50 Small Business You Can Start in the US with $50k

Does it sound impossible to embark on a small business journey with $50k or less in the US? Well, it’s not. But you need to know the right business idea to start and importantly employ the right approach.

In this comprehensive post, we explored 50 under $50k small business ideas you can start in the US. These business ideas ranged from Internet-based to home-based, and conventional physical location business that requires you to own or rent an office or a work space. Additionally, we will delve into three essential steps you must undertake before commencing your business to enhance your chances of success. Let's dive in!

The 50 Small Business Ideas to Start with Under $50k in US

Despite the consistent increase in online shopping, there remains a growing demand for brick-and-mortar establishments and franchise options businesses offering goods and services. Records show a projected growth rate of 1.7% in 2023.

With that in mind, we conducted extensive research to compile a list of profitable physical businesses and franchise options ventures that can be launched with a $50k or less investment.

3D Printing & Rapid Prototyping

The 3D printing and rapid prototyping industry is a solid investment if you are a tech-savvy entrepreneur. With a $49.74 billion market and a Compound Annual Growth Rate (CAGR) of 25% from 2018-2025, the industry is booming.

Start-up costs range from $10,000 to $50,000, and entrepreneurs can save on rent and utilities by working from home. Expenses include Industrial 3D printers, business insurance, equipment maintenance, and marketing.

The industry offers over 30% margins of profit if you implement effective sales and pricing strategies and take reasonable risks.

Dance Studio

Consider opening a dance studio. It has a growth rate of 5% and is valued at $4 billion. The key to success is hiring qualified instructors, defining your niche market, selecting suitable music and choreography, and implementing effective marketing strategies.

Initial investment typically ranges from $10,000 to $50,000 covering expenses such as rent, equipment, insurance, licensing, marketing, and staffing. Anticipate an average annual income of $67,000+.

Gourmet Coffee Kiosk (Mobile Coffee Business

Another under $50k business idea is launching a gourmet coffee kiosk in the US coffee industry. It is valued at $48 billion, with a growth rate of 5.9% CAGR from 2020-2025.

Instead of a traditional coffee shop costing over $300k, you can invest between $25,000 to $50,000 in a gourmet coffee kiosk. The major investment is acquiring a premium grinder at $20k.

Other costs include beans, equipment, cart setup, business insurance, licensing, and supplies. Where you locate your kiosk plays a pivotal role in ensuring regular daily sales, with projected annual gross incomes exceeding $165,000.

Bakery

The bakery industry generates over $423 billion in revenue in the US. You can expect to earn between $18,000 to $57,000+ annually with a CAGR forecast of 1.5% from 2020-2023. Starting a mid-size establishment ranges from $10,000 to $50,000, but you can also initiate a smaller-scale bakery for as little as $2,000 to $5,000. Location and marketing are crucial factors needed to succeed in this business.

Catering Company

With a projected annual growth rate of 3.1% from 2020-2024 and an $8 million market size, the catering industry presents promising entrepreneurial opportunities. Niche catering, offering unique products and experiences, will catapult your business to success. Start-up costs can vary from $5,000 to $50,000, depending on the operation size and location.

Food Truck

Self-employed chefs or culinary experts can opt for food trucks, offering delicious cuisine with lower start-up costs. Starting a food truck business ranges from $35,000 to $50,000. Food trucks offer increasing sales, with the industry valued at around $1.1 billion. Location plays a huge role in the sales growth of food trucks, with profits exceeding $300,000 a year.

Cell Phone Repair

The cell phone repair industry, worth about $4 billion in the United States, offers significant profit margins. With initial investments ranging from $1,000 to $30,000+, reported net revenues of $800+ per week show the steady demand for repair services. Strategic marketing and pricing strategies are crucial for success.

Tailoring/Alterations Service

Inside the $1.5 trillion global clothing market, the tailoring and alterations service industry offers a low-cost business opportunity. Start-up costs range from $10,000 to $30,000, which covers expenses like rent, equipment, and marketing. Entry-level tailors earn $12-$18 per hour, while experienced professionals can command hourly rates of $25-$35.

Co-Working Spaces

Establishing a co-working space represents a lucrative venture, with initial investments ranging from $30,000 to $50,000. Maximizing space usage and careful planning are key to success, with gross profit margins varying based on factors such as location and rental rates.

Freelance Drone Pilot Service

The drone industry is projected to reach $43 billion by 2024 with a CAGR of 20.5%. It offers lucrative opportunities for drone pilots. With an initial investment ranging from $10,000 to $50,000, covering expenses such as certification, licensing, drones, insurance, rent, utilities, marketing, and staffing, aspiring pilots can capitalize on the growing demand for drone services.

The income potential varies depending on the contracts secured, with part-time pilots earning around $500 per week and corporate contracts offering payouts of $3,500 per day.

Laundry Delivery

Starting a laundry delivery business provides a convenient service for customers seeking hassle-free laundry solutions. It requires an average start-up cost of $25,000, for equipment, like washers, dryers, and ironing facilities. Projected monthly earnings range from $9,300 to $120,000, dependent on service quality and customer satisfaction.

Luxury Watch Business

If you are interested in the luxury watch market, with an average start-up cost of $180,000, can tap into the premium segment of the timepiece industry. Sourcing or designing high-end watches, establishing a brand identity, and targeting the right audience are essential steps for success. Projected monthly revenues can range from $480,000.

Sunless Tanning Studio

Entering the sunless tanning industry, valued at over $1 billion and growing at a rate of 5.2%, presents a lucrative opportunity for entrepreneurs.

If you have a start-up capital of $50,000, you can establish a sunless tanning salon, and cover expenses like spray tan equipment and UV-free tanning solutions. Strategic location selection and targeting the right market are crucial for maximizing profits, with potential annual earnings exceeding $65,000.

Fitness Boutique

A business idea to capitalize on is the thriving health and wellness market. It boasts a value of $39 billion and an annual growth rate of 4.5%. With an initial investment ranging from $20,000 to $50,000, entrepreneurs can set up boutique fitness studios catering to specific niches. Gross profit margins vary based on your client demographics and service offers.

Meditation Center

A meditation center caters to individuals seeking self-development and holistic wellness experiences. You can invest $30,000 to $50,000 to start. Other expenses include interior design, business insurance, facility rent, utilities, and marketing initiatives. Establishing a serene and inviting environment is crucial for attracting clients and ensuring sustainable business growth.

Photography Studio

With an investment ranging from $10,000 to $50,000, aspiring photographers can establish a photography studio, tapping into various revenue streams. Services include photo shoots, online or event-based print sales, and complementary offerings. Building a strong portfolio and establishing a distinct brand identity are key factors for success in the competitive photography industry.

Vending Machines

Despite a market drop in 2021, the vending machine sector remains robust, boasting a market value of around $23 billion. Starting a business in vending machines, whether through direct purchase or franchise options requires an initial investment ranging from $30,000 to $50,000. You can typically enjoy gross profit margins from 50% and 80%.

CBD Business

With a market worth of $553.7 million in 2021 and a CAGR of 107% by 2023, entering the CBD industry presents lucrative prospects. An initial investment ranging from $10,000 to $50,000 covers various expenses such as training, consultation, permits, product procurement, marketing, and essential equipment.

Profit margins are dependent on sales performance, showing the importance of meticulous location selection and a comprehensive understanding of the target market.

Beauty Business

The beauty industry, valued at $511 billion in 2021 and poised to exceed $716 billion by 2025, offers promising avenues for aspiring entrepreneurs. Starting a beauty business requires an average investment of approximately $32,500, with segments like makeup, skincare, and hair products. Your potential monthly earnings range from $1,500 to $40,480,000.

Children's Entertainment

The children's entertainment sector is valued at $8.15 billion globally. It presents promising prospects for a slumber party business. With start-up costs ranging from $10,000 to $15,000, whether independently or through a franchise, income potential is tied to booking volume.

Your projected annual earnings are estimated between $26,000 to $225,000+, making this venture highly profitable.

eBikes Business

With an average start-up cost of $15.5K, starting an eBikes business aligns with the growing demand for eco-friendly transportation alternatives. Electric bikes offer health benefits and flexibility in urban movement. Projected monthly earnings range from $110,000 to $1,200,000, reflecting the increasing popularity of eBikes among urban dwellers.

Moving Company

Entrepreneurs entering the moving industry, with an average start-up cost of $37.2K, cater to individuals and businesses seeking reliable relocation services. Investing in moving equipment, such as trucks and dollies, and pricing services competitively are crucial for profitability. Projected monthly revenues vary from $60,000 to $2,500,000, depending on service quality and market demand.

Vape Shop

Despite controversies, the global vape and e-cigarette market boasts a substantial value of $12.41 billion. Launching and stocking a vape shop requires an initial investment ranging from $25,000 to $50,000, with potential monthly sales projections reaching up to $26,000.

After accounting for operational expenses and taxes, a vape shop can realize an annual net profit surpassing $120,000, provided it maintains a loyal customer base and adheres to regulatory guidelines.

Lice Removal/Treatment Company

The lice removal and treatment industry is valued at $1.9 billion and exhibits a growth rate of 6.5%. You can start this business with an initial investment ranging from $30,000 to $50,000 that covers essential expenses such as rent, utilities, product procurement, facility setup, insurance, marketing, staff salaries, and additional training and certification.

Exploring franchise opportunities can further augment business prospects, offering access to proven business models and support networks.

Greeting Cards Business

A greeting cards business with a start-up cost of $2.5K, taps into the market for personalized and heartfelt sentiments. Identifying a niche, designing unique cards, and offering online posting services can attract customers celebrating special occasions. Your projected monthly earnings range from $2,000 to $100,000, showing the diversity of customer preferences and occasions.

Starting a Clothing Boutique

If you have a keen eye for fashion trends and retail experience, you can start a clothing boutique. This venture requires an average start-up cost of $4.5K. Success in this business requires identifying target customers, curating inventory, and leveraging social media for marketing. Quarterly earnings potential ranges from $500 to $11,750,000, with an initial investment of $4,500.

Internet/Online Under $50k Small Business Ideas 

With more people spending significant time online, the online space provides potential opportunities to kick start an online business with under $50k.

Social Media Management Firm

With an initial investment ranging from $2000 to $50,000, entrepreneurs can create a social media management firm specializing in staying updated on the latest consumer behaviour and trends. Essential expenses include hiring specialists in social media marketing, web design, content creation, and administrative tasks. Charging rates of $40 to $60+ per hour, the firm's gross profit margin depends on factors such as client volume and pricing strategies.

Virtual Assistant

With more companies turning to remote work, establishing a virtual assistant agency is an attractive option. Startup costs range from $500 to $50,000, covering initial investments like recruitment and marketing. Over time, profits can increase as you retain clients and employ more workers. On average, virtual assistants earn between $19,000 and $66,000 per year.

Selling Information Products

One exciting business opportunity to explore is creating and selling information products. The online market for business-to-consumer product information exceeds $3 trillion globally. Expect to invest between $1000 and $50,000 in platform development and advertising. Success is driven by sales, requiring consistent effort and attention to SEO, keywords, and content quality.

Start a Life Coaching business

Starting a life coaching business is another attractive small business option, with a median startup cost of $750. Earnings potential ranges from $100 to $660,000 per month, with minimal expenses of computer, high-speed internet connection, and LinkedIn account.

Digital Marketing Arbitrage/Reselling

Retail arbitrage is an excellent business idea where one can buy and resell goods at a profit.  A start-up capital of less than $50,000 can cover initial costs, including website development, high-speed internet, marketing, inventory procurement, and utilities. Profit margins depend on securing deals and achieving high sales volume, thus emphasizing the need for in-demand products with strong conversion rates.

Chat Bot Development

Developing a Chabot can also be a lucrative business idea. The development of Chabot’s requires serious effort and creativity to meet evolving business needs. A one-time capital investment of $6000 to $15,000 covers development costs, including design and integration. Potential income ranges from $2000 to $10,000+ per month, with opportunities for outright sales fetching $5000 to $50,000+.

Web Development and SEO Firm

Another promising business idea is Web development and an SEO firm. The web development, design, and SEO industry is valued at over $38 billion. By specializing in specific services, you can capitalize on market fragmentation, targeting niche projects and distinguishing yourself from competitors. Start-up capital ranges from $5000 to $50,000, covering expenses like rent, utilities, equipment, marketing, and staffing. Gross profit margins typically depend on monthly expenditures and client retention rates.

Crowdfunding Platform

A crowdfunding platform is another lucrative idea that enables individuals and businesses to raise capital from a broad online audience. Success depends on offering a user-friendly platform that attracts contributors seeking to fund diverse projects. Gross profit margins vary based on project scale, compensation agreements, and platform popularity.

Copywriting Agency

In today's digital age, professional copywriting services are essential for businesses looking to maintain their competitive edge. With an initial investment ranging from $10,000 to $50,000, you can kick-start a copywriting agency with initial expenses for office rent, utilities, equipment, software, marketing, and salaries for staff members.

Experienced copywriters typically charge rates ranging from $25 to $100+ per hour, with gross profit margins influenced by factors such as pricing strategies, the volume of clients served, and operational efficiency.

Software Engineering & Development Call Center

Starting a software engineering and development call center is another profitable business that presents potential growth opportunities.

With an initial investment ranging from $2000 to $50,000, you can provide software development services to businesses and industries worldwide.

The software development industry is valued at over $500 billion globally, with specialized services like Python development commanding high compensation. Software developers' average salary exceeds $100,000 per year.

Design Agency

Establishing a design agency is another attractive business idea with an investment ranging from $10,000 to $50,000. With a design industry valued at over $11 billion and projected to grow by 1.5% in 2021, skilled professionals with impressive portfolios and strong reputations can thrive in this market.

However, it depends on various factors like pricing strategies, location, operational efficiency, and marketing tactics. Experienced designers make annual wages ranging from $27,000 to $78,000+.

Build a Chrome Extension

For those skilled in programming and coding, creating a Chrome extension presents a lucrative opportunity. The median startup cost for a Chrome extension is $3.5K, with the potential for monthly earnings up to $17,366,666.

Ticketing platform

Another promising business idea to start is a ticketing platform that facilitates online ticket sales for events like concerts, sports games, and festivals. The median startup cost is $60K, with monthly earnings ranging from $10,000 to $1,500,000. Success in this venture depends on partnering with venues and event organizers and driving marketing efforts to boost sales.

Starting an Online Co-working Platform

You can consider starting an online co-working platform. To launch an online co-working platform, consider creating a user-friendly website or app using affordable website-building platforms or hiring freelancers for development. Potential monthly earnings range from $3,000 to $225,000, with a median startup cost of $50.5k.

Starting an Etsy Shop

Establishing an Etsy shop is an affordable small business option. The platform provides an avenue for creators and small business owners to sell handmade goods, craft supplies, and various products, with an average startup cost of $1K. Potential monthly earnings range from $100 to $750,000.

Home-Based Small Businesses Under $50k

Home-based small businesses under $50k are increasingly popular alternatives to traditional brick-and-mortar business ventures.

Virtual Bookkeeping Business

A virtual bookkeeping business is an excellent option, allowing entrepreneurs to operate remotely using cloud-based software and secure online platforms. Adequate training and software research ensure efficient services to clients. The average annual earning of a virtual is $45,500.

Freelance Writing

Freelance writing skills can be utilized to launch a profitable business venture requiring minimal startup costs. With the high demand for digital content, now is an excellent time to become a freelance writer.

Skilled writers can make money online and gain exposure on social media networks such as LinkedIn and Twitter. To succeed in this business, one needs to invest in developing a writing portfolio, knowledge of SEO and other digital marketing tactics, and resources such as editing tools and software. Depending on the niche, an average freelance can earn $45,000-$85,000 annually.

Graphic Design Self-Employed Services

Graphic design is a versatile field with numerous applications in different sectors, such as marketing, branding, and website creation.

With low costs for equipment such as Adobe software and printers, entrepreneurs with graphic design skills can offer their services to businesses across many industries.

Offering graphic design services as an online freelance option is a new trend that requires creative thinking and skillful execution. Freelance graphic designers can earn $50,000-$120,000 per year.

Woodworking business

Starting a woodworking business is a profitable venture for individuals interested in a hands-on entrepreneurial endeavor.

With a median cost of $30k, which is relatively low compared to other businesses, woodworking offers unlimited earning potential. Entrepreneurs can create custom wood pieces, offer woodworking classes, start a woodworking blog, or engage in furniture flipping.

This business allows for remote work while still generating profits, making it an attractive option for those seeking flexibility and creativity.

Pet grooming business

Pet grooming is another appealing small business with a median startup cost of $18.3k. This service involves offering care and maintenance for pets' physical appearance and hygiene by offering services such as bathing, hair trimming, nail clipping, and ear cleaning to dogs and cats.

Establishing a competitive edge through high-quality grooming services and strategic advertising can result in earnings of between $54,000 and $250,000 per month.

Event planning business

Event planning offers an excellent opportunity to earn high returns on investment with a median startup cost of $14.2k. Event planners handle responsibilities such as selecting venues, arranging food, decor, and entertainment, and overseeing operations at the event site.

Event planners can utilize free or low-cost online tools, including marketing strategies for small-scale events and expansion to more significant events for a potential earning of between $35,000 and $500,000 per month.

Personalized gift baskets business

Creating and selling customized gift baskets is a viable small business idea with a median startup cost of $11k. Customized gift baskets allow entrepreneurs to showcase their creativity by including various items such as snacks, skincare products, and other handmade crafts. Strategic marketing and high-quality products can yield significant monthly earnings.

Dropshipping Business

Dropshipping is a growing e-commerce business model with an average startup cost of $6k. By establishing an online store using platforms like Shopify or WooCommerce, entrepreneurs can sell products without managing inventory.

Partnerships with reliable suppliers from platforms such as AliExpress make it easy to list products in online stores. Focusing on marketing and customer service can help grow the business with the potential to generate earnings ranging from $6,000 to $3,000,000 per month.

Podcasting

Starting a podcast is another lucrative under $50k small business idea. With a median investment of $2k, podcasting offers an excellent medium for entertainment and information-sharing. Based on passion and targeting the existing audience, it is essential to produce high-quality audio content using microphones and headphones.

Podcasters can publish their episodes on free or affordable hosting platforms and reach listeners through social media, online communities, and word-of-mouth marketing. Podcasting can yield between $400 and $1,020,000 per month depending on audience size, niche popularity, and advertising revenue.

3 Essential Considerations Before Launching Your Under $50k Business

Before diving into the realm of entrepreneurship with your under $50k business idea, it's crucial to address three fundamental aspects that can significantly impact your journey to success.

1. Thorough Research: Prior to embarking on your entrepreneurial endeavour, conducting comprehensive research is paramount. This involves delving into the experiences of both successful and unsuccessful individuals within your chosen industry. By learning from their insights, you can glean valuable lessons and avoid potential pitfalls. Additionally, conducting market research enables you to gauge the viability of your business idea, understand your target audience, and devise strategies for growth and scalability.
2. Strategic Planning: Following thorough research, the next step is meticulous planning. A well-defined plan serves as a roadmap, providing clarity and direction for your business venture. It helps you avoid operating on erroneous assumptions or relying solely on hope for success. Through strategic planning, you can outline concrete steps, set achievable goals, and establish timelines for implementation. This proactive approach enhances your chances of navigating challenges effectively and achieving your desired outcomes.
3. Agile Implementation: Once your research is complete and your plan is in place, it's essential to swiftly implement your well-thought-out ideas. In the dynamic landscape of entrepreneurship, agility is key. Rather than waiting for perfection, embrace the mindset of an active doer. Recognize that not all your ideas will be flawless, and that's okay. By taking prompt action, you create opportunities to learn from mistakes, iterate, and refine your strategies. Embrace the journey of growth and evolution, and be open to adapting your approach as you progress.

FAQs on Starting a Small Business Under $50k

For entrepreneurs with a budget under $50k, starting a small business requires careful planning, market research, and strategic execution. This guide provides helpful answers to frequently asked questions on starting a small business under $50k.

What are some business ideas that you can pursue with an under $50k budget?

Consider starting an Etsy shop, running a food truck, opening a personalized gift shop, providing freelance writing services, or podcasting.

How do I determine which business is the best fit for me?

To determine the most suitable business idea, evaluate your skills, interests, and the current market demand for your potential business. Conduct thorough market research and develop a comprehensive business plan that considers potential challenges and opportunities, in order to make informed decisions and increase your chances of success.

How long does it take to see a return on investment in a new business?

Achieving a return on investment in your new business varies depending on various factors such as industry, competition, and business model. Having good financial planning and being prepared for unexpected challenges or slower growth is essential to achieving long-term success.

What are some common mistakes to avoid when starting a new business?

Mistakes and common pitfalls to avoid when starting a new business include inadequate research, underestimating expenses, lacking a comprehensive business plan, and failing to understand your target market or audience.

Final Thoughts

Starting a small business in the US with a budget of under $50k requires innovative thinking, careful planning, and effective execution. This comprehensive guide provides guidance through a range of under $50k small business ideas, from dropshipping and podcasting to pet grooming, personalized gift baskets, and event planning, etc. Entrepreneurs can explore viable business ideas based on their unique skills, interests, and market demand, allowing them to launch their under $50k business ventures with confidence. Do you have any questions regarding starting a business in the US with under $50K? Contact Foundeck for help.