Are you looking for profitable business ideas with good prospects, that you can do from home without needing a large initial investment? This post is for you!
There are many aspects to take into account when analyzing the potential benefits of a business idea. One way to decide whether this idea is good or not is by taking the point of view of the profitability of the business you are researching.
Not all (online) businesses are equal in terms of profitability, but is profitability the only criterion you should use when researching innovative business ideas?
Let's take a look...
BUSINESSES YOU CAN IMPLEMENT FROM HOME, WITH LITTLE INVESTMENT AND LITTLE PROFIT: ADVERTISING AND AFFILIATION
These are businesses with a low margin (con) and a low initial investment (pro). You can find them in the lower part of the graph, to the right.
- Advertising: include ads in your content using tools such as Google Adsense. You can start making money instantly, but without a large volume of visits, you will not generate profit.
- Sponsorships: look for brands willing to invest money to be featured in your content. The margin of profits is higher, but finding advertisers requires more work.
- Dropshipping: the idea is to create an online store without all the operations of an e-commerce business. Your role is that of an independent distributor for the company that handles ordering, delivery, and customer support. This idea may seem attractive, but the margins are usually small unless you are doing your own Dropshipping agreements with sellers who do NOT usually work with this model.
- Affiliate Marketing: You are monetizing your reputation in exchange for third-party products. Be very careful who you partner with. It takes years to build a reputation and 5 minutes to lose it.
- Influencers: Both on YouTube and Instagram, there are lots of “micro-influencers” who carry out product placement campaigns for big brands. This is a complex model in which establishing brand loyalty is difficult for the content creator. Plus, the objectives of the brand and the community can be misaligned, which generates tensions.
- Network Marketing: This type of business consists of small gatherings between acquaintances where the organizer tries to sell a product. Your friends will be buying from you because they are your friends and not because they need your product, which doesn't really interest me as a business model. If I have to make friends with people because I’m planning to sell them a cosmetic product, I will not be comfortable because I would have to redefine my concept of friendship.
- Online comparisons: at first sight, this is a fantastic idea. Comparing offers on a web page is super useful, especially on the Internet, where there are hundreds of offers, in some cases. The problem stems from the business model since it consists in charging for memberships and, at the same time, you’ll be judging the product you want to sell. Since there is an economic interest, your opinion will be likely to be biased.
BUSINESSES YOU CAN MANAGE FROM YOUR HOME WITH MORE INVESTMENT AND LOW PROFIT: E-COMMERCE
These are businesses with a low margin (con) and a large initial investment (con). You find them in the lower part of the graph, on the left.
- Direct feeding
These are the typical online stores that sell products. E-commerce shops sell third-party products, crafters create their own products (they are artisans). Direct feeding refers to producers who connect with consumers to place orders online and deliver the order later, either to the buyer's home or in temporary markets that are set up to pick up these products.
BUSINESS MODELS YOU CAN DO FROM HOME WITH LITTLE INVESTMENT AND A LOT OF PROFIT: VIRTUAL SERVICES AND ONLINE TRAINING
These are businesses with a high margin of profits (pro) and a small initial investment (con). You can find them in the upper part of the graph, on the right.
- Freelancing: web design, copywriting, web writing, community management, digital trafficker, sales assistant, virtual assistant, etc.
- Offering services for individuals, such as online classes
- Online training (ebooks, online courses, memberships, etc.)
- Webinars & face-to-face workshops
If like me, you have a lot of knowledge you want to share with the world, this type of business is for you. These business models are ideal for all experts/coaches/consultants who want to operate a 100% digital business. The idea is to complete your digital transformation process and attract customers at the same time as you deliver solutions online.