It should be duly noted that low-risk and low-investment business ideas are not one and the same, at least not always. There is no denying that smaller investments in any business mean that there are fewer repercussions if it fails. In that regard, low-investment commercial ventures can indeed be considered as low-risk ideas. However, just because the investment amount is less, it does not mean that the venture’s chances of success are higher. This is where low-risk ventures come in, as these are the businesses that may require a huge or a nominal investment, but their chances of succeeding will always be high. Therefore, these enjoy a lower risk of failure, irrespective of the capital investments made.
Now that we have cleared the main differences between the two, as well as pointing out the similarities where they lie, let us now look at some low-risk business ideas for 2021, which likely won’t break the bank either.
Consultation Business
When we hear about consultation, we immediately think about business or legal consultation, which is not wrong but offers a limited view of the scope available here. From medical advice by a physician to marketing consultation by an experienced marketer; it’s all part of the consultation business. You only need the hard and soft skills that you already have to get started, and in most cases, the only expenses are related to paying rent for the office space. Aside from being low-investment, it’s also a low-risk business idea if you manage to choose your office location properly. Better yet, skip the rent and provide online consultation from your home office to minimize financial risks to almost none!
Food Packaging Business
Food packaging establishments require industrial equipment, space, and suppliers. So this is not a particularly low-investment business idea, but it is without a doubt one of the safest bets you can make. Given that you will be packaging food that is being manufactured and sold by other parties, you will always be paid for the food packaging services that you provide to them. Lean principles are ideal for the business, as it’s best to only order packages from your supplier that you have confirmed orders for.
The most important bit here is to choose the right type of food packaging. Flexible food packages are increasing in popularity among manufacturing, packaging, and retailing food businesses since these lower delivery costs by increasing the capacity of deliverable units per shipment, without compromising the integrity of the food inside.
Freelance Software Development Business
With a small remote team, connected via cloud-synced business environments, it is possible for an experienced software engineer/coder to start their own software development company. Business resources will be necessary, of course, but expenses will be minimal, with the risk factor being even lower. The demand for software development is at an all-time high, post-Covid.
Scalability should always be an integral plan for all low-risk businesses. For example, if your small food packaging company thrives, you can scale it up sustainably. By keeping the initial investments low, however, you will also keep the financial losses to a bare minimum, in case the idea does not work out as planned.
Conclusion
In addition to the above mentioned three low risk business ideas, another favorable avenue is now taking the world by storm. If you have heard about cryptocurrencies, you would probably know that they have outperformed every single asset class in the last year. With historic highs, now would be a good time to consult a cryptocurrency lawyer and get into investing in Bitcoins or Ethereum. Crypto is not going anywhere, and with everyone from PayPal to Tesla investing, chances of it becoming a part of our lives in becoming a far realistic possibility.
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