Discovering high ROI business opportunities online requires some digging, but it's definitely worth the effort. Many people have successfully started online businesses with minimal upfront costs.
One key factor to consider is the potential for passive income, which can be achieved through online platforms like e-commerce stores or digital marketplaces.
According to our research, the average return on investment for e-commerce stores is around 20-30%. This is significantly higher than traditional brick-and-mortar stores, which often struggle to break even.
If you're new to online business, consider starting with a dropshipping model, which allows you to sell products without holding any inventory.
Calculating ROI
Calculating ROI is a straightforward process that involves subtracting the initial amount of money from the final value of your investment, then dividing that total by the cost of the investment and multiplying by 100.
The standard formula for calculating ROI is ROI = (gross return – cost of investment) / cost of investment, or ROI = net return / cost of investment. For example, if a business generated $1000 in gross return and the cost of investment was $600, the net return was $400, resulting in a 66.7% ROI.
To calculate ROI, you'll need to consider all expenses, not just the price of the product, and remember that ROI doesn't account for the time an asset will be held.
Calculating Return on Investment
To calculate ROI, you need to know the gross return and the cost of investment. The standard formula is (gross return – cost of investment) / cost of investment. This can be simplified to net return / cost of investment.
The net return is the profit made on an investment after deducting all expenses. For example, a business generated $1000 in gross return, but had expenses of $600, leaving a net return of $400. This means the ROI is 66.7% (400/600).
You can use this formula to calculate ROI for any investment, whether it's a stock, mutual fund, or business venture.
Here are some general guidelines for what constitutes a good ROI:
- For advertising, a good ROI is around 25-50%.
- For marketing, a ratio of 5:1 is a good target, meaning you make $5 for every dollar you spend.
- In general, a high ROI is considered anything above 20%.
Remember, ROI is just one factor to consider when evaluating an investment. You should also think about the time frame of the investment and your risk tolerance.
Is 30?
So you're turning 30, congratulations! As you enter this new decade, you're probably thinking about investing in your future, like a business owner would consider their return on investment (ROI).
A 30-year-old has typically had 10 years of work experience and has likely established a stable income. This is a great time to start thinking about long-term financial goals.
The average person's salary increases by 10-20% every 5-7 years, so a 30-year-old's income is likely to be higher than it was at 25. This can be a good time to start investing in a retirement fund or other long-term investments.
Investing in yourself, like taking courses or attending workshops, can also be a smart move at this age. It can help you stay competitive in your field and potentially increase your earning potential.
A 30-year-old may have paid off some of their student loans and have a clearer picture of their financial situation, making it easier to make smart financial decisions.
Digital Marketing Services
The sky-high profit potential of digital marketing services is undeniable, with an estimated $262 billion in spending by 2028. This means that with the right skills and strategy, you can rake in the cash.
To offer advertising services, you'll need to develop skills in data analytics, keyword research, content management, and search engine optimization (SEO). With persistence and effort, media marketing can be a super profitable business.
Freelancers can earn $20-$150 per hour, depending on their experience and location. To get started, you'll need to invest in web hosting, data tracking software, and online marketing tools.
The average startup costs for digital marketing services are around $1,000 to $2,000, which includes software and legal requirements. This is a relatively low-cost business to start.
The Printify Experts Program is a great way to grow your social media marketing portfolio with a team of professionals and print-on-demand merchants. However, be prepared to spend $500 to $1,500 when scaling.
Here's a rough estimate of the costs involved in starting a digital marketing business:
Keep in mind that these are rough estimates, and your actual costs may vary depending on your specific needs and circumstances.
Investment Options
Real estate investing can be a lucrative business, with returns on investment ranging from 8% to 12% per annum, as seen in the case of rental properties.
For example, a rental property in a prime location can generate a significant income stream, making it an attractive option for investors.
Peer-to-peer lending can also provide high returns, with some platforms offering interest rates of up to 10% per annum.
This option is particularly appealing to those who want to lend money to individuals or small businesses, rather than investing in physical assets.
E-commerce and dropshipping businesses can also offer high returns on investment, with some entrepreneurs reporting profits of up to 20% per annum.
E-commerce
Starting an e-commerce business is a great way to invest in your future. All you need is a computer, a stable internet connection, and a product or service to market.
You can practically run an e-commerce business from anywhere, and it's open 24/7. This means you can reach customers across different time zones and locations.
To get started, you'll need to find a specific target market for your product. People sell almost anything online nowadays, so you're likely to find a market for your product.
Deliveries are crucial to online businesses, so make sure to do it right. You can contact a reputable shipping company or personally meet up with customers to deliver their ordered items.
You can list your products at e-commerce platforms such as Shopee, Lazada, or Zalora to make your products more visible.
Digital Marketing Agency
Starting a digital marketing agency can be a great investment option, but it requires a lot of time and effort. You'll need to learn about digital marketing concepts such as SEO, social media marketing, email marketing, and paid ads.
Having an online presence is a must for businesses, and establishing your business online costs little to no money. You can reach your customers easily through social media or email.
To get started, you can build a strong and credible portfolio by freelancing on sites like Upwork and Fiverr. This will help you find clients and eventually scale up to an agency.
You can also use platforms like Google Ads to track your return on investment (ROI) and determine which marketing channels are providing the best results. A good ROI for a marketing campaign is to make more than a dollar for each dollar you allocate toward it.
If you're planning to start your own agency, you'll need to invest in equipment, operating costs, or utilities. A business express loan can be a perfect means to finance these costs before your venture becomes stable.
Here are some examples of businesses that have successfully started as agencies:
- Pull And Bear - Cebu
- Pull And Bear - SM Megamall
- Pull And Bear - Trinoma
- Urban Gadgets - Ayala The 30Th
- Urban Gadgets - Ayala Vertis North
- Urban Gadgets - ONE BHS, BGC
- Urban Gadgets - SM Mall of Asia
Keep in mind that starting an agency requires a lot of effort, but it can give you multiple streams of income from different clients. With a proper plan, you can get a business loan and start growing your agency.
Loan Type
When considering investment options, it's essential to explore various loan types that can help your business grow. You can opt for a MSME Loan to support small and medium-sized enterprises.
A Small Business Loan is another option for entrepreneurs looking to expand their operations. This type of loan is designed to cater to the specific needs of small businesses.
If you're a woman entrepreneur, you may be eligible for a Business Loan for Women. This loan type is specifically tailored to support women-led businesses and provide them with the necessary funding to succeed.
In addition to these options, you can also consider a SME Loan to support the growth of small and medium-sized enterprises.
The following loan types are available for businesses:
- MSME Loan
- Small Business Loan
- Business Loan for Women
- SME Loan
- Term Loan
- Loan against POS
- Line of Credit
- Vendor Financing
- GST Business Loan
- Wholesale Business Loan
- Short Term Business Loan
- Self Employed Business loan
- Unsecured Business Loan
- Collateral Free Business Loan
- Corporate Loans
- Instant Loan on Aadhar Card
- Working Capital Loan
Business Ideas
Starting a business can be a daunting task, but with the right idea, it can be a goldmine. If you're looking for business ideas with a high return on investment (ROI), consider starting an event management company. With the post-pandemic world bringing back physical events, the demand for event management companies is increasing every day.
You can also consider starting a dog walking business, which can be a worthwhile venture with high profit margins. Pet owners will pay top dollar to make sure their furry friends stay healthy and happy, and you can earn upwards of $20/hour in upscale neighborhoods.
Alternatively, you can start a rental business by turning idle land into an apartment or office space for rent. This may require a lot of money, legwork, design, and construction, but it can give you passive income month after month.
Here are some business ideas to consider:
- Event management company
- Dog walking business
- Rental business
- Digital marketing agency
- Content development agency
- Rental business (e.g. turning idle land into apartments or office spaces)
Content Developer or Agency
You can easily get clients over the internet from websites like Freelancers, Fiverr, Upwork, etc. as a content developer or agency.
Content drives the digital world, and you can offer various types of content such as written, graphic, or audio-visual.
To get started, you'll need to invest in equipment, but the amount is low, and you may easily get a business loan.
A 100% ROI is possible within a few months, depending on your skill, especially if you're proficient in writing, photography, or graphic design.
You can start by offering your services on freelancing platforms, and once you build a strong portfolio, you can scale up to an agency.
Initial costs for equipment and website development and maintenance range from $500 to $2,000.
As a content developer or agency, you can earn an average of $25-$35/hour for beginner services.
Here's a rough estimate of the costs and earnings:
Keep in mind that these are just estimates, and your actual costs and earnings may vary depending on your skills and the services you offer.
Ideas
If you're looking to start a business with high return on investment (ROI), consider creating online courses and online tutoring services. This business idea involves sharing your knowledge with like-minded people, and popular topics include business and entrepreneurship, IT and technology, and languages and writing.
You can create a written guide, presentation, or video tutorial, and publish it as a paid course on platforms like Udemy and Preply. The initial investment is around $500 to $2,000, and you can earn up to $3,000 per year on Skillshare or 37% of the revenue per course on Udemy.
Another option is to start a life coaching business, which can be done with minimal initial costs and promotion on social media. Hourly life coaching rates in the US are around $35 per hour, and you can offer services to help others achieve their goals in areas like finance, emotional wellness, and healthy routines.
If you have a knack for writing, graphic design, or photography, consider starting a content development agency. You can get clients over the internet from websites like Freelancers, Fiverr, and Upwork, and earn a 100% ROI within a few months.
Some other business ideas with high ROI include digital marketing companies, cloud kitchens, and print-on-demand (POD) stores. A digital marketing company can be started with a few online courses or by hiring a team, and you can earn a 100% ROI within months. A cloud kitchen can be set up with an initial investment of around Rs 800,000, and you can earn up to 100% ROI within a year. A POD store requires minimal investment and can be run with minimal inventory and shipping logistics.
Here are some business ideas with high ROI:
- Online courses and online tutoring services
- Life coaching business
- Content development agency
- Digital marketing company
- Cloud kitchen
- Print-on-demand (POD) store
Photo Editing
Photo editing is a high-value commodity in the digital age, especially with social media platforms promoting visual content.
Professional photo editing services are a successful business idea for those with specialized skills in photo editing software. Photographers and graphic designers are well-suited for this line of work.
You can build credibility with clients by using professional tools like Adobe Photoshop and Affinity Photo. These programs offer more advanced features than free software like GIMP.
To get started, you can choose between a subscription to Adobe Photoshop ($22.99/month) or a one-time payment for Affinity Pro 2 ($69.99).
Social Media Management
Social media management is a lucrative business opportunity that requires an online presence and knowledge of social media algorithms and digital marketing techniques. You can establish a network of business accounts on all major platforms and study online marketing tools to get started.
To become a social media manager, you'll need to advertise your services via freelance or portfolio websites and track your social media engagement for reference. This can be done with basic marketing tools that cost around $100.
Social media management services can be expensive, ranging from $100 for basic marketing tools to thousands of dollars for more extensive ad campaigns. You can easily manage a few social accounts yourself, but scaling to take on more will require some investment.
A social media manager's average hourly rate can range from $20 to $150, depending on their experience and location. To succeed in this field, you'll need to stay up-to-date with the latest social media trends and best practices.
Here are some popular tools for social media management:
These tools can help you streamline your social media management tasks and increase your productivity. By using these tools and staying up-to-date with the latest trends, you can establish a successful social media management business.
Car Wash
Starting a car wash business can be a fun and rewarding venture. You can begin with minimal supplies, such as washing liquid, sponges, and a hose, and scale up as your business grows.
The initial investment for a car wash business can be around $25,000, which is a relatively low startup cost compared to other businesses. This investment will cover the costs of equipment and a service location.
A simple car wash can generate an average profit of $5-$10 per car, depending on the services offered. This profit margin can increase to 35-60% with advanced services like waxing and tire treatments.
If you're looking to start a car wash business, it's essential to be hands-on and willing to work in high-traffic areas. With the right mindset and a solid business plan, you can turn your car wash business into a successful venture.
Dog Walking
Starting your own dog-walking business can be a worthwhile venture with high profit margins. You'll likely spend $50-$100 per month on waste bags and treats, but most pet owners have all the necessary supplies.
Dog walking can be a lucrative business, especially in upscale neighborhoods where you can earn upwards of $20/hour.
Home Maintenance
Starting a home maintenance business can be a lucrative venture. You could offer a range of services, from handyman work to specialized tasks like window washing or pressure washing.
Some home maintenance services start as low-cost businesses and can produce a relatively high-end profit. For example, pressure washing rates in the US are around $23/hour.
You'll need the right tools and equipment to get started, which can cost anywhere from $100 to $5,000. Becoming a contractor to do more advanced home repair work may require licenses and exams, depending on your location.
Handymen, contractors, and individuals with skills in various home repair tasks may find this business idea appealing.
Rental
Rental is a lucrative business idea, especially with the rise in demand for renting spaces as people start to go out and travel again. Vaccination rollouts are happening, and with that, people will be looking for places to stay and work.
You can turn an idle piece of land into an apartment or office space for rent, generating passive income month after month. This can be a profitable venture, although it does require some initial investment and work.
Partnering with apartment rental websites like Airbnb is another option if you have a spare apartment. Just make sure to follow COVID-19 health and safety guidelines to ensure a safe and healthy environment for your renters.
The travel and tourism industry is booming after the pandemic, and you can start a travel and tourism agency to capitalize on this trend. You can provide travel, hotel, luggage, and food arrangements, earning a commission on each booking.
With the right network of partners and customers, you can earn a higher return on investment within days.
Food
Starting a food business can be a great venture, and there are many ways to do it. You can sell food online through social media, and just need a page for customers to place their orders.
Logistics can be a challenge, but it's doable. For example, food trucks and food parks are popular options for entrepreneurs. You can also consider hole-in-the-wall eateries.
To succeed, serving good food is essential. It's what turns prospects into loyal customers. Providing excellent customer service and marketing strategies can also help you gain new customers through word-of-mouth.
Some popular food business options include Aerophone, which has locations in Ayala Center Cebu, Cybertech Quezon City, SM Cebu, SM Manila, and SM San Lazaro.
To take your food business to the next level, consider the following steps:
- Print a copy of your business documents.
- Sign the documents using a wet signature.
- Submit your documents to your desired branch, following the pick up/drop off instructions from your corporation's RM.
HR Services
Starting an HR firm can be a lucrative business venture. You can set up a small HR firm in your city by investing around Rs 200,000.
By providing consultancy and recruitment/verification services, you can start generating revenue. Getting an online business loan for this type of venture is relatively easy.
With a good strategy and client base, you can achieve 100% ROI within months.
Event Management Company
Starting an event management company can be a lucrative business idea, especially in the post-pandemic world where physical events are back in demand.
The demand for event management companies is increasing every day, making it a potentially profitable venture.
You'll need to handle tasks such as hall booking, food supplies, floral arrangements, and security, which requires good management skills and a well-set team.
Event management companies can also be eligible for loans to start a business, providing access to necessary funding.
With careful planning and execution, you can achieve a 100% return on investment from just one successful event, such as a marriage ceremony.
Cleaning
Starting a cleaning business can be a great way to earn a living, especially in cities where there's a high demand for instant support and customer satisfaction. You can start small and offer services like window washing, cutting grass, and washing driveways.
You can start a simple car wash business with little supplies – just washing liquid, sponges, and a hose, which will cost you around $25,000 to scale up. For a simple wash, expect an average profit of about $5-$10 per car. You can charge more for advanced services like waxing and tire treatments.
Home maintenance and cleaning businesses are in high demand, and you can start with a relatively low-cost business that produces a high-end profit. For example, pressure washing rates in the US are around $23/hour.
The average profit margin for a car wash business is about 35-60%, which is a significant return on investment. Home care services also start as low-cost businesses and produce a relatively high-end profit, with specific wages varying considerably depending on the task.
You can expect to spend $100 to $5,000 in tools and equipment for a home maintenance business, depending on the specialty and location. Becoming a contractor to do more advanced home repair work will require licenses and exams, depending on your location.
Sources
Featured Images: pexels.com