According to the Bureau of Labor Statistics, around 20% of small businesses fail within the first two years of opening, and this number jumps to around 50% after five years, and over 65% after 10. As you can see, starting a business can be very risky, and if you’re not careful, you can end up bankrupt with all your dreams shattered.
However, the good news is that you can minimize risks by choosing business models that don’t require a large upfront investment or excessive overhead costs. In today’s unpredictable economy, many people are turning to low-risk ventures that allow them to test the waters of entrepreneurship without putting their financial stability on the line.
So before diving into entrepreneurship feet first, you need to think things over first. And part of that is having solid business ideas and plans, as that’ll get you through difficult hurdles.
If you need low-risk business ideas, then keep reading. Here are some you can consider for your new venture.
8 Low-Risk Business Ideas for Success
1. Errand and Concierge Services
By running errands and providing concierge services, you’re not putting in much capital to start this business; in fact, it’s a zero-investment business. What you offer isn’t tangible, so you’re only relying on yourself to make customers happy.
This is a low-risk option because you won’t need to buy expensive equipment, and you can start offering services immediately. Since you’re essentially selling your time, your investment is minimal, allowing you to test the market with little to no financial risk.
Plus, the demand for these services won’t die down easily. People will always need help, whether it’s because they’re too busy or aren’t able-bodied enough to handle tasks on their own. For example, you can book appointments for busy professionals or run errands for local seniors.
Do note that it can be beneficial to start in affluent neighborhoods. These people will have more disposable income and will value time-saving services more as well.
2. Print-on-Demand Services
Have you ever thought, “I’d love to get particular merchandise, but no one makes it”? Well, you’re not the only one, and this is where you can really shine.
A print-on-demand business can let you bring those merch dreams to life, but without the risk of dealing with inventory. You’ll only produce items like custom t-shirts, mugs, or posters when someone actually makes a purchase.
The low-risk nature of print-on-demand comes from the fact that you’re not required to hold inventory or invest in printing equipment. Companies like Printful or Redbubble take care of fulfillment, which allows you to focus on creating unique designs and promoting them.
This is doable through platforms like Printful or Redbubble. You just have to provide the designs, and they’ll take care of the rest. This means that you can either create the designs yourself or work with someone to realize your visions.
3. Property Management
There’s always money in real estate, but admittedly, it takes huge amounts of cash to get into this industry. But don’t feel left out if you don’t have access to lots of capital, as there’s a great alternative with lower risks: property management.
Here, you can manage properties on behalf of owners, which negates the investment of significant capital to own the properties yourself. Responsibilities include: Tenant relations Rent collection Maintenance
You’ll profit by taking a commission for the services provided. This business is low-risk because you’re leveraging someone else’s asset to generate income. You won’t have to invest large sums to buy property, yet you’ll benefit from the stability of the real estate market.
If you start by managing a few properties, you can then scale your client base as you gain experience.
4. Event Planning
Unfortunately, there are bad clients who skip out on bills. This might make you hesitant to tackle larger projects, even though they can be very lucrative.
If this is your worry, then event planning can be the best low-risk business to start for you. You typically get paid deposits or partial payments upfront for organizing events, which reduces your financial risks.
Starting small is key here—specialize in more manageable events like weddings or corporate meetings, then gradually build your client base. Event planning remains low-risk because most clients will pay in installments or upfront, which ensures that you’re not shouldering the entire financial burden.
You can decide to specialize in small events like weddings, corporate meetings, or local gatherings so you’re not overwhelmed either. Then, over time, you can add larger events to bring in more money.
To build your portfolio, offer discounted services for your first few clients. This can generate referrals, and if you’re lucky, it’ll have a snowball effect.
5. Subscription Box Services
One of the most creative low-risk small business ideas is subscription box services. It’ll take a little work to curate products, but if this is something you’re passionate about, then you’ll definitely have some fun.
Subscription box businesses are low-risk because you can start with small inventory, gauging interest as you go. If demand grows, you can scale your business accordingly, avoiding the risk of overcommitting financially.
A subscription box company is low risk because you can start with a small inventory to test demand. With a small investment on your part, you can then put together boxes that people are curious about.
There are many fields to get into too. For instance, you can try wellness, beauty, or hobby products.
Whatever you choose, offer monthly subscriptions. Start small, with targeted marketing to gauge interest, and then scale based on demand.
In addition, consider registering a business to have a more professional appearance. We have a free business registration service you can use, which can help keep costs down.
6. Content Creation
If you have artistic skills, then content creation is one of the safest businesses to start. You already possess all the necessary knowledge and experience, and chances are, you have the tools and equipment too. Otherwise, you don’t have to spend much to get the basics.
One reason this business is so low-risk is that you’re monetizing your existing skills, meaning there’s little need for upfront investment. If you already have a camera, computer, or art supplies, you’re ready to start.
Brands will pay for quality content like blog articles, photos, or videos. For this reason, specialize in a niche like travel, food, or fitness. This will position you as an expert content creator in a specific area, which will cause brands to seek you out.
7. Affiliate Marketing
Affiliate marketing is a great low-risk business idea since you don’t have to invest any of your own money or energy into making or purchasing products. Instead, you market items or services for other people or companies. You’ll then earn a commission for any purchases made through your affiliate links.
This business is low-risk because you don’t have to handle inventory, shipping, or customer service. Instead, you can focus entirely on content creation and marketing, letting the affiliate companies take care of the rest.
This can be an interesting way to get into entrepreneurship without handling inventory or shipping. Many affiliate marketers promote products by using blogs, websites, and/or social media, so you can follow in their footsteps.
Just make sure to choose things that you believe in and align with your personal brand. Focus on high-quality content to build trust with your audience.
8. Online Reselling
Thrift flipping can be an outstanding option for those who like shopping. If you already frequent thrift stores, flea markets, or online auctions, and you have a sharp eye for quality items, then you’ll thrive with online reselling.
Start small by purchasing a few things from the above places, then resell them for a profit on platforms like eBay or Poshmark. Try to hone in on reselling vintage, rare, or branded items, as these will fetch handsome prices.
Since you’re starting with items from thrift stores or flea markets, your investment is small. This low-risk business allows you to test the waters with minimal upfront cost, and as you make sales, you can reinvest profits into more valuable items.
It’s also best to start with products you’re knowledgeable about. For example, if you’re a Pokemon fan, you may be able to spot vintage/discontinued cards or merchandise that clueless parents have donated to thrift shops.
Draw Inspiration From These 8 Low-Risk Business Ideas
Leaving a 9-to-5 job and becoming your own boss can be scary, especially when you consider the failure rate of small businesses.
But don’t let those statistics scare you. If you use our low-risk business ideas, study up on your industry, and put your heart and soul into your company, you’re sure to generate a steady income.
Ready to Take the Plunge? Whether it’s registering your business, setting up a virtual mailbox, or finding a registered agent, Business Anywhere can help. With our affordable and easy-to-use services, you can focus on building your business while we take care of the paperwork.
