26 Online Businesses to Start With 1K (4 Mistakes To Avoid When Starting an Online Business)

Online Businesses to start with 1K:

• Dropshipping
• Amazon FBA
• Affiliate marketing
• Freelancing
• Copywriting / Content marketing
• Graphic design
• Social media marketing
• Video editing
• Virtual assistant services
• Blogging
• Digital marketing
• Paid ads management
• SEO services
• Virtual event planning
• Online course creation
• Virtual bookkeeping
• Online tutoring
• Podcasting
• Online business consulting
• Amazon KDP
• Print-on-demand business
• Website development
• Software development
• Mobile application development
• User experience and design
• Brand management

Starting an online business idea with $1000 is a good way to make money online without putting up too much startup capital. If you can start a small business idea with little to no money, imagine how far a thousand dollars will take you. While $1000 isn’t necessarily a low investment capital, it isn’t a hefty price to pay either. If you want to get your money’s worth and generate significant returns, here are some mistakes any business owner should avoid when launching an online business:

Preventing these mistakes is one thing; Having a business model that works while preventing these mistakes is another. If you’re looking for an online business that has a proven track record, is highly profitable and sustainable, and requires little to no maintenance, check out local lead generation. Local lead generation is the process of building a website, ranking it using search engine optimization, allowing local businesses to generate leads through your ranked website, and making money every time they convert a lead into a sale.

The best thing about local lead generation is the fact that it does not need any maintenance at all. It is a stable source of income that not only generates extra money for you passively for you, it also allows you to spend more time doing the things you love outside of work.

26 Online Businesses To Start With $1,000

1. Dropshipping

One of the most profitable online businesses you can start with $1000 is dropshipping. Dropshipping is a business model that allows you to sell products to customers without actually touching the product. You simply source products from a supplier every time an order is placed.

Cost breakdown of starting a dropshipping business with $1,000:

While you might find more success by putting up some extra money, investing $1000 dollars is more than enough to get you started and established in the dropshipping space. You also have the freedom to offer a wide assortment of products and items instead of just sticking to one. Here are some dropshipping item categories with a high market value you can sell in 2023:

• Health and wellness
• Beauty and skincare
• Home and gardening
• Electronics
• Clothing and footwear

You can also start a dropshipping business through a variety of platforms such as Shopify, Amazon, and eBay.

2. Amazon FBA

Amazon FBA, also known as Fulfillment by Amazon, is the process of selling products online without storing any of your inventory in your own home or warehouse. Instead, you send your items over to an Amazon warehouse or fulfillment center and have them keep your stocks. Whenever a customer places an order, Amazon takes care of packing your product, shipping them to the buyer, and even handling customer service for you. All you have to do is receive every order that is placed in your online store.

Typically, the actual cost of starting an FBA business is around $3,500. This includes setting up a business entity, sourcing products directly from a supplier, paying for inventory and shipping fees, marketing and advertising expenses, and many others. However, it’s still possible to start an FBA business with just $1,000. Here are some guidelines to help any aspiring small business owner achieve this:

Start your businesses selling cheap and discounted products

Instead of sourcing products directly from a supplier, try looking for cheap and discounted goods on retail stores, thrift shops, or even low-cost manufacturers that offer half the price of a certain item. Here are some products you can try out if you’re sticking to a $1000 budget:

• Accessories: Phone cases, keychains, camera lenses, laptop stickers, etc.
• Toys: Action figures, puzzles, board games, and many more.
• Beauty and skin care products: Lip balms, facial cleansers, nail polishes, and hair accessories.

Don’t buy too much inventory

Instead of buying hundreds of products to ship to an Amazon warehouse, start small. You can test out the profitability of a product by buying and selling less than a hundred. For instance, you can try buying 20 bath bombs and see how much you make instead of purchasing 500 bath bombs at once and immediately sending them over to a fulfillment center.

Find tools and software that you can use for free

As an FBA seller with a $1000 budget, free tools and websites are your best friend. Here are some online resources you can use to jumpstart your Amazon FBA business:

3. Affiliate Marketing

One of the cheapest online businesses you can start is affiliate marketing. Affiliate marketing is a business model where you get paid for promoting the products and/or services of other people. Typically, a business gives an affiliate link to an affiliate marketer. The affiliate marketer then uses the link to promote a specific product or service and gets paid every time a customer places an order through the affiliate link. This business model is perfect for individuals looking to make some extra cash on the side.

Cost breakdown of starting an affiliate marketing business with $1,000:

If you have a social media presence, however, you can use your accounts to promote products and services instead. Affiliate marketing is also very cheap because it doesn’t require you to pay for anything to get started. All you need are affiliate links, an affiliate program, and a social media presence - all of which are absolutely free.

4. Freelancing

Freelancing is the process of offering services to one or more clients and getting paid for every project or task you finish. Freelancing is an industry that encompasses a wide array of jobs, from becoming a freelance writer to handling the social media account of a business. Here are some of the most common freelancing jobs today:

• Freelance writing (Copywriting, ghostwriting, blogging, etc.)
• Graphic design (Social media posts, blog images, website graphics, and many others)
• Social media marketing / Social media management (Managing Facebook ads, creating a monthly content-plan, and more)
• Digital marketing (Running Google ads, developing marketing campaigns, implementing content marketing strategies, and many others)
• Video editing
• Virtual assistant services

As a freelancer, you can start your freelancing business with absolutely no money, as long as you have a computer, a stable internet connection, and the skill/s required. Freelancing is an industry that is very promising, but is also a very competitive one.

Cost breakdown of starting a freelancing business with $1,000:

If you want to learn more and pursue freelancing business, check Online Money Maker and Freelancer Freedom Blueprint. 

5. Copywriting / Content Marketing

Copywriting or content marketing is the process of advertising or promoting a product or service through the use of written content such as blogs, articles, landing pages, and many others. Copy is usually persuasive and is geared towards convincing the intended audience to take a particular action.

6. Graphic design

Graphic design is a creative discipline that involves combining visual elements, such as written content and images, for marketing and advertising purposes. Typically, graphic design plays a huge role in ensuring consistency between marketing and branding, cultivating customer interaction, and many others.

Here are some tasks and responsibilities of graphic designers:

• Creating logos and other branding materials.
• Designing layouts for brochures, flyers, posters, and many others.
• Managing the front-end design of a website or application.
• Building templates and other digital assets for future use.
• Using tools such as Photoshop and Canva to edit images and videos.

Cost breakdown of starting a graphic designing business with $1,000:

7. Social media marketing

Social media marketing is an advertising service that is focused on social media platforms. Examples of these include Facebook ads, Instagram ads, Twitter ads, and many others. Similar to digital marketing, social media marketing is used to:

• Create a strong brand presence on social media
• Drives user traffic
• Generates leads
• Interact with potential clients

Cost breakdown of starting a social media marketing business with $1,000:

8. Video editing

Video editing is a skill that involves manipulating or re-arranging the elements of a video to make it more appealing and eye-catching. Here are some companies and industries that hire video editors:

• Media and entertainment companies
• Marketing and advertising agencies
• E-Learning and online education platforms
• Event and conference management companies
• Corporate communications and internal training

Cost breakdown of starting a video editing business with $1,000:

9. Virtual assistant services

A virtual assistant is an employee that works remotely for a business or company and is typically outsourced through agencies or online platforms. Virtual assistants usually take on daily office tasks and administrative work, such as:

• Responding to calls, messages, and emails.
• Scheduling appointments.
• Handling customer concerns and feedback.
• Creating presentations and reports.
• Booking flights and accommodations.

Cost breakdown of starting virtual assistant services with $1,000:

10. Blogging

Blogging is an online business that you can start with little money and without any experience. It involves self-publishing various types of content, such as articles, blog posts, photos, and many others. While blogging was originally used by individuals to express their thoughts and emotions, it is now a huge industry worth over $400 billion and is expected to grow to approximately $584 billion by 2027. 

As a blogger, you can create content about almost anything you can think of. For example, as a software engineer, blogging can serve as one of the profitable passive income source by utilizing your expertise in software development to create content that teaches technical knowledge to your readers.

Here are some of the best niches you can explore for your blog:

• Finance and investing
• Food
• Health, fitness, and personal development
• Travel
• Technology
• Career advice

Cost breakdown of starting a blogging business with $1,000:

Typically, bloggers generate extra income by monetizing the content they post on their blog. Here are some examples you can do for yourself:

• Running ads on your blog website using Google AdSense.
• Becoming an affiliate and promoting products and services on your blog.
• Posting subscription-based blogs and articles.

11. Digital marketing

Digital marketing is a business model that involves promoting and advertising the products or services of a business or company through the use of electronic and digital forms of communication. Here are some common responsibilities that fall under digital marketing:

• Running ads on Google and other social media platforms.
• Creating a marketing campaign for each day of the month.
• Collecting data regarding user clicks and engagements, website traffic and performance, and many others.
• Utilizing content marketing strategies.

Cost breakdown of starting a digital marketing business with $1,000:

12. Paid ads management

Paid ads management, also known as PPC management, is the process of overseeing and managing the paid ads of a company to ensure the best results at lowest possible cost. Some tasks and responsibilities include:

• Devising a campaign plan or strategy.
• Gathering and analyzing data such as key performance indicators (KPIs), website traffic, user engagement metrics, and many others.
• Optimizing ad spend and budget.
• Creating landing pages and sales copy.

Cost breakdown of starting a paid ads management business with $1,000:

13. SEO services

Search Engine Optimization, also known as SEO, is the process of organically ranking a website in accordance with Google’s complex algorithm. To put it simply, SEO helps businesses and companies appear on Google’s result pages, which in turn allows them to gain more exposure and make more revenue.

Common SEO methods and practices include keyword research, internal linking, and so much more. Here are some of the most common SEO tools that are widely used today:

• Google Search Console
• Ahrefs
• SEMRush
• Answer The Public
• Google Trends

Cost breakdown of starting an SEO business with $1,000:

14. Virtual event planning

Virtual event planning is the process of overseeing online events from start to finish, which includes sending out invites, planning the program flow, handling logistics, and many others. Examples of virtual events include:

• Meetings
• Webinars
• Networking events
• Conferences
• Trade shows

Cost breakdown of starting a virtual event planning business with $1,000:

15. Online course creation

If you have a particular skill or expertise in a specific area, you can try creating an online course and share your knowledge to people on the internet. There are several platforms where you can launch online courses such as Udemy, Coursera, or Teachable. Online courses typically consist of:

• Multiple lessons and modules
• Quizzes
• Exams
• Classes, recorded or interactive.

Cost breakdown of starting an online course with $1,000:

16. Virtual bookkeeping

Bookkeeping is the process of handling and managing the financial activities and information of a business. These often include:

• Processing payroll
• Reconciling accounts and transactions
• Monitoring cash flow
• Reviewing and updating bank statements

Cost breakdown of starting a virtual bookkeeping business with $1,000:

17. Online tutoring

If you have skills or knowledge in a particular subject, online tutoring could be a viable option for you. Online tutoring is a business model that involves providing tutoring services to students through the use of digital channels or online platforms, typically where the teacher and the student can see each other.

Cost breakdown of starting an online tutoring business with $1,000:

18. Podcasting

If you’re passionate about a certain topic or subject, podcasting might be a good online business for you. Podcasting is the process of sharing and broadcasting audio content online through the use of online platforms such as Spotify, Facebook, and many others. Podcasting is similar to hosting a talk show, except you don’t have to reveal your face. Podcasts are also recorded and uploaded, which allows users to listen to them on-demand.

Cost breakdown of starting a podcasting business with $1,000:

19. Online business consulting

Online Business consulting is the process of providing professional advice or guidance to companies and businesses through the use of digital communication channels. If you have the knowledge or expertise in a specific field or industry, offering business consulting services might be a good idea. A business consulting firms is typically in charge of:

• Conducting market research.
• Developing strategies on efficiency, cost cutting, profitability, and many others.
• Constructing a marketing campaign.
• Analyzing the company’s financial status and creating a budget plan.
• Offering training and development programs for employees.

Cost breakdown of starting an online business consulting firm with $1,000:

20. Amazon KDP

Amazon KDP is a program by Amazon that allows aspiring authors and publishers to publish their books on the Kindle platform. You can release an assortment of publications, such as eBooks, paperbacks, softcover and hardcover books, and many others. Here are the top best-selling book genres on Amazon KDP:

• Literature & Fiction
• Mystery, Thriller, and Suspense
• Science Fiction
• Fantasy
• Romance

Cost breakdown of starting an Amazon KDP business with $1,000:

21. Print-on-demand business

Print on demand is a business model that involves offering customizable white-label products and making them every time a customer places an order. Typically, print-on-demand clients purchase bulk orders and have their logo placed on each product. Here are some examples of high selling print-on-demand products:

• T-shirts
• Napkins or bandanas
• Tote bags
• Mugs
• Stickers
• Yoga mats

Cost breakdown of starting a print-on-demand business with $1,000:

22. Website development

Website development is the process of building, publishing, and maintaining a website that can be accessed through the internet, typically using a computer or smartphone. Web developers work for a large customer base, but mostly cater to businesses that are looking to make their presence felt online. Web development encompasses a variety of tasks and responsibilities such as:

• Creating algorithms and back-end logic for every use case or functionality such as button clicks, user inputs,
• Designing the user interface which includes color schemes, font faces, and button classes, and many others.
• Testing out each and every function while fixing bugs or errors that may arise.

Cost breakdown of starting a website development business with $1,000:

23. Software development

Software development is the process of designing, creating, and testing software applications that can be used on computers, mobile devices, and other electronic gadgets. Software development is a vast and complex industry that requires a lot of time, expertise, and resources to get started. The demand for software development is very high, and the industry is expected to grow even further in the coming years.

Cost breakdown of starting a software development business with $1,000:

24. Mobile application development

Mobile application development is the process of designing and building software applications that run on mobile devices, such as smartphones and tablets. The demand for mobile applications has been increasing due to the number of mobile devices being produced. Mobile application development can be a challenging industry, but it has a lot of potential for growth and profit.

Cost breakdown of starting a mobile app development business with $1,000:

25. User experience and design

User experience and design, also known as UX/UI, is a branch of software, web, and mobile development that focuses on ensuring that the user experience of a given software or application is enjoyable, easy to navigate, and is in line with the product’s vision. Responsibilities of a UX/UI designer include:

• Conducting user research and testing
• Designing wireframes and mockups
• Creating user interfaces and visual designs
• Developing prototypes and conducting usability testing

Cost breakdown of starting a UX/UI consulting business with $1,000:

26. Brand management

Brand management is the process of creating, developing, and maintaining a brand's identity and reputation. This includes handling the brand's visual elements, product management, messaging, and customer perception. A brand manager is responsible for ensuring that a brand is consistent across all channels and that it resonates with its target audience.

Cost breakdown of starting a brand management business with $1,000:

4 Mistakes To Avoid When Starting an Online Business

1. Failing to create a business plan and strategy

Creating a business plan is one of the most important aspects of starting an online business, or any business for that matter. A business plan determines your goals, identifies your target market, outlines your marketing strategy, forecasts your financial projections, and many others. Think of your business as a building and the business plan as the foundation. Without it, everything would inevitably collapse.

Unfortunately, a lot of aspiring business owners tend to neglect this out of excitement or sheer determination. While it is commendable to be extremely motivated and be ready to put in the work, it is also not a good idea to just run a business with guns blazing without actually having a plan or strategy in place.

Here are some guidelines to consider when coming up with a business plan:

• Look for a problem or need that you can address: Don’t force yourself to pull ideas out of thin air. Instead, look for a problem or need and come up with a solution. For example, if none of the businesses in your community have an online presence, you might want to become a social media manager or run a digital marketing agency.
• Develop a business idea that is in line with your passions and interest: Developing a business idea that blends with your passions and interests will inevitably influence you to put in more time and effort in making your online business work.
• Evaluate your resources, both financial and non-financial: Identifying your assets and resources is crucial because it allows you to make business decisions based on how much money you have. You wouldn’t be able to start an automobile company with just $1000, even if you promise to put in the work.

2. Ignoring the competition

No matter how great your product or service could potentially be, there will always be someone out there who will make a better version of what you have. A lot of aspiring online entrepreneurs make the mistake of thinking that there is no competition, just because of how much they believe in their product. Unfortunately, having this kind of mindset prevents you from identifying the strengths and weaknesses of your product, which ultimately hinders you from generating more sales and profit.

Here are some ways you can analyze your competitors:

• Study their successes and failures: It’s not enough to just pinpoint your competitors’ vulnerabilities. Monitor their prices, best sellers, marketing strategies, and many others. Recognizing where your competitors are flourishing puts you in a position to determine their strengths and further capitalize on that by coming up with something even better.
• Keep on improving your business: Be careful not to become too overconfident or complacent, no matter how profitable or successful your business might seem. Always remember that there will always be room to improve, especially in a world where everyone is hungry and motivated to make it.
• Spot opportunities and gaps in the market: Studying and analyzing the competition not only allows you to discover your competitors’ weaknesses and shortcomings, it also gives you the ability to unearth any untapped opportunities or needs that have yet to be fulfilled. For example, if you’re a social media manager within a locality and you discover that none of your competitors are know how to run Google ads, you could take advantage of that by offering Google advertising on top of your social media management services.

3. Not analyzing your target market

Another mistake most business owners make is not conducting the proper research and analysis regarding their target market or audience. It is extremely important to get to know the your potential clients because:

Failing to study your target market could ultimately result in a product that does not appeal nor resonate with your potential clients. Here are a few factors to consider when analyzing your target market:

• Customer demographics: Demographics are data that describes who and what your target audiences are. This includes age, gender, location, income level, marital status, race, and ethnicity.
• Customer psychographics: This customer segment isn’t as common as customer demographics because it tackles more complex identifiers such as interests and passions, behaviors, values, tendencies
• Customer personas: Customer personas are fictional representations of your potential clients and buyers. These can help you understand your customer base in an even deeper way because it allows you to visualize them as real people.

Finding a product that appeals to every human or earth is an impossible task and a complete waste of time, which is why it is important to identify and analyze your target market so you know where to focus.

4. Not investing in marketing and advertising

Even if you have a great product or service, it's important to invest in marketing if you want your product to gain traction. Lots of small businesses make the mistake of assuming that their product or service will sell itself without any ads or marketing campaigns. However, without a solid marketing plan, it's unlikely that your business will attract your potential customer base, let alone find its way to the right buyers.

Here are some of the best marketing and advertising methods you can implement:

• Running paid ads: Paid ads are an advertising method where advertisers pay money in order to be seen instantly. Examples of these include, pay-per-click ads, Google Ads, and Social Media Ads (Facebook Ads, Instagram Ads, Twitter Ads, etc.)
• Search Engine Optimization: Search Engine Optimization, also known as SEO, is a process of organically ranking your website, which means you get traffic without paying for anything. This can be accomplished using various methodologies and practices, such as conducting keyword research, internal linking of related articles, link building, implementing on-page and off-page SEO, and fulfilling search intent immediately. If you need help with SEO, you can check Ranking Academy. 
• Email Marketing: Email marketing is a marketing scheme where advertisers send ads of their products or services directly to the email addresses of a potential customer base.

Conclusion: Is a $1000 Online Business Worth It?

Starting an online business with $1000 is definitely worth it. A thousand dollars is a lot of money, which means it could also open up lots of money-making opportunities, but make no mistake about it being easy. There is no business that provides easy money. Having a successful business requires a lot of hard work and dedication. On top of that, you should consider the risks and drawbacks that might come with starting an online business before making any final decisions.

Unfortunately, a $1000 business will only work if you’re able to successfully launch your business and sustain profitability at a high level. If you fail to maintain sales and revenue even after you’ve invested every last dollar, the chances of your business failing will inevitably increase, especially since we live in a world where almost every online business is already saturated.

If you need to source more capital to invest in businesses over $1000 but have a bad credit score, you could learn how to repair your credit from financial literacy coaches, such as Marcus Barney.

Why Local Lead Generation Is the Best Online Business

If you’re looking for an online business that’s sustainable, profitable, and easy to maintain, look no further than local lead generation. Local lead generation is the process of building and ranking a website in accordance with Google’s complex algorithm using SEO best practices. Once your website is ranked, you can start allowing local businesses and companies to generate leads through your ranked website and make money every time they make a sale.

With local lead generation, the possibilities are endless when it comes to the number of websites you can create, as well as the number of niches you can tap. Local lead generation shines in every city because they are over 50 to 100 niches just waiting to be tapped. Think of local lead generation as digital real estate.

Think of local lead generation as your own web property or digital real estate. It requires little to maintenance, yet it makes you passive income even if you don’t touch or maintain it. I have websites from 2014 that make me $2000+ to this day, and I don’t even have to visit them.

If you’re searching for an online business that will serve as your ticket to financial freedom and stability, local lead generation might be the answer you’re looking for.