1. Local Lead Generation Business

Local led generation business creates websites for niche services and use SEO strategies to rank on search results. After the website starts ranking, you can rent it out to small businesses. Local lead generation has a 35% success rate which increases the more websites you own.

It's the best business to start with $20k since it costs $500 to build a website, and at least $30 to operate. Thus, you can quickly scale and build niche websites in different cities. Local lead generation also produces passive income. Once the websites rank on top of SERPs, they need minimal maintenance.

2. Consultancy Services

Consultancy service provides expertise and strategic advice to improve business performance. According to Consultancy UK, consultants spend 50 to 80 hours per week. This suggests a huge demand for expert consultants. The cost of starting a consultancy service is around $13,000. This includes business permits, website creations, advertisements and software. The top industries hiring consultants are IT, finance and marketing.

3. Online Tutor

Online tutoring is delivering academic assistance to students using distance learning formats like video calls and screen sharing. It’s one of the best businesses to start with $20k because there is a rising demand for short-term courses. According to Teachers of Tomorrow, 41% of students like the flexibility of online education.

According to Pinlear, the startup cost of an online tutoring business is between $2000 to $10,000. This includes teaching aid subscriptions, props, website creation and marketing. SoFlo SAT Tutoring company has an average income of $15k per month.

4. App Development

App development is making softwares for operating systems like Android, iOS, Linux and Windows. According to Statista, 60% of ecommerce sales are made on mobile. But Appian reported 82% of companies struggle with finding app developers.

App development cost varies based on app complexity. According to Couchbase, android and iOS apps can cost $13,000 to $16,000. Plus, $25 to $500 monthly maintenance. It’s costly compared to other options. But according to Fueled, the top 200 apps on Play Store generate $82,500 per day.

5. Life Coaching Services

Life coaching services help clients achieve their goals and gain clarity in different areas of their lives. According to the ICF, life coaches have 12 clients at a time. As per iPEC, there are 1.5 million searches for life coaches every month. It shows a demand on life coaches.

You can start a life coaching business with an initial investment of $1,000 to $5,000. It can cover branding, marketing and getting certification. Certifications range from $3k to $13k so you can get them over time. According to the Coaching Federation, the average income of a life coach is $67,800.

6. Remote Sales

Remote sales or virtual selling is the prospect and salesperson’s use of virtual channels throughout the sales process. Emails, phone calls, video chats and social media are examples of these virtual channels. As per Talent.com, the average remote sales income is $59k annually.

According to Gartner, by 2025, 80% of all B2B sales will be via digital channels. McKinsey’s report of 75% of buyers prefer remote interactions rather than going back to face-to-face support this. To do remote sales, you’re expected to have noise-canceling headphones and proficiency in CRM tools.

7. Virtual Assistant

A virtual assistant (VA) is usually a remote contractor offering administrative services to companies. Virtual assistants can handle travel management, phone calls, scheduling appointments and managing email accounts. Virtual assistant agencies help aspiring VAs through training and client endorsement for a fee.

According to Time’s survey, 9 out of 10 clients are satisfied with their VA and 86% of them would recommend VAs to their acquaintances. This is evident in the projected 24.4% compound annual growth of the industry until 2028. Talent reported the average annual income of a virtual assistant is $40k.

The startup cost of a virtual assistant business is $500 to $3000. According to Wix, some potential costs are office software, project management tools, accounting fees and website design. Since virtual assistants are in demand, you can niche down. According to Zirtual, the top 3 industries hiring VAs are entrepreneurs, consulting and coaching.

8. Social Media Management

Social media management entails handling a company’s social media accounts to engage customers and prospects. The tasks include posting on all social media sites, replying to comments and inquiries, and building brand image. 

Statista reported the social media users as of 2024 is 5.7 billion. According to Data Report Portal, people use an average of 7 social media sites per month. Social media management enables companies to build brand presence across these platforms.

According to Indeed, the startup cost of a social media management business is $2k to $5k. The potential costs includes website creation, business ads and social media management softwares like Hootsuite and Sprout Social. Ziprecruiter reported the average income of a social media manager is $65k per year.

9. Dropshipping

Dropshipping is selling products in your online store without stocking them. The products sold are shipped from the manufacturer or supplier to the customer. It is one of the best businesses to start with $20k since manufacturers prefer dropshippers. The Journal of the Operational Research Society revealed suppliers earn 18% more profit when selling to dropshippers.

Dropshippers can start selling online with $500 to $3000 for website setup and paid advertising. Dropshippers can earn as much as $5000 per day. According to Straits Reserch, Asia Pacific is the fastest growing dropshipping market, followed by the North American region. 

10. Amazon FBA

An Amazon FBA business is letting Amazon handle the storage, packaging and shipping of the products you sell. According to Revenue Geeks, 6 out of 10 Amazon sellers use FBA. It’s one of the best businesses to start with $20k because you don’t manage storage space, but can scale it to build your own brand.

The startup cost of Amazon FBA business is $500 to $10,000. This cost includes samples, inventory, UPC and Amazon professional seller account. Once you’re selling, you can hire for branding, product design and photography. According to JungleScout, Amazon sellers annual income range from $12,000 to $300,000.

11. Blogging

Blogging is creating content typically focused on a specific topic. Bloggers write, edit and design the content they publish online. According to OptinMonster, 60% of B2B companies struggle with creating engaging content. Furthermore, 71% of B2B buyers read blogs in their buyer journey. There is a gap that a blogging business can fill.

Starting a blog costs $100 to $1000. It depends on the software you decide to use, your content creation strategies like hiring video editors and website setup. Blogging requires upfront work, but has potential for diversified income. Ad revenue, affiliate products, selling your own products and reviewing sponsored products are some of the options.

12. Affiliate Marketing

Affiliate marketing is promoting the products or services of other companies for a commission. Affiliates get credited for the referral if customers purchase through their affiliate links within the cookie window. There are 107,179 programs worldwide, according to Datanyze. Affiliate commission rates range from 5% to 50% of each sale.

Affiliate marketing startup costs range from $350 to $500. It includes expenses for website setup and tracking tools. Joining affiliate networks are free, although you can scale and set up your own affiliate networks. According to Lever Interactive, it costs $500 to $2000 to set up an affiliate network.

13. Print-on-Demand

Print-on-Demand (POD) products are made when ordered. The POD owner creates the designs and once a sale is made, the POD partner handles printing and shipping. It’s one of the best businesses to start with 20k because you don't handle the fulfillment and inventory. It’s also highly personalized. McKinsey reported 8 out of 10 customers would purchase from brands that personalize.

It costs $1,600 to $10,000 to start a POD business. This cost covers designs, website, samples and marketing. According to Printful, POD success rate is 24%. Dropshippin.com reported successful POD businesses add 7 new products to their stores monthly. Based on these data, success rate can increase with more designs and products.

14. Virtual Bookkeeping

Virtual bookkeeping is managing the day-to-day financial transactions of a business remotely. Bookkeepers generate financial statements like profit and loss, balance sheet, payroll, and cash flow. According to Onpay, 70% of small businesses rely on owners or managers to handle their finances. There's a gap that virtual bookkeeping businesses can fill. 

To start a virtual bookkeeping business, you'll need $1,700 to $8,7000 capital. This cost includes website setup, marketing, certificates and accounting software. According to Glassdoor, the average salary of a bookkeeper in the US is $52,865 per year. Onpay's survey showed business owners rely on professional advisors for bookkeeper recommendations. Thus, it's best to maintain positive connection with clients in this industry.

15. Graphic Design Services

Graphic design services are the creation of visual content to deliver specific message to the audience. It's largely used in marketing, branding, and education across industries. A full service design company offers wide range of services from brochure to website design. According to Piktochart, businesses spend $10,000 per year for graphic design.

Graphic design services would need a design software like Adobe and tools like the Pantone guide. It'll cost $2,000 to $10,000 to start a graphic design business as per Entrepreneur. Based on Research Gate's finding, 94% of people will abandon a website with poor design. And according to Top Design Firms, 70% of small businesses are online. So, there is a demand for skilled graphic design services.

16. Freelance Writing Services

Freelance writing services work on a contractual basis with publications and companies on a variety of topics. Freelance writers are typically professional writers who can handle technical and creative writing. According to Zippia, 8 out of 10 freelancers in the US are freelance writers. 

To start freelance writing services, you’ll need a website to build your portfolio and start marketing your services. It can cost around $500 or more. According to SEMrush, 97% of marketers said they achieved success through content marketing. There is a continuous demand for writing services.

17. Subscription Box Service

Subscription box service is product kitting of curated products to members on a regular basis. The subscription box contents follow a theme or interest. According to Wifi Talent, 5 of 10 of online shoppers subscribed to a subscription service. The average subscription is also at 12 months. 

According to Dojo Business, you can start a subscription box business with $1,000 to $5,000. This would include the cost for product samples, packaging, shipping, website creation, and marketing. According to Chargebee, the average profit margin of subscription box service is 40% to 60%. You can also offer deals for one-time payment on top of the recurring payment.

What Is a Good Income For Small Businesses?

A good income for small businesses is $46,000 per year with no employee. According to Fora Financial, it jumps to $387,000 with 4 employees. As a rule of thumb, 5% profit margin is low, 10% is a healthy margin while 20% is high. Reddit user, Beneficial-Park-4725, said it varies from business to business and the industry and explained it well. He mentioned it's important to keep the profit percentage within the 15% to 20% range. And invest the rest back in the business to ensure it'll grow.

Create a Profitable Business with Local Lead Generation

Create a profitable business with local lead generation for its low startup and overhead costs. Once your websites are ranking and leading customers to local businesses, you can receive monthly income of $500 to $2000 per month from a single website. And since operating costs are only around $30, you're getting 95% of the profit.

Local lead generation has high success rates than most small business ideas like dropshipping or affiliate marketing. You're ranking on search results and gaining organic traffic because you're not competing worldwide. Local lead gen sites can top the SERPs in 3 to 6 months with 15 to 30 pages. In contrast to the minimum of two years and regular content publishing for blogging.

I started my local lead gen business in 2015. The tree care site I set up back then regularly generates me $2,000 per month to this day. I worked on it for a maximum of 15 hours and it only required minimal maintenance over the years. The local lead generation also has 50+ niches to choose from. It's easily scalable and manageable, even for first-time business owners. So, if you're looking for a small business you can start online with low startup cost and in the comfort of your own home, local lead generation is a surefire way to kickstart your entrepreneur journey.