Nowadays, most people who get their tax return or perhaps a work bonus might start wondering what businesses to start with 5k. It seems like a shame to spend it just like that, so why not make it grow and transform it into one of the most profitable businesses out there?
The problem is that there are many startup business options - so, what would be the best ideas to try out? What niche market should you go into? Well, here are a couple of business ideas that will require only a small initial investment of 5k or less.
Note: You can get all the tools to start your business with Bonsai. From the proposal, contract, invoice templates as well as an expense tracker and business bank account if you open an account today. Claim your 14-day free trial here.
If you have the space in your backyard and a green thumb, then you may start a backyard nursery. You won't even need $5k for that - around $2k will be more than enough. For the most part, you will only need to buy seedlings.
For example, you may buy some Japanese maple seedlings wholesale for about 75 cents. When those seedlings grow, you should be able to sell them for 50 dollars or even more. Even if you have a small 20-feet garden, you can easily grow around 15 seedlings, which makes it one of the most profitable business ideas.
You can also plant standard things such as shrubs. You'll be surprised how many people want to buy them, as not everyone has the green thumb to turn a seed or seedling into an actual plant. It's a small business that can bring a few thousand dollars in profit while giving you some nice outdoor time.
Do you have the knack for repairing stuff? Perhaps you've been repairing your friends' and relatives' computers, phones or radios. Or maybe you've always liked to take electronic equipment down, to see exactly what makes it tick.
If that's the case, you may consider being your own boss at home and starting a repair business. The initial costs can be quite low, as you only need to find replacements for the broken parts - which are included in the price of the repair anyway.
To lower the costs, even more, you may have your customers bring the electronics in themselves. This way, you won't be wasting money on gas.
Plus, you may encourage your clients to give you their old, broken-down electronic equipment. Most people just keep it in the garage, simply because it's against the law in most states to throw it in the dumpster. By taking the items off your customers' hands, you may use them as parts for your next repair project.
If you like doing DIY jewelry and have an eye for accessories and fashion, then you can give jewelry design a try. This is a job befitting college students, as you will need no online assets except for a website (or perhaps just an Etsy account).
Remember that once you have all your ideas nicely put together, you may want to secure intellectual property rights. Otherwise, you risk people stealing your ideas from right under your nose.
Depending on the size of your business, you may even need a storage unit. Even with that, you won't require more than 5k to get things started.
If you have some accounting knowledge, then you may try going for an accountant service. The advantage to this is that most of the services can be provided online - so, based on what you are offering, you may not even need to rent a physical office. Your home office should be just enough.
You may simply do the bookkeeping of a business, or you may even offer income statements, balance sheets, and annual reports. Depending on your pool of knowledge, you may even put tax accounting on the table, a many new business owners need help in that area.
As long as you have all the tools, you won't need a big capital. For instance, subscriptions to financial platforms such as Bonsai can simplify things.
Search engine optimization services and copywriting businesses are among the most profitable small businesses today, as everyone wants to get their business known through marketing.
If you know how to use keywords or how to make the most of social media advertising, then you may want to start a consulting business. Consultants can earn money no matter if they are in human resources or technology, but SEO consultants and copywriters are the most popular today.
You won't even need much capital to offer consulting services. You just need to create a website to show that you have the skills they are looking for. Here's a guide on how to land freelance writing clients.
If you don't have any website building skills, may want to hire some web designers or a WordPress web development team to handle your website "skeleton," so to speak.
Once they put it up, use your SEO knowledge to increase your website's ranking. If people start coming your way, you already have what it takes to be an SEO consultant.
Everyone who wants to run a successful business requires a business plan. Even you will need one. The problem is that not everyone knows how to do market research or plan a business, which is why they often end up failing.
You can offer electronic business plans to your potential clients, allowing them to brush up on the drafts from there as they see fit. You may also offer to tweak them whenever it is necessary, helping them grow their business.
Make sure that you always have a few samples to show your clients, and that you do not skip on making your own business plan. You should also ensure that you have a solid social media presence, as this will bring more clients your way.
Food trucks are expected to gain quite a bit of popularity, and it's understandable why. Not only do they bring specialty food products to the masses, but they also spare people from having to cook the foods themselves.
Plus, unlike restaurants and food shops, a food truck can be taken exactly where you expect the buyer to be. As a result, you can use it for farmers' markets, festivals, town squares, and many more.
You need to get in contact with the local health department, to see exactly what your state regulations are and what licenses you will need. Buying the food truck itself is the most expensive part, but you may start by renting one first. This way, when your business starts getting income, you may expand and buy your own food truck.
Do you have mad physics or chemistry skills? Or perhaps you are very good at English or any other language. In that case, you may consider passing it on to other people.
Online courses are quite popular nowadays. However, depending on your neighborhood and your teaching style, you may also consider a physical business structure aside from online learning. The variety will bring you more clients.
Start by figuring out who your target audience is, and determine what your services are going to be. Do you plan on offering your services to small children? Or do you want to teach at a high school level?
Regardless of your audience, make sure that you do thorough social media marketing. You need people to see your name out there if you want your tutoring business to have any success.
More and more people with small businesses are outsourcing their administrative tasks to virtual assistants, saving them time and money. If you have the expertise of being an assistant, then this might prove beneficial for you.
All you need is a computer that is up to date, a reliable Internet connection, strong communication skills, and an organized mind. These days, almost everyone has a good computer and an Internet connection.
Therefore, if you can check those other aspects down as well, then this side gig will not cost that much. You won't even need the full $5k to put everything together.
Plus, virtual assistants are in high demand, and a well-organized company with its business licenses in order can easily make up to around $35,000 per year.
If you have a wider driveway or a larger space that you don't use, you can easily turn it into a car wash business. Cleaning services - regardless of the object of the cleaning - are quite inexpensive. You will only need to buy the cleaning tools and products first.
You don't need to get anything fancy at first - just a hose, buckets, some cleaning rags and brushes, a pressure washer, and the cleaning products. You won't even need $5,000 for that. A mobile car wash can require an even lower initial cost, as you won't need to rent a physical space.
After you start getting more income, you can focus on expanding your business. You can get more tools to make your job easier, or you may rent a space where you can only provide that business. This will make you look more professional, bringing even more clients your way.
If you are one of those who learned their way around computer software and building websites, you may try your luck with web design. The best thing about this kind of business is that you can do this from anywhere, and you just need a good computer and the right software.
Nowadays, every business owner wants a website, but not all of them will have the time and knowledge to create it themselves. You can charge up to $50 per hour for a business that costs you about $100 to set up.
With a web design business, you won't necessarily have to take professional classes to learn your trade. There are plenty of books and online tutorials that you can use to learn everything by yourself. Use the knowledge to create your own website, which can double as your portfolio.
Note: If you want to start a web design business, you'll need some nice invoices, web design contracts, and proposals to land clients. Bonsai can help with that. Our all-in-one freelancer software can help you streamline these tasks so you can focus on growing your business. Claim your 14-day free trial here.
If you like spending time in the outdoors and you have an artistic touch for gardening, then you may want to consider giving landscaping a try. All you need here is the equipment.
With a 5K budget, it might not be possible to buy a truck - but the advantage is that you won't have to get everything right away. You may rent the equipment firsthand, and once you gather some money, you can buy your own landscaping truck.
This is one of the best small business ideas if you live in a busy neighborhood, as people will not have enough time to clean the yards or mow the lawn by themselves. As a result, they will hire someone else to do this for them. Try our landscaping design proposal templates to help you get your business off the ground.
Nowadays, there are plenty of ways for you to start a business, without requiring ridiculous capital. If you go for the online marketplace, the costs are actually quite low.
Whether you are a student looking for some extra cash or a property owner wanting to make the most of your space, you can make a profit with the right business idea.
A verbal contract (formally called an oral contract) refers to an agreement between two parties that's made —you guessed it— verbally.
Formal contracts, like those between an employee and an employer, are typically written down. However, some professional transactions take place based on verbally agreed terms.
Freelancers are a good example of this. Often, freelancers will take on projects having agreed on the terms and payment via the phone, or an email. Unfortunately, sometimes clients don't pull through on their agreements, and hardworking freelancers can find themselves out of pocket and wondering whether a legal battle is worth all the hassle.
The main differences between written and oral contracts are that the former is signed and documented, whereas the latter is solely attributed to verbal communication.
Verbal contracts are a bit of a gray area for most people unfamiliar with contract law —which is most of us, right?— due to the fact that there's no physical evidence to support the claims made by the implemented parties.
For any contract (written or verbal) to be binding, there are four major elements which need to be in place. The crucial elements of a contract are as follows:
Therefore, an oral agreement has legal validity if all of these elements are present. However, verbal contracts can be difficult to enforce in a court of law. In the next section, we take a look at how oral agreements hold up in court.
Most business professionals are wary of entering into contracts orally because they can difficult to enforce in the face of the law.
If an oral contract is brought in front of a court of law, there is increased risk of one party (or both!) lying about the initial terms of the agreement. This is problematic for the court, as there's no unbiased way to conclude the case; often, this will result in the case being disregarded. Moreover, it can be difficult to outline contract defects if it's not in writing.
That being said, there are plenty of situations where enforceable contracts do not need to be written or spoken, they're simply implied. For instance, when you buy milk from a store, you give something in exchange for something else and enter into an implied contract, in this case - money is exchanged for goods.
There are some types of contracts which must be in writing.
The Statute of Frauds is a legal statute which states that certain kinds of contracts must be executed in writing and signed by the parties involved. The Statute of Frauds has been adopted in almost all U.S states, and requires a written contract for the following purposes:
Typically, a court of law won't enforce an oral agreement in any of these circumstances under the statute. Instead, a written document is required to make the contract enforceable.
Contract law is generally doesn't favor contracts agreed upon verbally. A verbal agreement is difficult to prove, and can be used by those intent on committing fraud. For that reason, it's always best to put any agreements in writing and ensure all parties have fully understood and consented to signing.
Verbal agreements can be proven with actions in the absence of physical documentation. Any oral promise to provide the sale of goods or perform a service that you agreed to counts as a valid contract. So, when facing a court of law, what evidence can you provide to enforce a verbal agreement?
Unfortunately, without solid proof, it may be difficult to convince a court of the legality of an oral contract. Without witnesses to testify to the oral agreement taking place or other forms of evidence, oral contracts won't stand up in court. Instead, it becomes a matter of "he-said-she-said" - which legal professionals definitely don't have time for!
If you were to enter into a verbal contract, it's recommended to follow up with an email or a letter confirming the offer, the terms of the agreement , and payment conditions. The more you can document the elements of a contract, the better your chances of legally enforcing a oral contract.
Another option is to make a recording of the conversation where the agreement is verbalized. This can be used to support your claims in the absence of a written agreement. However, it's always best to gain the permission of the other involved parties before hitting record.
Fundamentally, most verbal agreements are legally valid as long as they meet all the requirements for a contract. However, if you were to go to court over one party not fulfilling the terms of the contract, proving that the interaction took place can be extremely taxing.
So, ultimately, the question is: written or verbal agreements?
Any good lawyer, contract law firm, or legal professional would advise you to make sure you formalize any professional agreement with a written agreement. Written contracts provide a secure testament to the conditions that were agreed and signed by the two parties involved. If it comes to it, a physical contract is much easier to eviden in legal circumstances.
Freelancers, in particular, should be aware of the extra security that digital contracts may provide. Many people choose to stick to executing contracts verbally because they're not sure how to write a contract, or they think writing out the contract terms is too complicated or requires expensive legal advice. However, this is no longer the case.
Today, we have a world of resources available at our fingertips. The internet is a treasure trove of invaluable information, platforms, and software that simplifies our lives. Creating, signing, and sending contracts has never been easier. What's more, you don't have to rely on a hiring a lawyer to explain all that legal jargon anymore.
There are plenty of tools available online for freelancers to use for guidance when drafting digital contracts. Tools like Bonsai provide a range of customizable, vetted contract templates for all kinds of freelance professionals. No matter what industry you're operating in, Bonsai has a professional template to offer.
A written contract makes the agreement much easier to prove the terms of the agreement in case something were to go awry. The two parties involved can rest assured that they're legal rights are protected, and the terms of the contract are sufficiently documented. Plus, it provides both parties with peace of mind to focus on the tasks at hand.
Bonsai's product suite for freelancers allows users to make contracts from scratch, or using professional templates, and sign them using an online signature maker.
With Bonsai, you can streamline and automate all of the boring back-office tasks that come with being a freelancer. From creating proposals that clients can't say no to, to sealing the deal with a professional contract - Bonsai will revolutionize the way you do business as a freelancer.
Why not secure your business today and sign up for a free trial?