3 Businesses With Low Overhead for the Broke Entrepreneur

Not every business needs millions of dollars of capital investment to get started. For most, you need enough money to cover your personal debts and a bit for advertising. Obviously, some business ideas are less overhead friendly than others. Finding the right company idea to match your expertise and cash flow will place you on solid footing for success. Here are a few to consider.

Consulting

There is a large sector of businesses that require nothing more than your brain, skill and expertise. There are a dozen different names that fall under this giant category, including consultant, contractor or simply entrepreneur. According to the Bureau of Labor Statistics, a business consultant makes an average of $75,000 annually and a health consultant makes around $61,000. Depending on the field you want to work in, you may need to take a test and get a license. For instance, a psychologist, real estate salesperson and certified public accountant each require a state license to practice. After obtaining the license, the overhead is minimal. Office space and telephones are an expense that can be as large or as small you want. To better meet the needs of your clients and customers, consider investing in a cloud-based contact center so that you are always in communication with them. Make sure that all of your overhead costs are flexible so that you are not locked into a plan that you cannot afford.

Crafty Work

Making things and selling them falls under the umbrella of manufacturing. As an entrepreneurial business, manufacturing has some mixed blessings. Raw materials, equipment and storage are natural costs of any manufacturing business, whether you are making cookies or hair clips. On the upside, manufacturing costs are variable, changing with the amount that you make. Because of this, only the initial amount of raw material is required for start-up. After that, you purchase depending on the production need. As an example, if you make and sell cookies, the flour and chocolate chips are a cost only if you are going to make and sell the cookies. The sale of this batch funds the purchase of the next group of materials with the remainder being profit. When you launch this business, be sure to keep an eye on the fixed costs, the ones that need to be paid whether or not you make a sale, versus the variable costs.

Paid-For Caring

Home healthcare and childcare is one of the fastest growing entrepreneurial businesses to establish. You are not just getting a job as a caregiver, you are starting a company that supplies care for the elderly or very young. Eldercare is a huge market in the United States with nearly 16 percent of people providing unpaid care for parents and others in the home. Childcare has even better numbers. Whether on a consistent basis or simply to offer parents a night out, being there for them is both lucrative and good for the soul. This business has very low overhead, generally being set up as a network of qualified individuals. For your younger clients, you can also add a tutoring service to the mix. There are online tutoring systems like Study.com or Tutor.com that will help you supplement your income as you begin your business.