No matter how great your business concept is or how well-prepared you are, there is always some uncertainty and risk when launching a product or service into the market, especially recently when economic volatility has ruled the global landscape.
Starting a new business entails a certain amount of risk, so when it comes to developing a low-investment and highly profitable business, there’s no doubt that globalization and digitalization can be great allies to any business.
Currently, as many professionals are leaning towards developing their own business or a side gig, it becomes interesting to understand the emerging business trend and the technology that supports them.
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1. Creating a monetizable audience
Getting a group of people to support and follow your thoughts is a huge barrier that most business owners, subject matter experts, and artists never overcome. Yet, in today’s digital world, creating a substantial influence over a large audience online can evolve into significant earning opportunities.
Building an online and faithful community takes a lot of effort and strategy, but professionals can monetize their digital audiences through different methods:
- Offering a productized service for sale.
- Starting a Patreon page.
- Creating a paywall.
- Displaying advertisements on your blog, newsletter, or profile.
- Promoting the products of other businesses.
- Becoming an affiliate marketer.
- Hosting an event.
- Assembling a mastermind group.
- Creating and selling digital items or product subscriptions
In 2020, a single user spent 474 minutes daily on social media, and in 2023 it’s expected that this figure will rise even more. Now, as analysts forecast that the average customer will spend up to 500 minutes per day on online media, this is a good time for professionals who seek to build an audience since big brands will invest in sponsoring content creators that help them reach their audience.
Although time, effort, and knowledge are necessary to monetize an audience, it’s easy to start working on it and develop a business with low investment.
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2. Launching a dropshipping business
This type of business is a low-investment model where a third-party provider stores and sends merchandise to customers on behalf of the business owners. Due to its nature, it’s a great business idea since it’s low-cost, hands-off, and scalable.
A dropshipping model is a business with low investment since it’s not necessary to invest in purchasing and stocking products. Also, it lowers the risk since the businessperson will buy the goods from the manufacturer only when an order has been placed and paid.
The downside of this business model is that it has fewer profit margins and must gain a significant volume of sales to account for a good profit.
3. Setting up a membership program
A membership program is another revenue-generating source that includes low investment and provides a good source of income. In essence, it follows the idea that customers invest in having exclusive conveniences and a better experience of the entire business.
Memberships are perfect for businesses with a strong, active, and engaged community where customers can make frequent payments in return for a virtual product or service.
These programs are ideal for providing members-only access to website material, guided online sessions, Facebook groups, or Telegram groups, among other platforms.
At last, fortunately, there is an oversupply of membership software available to assist businesses in establishing any style of the online community to which well a membership. The available technology will ease the path to developing alternative subscription plans, managing members, accepting online payments, and more.
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4. Selling subscription boxes
Part of being an exclusive member of any business is to get items before the general public or in a personalized manner. Here is where a subscription box jumps in. The entire concept is that companies send monthly/weekly subscription boxes to their members with the newest and latest products that are either a prototype or newly released products as a gift.
One great example of this model is Lovevery which is an “Award-winning, Montessori-inspired toys and subscription boxes for babies and toddlers. Designed by child development experts and sustainably made.”
5. Purchasing vending machines
Purchasing a vending machine is a great way to earn a passive income without any huge investment. Overall, the idea is that once you buy a vending machine, you place it strategically so that it becomes convenient for people to purchase what the machine sells.
To make this business profitable it is crucial to select a location to determine and analyze the profile of the people passing by and what they may require so the products served might solve their needs.