25 Small Business Ideas You Can Start With Low Capital

Published: July 9, 2020 | Updated: August 26, 2020 | Posted by: Moneymax | Personal Finance

Small Business Ideas in the Philippines with Low Capital | Moneymax

Because of social media and the changing interests of consumers, demand for products and services continues to grow. Filipinos are more open to new brands and establishments, allowing the business industry to flourish more quickly.

You can be your own boss and grow your finances by starting your own venture. Here are 25 small business ideas you can set up even with low capital.

Small Business Ideas with Small Capital in the Philippines

1. Beauty Products Reselling Business

Start-up cost: PHP 5,000 to PHP 20,000
Items to invest in: Beauty products for reselling, smart phone

The country’s beauty industry is worth a whooping PHP 152 billion and is expected to reach PHP 213 billion by 2023[1]. If you’re a beauty enthusiast but don’t have a huge capital to start your own brand, you can resell beauty products instead.

With a budget of PHP 5,000, you can start reselling products from more popular brands like Skin Magical, Human Heart Nature, Avon, and Ryx Skincerity. This is one of the easiest small business ideas you can start at home.

2. Bicycle Shop Business

Start-up cost: PHP 50,000 and up
Items to invest in: Bicycles, bicycle parts, tools

Small Business Ideas with Low Capital - Bicycle Shop

While the Philippines isn’t as bicycle-friendly as other countries, the demand for bicycles is growing, especially as public transportation continues to be restricted during the GCQ.

Aside from selling bicycles, you can offer rentals, repair, and tools. The capital for this kind of small business starts at PHP 100,000, depending on what products and services you want to offer. Setting up your shop in a high foot traffic area or near a biking destination can help boost your chance for profit.

Read more: Biking in Manila? Here’s Where You Can Buy Cheap Bikes (Plus Safety Tips)

3. Bills Payment Business

Start- up cost: PHP 5,000 to PHP 45,000
Item to invest in: Point-of-sale (POS) device

Great small business ideas solve customers’ biggest pain points, like enduring long lines at payment centers to pay bills or send money.

You can run a digital payment business offering bills payment, remittance, and mobile e-loading services to your neighborhood. This low-capital small business can earn you an average monthly income of PHP 10,000 and recoup your investment from one to eight months.

If you already own a sari-sari store, eatery, internet shop, or any small business, this is a great way to boost your income.

4. Cake and Pastry Business

Start-up cost: PHP 3,000 to PHP 5,000 if you already have equipment. PHP 40,000 to PHP 50,000 if you still have to invest in equipment and materials.
Items to invest in: Oven, mixer, cake pans, cupcake liners, decorating tools, cooling rack, measuring spoons, mixing bowls

Small Business Ideas with Low Capital - Cake and Pastry Business

Do you like baking during your free time? Why not turn this hobby into a profitable business? A cake and pastry business is a great way to earn money at home. With a capital as low as PHP 3,000, you can create tasty bread and pastry you can sell online.

Start by determining your target market and identifying your specialty. Don’t forget to find a supplier who can provide ingredients at a low price and build a Facebook or Instagram page to help you advertise your business.

5. Car Wash

Start-up cost: PHP 70,000 and up
Items to invest in: Cleaning products and equipment

There is a steady demand from customers for a car wash service. This is a great business idea if you know your way around cars and auto detailing. You can set up a car wash business in an area with high foot traffic to maximize your business’ potential growth. A car wash is one of the small business ideas ideal for car lovers.

6. Cellphone Loading Business

Start-up cost: PHP 2,000 to PHP 3,000
Items to invest in: Basic phone, retailer SIM card, starting balance of PHP 5,000

Perhaps one of the easiest small business ideas to put up is a cellphone loading business. For as low as PHP 2,000, you can start earning at home or even at the office.

However, unlike other small business ideas with low capital, don’t expect to earn much from this venture. As a load retailer, you get your earnings through a commission, which can be 3% to 13% per transaction. For example, a prepaid load worth PHP 50 may deduct PHP 47 from your load wallet, leaving you with a PHP 3 profit, depending on your chosen telecommunication company.

7. Delivery/Courier Services Business

Small Business Ideas with Low Capital - Delivery Service

Start-up cost: PHP 5,000 to 80,000+
Items to invest in: Smartphone, motorcycle, or bicycle

Demand in delivery services in the country continues to increase as more and more people choose to shop online. Consumers consider the delivery as part of their shopping experience, so it’s important that a courier takes care of the parcels during transit and deliver them on time.

This type of small business idea can set you back from PHP 5,000 to PHP 80,000 for one vehicle needed for deliveries. You can partner with an online shop to deliver their items or advertise your services on social media.

Read more: 20 Courier Services in the Philippines You Can Rely On

8. Food Cart Franchise

Start-up cost: PHP 50,000 to PHP 300,000
Items to invest in: Whatever item you think can improve your business. Franchisers usually provide equipment and initial supplies to help start this kind of business.

Food carts offering one or two products typically start at a franchise fee of PHP 50,000, which includes equipment, training, and marketing support. More popular food cart franchises  can cost as much as PHP 300,000.

When investing in a food cart business, choose a location with good foot traffic such as malls, terminals, and cafeterias. Also, don’t forget to secure an emergency fund for unforeseen circumstances. Remember that real profit only comes in once you’ve earned the money you’ve invested in your franchise fee.

Read more: 35 Food Franchise Businesses You Can Start Under P1 Million

9. Graphic Design and Video Editing Business

Start-up cost: PHP 70,000 to PHP 150,000
Items to invest in: Graphic tablets, design software, PC or laptop

The rise of Filipino Youtube influencers and vloggers means there is also a growing need for graphic design and video editing. You can use your creativity in design and video editing to start a small business.

With a budget starting PHP 70,000, you can tap startup businesses here and abroad for their multimedia needs. Aside from editing and design skills, you need to invest in a powerful computer, graphic tablets, and industry-standard graphic programs for this business. It’s one of the small business ideas that require an extra set of skills.

Enjoy no annual fees on your credit card.

10. Hair and Grooming Home Services

Start-up cost: PHP 50,000 and up
Items to invest in: Hair products, quality grooming equipment

A home service salon is perfect if you’re a hairdresser wanting to start their own business. Aside from haircuts, you can offer treatments like hair coloring, rebonding, and perming.

Some of the products you need to get for this business are hair products and quality grooming equipment. You should also be updated about the latest hairstyle trends to better serve your customers and their grooming needs.

11. Home-Cooked Meals

Start-up cost: PHP 1,000 to PHP 8,000
Items to invest in: Meal ingredients, plastic containers, kitchenware

Selling home-cooked meals is one of the most enjoyable small business ideas if you have a passion for cooking. It’s time-consuming, but you would only need a capital as low as PHP 1,000 for this business.

You can advertise your meals online on social media for a start and only cook meals on a made-to-order basis.

12. Homemade Beverage or Palamig Business

Start-up cost: PHP 500 to PHP 5,000
Items to invest in: Ingredients, purified water, containers, plastic bottles

Small Business Ideas with Low Capital - Palamig Business

Selling ice-cold drinks is one of the low-cost yet profitable small business ideas in a tropical country like the Philippines. Ice-cold milk teas, coffees, and fruit drinks are a hit during summer, but can be sold all year round. For as low as PHP 500, you can start selling your drink concoction.

13. Home Cleaning and Repair Services

Start-up cost: PHP 50,000 to PHP 100,000
Items to invest in: Cleaning and repair tools, disinfectants, protective gear

You can start a cleaning and repair business that caters to professionals leading a fast-paced lifestyle. Some of the services you can offer are appliance repair services, housekeeping, and even plumbing.

Aside from tools, disinfectants, and protective gear, you may need the necessary training to do home repairs and housekeeping. It can cost a significant amount, but there are online classes you can take for free such as the ones offered by TESDA.

14. Laundry Shop Business

Start-up cost: PHP 70,000 to PHP 250,000
Items to invest in: Washing machines, dyers, baskets, detergents

A laundry shop offering pickup and delivery services is a perfect small business idea in the Philippines if you live near condominiums and business districts. Despite working from home, individuals may find it hard to squeeze in household chores during office hours.

Laundry shops typically charge PHP 150-250 for 8kg of laundry, including washing, drying, and folding. Pickup and delivery may incur delivery charges, but you can offer this service for free as a promotion deal.

15. Local Grocery Store Business

Start-up cost: PHP 70,000 to PHP 200,000
Items to invest in: Grocery items, shelves, plastic bags, label makers, refrigerator

Small Business Ideas with Low Capital - Local Grocery Store

A local grocery store is like a sari-sari store, only bigger. This small business idea can set up back between PHP 70,000 to PHP 200,000, depending on the store’s size and location. However, its profit margin is 20 to 30% if the business is booming.

You can set up a local grocery store in an area where the local market is quite far. You can also offer services like online shopping and delivery to stand out from the traditional local grocery stores.

16. Meal Plan and Delivery

Start-up cost: PHP 30,000 to PHP 100,000
Items to invest in: Kitchenware, plastic containers, meal ingredients, delivery vehicle

Release the inner chef in you and turn your food passion into a profitable business with a meal plan and delivery business. You can target busy professionals who don’t have the time to cook healthy and tasty meals, even when working from home.

You can offer weekly meal plans with three dishes delivered every day for seven days. The startup cost for small business ideas like this can go as much as PHP 100,000, depending on the meals you plan to offer and the equipment you need to cook meals.

17. Online Fashion Boutique

Start-up cost: PHP 15,000 to PHP 35,000
Items to invest in: Products for reselling, camera, smartphone, stable internet connection

Small Business Ideas with Low Capital - Online Fashion Store

Clothes, shoes, bags, accessories, and beauty products are among the most sought-after items by online shoppers. You can buy cheap yet trendy RTW clothes from Taytay Tiangge or Divisoria, for instance, and then sell them via Facebook, Instagram, or online marketplaces like Lazada, Shopee, Carousell, or eBay. You can also set up your own website using an e-commerce platform like Shopify.

Invest in a camera that takes high-quality photos, so the products on your website will attract prospective customers.

Read more: 9 Sulit Tiangges in the Philippines for Budget Shoppers

18. Online Tutoring Business

Start-up cost: PHP 2,000 to PHP 30,000
Items to invest in: Computer, quality web camera, headphones, microphones

Thanks to the internet, learning has become more accessible even in the comfort of our home. With an online tutoring business, you can teach students and budding enthusiasts via Zoom or Skype.

It is one of the small business ideas perfect for teachers, musicians, and artists who would like to share their knowledge with a large audience. Assuming you have the expertise, all you need to start this business is a computer, a good quality webcam, headphones, and a stable internet connection.

Read more: What Is Distance Learning and How Does it Work?

19. Personal Shopping Services

Start-up cost: PHP 10,000 to PHP 70,000
Items to invest in: Smartphone, laptop, vehicle

Small Business Ideas with Small Capital - Personal Shopper

Often called “pasabuy”, personal shopping is popular among customers who don’t want to go out to shop. As a personal shopper, you will be asked to look for and buy for specific items—from simple grocery products to bulkier items such as furniture. Personal shoppers charge between 10% to 15% of the total purchase price.

To start a personal shopping business, you need to know your way around malls and other shopping establishments. You also need to invest in a vehicle such as a motorcycle to make transportation a little bit easier. You can advertise your services on Facebook groups, or you can create a website for your business.

20. Pest Control Services

Start-up cost: PHP 100,000 to PHP 250,000
Items to invest in: Pest extermination equipment, pest control products, protective gear

Pests exist everywhere and can compromise our health and sanitation. A pest control service helps eliminate these unwanted pests, protecting households and businesses from infestation. You can offer fumigation, termite control, and rodent control to residential and commercial customers.

21. Piso Wi-Fi Vending Machine

Start-up cost: PHP 17,000 to PHP 30,000
Items to invest in: Internet hotspot device and unlimited broadband plan

It isn’t an exaggeration to say that Filipinos can’t live without an internet connection—we spend an average of 10 hours online per day, according to the Digital in 2019 report[2].

Enterprising people can take this as an income-earning opportunity by running a Piso Wi-Fi business that provides affordable internet connection. This is one of the small business ideas that is cheaper to set up than an internet cafe. Simply purchase a coin-operated internet vending machine that serves as a hotspot and charge a fee per minute/s of internet use. For example, your rate could be PHP 1 per 5 minutes, PHP 5 per 30 minutes, or PHP 10 per hour.

Sales of a Piso Wi-Fi business can go anywhere from PHP 6,000 to PHP 40,000 a month.

22. T-Shirt Printing Business

Start-up cost: PHP 80,000 to PHP 200,000
Items to invest in: Computer, printer for pigment ink, printer for sublimation ink, heat press, silk screen line table, rotary press, flash dryer, frames, squeegees, t-shirts

Small Business Ideas with Low Capital - Tshirt Printing Business

It’s easy to earn from a t-shirt printing business, especially if you already have connections within companies and organizations. Apart from customized tees, you can also focus on printing office uniforms, jerseys, hoodies, and canvas bags. However, before putting up this kind of business, it is best to learn different printing methods (digital printing, silkscreen, direct to garment) for a more specialized venture. You can start your business in a spacious garage at home or rent a small commercial space.

23. Vlogging

Start-up cost: PHP 20,000 to PHP 30,000+
Items to invest in: Vlogging camera, microphone, tripod, video editing software

Do you have a knack for hosting or storytelling? Be a vlogger—earn income using your talent and a few video production equipment with only a small capital.

You can start vlogging with a smartphone that can shoot high-resolution videos, create interesting content, and share your video on YouTube, Instagram, or your personal blog. Your content can be anything you’re passionate about, like travel, humor, or sports. Or you may want to share advice to fellow moms, makeup tutorials, or whatever you think is worth sharing.

To earn income through vlogging, sign up for a Google Adsense account and start earning from ads displayed on your videos.

Read more: How to Register Your Online Business and Pay Taxes to BIR

24. Water Refilling Station

Start-up cost: PHP 100,000 to PHP 350,000
Items to invest in: Water refilling machine, slim water bottles, round water bottles, heat gun, stickers, delivery vehicle

If you find a place with no water station or is far from one, take the opportunity and put up a water refilling business. There is a high demand for clean and drinkable water, especially in rural areas.

With a budget of PHP 100,000 you can franchise a water refilling station like Crystal Clear or Bluewaters. Starting your own brand, on the other hand, can cost as much as PHP 350,000. The investment is worth the money, though. Water is highly profitable and does not expire unlike other products in the market.

25. Web Design Business

Start-up cost: PHP 5,000 to PHP 30,000
Items to invest in: Computer, design software

You can start a web design business and cater to startup companies wanting to build their own websites. You can also offer your services to individuals who want their own websites for personal use.

If you already have the industry experience and skills, the startup cost can be as low as PHP 5,000 for additional tools you may need. Profit for this business ranges from PHP 20,000 to PHP 50,000, depending on your client.

Read more: Top Online Jobs in the Philippines You Should Consider

Final Thoughts

Find any small business ideas that suit you? With strategy and creativity, you can be your own boss even with low capital. Before setting up a business, determine your target market. Make sure to explore different small business ideas that not only suit your needs but are also highly profitable as well.



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