Many Americans want to own a business but may not know how or where to start. Financial expert Codie Sanchez is on a mission to help aspiring entrepreneurs achieve their dreams.
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Here are five business ideas that she says are low in risk with minimal barriers to entry.
Bookstore
A new bookstore can be as simple as a pop-up stand inside a coffee shop.
Startup Costs
For a small pop-up store, you may need:
- Rent: varies (try to partner with an existing business)
- Shelving and fixtures: $500 to $2,000
- Inventory: $5,000 to $10,000 (thrifting can help lower your costs)
Case Study: Ryan Holiday
Ryan Holiday started the Painted Porch, a bookstore that’s filled with books he personally recommends. Because he lives in a small town, his rent is cheap, and he’s able to capitalize on a unique shopping experience that online stores can’t match.
Considerations
Beginning as a pop-up can help you test your profitability while partnering with an established business lets you leverage its existing traffic. Additionally, print book sales are on the rise, so now may be the perfect time to start a bookstore.
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Mobile Food Service
Mobile food services range from simple coffee carts to fully equipped food trucks.
Startup Costs
For a basic coffee cart, you might start with:
- Cart and equipment: $3,300 to $12,000
- Inventory: $500 to $2,000
- Permits and fees: subject to local regulations
Case Study: Catherine O’Brien
Known as the Ice Cream Lady, Catherine O’Brien sells ice cream out of a custom bike-cooler combo. She started in 2015 with an initial investment of $8,500, which covered her bike, permits, supplies and inventory. Since her launch, she’s sold more than $1.6 million of ice cream, and her business continues to thrive.
Considerations
Mobile food services can meet customers where they are, eliminating the need to establish a fixed location. This makes your market extremely flexible. However, you’ll need to familiarize yourself with local business requirements to evaluate whether the permits and fees are cost-effective for your situation.
Florist
You can start a flower shop right from home and scale up if needed.
Startup Costs
To start at home, here are some expected costs:
- Tools and supplies: $200 to $300
- Inventory: $300 to $500
- Business registration: $50 to $200
Case Study: Christina Stembel
Christina Stembel founded Farmgirl Flower in San Francisco with an initial investment of $50,000. Today, her business sends bouquets all over the country and has partnerships in Colombia and Ecuador.
Considerations
To start, consider freelancing for small events like weddings or receptions. This makes it easy to work your new business into your existing schedule. Once you establish profitability, you can scale your business up to accommodate larger clients and events.
Pet Care
Pet care is a flexible business that can include grooming, dog walking, boarding and more.
Startup Costs
You can start a simple dog-walking business for less than $100:
- Leash and treats: $20 to $50
- Flyers: $10 to $50
Case Study: James and Katie Fleming
The Flemings acquired the Fido Spa for $340,000 with a down payment and financing and then focused on better customer care and consistent pricing. James was able to quit his job in law enforcement, and the Fido Spa is on track to open a second location.
Considerations
Pet expenditures in the U.S. have been on the rise and are expected to surpass $150 billion in 2024, making now a great time to get into the industry. However, Sanchez warns that animals can be unpredictable, so this business may not be for everyone.
5. Landscaping
A landscaping business could include anything from day-to-day upkeep like mowing and trimming to large-scale landscape architecture.
Startup Costs
For a small lawn-mowing business with no employees, these are some upfront costs you can expect:
- Mower: $500 to $1,000 (more for a commercial-grade mower)
- String trimmer: $100 to $500
- Truck: $10,000 to $75,000
- Trailer: $1,000 to $6,000
Case Study: Nolan Gore
Nolan Gore purchased Top Choice Lawn Care when it was failing and scaled its revenue from $1.6 million to $7.5 million. He believes that to grow a business, practical management experience is more important than theoretical knowledge.
Considerations
A lawn care or landscaping business is perfect for entrepreneurs who don’t want to hire many employees. Once you have a network of existing clients, though, you can consider scaling up to offer more services.
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This article originally appeared on GOBankingRates.com: 5 Low-Risk Businesses That Are Easy To Start, According to Financial Expert Codie Sanchez
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