17+ Best Business to Start With $20K 2024 | Venturz

"Don't start a business because you have money; start a business because you have an idea".

Thinking about starting your own business but only have $20,000 in your pocket?

A lot of folks out there are looking to kick off their entrepreneurial journey with a limited budget. The cool part? It's totally doable to launch a profitable and successful business venture with an initial investment that's around the $5k to $10k mark.

66% of entrepreneurs report their businesses are thriving (World Bank. Doing business 2011) .

This is super encouraging, especially if you're working with a budget like $20k. It's all about picking the right business idea – something that has low risk and has a solid chance of making money.

In this blog, we have research some awesome 20k business ideas that you can start.

Whether you're transforming a hobby into a full-blown business or you're on the hunt for a fresh start in your career, these ideas are tailored to give you a good shot at success without draining your bank account.

Ready to find out how you can turn that $20k into something amazing?

Let's start.

Is $20,000 enough to Start a Business?

When it comes to launching your own business, the big question often is:

Can I really start a profitable and successful business under 20k?

The answer is a resounding yes. In fact, with the right approach and thorough market research, $20,000 can be more than enough to get the wheels turning on your entrepreneurial dream.

The initial investment of $20,000 can cover various operating costs for numerous business models. It's about being smart with your budget and understanding where to allocate your funds for maximum impact.

Utilizing business budgeting software can greatly assist in managing these finances efficiently, helping you track expenses and make informed decisions about where to invest your resources.

For many, the idea of owning a business starts with a vision or a passion, but it's the practical steps, like budgeting and market research, that really bring that vision to life.

In today's market, there's a high demand for unique, personalized services and products. This demand creates a fertile ground for new businesses to thrive. The key is to identify a niche or a need that's not fully served yet and choose the best business to start with 20k.

With $20,000, you have a solid foundation to start something that could grow into a profitable and successful venture.

20 Profitable business Ideas to Start With 20k

In this blog, we'll explore some profitable business ventures that you can start with or under $20,000, focusing on key opportunities and what business to start with 20k.

  1. Franchise Businesses
  2. Affiliate Marketing Blog
  3. Rental Property Investment
  4. Run a Food Truck
  5. Digital Marketing agency
  6. Pet Grooming Business
  7. Tutoring Service
  8. Amazon KDP
  9. Laundry Services
  10. 3D Printing Service
  11. Event Planning
  12. Real Estate Agent Services
  13. Freelance Writing Services
  14. Consulting Service
  15. Dropshipping Business
  16. Green Consultant
  17. Drone Photography and Videography
  18. Virtual Assistant
  19. Subscription Box Service
  20. Life Coaching Service

1. Start a Franchise Businesses

Franchise businesses are really taking off because of which they are on the top of our list of 20k business ideas . With the franchise market expected to grow impressively each year from 2024 to 2031, with CAGR 9.73% in forecast Period. Franchises in the U.S. alone are pulling in a whopping $827 billion. That's a lot of dough!

Starting a franchise business means joining a team that's already winning. You get to be part of a brand that's already loved and trusted. It's less about starting from scratch and more about jumping on board with something that's already working. And with $20k, you could be well on your way.

The risks and rewards of franchising are worth considering. The upfront cost and ongoing fees are significant, but the potential return on investment can be substantial. Investing in a franchise means putting money into a business model and a brand name that already has a market presence and customer loyalty.

Consider Michael Fay. He recognized the value of franchising during a college job and now owns 40 units across four different brands. Then there's Gary Avants, who left his corporate job to become a Zaxby’s franchisee and now owns 35 locations.

These stories highlight the potential for success in franchising, demonstrating how a strategic approach and the right brand can lead to significant business growth.

2. Affiliate Marketing Blog

Affiliate marketing blogging is a dynamic and lucrative online business avenue. Bloggers in this field typically earn between $30,000 and $50,000 per year. This impressive earning potential is set against a backdrop of a growing affiliate market, projected to reach $27.78 billion by 2027.

In affiliate marketing, your blog acts as a platform to share your knowledge and insights about various products or services. This approach aligns perfectly with the current market demand, offering significant revenue potential.

The success of an affiliate marketing blog hinges on effective marketing strategies and a deep understanding of what your audience seeks.

The risk involved in starting an affiliate marketing blog is relatively low, primarily due to minimal initial investment requirements. However, the potential for high ROI is significant, especially if you can tap into the right niches and connect with your audience effectively.

Taking inspiration from John Chow, a standout in the world of affiliate marketing blogging. John transformed his blog from earning nothing to over $40,000 per month in just two years, dedicating only two hours a day to it. His success story is a testament to the potential of affiliate marketing blogging when done right.

3. Rental Property Investment

Rental property investment is a solid choice if you're eyeing a venture in the real estate market. With nearly 20 million rental properties in the U.S., housing over 48 million rental units, the scope is huge.

It's a great way to start your own business, especially if you've got some extensive knowledge about real estate or are willing to learn the ropes.

The cool thing about rental properties is that they can start with a minimal investment. You don't need to buy a huge apartment block right off the bat. You can begin small, learn as you go, and gradually expand your portfolio. The goal here is to make more money through rental income and potentially, property value appreciation over time.

But remember, like other businesses, it's not without its risks. You've got to be on top of things like maintenance, tenant relations, and understanding the local property market. However, the potential return on investment can be pretty attractive if you play your cards right.

Brandon Turner, a notable real estate investor and VP of Growth at BiggerPockets.com, is a real-life example of success in rental property investment. Starting with just one property, he expanded his portfolio significantly, turning a modest initial investment into a major income source.

4. Run a Food Truck

Food trucks are a trendy and potentially lucrative business venture. Did you know that food trucks can rake in an average revenue of $20,000 to $42,000 per month? That's quite impressive for a mobile eatery!

When it comes to startup costs for a food truck, it's relatively manageable. For instance, setting up a taco stand might cost around $6,000 for the stand, ingredients, and machinery.

The monthly operating costs could be about $4,500. So, if you're planning without any income for the first month, you'd need roughly $10,500 to get rolling.

Finding a suitable location is key for a food truck. You want to be where the crowds are, yet where competition might not be too fierce. And, of course, staying within your budget range is crucial. It's all about balancing the initial investment with potential earnings.

5. Digital Marketing Agency

Starting a digital marketing agency can be a smart move. Most agencies in this field earn under $1.5 million annually, with typical revenues between $250,000 and $300,000. The best part? Successful digital marketing agencies can see profit margins between 40% and 60%.

In this business, you're helping small business owners boost their online presence, using social media platforms and other digital tools. It's not just about crafting cool marketing materials; it's about really knowing the digital game and playing it well.

The key to success in this field lies in staying updated with the latest trends and tools in digital marketing. Agencies that can adapt and offer innovative solutions to their clients often see the most success.

Consider the success story of Eric Siu, the CEO of Single Grain, a digital marketing agency. Eric took over Single Grain when it was on the brink of failure and transformed it into a thriving, profitable business.

He focused on innovative digital marketing strategies, leveraging the power of SEO, content marketing, and social media platforms.

6. Pet Grooming Business

Starting a pet grooming business is a fantastic idea for animal lovers looking to enter the entrepreneurial world. This business isn't just about keeping pets looking their best; it's about providing essential care that contributes to their overall health and wellbeing.

In a pet grooming business, you'll offer services like bathing, hair trimming, nail clipping, and ear cleaning. It's a venture that requires a love for animals, patience, and skill in handling different pet personalities.

The great thing about this business is its expansion potential. You can diversify your services to include pet sitting or pet photography, catering to a broader range of pet owners' needs.

The initial investment for a pet grooming business can vary. It depends on whether you're setting up a physical location or operating a mobile grooming service.

The key to success in this business is not just the quality of grooming services but also how you interact with pets and their owners. Building trust with your clients and their furry friends is crucial.

While the pet grooming industry is competitive, there's always room for businesses that offer exceptional service and care. With the growing number of pet owners looking for quality grooming services, this business idea holds promising potential for success.

7. Tutoring Service

Launching a tutoring service is an excellent business idea, especially in today's world where education and personalized learning are highly valued. This business involves offering specialized instruction to students in various subjects, catering to their individual learning needs.

In a tutoring service, you can focus on a wide range of subjects, depending on your expertise. This could include academic subjects like math, science, and languages, or even specialized areas like test preparation or skills development.

The beauty of this business is its flexibility – you can operate online, from home, or at the student's location.

The startup costs for a tutoring service are relatively low, mainly if you start online. The key to success lies in your ability to connect with students, understand their learning styles, and adapt your teaching methods accordingly. Building a reputation for effective tutoring can lead to word-of-mouth referrals, which are invaluable in this business.

Adam Shlomi, founder of SoFlo SAT Tutoring, turned adversity into opportunity. Starting his online tutoring company while recovering from surgery, he leveraged his SAT tutoring experience.

Now, his company earns an average of $15,000 monthly, amounting to $1.2 million annually, showcasing the lucrative potential of the tutoring business.

8. Amazon KDP (Kindle Direct Publishing)

Amazon KDP (Kindle Direct Publishing) is a standout choice for those looking to start a new business, especially for aspiring authors. It's a platform that simplifies the publishing process, allowing you to publish your books and reach a global audience directly.

In this business model, the initial investment is relatively low. You primarily invest your time in writing and formatting your book. The risk involves the market's reception of your book and your ability to effectively market it.

However, the potential ROI is significant. With Amazon's vast audience, successful books can generate substantial income through royalties.

The key to success in Amazon KDP is not just in writing a compelling book but also in understanding the nuances of digital marketing to promote your work. This platform offers a unique opportunity to establish a new business in the world of digital publishing, with the potential for both financial reward and personal fulfillment.

9. Laundry Services

Starting a laundry service is a practical and often lucrative business idea, especially in urban areas or near college campuses where the demand for such services is high. This business involves washing, drying, and often folding clothes and other textiles for customers.

The initial investment for a laundry service can vary. If you're opening a physical location, costs will include commercial-grade washers and dryers, utilities, and a storefront. Alternatively, a mobile or pick-up service can reduce these startup costs significantly.

While the laundry business is relatively straightforward, the key to success lies in efficiency, reliability, and customer service. Offering additional services, such as ironing or dry cleaning, can also increase revenue.

The risk is moderate, mainly related to equipment maintenance and managing operational costs, but with a steady demand, the potential for a stable income is significant.

In this business, building a loyal customer base is crucial. Satisfied customers are likely to return and recommend your service to others, helping to grow your business organically. With the right location and quality service, a laundry business can be a sustainable and profitable venture.

10. 3D Printing Service

3D Printing Services offer a unique and promising opportunity for those looking to dive into a new business venture. This innovative field, which involves creating three-dimensional objects from digital models, is rapidly growing and has applications across various sectors, including manufacturing, healthcare, and consumer goods.

Starting a 3D printing business means investing in quality printing equipment and materials. While this initial investment and the need to keep pace with evolving technology present some risks, the potential for a high return on investment is significant.

The demand for customized and on-demand production solutions is on the rise, making this a lucrative market.

The key to success in 3D printing lies in your technical know-how, innovative approach, and understanding of the market's needs. As industries increasingly look towards 3D printing for efficient and cost-effective solutions, this business idea offers substantial potential for growth and profitability.

11. Event Planning

Event planning is a dynamic business idea that appeals to those with a knack for organization and a flair for creativity. This business involves planning and executing various events, from corporate functions and weddings to private parties and community gatherings.

Getting your event planning business can start with $20k . Your primary resources are your organizational skills, attention to detail, and ability to manage vendors and clients. Networking and building relationships with suppliers and venues are crucial in this line of work.

The event planning industry, like many businesses, comes with its challenges. The key risks involve managing client expectations and the logistical aspects of organizing events. However, with effective planning and execution, the potential for profit and growth is substantial. Utilizing innovative tools such as an invitation maker app can streamline the process and enhance client satisfaction.

Take the example of Eventbrite, a global event planning and ticketing platform. Eventbrite offers features like easy event setup, ticketing options, marketing tools, and analytics, catering to a wide range of event types from small gatherings to large festivals.

12. Real Estate Agent Services

Starting a business in real estate agent services is a popular choice for those with strong interpersonal skills and an interest in the property market.

This business involves assisting clients in buying, selling, or renting properties. As a real estate agent, you'll guide clients through the process, provide market insights, and negotiate deals.

The initial investment in real estate agent services is relatively low, primarily involving licensing fees and marketing costs. The risk in this business lies in the fluctuating property market and the competitive nature of the field.

However, with a solid understanding of the market and effective client relationship skills, the potential for high earnings through commissions is significant.

13. Freelance Writing Services

Starting a freelance writing services business is an excellent idea for those looking to begin a venture with a budget of around $20k. This business model involves hiring writers to provide high-quality content for various clients, ranging from websites and blogs to marketing materials and technical documents.

With an initial investment of $20k, you can set up a high-quality website, a crucial step in attracting clients and showcasing your services. This budget also allows for the hiring of skilled writers, either on a part-time or full-time basis, depending on their rates and your project needs. The cost of setting up such a business can be well within a few thousand dollars, including website development and initial marketing.

The risk in freelance writing services is relatively moderate, mainly revolving around client acquisition and maintaining consistent quality. However, the potential for profit is significant, especially as you build a reputation for quality and reliability. This business can start as a part-time job and grow into a full-scale operation, offering a flexible and scalable opportunity for entrepreneurs.

MyAssignmentHelp, a successful venture in the freelance writing services domain. They have built a robust platform connecting skilled writers with clients needing academic assistance, showcasing the potential of a well-executed freelance writing services business.

14. Consulting Service

Starting a consulting service is an excellent business opportunity, especially for those with expertise in a specific industry. This type of business typically involves providing expert advice to other businesses, particularly small businesses, to help them improve their operations, strategies, and overall performance.

For those looking to start a consulting business, the initial investment can be relatively low, primarily involving the creation of a high-quality website to showcase your services and attract clients. This online presence is crucial for establishing credibility and detailing the range of consulting or business coaching services you offer.

While some may consider taking a business loan to cover startup costs, the overhead costs for a consulting service are generally manageable, often requiring just a home office setup initially. This makes consulting one of the more accessible businesses to start, with a focus more on expertise and less on physical resources.

The consulting field offers a wide range of specializations, from management and marketing to financial advising. The key to success is identifying your niche and leveraging your knowledge to provide valuable insights to clients.

With the growing need for specialized knowledge and guidance, a consulting service presents a promising business model with the potential for significant growth and profitability.

15. Dropshipping Business

Starting a dropshipping business is a popular choice for entrepreneurs looking to enter the world of online businesses. This model allows you to own a small business without the need for a large upfront investment in inventory.

In dropshipping, you sell products through your online store, and the supplier handles the storage, packaging, and shipping directly to your customers i.e. amazon, Etsy and more.

One of the initial steps in setting up a dropshipping business is to obtain a business credit card. This can be a smart move, especially for managing expenses and keeping personal and business finances separate.

Being a responsible credit card user is crucial in this business, as it helps in efficiently managing cash flow and expenses related to website maintenance, marketing, and supplier payments.

The appeal of a dropshipping business lies in its relatively low overhead costs and the ease of starting up. You don't need a physical storefront or a large warehouse. Your primary focus is on creating a compelling online store, sourcing products from reliable suppliers, and implementing effective digital marketing strategies.

With the rise of e-commerce, dropshipping offers a viable opportunity to start your own business with minimal risk. The key to success is choosing the right niche, building a strong online presence, and maintaining good relationships with suppliers and customers.

16. Green Consultant

Starting a business as a Green Consultant is a great idea in today's eco-conscious world. This role involves helping businesses and individuals adopt sustainable and environmentally friendly practices.

In this business, you'll guide clients on how to be more eco-friendly. This could include recommending energy-saving methods, waste reduction strategies, or sustainable sourcing. As awareness about environmental issues grows, so does the demand for green consulting services.

The costs to start a Green Consultant business are generally low. Your main investments would be in gaining knowledge about environmental practices and setting up a simple website to reach clients. Building a network and establishing trust are key to getting clients.

Being a Green Consultant not only taps into a growing market but also contributes positively to the planet. With the right knowledge and approach, this business can be both rewarding and profitable.

17. Drone Photography and Videography

Drone photography and videography is an exciting self-employment opportunity, especially for those with a passion for photography and technology. It's one of the most sought after businesses under 20k , offering a unique blend of creativity and innovation.

This business involves using drones to capture aerial photos and videos for various purposes, such as real estate listings, weddings, commercial projects, and more. The initial investment includes the cost of a high-quality drone, camera equipment, and necessary licenses or certifications.

The key to success in drone photography and videography lies in your ability to capture stunning visuals from unique perspectives. With the growing demand for aerial footage in different sectors, this business offers significant potential for growth and profitability.

18. Virtual Assistant

Starting a business as a Virtual Assistant is an excellent self-employment opportunity, particularly appealing for those looking to start a business for 20k. This role involves offering remote administrative, technical, or creative support to clients.

The income for virtual assistants can vary, typically ranging from $30,000 to $60,000 annually. Top earners in this field can make over $100,000 per year, depending on their skills, experience, and client base.

The startup costs are relatively modest, mainly involving a reliable computer, a good internet connection, and possibly some specialized software.

This business model is not only cost-effective but also offers flexibility in terms of services offered and working hours. With the increasing trend of remote work, the demand for virtual assistants is on the rise, making it a lucrative and viable business option.

19. Subscription Box Service

Starting a Subscription Box Service is a great idea for entrepreneurs looking for a venture with low start-up costs and high potential. This business model involves curating and delivering boxes of products to subscribers on a regular basis, typically monthly. The contents can range from beauty products to food items, books, or niche hobbies.

One of the best aspects of a Subscription Box Service is the relatively low initial costs. You can start small, testing your ideas with a limited number of subscribers before scaling up. This approach allows for a gradual investment, reducing financial risk.

Managing a Subscription Box Service effectively requires careful planning, particularly in terms of product selection, box curation, and customer service. A good credit history can be beneficial if you need to negotiate with suppliers or manage cash flow effectively.

With creativity and a keen understanding of your target market, a Subscription Box Service can quickly become the best business to start under 20k. It offers the excitement of creating something unique and the satisfaction of building a community of subscribers who look forward to your boxes each month.

Consider the success of Birchbox, a subscription box service that delivers personalized beauty products to its subscribers. Birchbox's model of offering a curated selection of samples has revolutionized the way consumers discover and purchase beauty products.

20. Life Coaching Service

Starting a business as a Life Coach is a fulfilling and potentially lucrative option, especially for those looking to start with around $20k. As a life coach, you'll guide clients through personal challenges, help them achieve their goals, and support their personal and professional development.

The initial costs for setting up a life coaching business can be quite manageable. Key investments include creating your own website, which serves as a platform to describe your services, share client testimonials, and offer free resources to attract potential clients.

These free resources can be anything from blog posts and articles to webinars and e-books, providing value to visitors and establishing your expertise.

Being a life coach is about more than just giving advice; it's about actively listening, understanding your clients' needs, and providing tailored guidance. With the growing awareness of personal development and mental well-being, life coaching has become one of the sought-after businesses to start with 20k.

Success in this field hinges on your ability to connect with clients and offer insightful, actionable advice. With dedication and the right approach, a life coaching business can be both personally rewarding and financially successful.

The Bottom Line

Starting your own small business is a journey filled with opportunities. Whether it's offering unique services to local businesses or launching an online venture, the key is to manage operating costs effectively.

By doing so, not only do you save money, but you also set the foundation for a sustainable and profitable business. Remember, the success of your business depends on careful planning, passion, and the drive to turn your vision into reality.

Your idea can change the world, let's make it a reality!

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