Part of your new year's resolution could be to start your own business which is a great way to start the year! Starting a business of your own will not only provide additional income for you but it will also give you a sense of responsibility and self-sufficiency.
However, you cannot afford to launch into the sphere of commerce without doing your homework. That is, you must research your target industry. You have to consider a number of factors when starting your own business.
Factors to Consider Before Starting a Business
- Demand for the Product: If there is no demand then there is no sales, and if there are no sales there is no business. Simple as that. So it is important that you research your target market to know if there is a high or good enough demand for the products you wish to sell before starting out.
- Cost of Production: While some products have a high cost of production, others have relatively low cost of production and so coming to terms with the cost of production for goods in the industry you wish to join will better inform your choices.
- Location: Location is a very important factor to consider before starting up a business of your own. This is because the location you choose to base your enterprise can make or mar the productivity of your business. While there may be a high demand for products in some regions, reverse might be the case in others which is why you must do your research meticulously before starting a business.
- Profit System: The main purpose of starting a business is to make profit—it is not a charitable organization. Consequently,whatever business you choose to start must have a good profit system—you should be able to make substantial profit from it to grow your business and achieve your goals.
- Competition: Competition is everywhere, from schools to industries, political machinery to mention a few. While some areas could be overly competitive that it becomes very difficult for new businesses to survive due to how saturated the industries may be, others are more accommodating and small businesses are likely to survive in them in the long run through perseverance. So it is important that you know the rate of competition in the industry you wish to join before starting up a business.
- Availability of Resources: The availability of resources both human and material resources is very crucial to the success of a business. Which is why you cannot afford to jump headlong into an industry without confirming the availability of human and raw material resources in your immediate environment or considering the cost of importing them from foreign bodies.
This is not an exhaustive list and such there may be other factors worth considering. However, these are crucial factors to take cognizance of when starting a business. With these factors in mind, here are some of the most profitable businesses to start in 2024 according to research.
Profitable Small Businesses to Start in 2024
- Dropshipping
- Ghost Kitchen
- Digital Marketing
- Website Creation
- Social Media Management
- Content Creation
- Affiliate Marketing
- Course Selling
- Publishing
- Videography and Photography
- Clothing Business
- Freelancing
Dropshipping
This is a business that has come to outperform its expectations since inception. A lot of individuals have keyed into the idea and have started making it big from it.
Most e-commerce stores operate through dropshipping and it has proven to be a very cost effective business that can be easily executed without much hassle.
Dropshipping is a business that involves collating images of high demand products and advertising them for sale. When customers show interest in the products and eventually pay, the dropshipper orders the product in large quantities from the producer at a lesser price compared to what they sell it for and have the products shipped directly to the customers.
It is a relatively easy business, what you need is a group of people who are interested in a particular product or group of products and are willing to pay for them, then you can place an order for the product(s) and have them shipped directly to the customers without any hassle.
There are a number of platforms that offer opportunities for people to set up and run their own dropshipping business such as: Shopify, Oberlo, Printful to mention a few. You can make good profit from selling these products without having a physical location which saves you money!
Ghost Kitchen
This is a business that sprung up during the COVID 19 period and has since then gained a wide popularity. Ghost kitchens are businesses that can be likened to online restaurants. They do not have physical locations but they interface with their potential clients through the internet.
They simply place ads on the internet offering different kinds of delicacies and when an order is being made, they package the food items and have them delivered to their customers through delivery agencies like Deliveroo, Just Eat, and Uber EAT. These delivery agencies usually take about 20% commission for delivery.
It is a business that will pay you well if you have the skills to make sumptuous meals. You do not even need to set up a restaurant as you can run the business from the comfort of your home.
It requires little capital as the cost of production and operational expenses are low although you need to get a health certification permit from your local council to certify that your foods are hygienic and fit for consumption.
Digital Marketing
As the world goes digital with the passage of time, the internet becomes a more fertile ground for businesses to gain recognition and reach a wider audience. Having that in mind, the demand for digital marketers is now at an all time high.
Most businesses have gone digital having online presences for their brands and these businesses are actively seeking individuals that can help them reach their target audience online and create awareness for their brands through effective social media marketing and campaigns.
Digital marketers are individuals or agencies that help create an online presence as well as create awareness for businesses on social media like Facebook, LinkedIn, Instagram etc., and achieve specific goals for them. The business of digital marketing is one that requires little capital as long as you have the required skill.
You need to master the art if you must succeed in the field because of the high competition involved due to a heavy demand for it and you can make a lot of money from offering such services.
Website Creation
You cannot afford to not start a wesite creation agency in this day and age if you have the necessary skills. This is because most businesses are going digital and the demand for website developers and designers is over the roof.
Most especially, e-commerce websites are in great demand as many businesses seek to establish an online presence for their businesses and reach a wider audience.
All you need is the required skill set, a functional computer and good source of internet as well as electricity. Not to forget that you can easily work from home on your own terms. You would, however, need to create awareness for your services which would not cost you much making it a cost effective business to start in 2024.
Social Media Management
Many businesses and influencers get so occupied with work that they hardly have the luxury of time to manage their social media accounts and that is where social media managers come into the picture.
Social media managers are individuals or agencies that are skilled in the area of managing social media accounts for businesses and influencers performing tasks as interacting with their audience, keeping their accounts active, assisting in ads campaigns among others.
Social media managers are also in high demand because of the assistance they can offer to businesses and influencers. It is a skill that requires little capital as you can work from home on your own terms as long as you can stay online for a good period of time, have a functional computer system as well as sufficient internet connection and source of electricity.
Content Creation
The business of content creation is one that has completely taken over the market space of the Internet. The number of content creators is at an all time high and the demand for their services is also topping the charts.
Content creators are individuals that publish a variety of contents on the internet ranging from comedy skits to how-to articles and videos, photography, videography, arts and prints to mention a few.
They push out a lot of contents on a daily or weekly basis and get tons of engagement on those contents by their audiences which is why businesses run after them for promotional deals.
Depending on the strength of a creator's audience and their influence, they can make a lot of money from promotional deals with businesses making it a very profitable business. It is also cost effective as not much capital is required to start as long as you have mastered the type of content you wish to promote on social media.
Affiliate Marketing
This is a skill that is very similar to dropshipping but it has a wider scope compared to it. Affiliate marketers are making it big! They do not need to have physical set ups before they can earn money or even products of their own.
Affiliate marketers are individuals that help businesses promote their products for a commission. This commission can be anywhere around 1% to 20% of the cost of the goods promoted depending on the agreement between the affiliate marketer and the organization they promote for.
Affiliates are usually influencers and content creators as well as bloggers and YouTubers. These people have a large audience and loyal followers to whom they can pitch the products they promote to and make a commission.
To become an affiliate marketer, you need to work hard to create a loyal following and a massive one as well since you do not expect each one to patronize you. Though it could be a tedious process, it is also rewarding as you get paid from promoting products that are not even yours. Some affiliate platforms include Amazon Affiliate, eBay, AliExpress to mention a few.
Course Selling
If you are very knowledgeable in a field, creating and promoting your own courses is a great way to generate an income in 2024.
It offers you the opportunity to sell what you know to people. It could be a cooking experience you learnt from your grandma, a guide on how to run a business, or even educational tutorials that will be very helpful to people.
It is a great way to contribute positively to society by sharing what you know for a price. The best part is that you do not need a physical set up to start as you can prepare your courses right from the comfort of your home.
Even better, there are platforms that you can promote them on like Amazon Kindle Publishing. You just need to do a research on what people are actively searching for and look for a way to make it available to them.
It does not require much capital, you just need a functional computer, a word publishing software like Microsoft publisher, a designer and and video editor for promotion, good proofreading and editing skills among others.
Publishing
If you are a skilled writer looking to make a living off of your skill then starting a publishing business is the right option for you in 2024.
As a fiction writer, a children story writer, or even a creative novelist, what could be a better way to gain recognition for your works than offering them for sale at a fee? Not to mention the high demand for ghostwriters as well as the mouthwatering fees they get for their services.
Publishing your written works is a great way to get an extra income and it is relatively cheap to start as well. You just need a working computer system, a word publishing software and internet connection to get started.
Videography and Photography
Having a skill in the area of videography and photography is a valuable asset in this modern age. This is because your skill will be required during events and ceremonies—which are activities that take place almost everyday.
You can also sell stock photos and videos to platforms like Pexels, Freepik, Pixabay to mention a few. But for that, you need to master your skill perfectly.
People are willing to pay for these skills but you should also be capable of delivering excellent results if you want them to come back and help you spread the word about your business.
It is a business that requires little capital, you just need a good camera, a good photo editing and video editing software like Photoshop, Gimp, Premier pro, Capcut, etc.,.
Clothing Business
Starting a clothing business is a good way to make an extra income in 2024. Reports have proven that people invest a lot of money in their appearances to get admiration and increase their confidence and that's where you in.
Your clothing business could be online or in your local area. Wherever you choose to run it will make you good money and you can also choose to run the business online and on-site as well.
While it does require a good amount of capital, the requirement is not overbearing as you can afford to grow the business in stages from small to large scale.
Freelancing
Last on the list but definitely not the least, freelancing is a great way to earn a living in 2024. If you want to work from the comfort of your home and on your own terms then freelancing is the right business for you.
Freelancing is simply offering your services to people who need them on certain platforms. If you have a skill be it graphic design, video editing, web development, app creation, etc., you can offer those skills for sale on freelance platforms.
While it is a business that requires little capital provided you have the required skill set, you may need to pay a token for premium membership on freelance platforms to make the most out of them. Some freelancing platforms are Fiverr, Upwork, Freelancer, PeoplePerHour, Guru, etc.
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Starting a business of your own is a great way to add an extra source of income to what you already have. However you must consider a number of factors when choosing the business that is just right for you considering factors such as demand, competition, availability of resources to mention a few. Some businesses to consider starting are dropshipping, affiliate marketing, website creation, digital marketing among others. A good understanding of the factors to consider when choosing a business will better inform your decision and prevent you from choosing the wrong business to start.
Check out Forbes' recommendedation for the 10 Best Business Opportunities for 2024
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