Small business ideas for every budget and skill level

Published Friday 6 February 2026

Table of contents

• Benefits of starting a small business
• How to choose the right small business idea
• Small business ideas you can start today
• Side hustle ideas to start while working
• Best small business ideas by startup cost
• Most successful types of small businesses
• How to come up with your own small business idea
• Validate your business idea before investing
• Manage your small business finances with Xero
• FAQs on small business ideas

Key takeaways

• Match your business idea to your existing skills, available time, and budget to increase your chances of success and reduce the learning curve.
• Start with service-based businesses if you have limited funds, as they typically require minimal upfront investment and can be launched quickly using skills you already have.
• Validate your business idea before investing significant time or money by talking to potential customers, researching competitors, and testing a small version of your product or service.
• Consider starting as a side hustle to test your idea and build income while maintaining financial stability from your current job.

Benefits of starting a small business

Starting a small business gives you control over your working life and the chance to build something of your own. Here are the main benefits:

• Autonomy: You decide how the business runs, from operations to strategy.
• Flexibility: You can set your own hours and work location.
• Financial potential: Your income reflects your effort and business success.
• Personal satisfaction: You build something from the ground up.

Keep in mind that business ownership typically requires more time than a traditional job, especially in the early years. Income can be unpredictable at first, so choose an idea that matches your skills, budget, and available time.

How to choose the right small business idea

With so many options, finding the right business idea can feel overwhelming. A great idea matches your skills, budget, and goals. Use these steps to narrow down your choices and find the perfect fit for you.

Match ideas to your skills and experience

Start with what you know. List your professional skills, hobbies, and passions. The best business for you often comes from an area where you already have expertise or a genuine interest. This gives you a head start and makes the work more enjoyable.

Define your business goals

What do you want to achieve? Are you looking for a small side income, or do you want to build a large company? Defining your goals for work-life balance, income, and growth will help you filter out ideas that don't align with your vision.

Assess your available time and budget

Be realistic about your resources. Some ideas require significant time and money, while others can be started on a small budget in your spare time. Calculate what you can afford to invest and how many hours you can commit each week.

Consider your location and market

Look for needs in your community. Is there a service that's missing or a product people are asking for? Researching your local market can reveal unique opportunities that larger companies have overlooked.

Choose between online and in-person business

Decide if you want the flexibility of an online business or the community connection of a physical one. Online businesses often have lower startup costs, while in-person businesses can build strong local customer loyalty. Your choice will shape your marketing and operations.

Small business ideas you can start today

Here are 35+ small business ideas organised by category. Each idea includes what you'll need to get started and who it's best suited for.

Consider these business categories to find one that matches your interests and skills.

Inventor

Inventor businesses turn your product ideas into sellable goods. You don't need to create complex technology. Simple improvements to everyday items can work well.

Hire designers to create technical drawings, then use contract manufacturers or 3D printers to produce inventory. Online retail and digital marketing make it easier to reach niche customer groups who need your specific solution.

Franchisee

Many of the products or services that you love are probably offered 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, their products, and any trade secrets you may need to run the business. They may also support you with key business advice or even finance.

The amount of money you pay and the level of support you receive will differ widely, depending on the franchise. There are franchises for everything from restaurants to consulting to leasing to window washing. Learn more about franchising.

Transcription

If you're a skilled typist and have an excellent ear for what people are saying, transcription 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

As more entrepreneurs and consultants move into online working arrangements, there's a growing need for virtual assistants. You'd do all the usual things like managing schedules, setting up meetings, taking notes, reading and responding to emails, but you'd do it remotely.

This is challenging work, but it can pay well, and it's very rewarding when you build a good relationship with your client.

Cleaning services

The cleaning sector is a growing opportunity for startups, especially as residential and commercial customers seek out environmentally sustainable providers. What's more, it can be relatively cheap to start a cleaning business.

If you're a good planner, with high standards and you can maintain a good reputation, you're well on your way.

Coffee cart or food truck

Coffee carts and food trucks let you enter the hospitality industry with lower startup costs than a traditional restaurant. You serve your community while building a loyal customer base.

Starting with a cart or truck keeps overheads manageable. Once you've established demand, you can consider expanding to a permanent location.

Catering

Catering 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

You can set up an online store pretty simply these days. A Xero survey found they're cheaper to run than a bricks-and-mortar shop and return higher margins in those crucial early years. You can sell your own stuff or stock known brands. Learn how to start an online business.

Dropshipping

Dropshipping is online retail where you sell products without handling inventory. When customers order, your supplier ships directly to them.

Key benefits of dropshipping:

• Low startup costs: No need to buy inventory upfront
• No storage required: Products stay in the supplier's warehouse
• Simplified logistics: Your supplier handles packing and shipping

This simplicity makes dropshipping a good option for beginners. Choose a reliable dropshipping supplier to avoid issues with stock availability or customer support.

Sell a digital product

Digital products include things like songs, jingles, images, videos, templates, ebooks, and anything else that 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 licences to existing digital products.

Affiliate marketing

Affiliate marketing earns you commission by recommending products to your audience. When readers click your links and buy, you receive a percentage of the sale. While top earners can make a significant living, results vary; research shows that 35% of affiliates generate at least $20,000 in yearly revenue.

Personal trainer

Got a ton of energy, lots of willpower, and some motivational skills? Then you could help people pursue their fitness goals.

It pays to know how the body works, so you don't injure or endanger your clients. But with the right approach, you can improve people's health, vibrancy and confidence, which is a great way to make a living.

There are lots of different types of customers, young and old, with a wide range of fitness goals. There's bound to be a niche for you.

Life coach

A life coach (or wellbeing coach) helps people find balance and fulfilment 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 build your skills.

Handyman/contractor

If you're good with tools and enjoy fixing things, working as a handyman or contractor is an excellent small business idea. Handyman skills are always in demand, no matter where you're located.

Landscaping and lawn care service

People love their green spaces, so why not be the person that cares for them? 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, fertilisers and so on. You'll need to get some training if you want to grow your business by offering that sort of advice.

There are lots of niches to target. You could be the gardening contact for private residents, landlords, summer homes, commercial spaces or even public spaces.

Construction

Do you know a trade 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

Skilled engineers, builders and welders can grow boutique manufacturing businesses. 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

Households and businesses both seek advice from independent experts. Maybe you can offer (or acquire) some valuable skills that they'd pay for.

There are many options. For example, you could become a residential interior designer or home-budgeting guru. Or you could find work serving local businesses as a project manager, a researcher, or an editor. Explore what's needed in your community then develop and market your skills to meet that need.

Business advisor or troubleshooter

If you've been working in an industry for a long time then 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

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 SEO (search engine optimisation) services. You could expand on this small business idea by adding ecommerce and digital marketing services.

Digital marketer

Digital marketing can be a super affordable way for small businesses to reach niche target audiences. However, very few business owners understand how it works. That's where you come in. As a digital marketer, you could step in to run small social advertising or search engine marketing campaigns.

Freelance copywriter

A good writer can 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 specialise a bit. The faster you get at certain types of work, the higher your hourly earning potential.

Freelance designer

Designers can pick up all sorts of work, depending on their 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

Photography can be a good small business idea for visually-minded creatives. 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

Opening 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. The second-hand market continues to grow thanks to eco- and cost-conscious consumers, with the global market for second-hand fashion projected to grow to $581.3 billion by 2035.

This could be an online business idea, a physical store, or a little of both.

Clothing label

Have you thought about creating your own label? 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

People like to feel good about themselves so there's always a market for beauty products. 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

There are already over 1 billion pets worldwide, with ownership growing across demographics. In the US, for example, pet ownership among Gen Z households saw a 43.5% increase from 2023.

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 holiday. You could also retail pet accessories as part of your business.

Podcasting

Podcasting 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 professionals.

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

Print-on-demand is a low-risk way to create and sell merchandise. You can market your funny cat poems on mugs, cushions and calendars, then, 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

The other side of print-on-demand is to 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

If you have an area of expertise and you're an excellent communicator, online teaching could be a great option. Websites such as Udemy have made it simple to teach your own course online about any number of topics. Demand for these services has been high since Covid-19, and many users enjoy setting their own pace of learning.

Tutor

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

Teach languages

People learn new languages all the time, and you can teach them. 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

You can 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 neighbourhood 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

You can work as a freelance app developer if you have the right coding and UX skills. Pitch for work from businesses that need apps developed, or 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 while working

Side hustles are businesses you run alongside your main job to earn extra income. Many successful businesses started this way, as testing an idea part-time reduces financial risk.

The ideas below work well around a day job. They offer flexible hours and low startup costs, so you can build income without quitting your current role.

Here are some popular side hustle options to consider.

Join a focus group or take surveys

Marketing companies often recruit people to sample new products or answer questions about their buying habits. You might get to try new food for a restaurant or watch a TV show before it airs. If 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. 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

If you're the welcoming type and comfortable sharing spaces with new people, then this one could be for you. 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

If you have a little-used vehicle, then why not rent it out? It might as well earn you money rather than sitting idle in a garage or on a driveway.

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 due diligence on the people who want to hire your vehicle and make sure they're fully licensed.

Gig work

Gig work is a popular side-hustle for people who need a flexible schedule. Gigs can include ride-sharing, food delivery, or running errands for people.

You can use apps like TaskRabbit to find and accept gigs but be aware that not all the money you make goes into your pocket. Providing those services will cost you money if you need to drive places, catch buses, or use your own vehicle and tools, so budget accordingly.

Deliver groceries or food

Delivering groceries or food is a relatively easy way to bring in extra income. However, you'll need to run your own vehicle so factor fuel and maintenance costs into your budget. It's also quite tricky to turn this sort of side hustle into a sustainable full-time business, so you're better off thinking of it as pocket money.

Flipping items for profit

Reselling things for a higher price is not a new idea. In fact it's the very basis of retail. But it's exploded in the internet age, where resourceful traders can find deals on one website then flip the same product for a lot more on another website. You need an eye for a bargain, good research skills, and patience. Not every deal will be a success, either, so expect to take a loss occasionally.

Handmade crafts

If you're naturally crafty, you can market your handiwork online or at markets and fairs. You may already know people who sell their homemade jewellery, screen-printed shirts, scented candles, soaps or wood crafts. There are plenty of other side-hustle ideas in this space, such as metalwork, pottery, paintings, organisers, furniture and more. You might even partner with other artisans to sell related products.

Blogging

Skilled writers can work their way up to a full-time income from blogging. You can monetise your talent by posting on third-party platforms like Medium, where you get paid a small amount per read. Or you could build your blog on a platform like substack, where you can sell subscriptions to fans. Another option is to charge for including links to other sites in your content.

Blogging is a momentum game. Good writers can toil away for a long time without getting a huge audience. A few breakthrough pieces can set you on your way.

Best small business ideas by startup cost

You don't need a huge investment to start a business. Many successful ventures begin with minimal startup costs. Here are some ideas broken down by what you might expect to spend to get started.

Here's what you can start at different budget levels.

Business ideas you can start with under $1,000

With a small budget, focus on service-based businesses that use your existing skills. Ideas like freelance writing, social media management, pet sitting, or house cleaning require little more than a phone, a laptop, and your expertise. You can use free or low-cost tools to market your services and find your first clients.

Business ideas you can start with $1,000 to $5,000

This budget range opens up more possibilities, including businesses that require some equipment or inventory. Consider starting a food cart, a landscaping service, or a small ecommerce store using dropshipping. You can invest in professional branding, a quality website, and initial marketing campaigns.

Business ideas you can start with $5,000 to $10,000

With a more significant investment, you can explore ideas like opening a small retail pop-up shop, buying into a franchise, or developing a mobile app. This budget allows for equipment purchases, rental deposits, and a more robust marketing strategy to accelerate your growth.

Most successful types of small businesses

While success depends on many factors, some business types consistently show high rates of profitability and longevity. Explore startup business ideas for more options. These industries often provide essential services or cater to growing market trends, making them resilient choices for new entrepreneurs.

Businesses in professional services, such as accounting, legal, and IT support, tend to be successful due to their low overhead and high demand. Home services like cleaning, landscaping, and repair work are also consistently profitable because they serve an ongoing need.

In recent years, online businesses related to digital marketing, ecommerce, and subscription boxes have seen tremendous growth, driven by shifts in consumer behaviour. The affiliate marketing industry alone is currently worth around $17 billion and is projected to grow significantly.

How to come up with your own small business idea

Coming up with your own business idea starts with structured brainstorming. Give your brain a problem to solve, and it keeps working even when you're not actively thinking about it. This is called the Zeigarnik effect, and it explains why ideas often arrive during a run, shower, or before sleep.

To brainstorm effectively:

• Set aside dedicated thinking time
• Write down problems you've noticed in your daily life
• List skills you have that others might pay for
• Research what's working for businesses in your area
• Return to your notes after a few days with fresh perspective

When brainstorming small business ideas

Filter your ideas against these four criteria:

• Doable: You have the skills to deliver the product or service yourself, or can learn them quickly.
• Affordable: You can start with money you have or can realistically access.
• Lovable: You'd enjoy working on this business for years, not just months.
• Profitable: The business model allows you to earn more than you spend.

Validate your business idea before investing

Validating your business idea before investing time and money helps you avoid costly mistakes. Test your idea against these questions:

• Do you have the skills? Your startup probably won't have a hiring budget, so you'll do most work yourself. Consider partnering with someone whose skills complement yours.
• Do you have the passion? Building a business involves setbacks and long hours. Genuine interest in your work provides the energy to push through difficult periods.
• Do you have the time right now? Businesses demand significant attention. If you can't commit now, consider waiting until your circumstances change.
• Do you have the cash? Calculate startup and first-year operating costs. If funds are tight, start as a side hustle, launch online, or test with a pop-up before committing to a permanent location.
• Will it make money? Work out the direct costs of creating your product or service and check what your competitors typically charge. Is there a sustainable profit margin in there for you?
• How will it grow? Plan how you'll increase profitability over time. Check that you can scale sales while maintaining or improving margins.
• Can you compete? Identify who's competing for the same customers. Make sure you have a realistic way to differentiate and win market share.

Manage your small business finances with Xero

Once you've chosen your idea and launched your business, stay on top of your finances.

Xero accounting software is designed to simplify your bookkeeping, giving you clear insights into your business performance. Run your business, not your books. Get one month of Xero free.

FAQs on small business ideas

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

What is the easiest business to start?

Service-based businesses are typically the easiest to start because they require minimal upfront investment. Freelance writing, virtual assistance, cleaning services, and tutoring can all be launched quickly with skills you may already have. These businesses let you test your idea while working another job.

What small business is most profitable?

Professional services like accounting, legal consulting, and IT support tend to be highly profitable due to low overhead costs and high hourly rates. Home services such as plumbing, electrical work, and HVAC repair also show strong profit margins. Online businesses in digital marketing and ecommerce can be very profitable once established, though they may take time to build.

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

Startup costs vary widely by business type. You can launch service businesses like freelance writing or virtual assistance for under $1,000. Food carts, landscaping services, or dropshipping stores typically need $1,000 to $5,000. Opening a physical retail location or buying into a franchise may require $10,000 or more. Start with what you can afford and grow from there.

How do I know if my business idea will work?

Validate your idea before investing significant time or money. Talk to potential customers about their needs and whether they'd pay for your solution. Research competitors to understand the market. Start small with a test version of your product or service. Track early results and adjust based on feedback.

Can I start a business with no experience?

Yes, many successful business owners started with no direct experience in their industry. Focus on businesses that match skills you already have or can learn quickly. Consider partnering with someone whose expertise complements yours. Take courses, read extensively about your chosen field, and start small to learn as you grow.

What are good side hustle ideas?

Popular side hustles include freelance writing, graphic design, tutoring, pet sitting, food delivery, and selling handmade crafts. Choose something that fits your schedule and interests. Many successful full-time businesses started as side hustles, giving founders time to test their ideas while maintaining stable income.