Do you have $20,000 to start your own business?
Or maybe you want to borrow money for a business that will let you quit your 9-to-5 job…
I’ll discuss five different business models today. My goal is to address all the often asked issues regarding these models and explain how to profit from them.
Alright, so the Best Business To Start Under 20k doesn’t exactly fit into a nice category.
At the end of the day, starting your own business is a… unique way to think about making money.
It’s certainly possible to make money with off-the-wall businesses like this. Still, I would look elsewhere if you’re interested in taking years out of your life to experiment with an unproven business model.
My #1 personal recommendation if we’re talking about starting a fully-online business has got to be the Lead Generation & Ad Agency business models.
There are a handful of programs that teach you the ropes, but my #1 choice that combines both of those business models into one is the Digital Landlords program
But, if you’re hard pressed to jump head-first into an off-the-wall business model, let’s continue on to my full breakdown of the Best Business To Start Under 20k!
Finally, You Can Become An Entrepreneur With A Small Business
Do you want to quit your full-time job? Then, you should read every word on this page if you’re an aspiring entrepreneur.
Think about it for a second. You leave the corporate world and start your own business. It will be like living out your dream every day.
This is everyone’s dream. Millions of people want to start their own business, but the two factors that usually stand in the way of doing so are fear and the accompanying costs.
If this pandemic has taught us anything, it’s that even having a job doesn’t provide the security you want.
So why not become your own boss with an event planning business or be a Real Estate Investor?
Of course, there will be challenges when first starting, but there will also be many triumphs, and they’ll be yours to celebrate.
I’ve come across so many people who have the cash to get started but are afraid to take the leap into building their own business.
They keep reading book after book, hoping that you’ll learn everything you need to learn about owning your own business isn’t going to make it happen.
You need to take the first step.
Listen, one of the most difficult aspects of starting a business of your own is deciding on a profitable business with startup costs that you’ll be able to afford.
There are many business ideas, but not all of them will benefit you.
Let’s face it; you’re going into business to make money. And you’re going into it hoping to go on your dream vacations and have time for your kids.
These are all possible and why owning your own business is so desired.
But you should understand that these aren’t necessarily going to happen overnight.
Choosing the right business opportunity is extremely important. You wouldn’t want to choose a seasonal business if you’re bad at managing money, and you wouldn’t want to start a small business that is well out of your price range to get up and running.
If you want to become an entrepreneur, check out these businesses you can start with under 20K startup costs.
Learn How I Make $41,415 Every Single Month In Mostly Passive Income, All On Auto-Pilot!
Here are some business ideas to help you get started in the entrepreneurship world:
Food Truck Or Food Cart
You may have noticed that food trucks and carts have grown in popularity over the last year. Additionally, they are no longer your standard burger and hot dog stands.
This is because of COVID. Outdoor dining has led to a need for new ways to eat, which has caused many states to change their laws about food trucks.
You are most definitely not limited to just one sort of cuisine for your food truck or cart. So you can go ahead and prepare your favorite dishes.
If you’re interested in starting a food truck or cart, you’re likely already familiar with the restaurant settings and know that you’ll be working long hours.
The initial investment for this can cost a lot, but this will greatly depend on whether you’ll buy a used truck/cart or finance or lease a new one. Of course, this will depend on what you can afford. Some of the additional expenses will include local licenses for food service, inventory, fuel, and advertising budget costs.
You should consider food carts instead of a truck to start if your budget isn’t big enough for a truck. This will allow you to get started. Consider a taco or burrito cart that you can park outside bars that don’t serve food.
It’s important that regardless if you choose a food truck or food cart, you’re paying attention to the licensing laws, and these change from state to state.
Now, as far as getting customers. This will greatly depend on being able to park your truck or cart at local fairs, festivals, and sporting events. These will open up great opportunities to be exposed to many potential customers.
Before you start, make sure you know what it will entail getting into these events, the local laws, and how much competition there is. And you should also consider setting up a route to local office parks.
Real Estate Investing
Yes, a 20k initial investment will allow you to invest in real estate. Most people probably want to invest in real estate.
The possibility for positive cash flow, tax benefits, appreciation, and passive income are the biggest factors. However, owning property is more of a dream than a reality for most individuals since the hefty upfront investment increases the risk.
But there are always ways to invest in real estate, but how much your financial situation will determine real estate.
The best way to use that 20k is as a down payment for rental property. This method will require you to have a good source of income and credit score to qualify for a loan. However, this method isn’t going to provide you with a steady flow of income, at least not for years. You’ll be renting out the house so that the tenant will pay the mortgage, and hopefully, you’ll have extra money to save for any repairs that may come up.
Don’t forget to consider turning your rental into an Airbnb. You can make your monthly mortgage payment with a week’s rental.
You want to be careful that you don’t stretch your budget when purchasing your rental property. You want to maximize your investment.
Another option would be to invest in a REIT. These companies own commercial real estate, and you can invest your 20K and earn dividends. You’ll own a portion of the investment properties and get paid. An example of a REIT is Cardone Capital.
Healthy Meal Prepping
Meal preparation is one of the main challenges of eating healthy as more and more people become health conscious.
However, the majority of us lack the time and motivation to prepare meals.
Starting a business that caters to these health-conscious people is a great way to make money. There’s a demand for it. You’ll need some skill set in the kitchen for this food service-type business to succeed.
And one of the best things about this business is that you don’t need anything special to get started; you can keep the initial investment cost low by preparing everything in your kitchen and delivering it to your customer or creating a daily pickup time somewhere.
If your kitchen isn’t designed for high-volume cooking, you might want to consider purchasing additional equipment for your kitchen or an upgrade to your current kitchen.
Make sure you’re looking into the local laws regarding food licensing. These laws can get tricky in some places, depending on where you live. Talk with local gyms and personal trainers about getting a percentage of your sales for telling their customers about you.
Because word of mouth is the best form of advertising, people tend to listen to their personal trainers and those associated with the gym.
Do you love taking pictures? So why not make it a business? Photography is more than simply a costly pastime. It can also be a successful small business.
Of course, you’ll need to differentiate yourself from the numerous other local photographers. It has gotten harder for the real photographers since Canon ran the commercial informing all the moms they could be photographers.
But it’s not impossible, because what they lack is quality equipment. You should know that photography isn’t going to be one of those business ideas that’s easy to get started with or even easy to run. There are lots of things that you’ll need to purchase and learn.
Let’s look at some of the equipment you’ll need to invest in —a quality camera, exceptional lens, lighting, and studio space. The key to success in your photography business is learning how to separate yourself from others.
Just google “photography near me.”
Learn about what your potential competitors are before you choose your style. This will give you an idea of what your best options will be.
Do you want to do family, newborn, portrait, sports, or school photography?
Maybe you have a knack for composites.
There are several different types of photographs you can specialize in.
To get started, you’ll need to figure out which type of photography you want to do and purchase the equipment to offer them. You can start by doing free work to build your portfolio and start booking jobs.
The biggest expense for this business is going to be the equipment. If you’re not able to purchase everything you need, you can consider renting some and having a photo shoot with a bunch of different people on the same day. This will allow you to build your portfolio before making big purchases for quality lenses or lights.
You’ll need to consider how you’ll get the photos to your customers and obtain the parents’ email addresses if doing school photographs. Plenty of services take out a small fee to display the photos for your customers when they make a purchase.
This construction service will demand a certain skill and tools, but if you already have the necessary skill set, you probably already have the necessary tools.
You may have observed that Facebook Market is seeing an increase in customers looking for custom outdoor furniture. This is a great place to display and sell your new builds.
As long as you’re handy, building a deck shouldn’t be a problem.
You’ll need to invest in the necessary tools to get the job done, and if money is an issue, you can rent the tools so that you don’t have to complete the job. Decking jobs usually start around early spring, when the weather begins to warm up. Of course, this will vary depending on where you live.
Senior Care Business
Many seniors don’t want to leave their homes to live elsewhere since senior homes can be very expensive. However, there is still a need for help. Helping senior citizens may be the ideal profession for you if you are friendly and compassionate.
As a senior caregiver, you’d be responsible for non-medical things such as feeding and shopping. You’ll need to obtain some things, such as CPR and first-aid techniques training. Most states require a license, so be sure that you check the requirements for your state.
The overhead for this type of business is very low. You’ll need a vehicle, but that will be sufficient if you already have one. Medicare and Medicaid most likely pay you, so you’ll need to apply to accept these payments. A majority of your budget is going to insurance. This is something you’ll want to take into consideration when choosing you’re going over your business ideas.
Once you have everything you need to get started, you’ll want to start advertising yourself. Some great places to begin are networking at senior centers and veterans’ clubs. Maybe some of your friend’s parents know someone looking for some help.
Word of mouth advertising will be a big part of your advertising method in this type of small business.
You can also find multiple senior franchise options that will help you through the entire business process, but you’ll have to pay fees to them, and the startup cost will be higher.
Small Business Franchises
Franchises are a great way to start a business. Their fees provide you with everything you need, and most often it includes training and support. Some of the best franchises include event planning, mortgage firms, and senior citizens services.
Here are some great franchise options,
Complete Weddings + Events
This franchise is a great option with a start-up cost of just $10,000 in a $72 billion dollar industry.
Franchisees will get all of the necessary training and ongoing support so that you can provide the bride and groom with everything they need to relive their wedding for years to come – photographers, DJs, videographers, and lighting. They’ll show you exactly how to hire these professionals and the best prices to charge for your current area.
My #1 Business To Start: Local Lead Generation
Generating local small business leads is one of the best business models, and it doesn’t matter your age.
It’s one of the best businesses you can start for a number of reasons including low startup cost, virtually no overhead cost and you’ll make a ton of money.
It’s an internet-based business. The only overhead costs are hosting, and you’ll learn a free method of landing new clients.
Here’s the best part: there is a huge demand for these services so you can have unlimited clients.
Every single business needs leads to survive. Unfortunately, most small businesses have no idea how to utilize the internet to generate these leads for these businesses.
But it’s exactly why this business model is so lucrative, so not having overhead costs makes it even better.
Your service makes your clients more money. This makes selling it simple.
You’ll build a website for a local company, get it in tip-top shape to get it at the top of the search engines and once the leads start rolling in you’ll be able to charge a monthly price.
You set the price! You can charge per lead, earn a commission or set a monthly price.
These websites earn between $500 and $2,000 per month, and remember, the costs associated with them are super low, maybe $30 a month for hosting.
Imagine having five websites earning $1,000 per month… that’s $5,000 per month with virtually no maintenance.
You can purchase hosting that allows you to host multiple websites. This helps you to save money and keep the costs even lower.
Building multiple sites that you’ll rent out to earn as much or as little as you want. Imagine renting out 10 websites that you rent out for just $500 a month. That’s $5000 a month to do nothing…. and this is low-balling it.
This program is filled with payment proofs, real students giving their own video testimonials about their success, and people willing to help you along the way earn the same income they have.
Here’s one of the best parts about this,
Josh makes six figures using this same business model he’s teaching you.
This isn’t theory.
These are the steps he takes to earn that kind of money, and he and his team are taking you by the virtual hand and showing you how to do the same.
How Do You Find Small Businesses That Need Leads
It’s pretty amazing just how simple this is. But it isn’t always quick. You have to work to find a business, then build the website and land the client.
The first thing you’ll need to do is find companies that need a website. You can do this by using Google search.
You can search for any company – electrical, plumbing, tree services, or criminal defense lawyers.
Let’s start with the search term “Criminal Defense Lawyer in Jacksonville, FL” on Google.
There are a ton of lawyers that don’t have websites… there’s certainly a demand for your services. This is perfect! It doesn’t always happen like this, but it’s pretty amazing when it does.
Now you’ll start with the website design for Dale Carson Law. The reason you’ve selected that specific law firm is because they have the most reviews.
When building the website, you’ll implement SEO tactics to get the website listed in Google on the first page. That’s the reason the phone will be ringing.
After a few weeks, you’ll find that Dale Carson’s phone is ringing off the hook with leads. It’s time to give him a call and let him know that you’re the reason.
You’ll give him a call to introduce yourself and ask how the leads were going and then tell him it’s going to cost $X amount dollars every month to continue getting them.
Simple right? Allowing that company to try before buying minimizes the need to sell. This is one of the most enticing aspects of this business.
90% of the time, they don’t want to lose out on those leads they got a taste of.
And here’s the best part about this. There are two other companies that you can do this for if they said no thank you.
Finding companies isn’t always easy; it takes time, so don’t get disappointed if you’re searching for a few hours because it will be worth it.
You’ll have a ton of customers to offer these services too. Over 125 million small businesses are out there, so there’s no lack of potential.
You’re not stuck in your own town. You can help the plumbing company in San Diego when you live in Minnesota. I’m sure your head is flooding with many ideas right now; that’s great!
There are tons of opportunities for you to make money. You just need to take the first step.
But I’m certain you’re focusing on the fact that you don’t know website design or know what search engine optimization entails.
Most people don’t have these skills, but they are easy to learn, and technology has made both possible for even the most unskilled.
I’m about to share how you can learn everything you need to start making $10K, $20K, or even $40K a month in less than a year.
How To Get Started With A Lead Generation Business
I found a program called BAM that will walk you through everything you need to know. From how to get clients, build your first lead-generating site, and how you’ll get that site to the top of the search engines.
In just eight months, one of the students went from $0 to $40K. He didn’t even have any website design skills.
Once you complete your first site you’ll be able to repeat this again and again like a pro – building lead-generating websites for different local businesses.
There’s no limit to how much money you can make. This depends on how many you want to build and how many companies you want to help.
There’s a big demand, and you’re in total control.
It’s your company, and you’re the one who is in control.
This program was created to help people just like you, with no experience, build their own Digital Real Estate Empire and earn a full-time income.
Here are just some of the things that you’ll learn,
- You’ll learn how to purchase a domain name. (this will be a generic name, not a business name)
- How to build a lead-generating site.
- Uncover how to find keywords that people are using in the search engines.
- How to automatically send lead notifications via email and phone.
- How to get the company to buy without any sales pitches.
- New business ideas that will help to grow your business
Plus, there are two live calls each week, and you’ll have access to a 24/7 active Facebook group with other students and coaches. It’s like your own personal team that is ready to help improve your chances of success. These people share their experiences and are ready to answer any question that you may have.
Are you ready to start your own in-demand services helping local businesses get the leads they need to stay in business?
How To Choose The Best Business Ideas To Started
When you are looking to start a business for the long haul, you must choose a business that has a demand, suits your temperament and lifestyle, and allows your strengths to shine.
Let’s take a look at some ways to choose the best small business that will fit into your life, not become your life.
Let Your Passion Be Your Guide
You’ve heard this plenty of times before. Building a business around your passion is the key to happiness with a business and to your success. While this can sometimes be the best option because you’ll be selling products or services that you know and love. And in theory, this sounds great, but it’s not always possible.
While there are some advantages to following your passion, it’s not always possible for you to be financially rewarded for it. But it will certainly make selling and marketing easier because you understand the customers. This helps with sales.
Make A Lifestyle Choice
Loving what you do is important, and if the business involves activities you enjoy, that’s great. But you don’t want to choose a business that is going to require you to spend long hours from now until you sell the business.
Owning your own business should offer you the freedom to live your life while earning the type of money you desire. You want to fit your business into your life, not make your business your life.
So when thinking about a business type, you must consider the day-to-day operations. How much time is required of you daily?
Will you have time to do the things you love, or will you be stuck in the office?
Choose a business that fits the kind of life you want to lead and do things you enjoy.
When starting a business, you must keep your interests and expertise in mind, but it’s not your only option.
Just because you are interested in it or know a lot about it doesn’t mean there’s a market. You’ll want to look at the trends and see if there’s a desire in that market. If there are no customers, you’re not going to make money. And some markets don’t have any money. This means that people aren’t going to buy what you’re selling even if they want it.
So be sure to take the time to do your research.
What’s Your Competition Like?
The competition is going to be important. This will not only determine your potential success, but it will determine your advertising budget.
With that being said, the fact that there are competitors is a good indication that this business opportunity has customers and the potential for success.
That’s good news.
But if there’s too much, it will make finding success with your product or service harder.
So you can do one of two things. You can choose a different business opportunity or determine a way to differentiate yourself from the competition.
What Risks Are You Willing To Take?
Without risks, there is no reward, but at what expense?
When choosing a business, there should be some adventure in your business opportunity.
You want to be creative but not bold regarding products and services. This is especially true when you have a good amount of competition in the market. When there is potential for success, there is a greater risk.
Let’s take a look at franchises. When you purchase a franchise, you reduce your risk, but you also reduce your earning potential. You’re limited to your creativity because there are rules and regulations that you must follow. You’re replicating an already proven business model and giving them a percentage of your profits.
Respect & Harness The Power Of The Internet
The internet has helped millions of people build a business for far less money and much quicker than ever. It’s been a game-changer because of the resources and opportunities you’d never have if building a brick-and-mortar business.
The downside is that you miss out on the cash in your hand, but you can make far more money in your bank account far outweighs that.
You can choose from any number of business opportunities and learn any skill for virtually free that you’d need to learn, such as web design, internet marketing, search engine marketing, and social media marketing.
You can reach more customers and make more money…. but there’s also a higher number of competitors.
This is what makes local lead generation so great. There’s virtually no competition because you can be local in any area even if you don’t live there.
What Are The Costs?
You might have $20K to start, but how much will it cost to keep your business running? Likely, you’re not going to make money instantly. This is what makes owning an online business so beneficial. The costs are low – internet access and hosting are often the only monthly fees.
You must be sure you have the money to keep your business afloat until you start getting clients.
What Business Can I Start With No Money?
There are plenty of businesses that you can start with no money. You must know that it will take longer to begin getting clients and making money without money.
Consulting and freelancing
There are plenty of websites where you can bid on gigs, such as Upwork and Flexjobs, such as virtual assistant gigs, writing gigs, business consulting, editing, and the list goes on and on. All that is required is a skill set of some sort.
These gigs don’t often pay a lot.
Start a YouTube channel
There’s not much you need to start your own YouTube channel. Cell phones today can take quality videos, and if you enjoy talking in front of a camera and have something funny or educational, why not share it with the world?
It’s free, and once you reach 1,000 subscribers and obtain 4,000 watch hours, you’ll be able to make money.
Start a blog
There are free ways to start your blog, but with this method, it’s best to use your domain and purchase hosting. These things are fairly cheap, and you can get started for under $50 for the year.
This takes time, and you’ll need to know how to monetize your website with ads and affiliate products to earn an income. You’ll also need to know SEO to get listed in the search engines so that people can find your blog.
You can build your email list and promote affiliate offers to your list. You can put ads to promote a product that you use and earn a commission. There are many ways to earn money with a blog.
What Are The Hidden Costs Of Starting A Business?
No matter what type of business you choose, online or physical, hidden fees could be associated with it. Let’s take a look at some of the expenses that could be unaccounted for:
- Creating an LLC or S-Corp – These costs of this will vary depending on where you live.
- Business tax certificate – ADBA and business tax certificate will also vary in cost, so you must check your state’s business filing programs.
- Business insurance – Not every business will need business insurance, but depending on the industry, it might be a good idea. Things happen, and this will protect you from major financial trouble. You can check out CoverWallet. They have business insurance available.
- App and software subscriptions – There are always some app or software subscriptions that you’ll end up needing, whether bookkeeping or teleconferencing. This can be an additional $100 to several thousand.
- Payment gateway fees – If you’re using Stripe or PayPal to sell your products or services. PayPal charges a fee of 2.9% for online transactions, plus there’s an additional fixed fee based on currency.
- Self-employment tax – The tax rate for self-employment is 15.3%.
- Legal consulting fees – These fees can range from a couple of hundred dollars up to a few thousand. There are some online services, such as LegalZoom and their services start at $79. the fees are generally higher with individual CPAs and attorneys.
- Conferences and travel – If you’re going to be traveling for conferences, then you’ll need to have this as part of your business costs. You’ll need to include the conference costs as well as the cost of transportation, hotels and meals, and other expenses associated with traveling.
You may have already included some of these fees in your expenses. Still, many fees will not be accounted for until they creep in – such as contracts drawn up, logos created, websites built, and marketing to get your business noticed.
How To Keep The Cost Of Starting A Business Low?
Doing your best to keep the costs of starting a new company as low as possible is important. Here are just some ideas for you to do that:
Banking can come with hefty fees, and if you don’t pay attention, hidden fees keep your money safe. Be sure that you are taking your time to research the fees the banks are charging. Thankfully there are plenty of free business bank accounts.
Use Book Keeping Software
Keeping track of your money coming in and going out will help keep costs low, which is important. And if you choose a good one, it will help to make your tax season less dreadful. Quickbooks is one of the best bookkeeping software on the market, and as your business grows, it will grow with you.
Don’t Forget To Budget For Your Business
There are many free ways to budget your money. Using a spreadsheet in Google Drive to keep track of your budget will help you think about your purchases and help you stay within your budget.
Consider A Business Credit Card
Cash is always better, but a business credit card can help your business grow. I don’t suggest getting a credit card if you are not a responsible credit card user.
Using your personal credit card will make separating your business and personal purchases difficult.
There are plenty of great options for a business credit card with no annual fees and cashback offers.
Alternative Business Models?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation For Making Money Online In 2022?
Alright, time for me to get real with my lovely readers for a moment:
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve dropshipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
THAT BEING SAID: I would at least recommend you implement something that is tried and true, because I’ve seen TOO MANY people (including friends and family) get burned by stuff like best business to start under 20k.
They come out of left field with some random idea, make it seem attractive, and then make themselves a quick buck by luring in unsuspecting people.
This is a big reason why I only recommend proven, tried and true business models, like Lead Generation & Ad Agencies.
There are a bunch of programs out there that teach you those skills, but my top choice is the Digital Landlords program.
Why? It has proven leaders with their own 7-figure businesses implementing exactly what they teach you.
I’ve also got over a dozen personal friends in there, so I feel comfortable telling you it works.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, their program works.
1)Time: If you’ve got a spare hour or two each day, you can do this. You can do this if you want to drop everything and go all-in. More time obviously means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring (for the most part).
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
2)Big Margins: With most businesses, you’re often going to have really slim margins. That means you need to hit a serious scale to make serious money.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
Just a reminder: these Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best-case scenario, you have properties bringing in over $3,000+/mo on “auto-pilot.”
3)It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with the best business to start under 20k, you would need to find the best business model for you. And I can guarantee you that’s a lot harder than a few clicks & a phone call.
4)You’re Helping REAL People: My biggest gripe with starting your own business is that you’re basically only helping yourself.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other off-the-wall business models like starting your own business and maybe hit it big one day.
You could keep researching and researching for the next few months (or few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.