If you have as much as $20k in savings right now and looking to start a business with it, that may look like you have enough. However, don’t rejoice yet, not until you are armed with the best business to start with 20k in this post.
The average entrepreneur actually starts with an amount way lesser than what you currently have right now. So with $20k in your hand, you are way ahead of the game.
The best part is that some of these businesses can be run from home, while some are just like part-time gigs. And there are those that are easy to get started in and require little or no expertise to launch.
So, got $20,000 to start your own business? Today, I am going to talk about different business models. In fact, these business models are in my opinion the best business to start with 20k.
1. Food Truck
If you’ve noticed, you would have observed the popularity of food trucks and carts in the recent year.
The advantage of this business is that instead of waiting for people to come to you, you simply go to them.
If you are considering starting this business, chances are that you are already familiar with working in a restaurant. It then means that you’ve made up your mind to work long hours daily.
With this line of business, you are not in any way limited to the type of meal to cook. Instead, look around you to see which food sells the most and simply follow suit.
Note that one major factor to consider is the startup cost involved in starting a food truck business.
However, this will be determined by either leasing a truck for your business or outrightly purchasing a new one. In addition, be prepared to spend on things such as advertising, fuel, and other inventories.
You should also set your eyes on licensing laws as well. Also, if you don’t have enough capital to fully establish this business, starting out with a food cart should be considered instead of going the food truck route.
Finally, you must know that your ability to get patronage will depend on positioning your food truck in a high-traffic location.
This will not only lead to increased sales but will amount to free publicity for your business.
2. Senior Transition Services
As the boomer generation ages, this specific line of business will continue to get attention. As a result, it is one of the best business to start with 20k.
It is no doubt that with the ever-busy schedule of most people today, they will always require help in catering for their aged loved ones.
The major heartbeat of this business is simply to help seniors in relocating to a new home. Since senior citizens can be found all around you, most of your clients will be those already in your neighborhood.
You’ll not need too much capital to get started. Conversely, be prepared to spend more money on commercials.
3. Pet Grooming
Many pet owners are too preoccupied to care for their pets. You may help by utilizing your pet grooming business to assist them in keeping their pets clean and well-behaved.
Being one of the top business to start with 20k, no college degree or license is required to get started. It’s important to note that you can’t be afraid of pets, and you’ll need to be patient in this line of work.
In the event that you don’t know much about pet grooming, there are courses with certification available that will help you through the basics.
Don’t look down on word of mouth in this business. A pet owner that you help to properly groom his/her pet will naturally pass the word around to those around them. This will help you to land more clients.
There are various ways you can use to create awareness about your pet grooming business. Attend pet-related events and network with other groomers.
Design fliers and get them distributed at dog parks. In addition, reach out to your neighbors who own pets and introduce your new business to them.
If there are pet shops in your locality, you can liaise with the owners as a way of marketing your business. The major takeaway here is to continually show up in places where your potential client can be found.
Furthermore, as a foot-in-the-door offer, why not explore the option of grooming a few pets for your client for free just to get testimonials.
Finally, this business can be run from home if you have the space to accommodate all the tools for the trade.
You must also be prepared to also travel some distance to pick up some pets. Therefore, it does mean that you have to possess a means of mobility.
4. Real Estate Investing
You don’t need to start out as the next Grant Cardone. With a capital of $20k, you can start a real estate investment. This is one of the few businesses with desirable long-term investment potential.
Some of the gains that come with this business such passive income, tax advantages, and healthy cash flow, makes it one of the profitable business to start with 20k.
If you are so determined to get into this business, don’t allow the high upfront cost to put you off. That notwithstanding, just take solace in the fact that there are several ways to get started in this business.
If you have a strong credit score, you can use the $20k in your pocket to put down on a rental property. You may be eligible for a loan to support your real estate investment if you have a solid credit score and a steady source of income.
Please keep in mind that this approach will not immediately provide results that will make you into the next Grant Cardone. At least not for the foreseeable future.
Furthermore, after acquiring the rental property, you can turn it in for Airbnb. If the property is in good shape and located in a tourist city, you will quickly offset your monthly mortgage.
Invest in a REIT if you don’t want to deal with the complexities and paperwork of owning a rental property.
Your $20k can easily earn some yearly dividends from companies that own commercial properties. By investing in a REIT, you’ll secure a portion of real estate investment and earn passive income.
This is among the business idea that can be established for as little as a couple of dollars. Starting up is as simple as deciding on a topic about which you are both educated and enthusiastic.
In addition, you’ll need to purchase a domain and web host in order to get your blog online. The best blogging platform you should consider when starting out should be WordPress. Other things to be fully good at are website customization, keyword research, SEO, and content marketing.
However, is starting a blog that expensive such that $20k is required to get started? No, you can simply short circuit the whole process by purchasing an already established blog.
Before making any purchase for a blog, please do ensure that you use escrow service. Additionally, you must have a good eye for spotting scam websites.
Finally, the cash remaining from the purchase of the blog can be channeled into hiring writers. You will also spend some cash on content promotion as well backlinking.
You will notice results quickly if you are consistent, and your blog will eventually become an overnight success.
Once your blog begins to gain traction, you can monetize it through affiliate marketing or sponsored posts. Embedding Google advertising on your blog is another way to monetize your blog.
6. Digital Marketing Agency
Most local businesses are only good at what they do, but not with marketing online. This has ultimately made them become more focused on traditional means of marketing.
However, in today’s digital world, where most individuals spend more time online, they are undoubtedly losing out.
You could easily reach these businesses with the help of a digital marketing agency and pitch your service offering to them. Thanks to the high return on investment, your services will be a more effective marketing tool for them.
You can reach out to local businesses in the service industry and pitch them your service offering. Businesses that fall under this category are plumbers, electricians, movers, home remodelers, mold remediation, etc.
Your foot-in-the-door offer can be to help them with a well-optimized GMB listing. You can also use a website audit or a free digital campaign in which they only have to pay for the ad cost.
To get your first drove of clients, you can visit Facebook groups for local business owners and post about your offer.
7. Senior Care Business
Aging is something that is common with humans and in every generation, there will always be the aged. Since aged people are particularly known to be sedentary, it is no brainer that they will always require assistance.
However, one may argue that these aged citizens have family members who should naturally take care of their aged once.
While that is not out of place, conversely, there are situations where younger family members are too busy. This is where running a senior care business thrives.
While this business model is not related to opening a senior care home, instead, you’ll be taking care of seniors in their homes. This business is particularly for those with the heart of love.
While the basic startup cost is not much, rather, you must be ready to spend much on insurance. Licensing will be needed in some states and things like toiletries also.
In order to get patronage, you can place adverts in your newspaper. This is because the older generation tends to still lean towards the traditional media. Places, where aged people congregate, should also be your target.
Which line of business should I pursue?
While $20k is enough to get you started, however, the best business is that of your interest and passion interest.
Before starting any business, please do good research and also consult with experts in the field. Another thing to do is to understudy other successful businesses in the form of apprenticeships.
How much does it cost to start a small business?
Between $2,000 to $5,000 is required to start a small business as posited by the US Small Business Administration.
Note that the amount above is only for an average small business. Other costs will surface due to the type and nature of your business.
When talking about the best business to start with $20k, there are pretty much to consider. With any of these businesses, you can finally call yourself a business owner.
If you’re beginning a business for the first time, I wouldn’t recommend investing all of your money right away.
It is preferable to begin modestly and gradually expand. That way, you’ll be more prepared to deal with any unexpected events.
Another approach to take is to rather invest your $20k into a franchise. This will ensure that you get started with a business that already has a proven success rate.
If a regular 9-5 is not your forte, look once more at the list above and pick a business to go with.
Since I always recommend that you go with a business that requires little investment, blogging is the best business to start with 20k that I recommend. With blogging, you just start for just under $400 if you’re buying an established blog.
If you’re short on funds, I recommend reading this article. It includes a list of the best 10k businesses to start.
Thanks for reading.