceremonies. You'll need the right temperament to succeed. Equipment can be expensive but if you're a keen hobbyist, you may already have made those purchases anyway.

Clothing boutique

A clothing boutique can be a fun way to enter the fashion industry. You might recycle clothing, resell second-hand clothing, or import certain types of hard-to-find garments and labels. In particular, the second-hand market continues to grow thanks to eco- and cost-conscious consumers. This could be an online business idea, a physical store, or a little of both.

Clothing label

A clothing label business lets you create your own fashion brand. There are lots of specialist categories to target, like sportswear, maternity gear, fair trade, baby wear, sustainable clothing and more. You can make them yourself or get contractors to follow your designs. Start out with one or two lines while you test the market's appetite for your products.

Beauty business

A beauty business taps into people's desire to feel good about themselves. There are some big players in this field already, and lots of celebrities now have their own lines, but there are still niche opportunities. Not everyone wants mainstream products.

Consider developing a grooming or beauty philosophy of your own then curate a list of products that fits. You could make some products from scratch or source them from craft suppliers.

Pet care

A pet care business serves the growing population of pet owners. There are already over 1 billion pets worldwide, with ownership growing amongst millennials. Some pets need more attention than others, so there could be pet-care opportunities in your area. Dog walking or grooming are popular but there are other opportunities, such as caring for pets in their home when owners are away on vacation. You could also retail pet accessories as part of your business.

Podcasting

A podcasting business can be a lot of fun and may even generate income. Just be aware that there are already thousands of great podcasts out there and many are done by media pros.

Your best bet may be to find a niche topic where you can offer really valuable insights, then use your podcast to sell extra training or educational resources. In this respect, podcasting may end up being more of a marketing platform than a business.

Print-on-demand

A print-on-demand business is a low-risk way to create and sell merchandise. You can market your funny cat poems on mugs, cushions, and calendars. When the orders come flooding in, a third-party printer does all the work. You don't need to buy any of the gear, which makes it a fairly inexpensive small business idea.

Printer

A printing business is the other side of print-on-demand: you buy your own kit and offer printing services. You could then take orders to print custom Christmas cards, wedding invitations, flyers, or t-shirts. This business will work even better if you can offer design services too.

Teaching online courses

An online teaching business could be a great option if you have an area of expertise and you're an excellent communicator. Websites such as Udemy have made it simple to teach your own course online about any number of topics. The demand for these services is high in the wake of Covid-19, and many users enjoy being able to set their own pace of learning.

Tutor

A tutoring business is a great way to make some extra money while helping people. Tutors can work with learners from early school entrants right up through college students, so there is always a wide customer base to work with.

Teach languages

A language teaching business lets you help people learn new languages. You don't even need to know any languages other than your own (although it helps). You'll need to be patient and encouraging as some of your students will naturally struggle at times. There are dozens of training and certification programs to give you the skills you need. Helping people to communicate in a new country can be incredibly rewarding and important work.

Childcare

A childcare business lets you work as a nanny or au pair with one family at a time, or find a space where you can support multiple families at once, such as by providing neighborhood after-school care. Do your homework on health and safety or licensing requirements if you decide to care for kids outside of their family home.

App developer

An app development business lets you work as a freelance developer with the right coding and UX skills. You can pitch for work from businesses that need apps developed, or you could pick up overflow work from app development agencies. You can even work on your own tech business idea on the side.

Side hustle ideas to start today

A side hustle is a business you run alongside your main job for extra income. Unlike owning a full-time business, side hustles fit around your existing schedule and don't require you to quit your day job.

Why start with a side hustle:

• Lower risk: Keep your steady income while testing your business idea
• Gradual transition: Build skills and clients before going full-time
• Proof of concept: Validate demand before making a bigger investment
• Extra income: Generate additional cash flow without major life changes

The ideas below work well as side hustles because they offer flexible hours and don't require full-time attention. Many successful small businesses started exactly this way.

Join a focus group or take surveys

Focus groups and surveys let you earn money by sampling new products or answering questions about your buying habits. You might get to try new food for a restaurant or watch a TV show before it airs. So long as you can give constructive feedback, they'll likely recruit you again in the future. You could sign up with a few research companies to earn regular extra income.

Mystery shopping

Mystery shopping is another side-hustle idea for people who like working in market research. In this case, you're hired to go shopping in certain stores then report on the experience. The demand for mystery shoppers varies a lot by location.

Mystery shopper salary data shows earnings can vary widely. But it can be a fun way to earn money while seeing retail in action and learning how big brands build a good experience.

Rent your spare room

Renting your spare room could be for you if you're the welcoming type and comfortable sharing spaces with new people. You'll need to own your home and have a spare room, of course. But if you tick those boxes, then opening your home to boarders can be a profitable and socially stimulating side-hustle idea.

Rent out your car

Renting out your car lets you earn money from a little-used vehicle. It might as well earn you money as sitting idle in a garage or on a lot. You'll probably need to bump up your insurance, as your current policy may only apply if you're the driver. It needs to allow for guest drivers. Do some research on the people renting from you and make sure your insurance coverage is adequate.

Manage your small business finances with Xero

Once you decide on a small business idea and get your business going, you'll need to stay on top of your finances to track your business's growth. Xero accounting software makes it easy to streamline your finances so you can focus on running your business, not your books.

Get one month free.

FAQs on small business ideas

Here are answers to common questions about starting a small business.

What's the easiest small business to start?

Service-based businesses like virtual assistant work, cleaning services, or tutoring are among the easiest to start because they require minimal startup capital (often under $500), no inventory, and let you use skills you already have. You can often start getting clients within a few weeks.

How much money do I need to start a small business?

Startup costs vary widely by business type. Service businesses like consulting or freelance work can start for under $500, while franchises or retail stores may require $10,000–$500,000 or more. Choose a business idea that matches your available capital to avoid financial strain.

What are the most profitable small business ideas?

Consulting, digital marketing, and online businesses typically offer the highest profit margins because they have low overhead costs. Professional services like accounting, legal work, and specialized consulting can charge $100–$300+ per hour with minimal ongoing expenses.

Can I start a small business while working full-time?

Yes, many successful businesses start as side hustles. Focus on ideas with flexible hours like freelance work, online selling, affiliate marketing, or service businesses where you can set your own schedule. Plan to dedicate 10–20 hours per week initially.

Do I need a business plan to start a small business?

While not legally required, a business plan helps you clarify your target market, pricing strategy, and financial projections. Even a simple one-page plan that outlines your concept, customers, costs, and marketing approach will increase your chances of success.

What business licenses or permits do I need?

Requirements vary by location and business type. Most businesses need a general business license from your city or county. Specific industries like food service, childcare, or professional services may require additional permits or certifications. Check with your local Small Business Administration office or city clerk.

How long does it take for a small business to become profitable?

Most small businesses take 6–24 months to become profitable, though this varies widely. Service businesses with low overhead often break even faster, while product-based businesses requiring inventory may take longer. Keep your day job or maintain savings to cover expenses during this period.