5 Businesses You Can Start With $20k Or Less [Updated for 2024]

•

Updated: February 22nd, 2024

Most people think you need a ton of money to start a business.

However, it doesn't always have to be this way.

In fact, there are plenty of opportunities to start a business with $20,000 or less.

In this article, we're breaking down 30+ profitable business ideas you can start with $20k.

1. Start a dropshipping business ($8.5K)

Based on data from 10 successful dropshipping business businesses, the median cost to start a dropshipping business is $8.5K.

Dropshipping is a business model where you sell products to customers without holding inventory.

Instead, when a customer makes a purchase, you buy the product from a third-party supplier, who then ships it directly to the customer.

To start a dropshipping business on a budget, choose a niche or category of products you want to sell.

Next, set up an online store using platforms like Shopify or WooCommerce. Then, find reliable suppliers from platforms like AliExpress, list their products on your store, and focus on marketing and customer service to grow your business.

Remember to carefully manage your expenses and monitor your profit margins to ensure profitability.

How much you can make: $6,000 — $3,000,000/month

How much does it cost to start: $8,500 (?)

How long does it take to build: 90 days (?)

Time commitment per week: Min. 10 hours/week

For example, Miguel Pieras started Hustle Got Real in 2017.

They spent a total of $200 to get the dropshipping business up and running.

Case Study

How We Started A $25K/Month Business Helping People Sell Online Without Owning Any Stock

Founder of Hustle Got Real shares how he turned a side hustle into a business generating $18,000/month with over 15,000 customers in 25+ countries, and offers insight into the process of designing, prototyping, and launching a successful e-commerce software tool.

$25K Monthly Revenue

$200 Startup Costs

17.2K

2. Start a craft business ($2K)

Based on data from 5 successful craft business businesses, the median cost to start a craft business is $2K.

If you have artistic passion and the skills to make unique art, consider starting a craft business. Craft businesses make jewelry, clothing design, card making, painting, sculpting, ceramics, among others.

According to research, the global handicraft market size will reach over $1252 billion in the next decade.

The best websites to sell your crafts include:

How much you can make: $1,000 — $80,000/month

How much does it cost to start: $2,000 (?)

How long does it take to build: 30 days (?)

For example, Colin Mitchell started Stencil Stop in 2015.

They spent a total of $1K to get the craft business up and running.

Case Study

I Started An Online Stencil Shop And Make $960K/Year

A packaging designer started Stencil Stop in 2015, which now earns around $100K per month in revenue selling stencils, offering custom stencils as some of its best-sellers, and attracting and retaining customers through simplified products and efficient advertising techniques.

$80K Monthly Revenue

$1K Startup Costs

5.82K

3. Start a SEO agency ($1.5K)

Based on data from 73 successful SEO agency businesses, the median cost to start a SEO agency is $1.5K.

An SEO agency is a company that provides search engine optimization services to businesses. The function of an SEO agency is to help businesses rank higher in search engines through organic or paid means.

SEO is a rapidly growing industry, with experts across all aspects of the field already making six-figure incomes and expecting to see these earnings grow dramatically over the next few years. Getting into SEO today, before it gets too saturated, will allow you to establish a strong base in a new career, with an excellent chance for success.

It’s easier than ever to start your SEO agency. The tools are there, and the competition isn’t as stiff as it used to be. If you’re considering starting an SEO or digital marketing agency, it might be a good idea to learn how other digital agencies succeed.

How much you can make: $1,000 — $1,800,000/month

How much does it cost to start: $1,500 (?)

How long does it take to build: 60 days (?)

For example, Bruce Jones started 1ON1 SEO Training in 2019.

They spent a total of $9 to get the SEO agency up and running.

Case Study

How I Started A $10K/Month SEO Consulting And Training Business

1ON1 SEO Training is a B2B company that offers personalized search engine optimization and digital marketing courses for startups, small businesses, and individuals, and has worked with dozens of businesses from all around the world to earn over $10,000 a month.

$10K Monthly Revenue

$9 Startup Costs

5.66K

4. Start a junk removal business ($25K)

Based on data from 6 successful junk removal business businesses, the median cost to start a junk removal business is $25K.

Households and businesses need help hauling away broken furniture, clearing out trash, and even emptying properties during a foreclosure. Therefore, the demand for junk removal services is high. Starting a junk removal business can be profitable if you own a box truck and are looking for self-employment opportunities.

To begin, perform market research in your area, and apply for the necessary regulatory permits or licenses. Build a website and market your services.

How much you can make: $4,000 — $230,000/month

How long does it take to build: 55 days (?)

For example, Sam Evans started You Call We Haul Junk Removal in 2016.

They spent a total of $1.7K to get the junk removal business up and running.

Case Study

How I Started A $18K/Month Junk Removal Company Before Graduating From College

23-year-old Sam Evans founded You Call We Haul Junk Removal which brings in around $20,000 in revenue per month with a profit of 65% per job, servicing any individuals who have unneeded junk, and aims to franchise the business in the long-term.

$25K Monthly Revenue

$1.7K Startup Costs

51K

5. Start a productized service ($1K)

Based on data from 35 successful productized service businesses, the median cost to start a productized service is $1K.

Productized services are created when a larger service is broken down into smaller services that can be sold separately.

This makes it easier to sell the same service to multiple clients and creates an easily-marketable product. For example, a marketing agency that usually charges by the hour, instead, charges a flat monthly fee.

This business strategy works well in B2B markets, as you can sell the same value proposition to multiple clients, and give them a great return on investment.

The reason why you should start a productized service business is simple: making recurring revenue from your expertise can be very useful if you want to build a business based on passive income.

How much you can make: $200 — $1,750,000/month

How much does it cost to start: $1,000 (?)

How long does it take to build: 60 days (?)

For example, Sean Si started SEO Hacker in 2010.

They spent a total of $60 to get the productized service up and running.

Case Study

From Making $150/Month As An Intern To Starting An $84K/Month SEO Agency

SEO Hacker built an impressive business offering a dozen digital marketing services, growing from $10,000 to over $1,000,000 in annual revenue, serving high-profile clients like Toyota and Unilever, with a dedicated team of 50+ professionals.

$84K Monthly Revenue

$60 Startup Costs

5.82K

Add Text Section Add Story Add Idea Add Business Add Tool

meet the author

Pat Walls

I'm Pat Walls and I created Starter Story - a website dedicated to helping people start businesses. We interview entrepreneurs from around the world about how they started and grew their businesses.

See full profile