Starting a new business can be an exhilarating yet terrifying prospect. There are many ways to get started; picking the perfect one for your skills and interests is almost impossible. But that doesn’t mean you can’t dive right in! With startup costs lower than ever before, more people choose the road less traveled by conventional wisdom and invest their life savings in starting up their own companies.
However, this isn’t always advisable – what if it fails? What if I’m not good enough? These are questions every would-be entrepreneur is asking themselves. The only way to answer them with any degree of certainty is to try it out yourself. So with no further ado, here are the best nine business models for would-be entrepreneurs!
Dropshipping is a business model where you don’t sell any physical products! Instead, you are the middleman between actual producers and customers. You make money by charging your customers for product listings, packaging, shipping fees, etc. Still, the goods themselves are purchased directly from the manufacturer or another party, which can be done with relative ease thanks to services like AliExpress. Safe to say, this saves you quite a bit of money over conventional retail business models that require large stores, warehouses.
Freelancing is all about finding work online. Websites like Upwork and Fiverr allow people and businesses to post jobs (and their accompanying prices) that freelancers can bid for. You could, for instance, be paid $5 to edit an article or $30 to create a short 1-minute video explaining the benefits of a business’s product.
3. Writing Gigs
This is similar to freelancing in many ways, but writing gigs offer you more job security as you have one employer that pays you repeatedly as long as your articles keep being downloaded from their websites! Websites like Contentmart and Textbroker allow businesses and individuals to order articles at a set price without bidding wars between different freelance writers.
4. Affiliate marketing
Affiliate marketing is where you refer customers to a retailer or product owner online. You are paid a share of each sale generated through your efforts, meaning you get paid for bringing the business new customers. Although it sounds difficult, all you need is to set up an account with one of many affiliate networks like Sauce North and start sending traffic their way!
This refers to people who donate money to the content they want to be made on websites like Patreon or live streaming platforms like Twitch. If enough people sign up and agree that you should be making, say, videos on YouTube or songs on SoundCloud, every time you release something new, these patrons pay for it (and perhaps give additional donations). This must be done responsibly, though: patrons will stop donating if too little content appears and the business model fails.
6. YouTube Videos
YouTube videos can make a lot of money, with some channels bringing in millions of dollars every month from advertisers. The best way to do this is to set up your own channel and produce regular content such as reviews, tutorials, or comedy clips that people want to watch (and share). You can then sign-up for revenue sharing with YouTube through an Adsense account, meaning you only get paid when ads are played before your video begins.
7. Amazon FBA
Amazon FBA stands for “Fulfilment By Amazon” and is all about selling physical products on Amazon’s website. You buy products at wholesale prices and send them to an Amazon warehouse, where they’ll be stored and shipped out to customers as orders arrive. Amazon takes care of the delivery, so all you have to do is sit back and wait for those royalty checks!
If you’re good at something, people will want your advice on it! Many large companies rely on consultants for certain tasks such as marketing research, sales optimization, and general business advice. You could start charging these companies huge wads of cash just by offering some free “expert” advice with what you know best: writing, technology, and even arts!
9. Selling Your Own Products
This is similar to dropshipping, but this time, you’re in charge of everything: product creation, storing the inventories, shipping, and so forth. In this case, you’re building a brand, and unlike a dropshipping site, you’ll have more control of your margin and product development.
To sum up, there are a lot of different ways to make money as an entrepreneur. We hope this article has given you some ideas on where to start and what types of businesses may be best for making more money. Make sure you do your research before diving headfirst into any new business venture!
About the Author: Felix Prasetyo is the founder and writer at Lifengoal.com, where he talks about anything related to personal growth, entrepreneurship, motivation, and life in general.