Businesses with low startup costs: latest trends in tech, business, and venture capital

Looking for small business ideas with low startup costs? Search no further! Here’s your fresh and crisp overview of the business ideas with low-risk investment and high ROI.

Just as in the previous years, the industries with the quickest return on investment are Technologies (15.41%), Transport (5.66%), and Services (5.2%). Each sector includes business ideas with low startup costs, so we’ll take you through the basics first.

We’ve based this list on the latest market trends and industry developments, so yes, we’ll mention AI, environmental impact, and other hot issues changing the global market.

What is a good startup business idea?

Whatever business idea you want to realize, a solid analysis of your local market is a must. Test the viability of a startup idea in your region by conducting customer development and analyzing the competition. It’s always smart to start small to scale later.

Another essential thing is to consider the bigger economic context and events such as:

• Saving and spending decision patterns among the target audience;
• Monopoly in the market;
• Taxes and governmental regulation in your industry;
• Employment trends.

In this post, we’re discussing business ventures with low startup costs. However, entrepreneurship always entails risks. Some small business startup ideas skyrocket, others fail — often due to the larger market context. There’s no way to guarantee a return on investment in any business.

Now, let’s dive into the best startup ideas for 2024.

Startup ideas for service-based businesses

Tech repair services

As we rely on robots and computers more and more in our daily lives (think the Internet of things, for instance), we need our machines to function well. The demand for trouble-free, on-demand repairs is thus growing.

The value of electronic equipment repair services worldwide amounted to US$122 billion in 2022. This number is only expected to grow further.

Home improvement services

The same goes for less high-tech, more down-to-earth services. People need reliable contractors for tasks like plumbing, roofing, gardening, maintenance, repair, and even interior design.

An additional requirement is for these contractors to be available on demand. It's a perfect low-investment small business idea with great scaling potential. You can start by providing one type of service, and diversify your value proposition as your business grows.

Cleaning services

A specific part of this trend is cleaning and space-organizing services. This startup idea is a good fit for scaling: you can start an on-demand cleaning company with just one employee and grow as you win customer’s trust.

Taxi services

Especially in rapidly developing regions, such as Latin America, the African continent, and the Middle East, transportation lends itself perfectly to be augmented by tech.

Using innovative technological solutions to provide reliable transportation is one of the most viable and profitable tech startup ideas.

Launching a taxi business is easier when you have innovative technology to rely upon.

Onde.Light offers you a set of features suited for starting and scaling:

• Branded web solution for customers to book a taxi quickly and handy
• An app for drivers to take orders and follow optimal routes
• Automated driver billing
• The My Hub system to keep track of orders, payouts, reports, and business analytics
• The Operator app to assign and track orders.

Onde.Light makes taxis one of the most attractive businesses with low startup costs. The platform’s functionality is free till up to 1,000 rides a month. Every successive ride only requires a 1.9% commission, the market’s lowest.

This type of business has almost unlimited scaling possibilities, too. Your company can start as a taxi service and grow to provide delivery, car-sharing or other on-demand mobility services, such as airport transfers.

This way, you can launch high-tech profitable businesses with low startup costs in just days.

Zero-emission trend still going strong

The transportation and mobility industry is very much interested in further developing the zero-emissions trend. This development also includes car sharing and renting alternative electric vehicles such as bikes, rickshaws, and scooters.

In the last quarter of 2023, venture capital investment in startups contributing to emissions reduction reached its historical peak (US$7.6 billion). Globally, nearly one in five new cars sold last year were electric. This means featuring zero-emission efforts can add that extra leverage to your pitch.

While this is not strictly a business idea with low startup costs, it’s definitely a trend to consider while doing your market research.

Delivery services

On-demand delivery keeps its position among the most profitable businesses with low startup costs.

Next to regular on-demand delivery of customer goods, the new trendy tech startup idea is drone delivery. Modern drones can carry smaller loads such as healthcare products, restaurant orders, grocery, urgent public health products for remote areas, agricultural aid, you name it.

Onde.Light provides daring entrepreneurs with the perfect functionality for launching a delivery business—with or without drones. Test your business idea at a low investment with this free-to-use software, and scale later.

App development

If technology is your thing, the app development sector is still booming. All over the world, the market requires innovative apps to solve specific problems for niche target audiences.

Artificial intelligence is a notable part of this trend. While we see a worldwide decrease in VC investments in Web 3.0 applications and Metaverse-aimed startups, integrating AI into app development businesses is rising steadily.

Low-cost business startups in food and hospitality

Event Catering

An event catering business is a great small business startup idea, especially in locations with many tourist attractions, business hubs, or entertainment centers. Partnering with institutions that often require a catering partner will allow you to grow your business steadily.

Food trucks

The same applies to food truck businesses. Food truck business is a low-risk investment with high ROI, compared to other hospitality businesses, such as restaurants. It also requires a relatively small team to run.

Besides, good street food is easy to market (mainly via social media presence and subsequent word-of-mouth).

Startup ideas in education and knowledge sharing

Tutoring and coaching are still popular business ideas with low startup costs. Whatever it is you know well, you can teach. People require courses in almost everything: from language practice to using Photoshop or instrumentalizing AI for creative content creation. You can start by offering services on one of the marketplaces for educational content.

Consulting is another knowledge-based startup business idea. Many companies and organizations require independent advice in fundraising, taxes, licensing, benchmarking, you name it. Offering expertise is a great way to start a business and help others.

How to generate startup ideas?

A viable tech startup idea requires the following ingredients:

• Defining a real-life problem of your target audience;
• Market analysis, including in-depth competition overview;
• Knowing the latest social, economic, and cultural developments, locally and globally;
• Formulating a unique market proposition to persuade customers to buy your services.

Every market is different. Validate a business idea out in the wild by starting small.