
Most people assume starting a business takes a fortune, which is why many never take the leap. But that’s not always true. In fact, there are plenty of businesses you can launch with just a few thousand dollars.
If you’re dreaming of entrepreneurship, you might be surprised how far $1,000, $2,000, or $5,000 can go if you spend it wisely.
So, what kind of business can you start on a smaller budget?
Keep reading for ideas that work even when funds are limited, and tips for making the most of what you’ve got.
Table of Contents
- What Is It Like to Make a Business With Less Than 5K
- Why Is It Important to Learn How to Make a Business With Less Than 5K?
- Businesses You Can Start With 1K
- Businesses You Can Start With 2K
- Businesses you can start with 5k
- Final Thoughts on Starting a Business With 1K, 2K, and 5K
What Is It Like to Make a Business With Less Than 5K
Starting a business with less than $5,000 is more common than you might think. In fact, you’ve probably supported small businesses like these without even realizing it.
What’s exciting about launching a business on a tight budget is how creative it forces you to be. Over the years, I’ve started several small ventures with less than $5,000. The secret? Keeping costs low and building strong connections in your local community.
It’s also worth checking out business grants in your area. Grants can give your startup budget a serious boost, helping you cover expenses that might otherwise slow you down. Applying for programs geared toward small businesses or entrepreneurs can be a smart way to grow faster without taking on debt.
Of course, choosing a business that fits your budget, skills, and resources is key.
Why Is It Important to Learn How to Make a Business With Less Than 5K?
At some point, most of us dream about becoming our own boss. And while $5,000 might not sound like much, it’s actually a solid starting point for launching a small business.
Starting something of your own lets you do work you enjoy, build independence, and earn income on your own terms. It can reshape your lifestyle, giving you more control over your time and priorities.
Yes, running a business is challenging—but it’s also full of growth opportunities. You’ll get to call the shots, pursue something meaningful, and possibly create a new income stream that supports you long-term.
Let’s explore a few of the businesses you can start with just $1,000.
Businesses You Can Start With 1K
While it might seem unlikely, there are several legit business ideas that you can start with just $1,000. No, you won’t be launching the next big tech company—but these options can still be profitable.
Some ideas include:
- Gumball machine business
- Pet sitting business
- Tutoring business
Gumball Machine Business
Earnings estimate: $1,000 – $2,000 per year
If you’ve got $1,000 and want to start small, a gumball machine business could be a great fit. It’s perfect for low-stress passive income, and even kids can get involved.
All you need is a machine and a good location. Once it’s placed, fill it with gum or small toys and check in monthly to refill and collect earnings.
While you won’t get rich overnight, it’s a fun and accessible way to bring in an extra $1,000 to $2,000 per year. I know this firsthand—that’s how much I made when I ran a gumball machine business as a kid! You can increase your earnings by expanding to more machines over time.
If you’re intrigued by this idea, check out my other posts for tips on getting started:
If you like the idea of starting a gumball machine business, be sure to check out my other posts:
- How to Start a Kid’s Gumball Machine Business (Easy!)
- Are Gumball Machines Profitable? (Earnings and Tips)
- What to Put in a Gumball Machine to Make Money
- Where to Put a Gumball Machine (Best Locations)
- Is a Gumball Machine a Good Investment?
- How to Put a Gumball Machine in a Store

Pet Sitting Business
Earnings estimate: $20,000 – $40,000 per year
If you’ve got $1,000 saved and love animals, starting a pet-sitting business could be a fun and profitable move. It’s a low-cost way to earn extra income while doing something you genuinely enjoy.
Pet sitting doesn’t require special training, just reliability and a love for animals. That makes it a great option for teens, students, or anyone looking for flexible work. You can set your own schedule and take on as many clients as you’re comfortable with.
To get started, offer your services to friends and family. As you gain experience and build trust, you can expand your client base through word of mouth or local apps. It’s a simple way to dip your toes into business ownership and boost your yearly income while you’re at it.

Tutoring Business
Earnings estimate: $30,000 – $40,000 per year
If you know languages, math, geography, etc… then you could start a tutoring business with less than 1k! You’ll need to come up with a tutoring plan and start finding your clients.
Luckily, this is another type of service you can offer to your friends, family, and neighbors until you grow your client base. If tutoring in person is not your thing, you could also offer your tutoring services online on platforms such as:
- Fiverr
- People Per Hour
- Chegg Tutors
As long as you’re a good tutor, this business can provide you with a stable source of income with a lot of growth potential.

Businesses You Can Start With 2K
Babysitting
Earnings estimate: $30,000 – $50,000 per year
If you enjoy working with kids, starting a babysitting business could be a great fit. While this option requires a bit more upfront investment than pet sitting or tutoring—think insurance and CPR certification—it also offers solid income potential.
Start by offering your services to people you already know, then expand your network as your reputation grows. Babysitting can be both personally rewarding and financially worthwhile.
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