6 Kinds of Businesses You Can Start Today
Are you looking for a way to make money online or offline? Do you have a passion, a skill, or a hobby that you want to turn into a profitable venture? If so, you might be interested in starting your own business. But what kind of business should you start? There are many options, but not all of them are suitable for everyone. In this article, we will explore six kinds of businesses that you can start today, with minimal investment and risk. These are:
Service-based businesses:
These are businesses that provide a service to customers, such as consulting, coaching, tutoring, cleaning, landscaping, photography, etc. You can use your existing skills or learn new ones to offer a valuable service that solves a problem or fulfills a need. Service-based businesses are easy to start, as they usually require little or no equipment, inventory, or overhead costs. You can also work from home or anywhere you want, and set your own schedule and rates. Some examples of successful service-based businesses are:
- Fiverr: A platform where freelancers offer various services, such as graphic design, writing, video editing, voice-over, etc., starting from $5.
- Udemy: An online learning platform where instructors create and sell courses on various topics, such as business, marketing, programming, personal development, etc.
- Airbnb: A platform where hosts rent out their spare rooms or properties to travelers who are looking for a unique and affordable accommodation.
Product-based businesses:
These are businesses that sell physical or digital products to customers, such as books, clothing, jewelry, software, apps, etc. You can create your own products or resell products from other sources. Product-based businesses require more upfront investment and planning than service-based businesses, as you need to source, manufacture, store, ship, and market your products. However, they also have the potential to generate more passive income and scale faster. Some examples of successful product-based businesses are:
- Amazon: The world’s largest online retailer that sells millions of products across various categories, such as books, electronics, clothing, groceries, etc.
- Shopify: An e-commerce platform that allows anyone to create and run their own online store without any coding or design skills.
- Etsy: A marketplace where artisans and crafters sell their handmade or vintage goods, such as jewelry, clothing, art, etc.
Content-based businesses:
These are businesses that create and monetize content for an audience, such as blogs, podcasts, videos, newsletters, etc. You can use your content to educate, entertain, inspire, or inform your audience about a topic that you are passionate or knowledgeable about. Content-based businesses are relatively easy and cheap to start, as you only need a computer and an internet connection. However, they also require a lot of time and effort to produce quality content and grow your audience. You can make money from your content by selling advertising space, sponsored posts, affiliate products, subscriptions, donations, etc. Some examples of successful content-based businesses are:
- Medium: A platform where writers publish and monetize their articles on various topics.
- YouTube: A platform where creators upload and monetize their videos on various topics.
- Substack: A platform where writers create and monetize their newsletters on various topics.
Affiliate marketing businesses:
These are businesses that promote and sell other people’s products or services for a commission. You can use your website, blog, social media, email list, or any other channel to recommend products or services that are relevant and useful to your audience. You don’t need to create or deliver the products or services yourself; you just need to direct your audience to the seller’s website through your affiliate link. Affiliate marketing businesses are easy and low-cost to start, as you don’t need to create or buy any products or services yourself. However, they also require a lot of research, marketing, and trust-building skills to find and promote the right products or services for your audience. Some examples of successful affiliate marketing businesses are:
- NerdWallet: A website that provides financial advice and reviews on various products and services, such as credit cards, loans, insurance, etc., and earns commissions from referrals.
- Wirecutter: A website that provides expert reviews and recommendations on various products, such as electronics, home appliances, fitness equipment, etc., and earns commissions from referrals.
- Smart Passive Income: A website that teaches people how to start and grow their own online businesses using various strategies, such as blogging, podcasting, e-commerce, etc. and earns commissions from referrals.
Software as a service (SaaS) businesses:
These are businesses that provide software solutions to customers on a subscription or pay-per-use basis. You can create your own software or use an existing software platform to offer a service that solves a problem or adds value for your customers. SaaS businesses require more technical and business skills than other kinds of businesses, as you need to develop, maintain, and market your software. However, they also have the potential to generate recurring and scalable revenue and create loyal customers. Some examples of successful SaaS businesses are:
- Netflix: A platform that provides streaming video on demand (SVOD) service to customers who pay a monthly or annual fee.
- Zoom: A platform that provides video conferencing and collaboration service to customers who pay a monthly or annual fee.
- Mailchimp: A platform that provides email marketing and automation service to customers who pay a monthly or annual fee.
E-learning businesses:
These are businesses that provide online education or training to customers who pay a fee to access the content. You can create your own courses or use an existing platform to offer courses on various topics, such as business, marketing, programming, personal development, etc. E-learning businesses require more content creation and teaching skills than other kinds of businesses, as you need to design, produce, and deliver your courses. However, they also have the potential to generate passive income and reach a global audience. Some examples of successful e-learning businesses are:
- Coursera: A platform that provides online courses and degrees from top universities and organizations on various topics.
- Skillshare: A platform that provides online classes and projects on various topics, such as creative, business, technology, etc.
- Masterclass: A platform that provides online classes from celebrities and experts on various topics, such as cooking, writing, acting, etc.
These are just some of the kinds of businesses that you can start today. Of course, there are many more options and variations that you can explore and experiment with. The key is to find a business idea that matches your skills, interests, goals, and budget. You also need to do your market research, validate your idea, create a business plan, and execute your strategy. Starting a business is not easy, but it can be rewarding and fulfilling if you do it right.
The Rise of E-commerce Businesses
One of the most in-demand kinds of businesses in the global market is e-commerce. E-commerce refers to the buying and selling of goods and services online, using digital platforms such as websites, apps, and social media. According to the World Economic Forum, e-commerce saw a 143% hiring increase in the United Kingdom in 2020, as more people shifted to online shopping due to the COVID-19 pandemic . E-commerce is also growing rapidly in Southeast Asia, where 70% of the population is now online and using digital services . E-commerce businesses offer convenience, variety, and competitive prices to customers, as well as lower operational costs and wider reach to sellers.
The Impact of the Sharing Economy on Business Models
Another kind of business that is showing an increase in global demand is the sharing economy. The sharing economy is a model where people share access to goods and services, rather than owning them. Examples of sharing economy businesses include Airbnb, Uber, and Spotify. The sharing economy is driven by changing customer behaviors, such as the preference for experiences over ownership, the desire for flexibility and convenience, and the concern for environmental sustainability . The Boston Consulting Group estimates that the global sharing economy will be worth $480 billion annually by 2025 . The sharing economy challenges traditional business models by creating new value propositions, reducing barriers to entry, and increasing competition and innovation.
References:
https://www.sba.gov/business-guide/launch-your-business/choose-business-structure
https://www.investopedia.com/terms/p/plc.asp
https://www.weforum.org/agenda/2021/02/most-in-demand-jobs-2021/
https://www.weforum.org/agenda/2022/05/most-in-demand-professions-list-2022/
https://www.bcg.com/publications/2017/globalization-new-business-models-global-landscape
https://www.fiverr.com/
https://www.udemy.com/
https://www.airbnb.com/
https://www.amazon.com/
