Business ideas with low investment help regular people become successful entrepreneurs every day. Nearly 90 percent of millionaires own businesses, which shows entrepreneurship leads to financial success. The best part? Starting a business doesn't need much money—you can become a business owner with less than $500.
The opportunities for low-cost, high-profit businesses look better than ever. The affiliate marketing industry grew to $8.2 billion in 2022. The home repair and improvement sector now stands at $597 billion. Small business owners provide jobs to 61.6 million people, which makes up almost half of the US workforce.
Starting your first business might seem daunting. This piece will help you direct your path through various small business ideas that need minimal investment. We'll look at practical options from freelancing and digital products to dropshipping and telehealth opportunities. These businesses need little startup money but can grow substantially.
Your approach and preparation determine your success as an entrepreneur. We'll show you everything about the right mindset and planning that new founders need. A solid business idea matters, but how you start and run your business shapes your entrepreneurial experience.
Think you need big bucks to launch a business? Think again. These low-cost ideas are crushing it in 2025 — and yours could be next.
Key Takeaways
- Your mindset matters more than startup money — prepare mentally before launching.
- Many businesses can start under $500 and still scale fast.
- Planning is critical: clear goals, budgeting, and legal prep will save you time and money.
- Top low-investment ideas include freelancing, dropshipping, digital products, and print-on-demand.
- Telehealth is a game-changing opportunity with low startup costs and high growth.
- Bask Health helps founders start their own telehealth businesses quickly and affordably.
Getting into the right mindset as a first-time founder
Your entrepreneurial experience starts well before you make your first sale. Your mindset, not your original capital, will shape your success as a first-time founder looking at business ideas with low investment. Let's look at why getting mentally ready is significant and how you can break through mental blocks that keep great ideas from becoming successful businesses.
Why mindset matters more than money
Studies show that only 1% of startups succeed. This sobering statistic should push you to develop an entrepreneurial mindset before launching your venture.
An entrepreneurial mindset means "the inclination to discover, evaluate, and exploit opportunities". It builds on three key elements known as the 3 Cs: curiosity (spotting opportunities despite limited resources), connections (reviewing financial and psychological risks), and creating value for others.
Your mindset serves as your North Star throughout your business experience. One expert puts it well: "Ideally, every founder is excited to get out of bed because they believe they're doing something big and important in the world". This principle energizes you during tough times and helps you inspire others to join your mission.
A strong mindset lets you recover from inevitable setbacks. People with entrepreneurial thinking stay "future-focused, resilient, resourceful and solution-oriented, making the most of a situation, whatever the common conditions". These traits become vital when starting low-investment business ideas, where being resourceful often makes up for limited funds.
Your view of money needs a closer look, too. A survey shows 39% of hired adults see "fears around not having enough money or financial resources" as their biggest hurdle to entrepreneurship. In spite of that, you can lower this barrier by changing your mindset from limitation to possibility.
Common fears and how to overcome them
New founders usually share three main fears: losing money, failing, and facing the unknown. These worries make sense—after all, approximately 20% of small businesses fail within their first two years. Facing these fears directly helps you move forward.
To beat financial fears:
- Put in only what you can afford to lose
- Think over small business loans or other funding options
- Start with side hustles before going full-time
- "Bootstrap" early to test your concept with minimal investment
Ways to conquer the fear of failure:
- Redefine failure as learning: See setbacks as valuable data points instead of personal flaws
- Make a complete plan: Create strategies and backup plans to boost confidence
- Seek guidance: Connect with mentors or seasoned entrepreneurs who've been through similar challenges
Fear of the unknown becomes easier when you:
- Research deeply to turn unknowns into knowns
- Use what one expert calls "productive paranoia"—staying aware that situations can change fast while preparing for different scenarios
- Take small risks daily to build your "failure muscles."
Persistence drives entrepreneurial success. "Challenges and setbacks are inevitable, but the most successful entrepreneurs are those who don't give up in the face of adversity". They use setbacks to push forward.
New founders starting small businesses with low investment need the most. Limited resources mean knowing how to adapt, learn, and persist through challenges becomes your biggest strength.
Planning your low-cost business journey
A solid business plan should follow right after you develop the right entrepreneurial mindset. Proper planning helps you make the most of limited resources and avoid making pricey mistakes with low-investment business ideas. Here's a breakdown of everything you need to plan for your business experience.
Set clear goals and expectations
A roadmap for your business emerges when you set specific financial and operational goals. Successful entrepreneurs begin by identifying their "North Star" - a clear vision that shapes all business decisions. This vision makes it easier to handle challenges, especially with minimal starting capital.
Your vision should transform into SMART goals - specific, measurable, achievable, relevant, and time-based objectives. To cite an instance, see the difference between "I want to grow my business" and "Acquire 50 customers within six months."
You need these elements to set effective goals:
- Break down long-term aspirations into quarterly targets
- Set key performance indicators (KPIs) to measure progress
- Create accountability mechanisms for yourself
- Review and adjust goals as circumstances change
Remember that planning helps you make intentional choices about resource allocation instead of constant firefighting.
Outline your budget and time commitment
Budgeting becomes crucial for small business ideas with low investment. Calculate your break-even point first - the revenue needed to cover essential expenses. This foundation lets you make smart pricing decisions that balance competitiveness with profitability.
A well-laid-out budget should include:
- Working capital needs: The speed at which inventory turns into sales and payment collection
- Contingency funds: A buffer (10-15% of total budget) for unexpected expenses
- Time allocation: Hours needed for business activities
New founders often struggle to balance their startups with existing commitments. Set specific time blocks for your business, particularly if you have another job. Research shows that clear time management methods are associated directly with business success.
Measure progress through metrics that matter to your specific business model. This approach ensures your time goes into activities that produce results.
Understand legal and tax basics
Your choice of legal structure affects everything from liability protection to tax obligations. These are your options:
- Sole proprietorship: Simple structure without personal asset protection
- LLC: Separates personal/business assets while offering tax flexibility
- Corporation: Offers strong liability protection with complex tax rules
Tax responsibilities vary based on your structure. Businesses with $400+ in net earnings must file federal income taxes. You might also need to pay:
- Self-employment taxes (15.3% covering Social Security and Medicare)
- Estimated quarterly taxes if you expect to owe $1,000+ annually
- State/local taxes, including income, sales, and employment taxes
The IRS offers an Employer Identification Number (EIN), which works like a Social Security Number for your business. You'll need this identification to file taxes, open business bank accounts, and get licenses.
Your business will likely need various permits and licenses. Look into federal, state, and local requirements for your industry. Failing to comply can lead to penalties or forced closures. This step matters despite its lack of excitement.
Time spent on proper planning in these areas will substantially increase your chances of building a sustainable business, even with minimal starting capital.
Smart business ideas to consider in 2025
Want to start your own business without spending a fortune? These five small business ideas are perfect for 2025. You can start them with minimal capital, and they have excellent earning potential.
Freelancing in writing, design, or tech
Freelancing remains one of the most available paths to entrepreneurship. Freelance writers can earn more than USD 300,000 from platforms like Upwork alone. Success as a freelancer depends on finding your niche—whether it's technical writing, design, or specialized content creation. The best results come from actively reaching out to clients instead of waiting for them to discover you. Start by setting up profiles on job boards and showcasing yourself as an expert in your field.
Selling digital products or courses
The digital product market should reach USD 26.06 trillion by 2034. This makes it an exciting opportunity right now. Digital products—from ebooks and online courses to templates and music—need to be created just once but can be sold many times over. The profit margins are excellent since there are few ongoing costs after creation. The e-learning industry should grow to USD 848 billion by 2030, suggesting massive growth potential.
Starting a dropshipping store
Dropshipping takes away the hassle of inventory management. Your suppliers ship products straight to customers who order from your store. The U.S. dropshipping market should hit USD 424.30 billion by 2030. This business model works great because you can launch it with just a laptop and an internet connection. Profit margins usually fall between 10-20%, and you can start with as little as £100 (about $130).
Offering virtual assistant services
The virtual assistant market is growing faster than ever and should reach USD 8.60 billion by 2030 with a 22.3% compound annual growth rate. Clients need help with e-commerce management, HR support, content creation, and technical assistance. Virtual assistants earn between USD 25-50 per hour. Specialists can charge even more.
Running a print-on-demand shop
As with drop shipping, print-on-demand lets you sell custom-designed products without keeping inventory. Products get printed after customers place their orders. Creative entrepreneurs love this business model because it needs minimal upfront investment. The global print-on-demand market should grow to USD 48.40 billion by 2032. This creates great opportunities in custom clothing, accessories, and home décor.
Exploring telehealth as a business opportunity
Telehealth stands out as one of the most promising business opportunities that require low investment today. First-time entrepreneurs interested in healthcare breakthroughs should consider this field because it needs minimal startup costs yet offers huge growth potential.
Why telehealth is growing fast
The telehealth market continues to soar. Numbers show a compound annual growth rate (CAGR) of 24.3% between 2024 and 2030. The market value will jump from USD 161.64 billion in 2024 to USD 791.04 billion by 2032. This rapid rise comes from people adopting digital health technologies more. Telehealth has proven to double average monthly visits and cut appointment lengths by 60%. North America leads this transformation with 45.76% of the global market share.
How to start a telehealth business
Starting a telehealth business needs careful planning but minimal upfront costs. State and federal regulations must be followed first. You can treat patients across state lines through telehealth, but proper licensing remains crucial. Each state's medical license costs about USD 1,000 and takes 3-6 months to get. HIPAA compliance remains non-negotiable to protect patient data.
Understanding telemedicine startup costs
Original telemedicine costs range from USD 10,000 to USD 250,000 based on your approach. Technology setup needs USD 10,000-100,000, which includes software, cameras, and electronic health record integration. Staff training costs USD 1,000-10,000, depending on team size. Many business owners choose subscription-based platforms that start at USD 50 per user monthly instead of custom solutions that cost over USD 200,000.
Telehealth business models that work
Successful telehealth businesses usually pick between insurance-based models or cash-pay systems. Insurance models offer larger patient networks but need more paperwork. Cash-pay systems give more pricing freedom but might have fewer clients. A hybrid approach often works best. Monthly subscription models that give unlimited access have shown great results too.
Tools for Telehealth Business Management
These tools are vital for telehealth:
Advanced providers also use AI and machine learning to boost personalization while keeping data secure.
How Bask Health can help you get started
New telehealth entrepreneurs need the right platform partner to start with minimal investment. Bask Health makes launching your telehealth business simple with its all-in-one solution.
What makes Bask Health unique
Bask Health gives you a "Shopify for Telehealth" experience - a white-label telehealth solution you can brand as your own. The platform lets you customize every feature, design element, and service to match your business needs. Most telehealth platforms take months to set up, but our solution helps you launch in just days.
Anyone can create patient forms, set up follow-ups, and handle prescriptions without coding knowledge. This changes everything about starting a telehealth business. Traditional startup costs range from $70,000-$100,000, but our solution brings that down by a lot.
Support for telehealth and digital startups
Starting a digital health business comes with many challenges. The platform removes common startup obstacles while meeting the highest security and compliance standards.
End-to-end encryption, multi-factor authentication, and complete audit trails handle complex compliance automatically. You also get access to providers licensed in multiple states. The platform manages credentialing requirements and saves your time and money.
The telehealth market will expand from $83.50 billion in 2022 to $791.04 billion by 2032. We began the mission to help entrepreneurs grab this chance without traditional roadblocks.
Resources and tools for new entrepreneurs
The platform gives you the essential tools to deliver quality care:
- Complete patient management systems to handle registration, eligibility checks, and secure messaging
- Nationwide pharmacy network delivers medications in all 50 states
- A detailed analytics dashboard shows patient orders and customer behavior
Our partners love the support they receive - "Bask has been a lifeblood in our growth... Their EHR solutions have simplified our processes and are a great way to get insights". The right infrastructure partner makes all the difference in starting a telehealth business with minimal investment.
Conclusion
Starting a business with minimal capital is easier than ever before. This piece explores several small business ideas with low investment that show great potential for new founders. Your entrepreneurial mindset will be the foundation of your success, even more than your starting capital.
The right mindset leads to proper planning. Clear goals, realistic budgets, and knowledge of legal requirements help you make the most of limited resources and avoid costly mistakes. These basics matter whether you choose freelancing, digital products, dropshipping, virtual assistance, or print-on-demand services.
Telehealth emerges as one of the most promising opportunities in the market. The industry grows faster each day, giving entrepreneurs a way into healthcare innovation without huge capital needs.
Bask Health believes everyone should have a chance to join this growing industry. Our white-label platform enables you to start your telehealth business quickly. We include built-in compliance features and complete patient management tools. Our team handles complex technical details while you focus on quality care and business growth.
Building a successful business takes time. With dedication, the right business model, and good support systems, you can create a thriving business even with limited capital. The experience might seem tough at first, but each step brings you closer to financial freedom and the satisfaction of creating something valuable.
Your entrepreneurial success starts today. The perfect time to begin your experience is now.
References
- Bain Capital Ventures. (n.d.). Business planning and goal-setting best practices for startups. Retrieved from https://baincapitalventures.com/insight/business-planning-and-goal-setting-best-practices-for-startups/
- Inkle. (n.d.). A financial guide for the first-time founder (U.S. edition). Retrieved from https://www.inkle.io/blog/a-financial-guide-for-the-first-time-founder-us-edition
- OpenLoop Health. (n.d.). How to start a telehealth business. Retrieved from https://openloophealth.com/blog/how-to-start-a-telehealth-business
- Thinkific. (n.d.). Digital products to sell: 15+ ideas to inspire your next launch. Retrieved from https://www.thinkific.com/blog/digital-products-to-sell/
- University of Rhode Island Small Business Development Center. (n.d.). Overcoming mental barriers to starting a small business. Retrieved from https://web.uri.edu/risbdc/overcoming-mental-barriers-to-starting-a-small-business/
