20 Promising Home Businesses that You Can Start with Small Capital

11. Education Business:Open Courses

Higher competitiveness level has required each of us to keep learning and updating our skills. Therefore, the establishment of open courses and training centers will become a high demand.

If you have special skills or certification that enables you to become a tutor, you should try offering classes at home, whether they are related to academic courses and exam preparations, or foreign language, music, dance lesson, cooking, sewing, swimming, driving, drawing lesson, writing, and so on.

Without having to spend anything at the beginning, you can start by giving private tutoring to those closest to you as consumers. If you see that the demand has grown, you may want to manage this business more seriously by optimizing the spare space you have at home, or even renting a place and recruiting more tutors .

12. Event Organizing (EO) Business

Event organizer, or EO, is a professional resource that manages events like weddings, birthdays, aqiqah, or institutional events, i.e. outbound trainings, motivation buildings, seminars to exhibitions and music festivals. This is a prospective business; considering people today tend to seek for practicality and easy options.

The initial budget to start an EO business will be used to cover office rent, internet and administration fee to create proposals and business profile. At the beginning, you can use your house as your home office.

As a rookie EO, you may not have any sponsors yet. This means you and your team have to prepare your own initial budget, at least Rp 5 million, to pay for the first events, which will pay for down payment of venue or equipment rent. As a newcomer, choose low-risk events, such as children birthdays, sweet seventeenth birthday party, or baby shower events.

After that, you can consider taking a bigger event like a wedding party.

The average profit you can gain from this business is around 20%-30% from initial budget. Also, you will also receive an organizer fee worth around 10% of the proposed budget.

[Example: Organizing birthday parties for children]

13. Graphic Design and Digital Home Printing Business

Talking about digital printing, you may think about that huge printing machine worth hundreds of millions rupiah. However, with only a computer set and a printer, you can actually run a digital printing business from home.

As you use simple equipments, you can serve small-scale orders, a maximum of 200-300 sheets,e.g. for photo printing, business cards, invitations, brochures, stickers, invoices, et cetera. The initial budget needed to start this home business is around Rp 7 million, allocated for:

  • Mid-end PC or laptop: Rp 5 million
  • Refillable printer + ink: Rp 1 million
  • Cutting, binding, laminating machines, template, and art papers Rp 1 million

The estimated profit is as follows:

  • Cost of paper and ink per sheet = Rp 300-Rp 1500
  • Average price per piece = Rp 600-Rp 3000
  • Average net profit: 40%-50%
  • Return on investment is within 4-6 months

The fact is, barriers to entry for this home business is quite low, which means anybody can run this business– even though a person does not have a formal education related to graphic design. Therefore, the competition is high and consumer loyalty is relatively low. Other than having good creativity, one needs to master basic graphic editing software,i.e. Adobe Illustrator and Photoshop.

14. Costumes Rental Business

People need to look their best when attending or having special events such as graduation ceremonies, engagement parties, weddings, art performances or cultural events. A lot of people choose to rent an outfit for these purposes, because it is more practical, faster and cheaper compared to buying a new one or making one from scratch.

For those with entrepreneurial quality, this means an opportunity to gain some profit by lending out outfits or costumes. The initial budget needed may not be little, but the estimated profit is quite promising with relatively fast return.

As a newcomer targeting middle class consumers, you need to prepare an initial budget of Rp 15 million-Rp 20 million. The fund is allocated for display, hangers, several mannequins and high quality clothing items for rent. To avoid damage, you can apply a deposit system requiring customers to pay some amount of money in advance.

Average price charged for children’s costumes, traditional outfits to kebaya and wedding suits is set from around Rp 60,000 to Rp 1 million for a three-day rent. Withprofit around 50%-60% of rent price, return on investment is attainable within 6 months.To cut down the budget, you can work with experienced seamstress in producing custom gowns, kebaya or costumes.

15. Parking Lot Business

If you happen to have spare space at home and live in a strategic area– e.g. near business districts, shopping malls, schools, markets or stations – you can that as an opportunity to create a space for parking lot.

You do not need a big amount of money to start. You can even begin with less than Rp 1 million for leveling the terrain and building a simple post. For a simple parking lot, the tariff is between Rp 2000 and Rp 7500, including for overnight parking. The operational time from 6 a.m. until 8 p.m.

In theory, a motorcycle takes up 1.5 sqm (0.75x2m) space for parking. With 25 sqm, you can accommodate around 15 motorcycles. However, in practice, you can fit up to 20 vehicles by arranging the motorcycles close to each other. This is not including the calculation for parking turnover.

Average daily income with 25 sqm space ranges from Rp 100,000 to Rp 150,000. This means you can get as much as Rp 3 million-Rp 4.5 million within a month.The important thing to pay attention to in this parking business is establishing security. Make sure you use a ticketing system with staff taking turns to guard the space at all time .

16. Online Business: Dropshipping Online Purchases

If you think you have no particular skills and very limited fund, you can still gain some profit by becoming a dropshipper for products sold online.

Without having certain amount of money, you can tap into this business with only willingness and internet connection. Dropshipper is a middleman between product owners and consumers. You do not need to buy the productfirst, but instead you can market it, and gain profit later from the margin between your selling price and the price offered by the product owners.

Your profit is determined by how many you can sell. Several important things to pay attention to before becoming a dropshipper:

  • Learn well about everything related to the products to market, payment methods and shipment process from the prospective suppliers to avoid consumers’ dissatisfaction
  • Create a good line of communication with suppliers. Try to get them agree to allow exchanging products should there be complaints from the consumers. Suppliers’ mistake can cause you your name as a dropshipper
  • Do not rely on one supplier and instead try and find several suppliers with the same products so that you can choose the ones with the best prices, allowing you to get a bigger margin

[Example: How to make dropshipping from Tokopedia]

17. Online Business: Web Designer

According to a survey by Chip Indonesia magazine, 47% of Indonesia’s population are internet users. This is the reason why small and big companies use websites to present their identity and promote their businesses.

Web design is a promising opportunity that one can do at the comfort of one’s own home, and only requires a small initial fund to start. You will only need to buy a PC or laptop, set up a reliable internet connection and have the skills to work with html.

If you decided to do this business, you need to master software like PHP, MySQL, SHTML, DHTML, Perl and everything related to programming language and server. More than that, you need creativity, imagination and graphic design skills to develop the website based on your customers’ request.

The average tariff for one website ranges fromtwo millionsto several millions rupiah, depending on the template, domain and hosting options. In the early stage, you can gain profit up to several millions a month. The more you gain good reputation as a web designer, the more companies want to use your service.

18. Agricultural Business: Hydroponic Cultivation

Agricultural business is no longer dominated by those who have spacious land and live in areas with cool weather. Urban community, even with such limited space, can start planting.

If you like farming, you can try to tap into hydroponic cultivation business. Hydroponic is a method of growing plants using mineral nutrient solutions, in water, without soil. Vegetables fit for such treatment are water spinach, spinach, lettuce, mustard, pak choi, kai-lan, broccoli, tomato, chili, onion, cucumber, and so on.

The initial fund needed to start in the business is around Rp 500,000-Rp 1.5 million, allocated for hydroponic starter kit and vegetables seed. You will need moderate space of at least 3x3 meter. Make sure the space receives plenty of sunlight. Otherwise, you need to add lamps for extra lighting.

Harvest can then be sold directly to the surrounding community or you can cooperate with staple sellers or restaurants to distribute your vegetables. If you are able to produce a certain quantity consistently, you can even market your products to supermarkets. In average, hydroponic vegetables can be harvested within a month. With net profit up to 100%, return on investment is attainable within 2-3 harvest times. To keep yourself updated on this subject, join hydroponic communities and various training related to your business to gain more knowledge and insight on the business.

[Example: Find various tutorials related to hydroponic system on YouTube]

19. Agricultural Business: Oyster Mushroom Cultivation

Another agricultural business you can do at home with limited budget is oyster mushroom cultivation. Oyster mushroom is white in color characterized by oyster-like crown. Low initial budget, easy maintenance and high market demand guarantee the business prospect.

You need to set aside around Rp 4 million-Rp 5 million to begin with 5x5 meter land and 1000 bag logs. Below is a breakdown:

  • A hut to maintain humidity
  • Bamboo shelves for bag logs (Rp 500,000-Rp 1 million)
  • Bag logs and seed (@Rp 3500 x 1000 = Rp 3.5 million)

Average harvest per bag log within 4-5 months is 0.5 kg. With 5% failure percentage and selling price Rp 20,000 per kilogram, your profit will be around Rp 9.5 million (0.5 kg x 950 bag logs x Rp 20,000). The total net profit after 4-month is around Rp 4.5 million.

If you have leftover from the harvest, you can process it into mushroom crackers and sell the product in the market.

20. Hobby as Business: Making Handicraft and Souvenirs

One can treat a hobby as a potential business to gain profit. If you like making handicraft, you can open a workshop at home. A handicraft is full of personal touch and can be given as a souvenir.

Not just for individual sale, you can also produce them for a bigger crowd by adding names or writing using digital printer, screen printer, or embroidery. You can sell the products directly from home, distribute them online – e.g. becoming a supplier on sites like BrideStory –place them in souvenir shops, or cooperate with event organizers as souvenir suppliers for wedding favors, birthdays, etc.

[Example: Some types of souvenirs that you can find at wedding parties]

Initial fund needed depends on the types and quality of the handicraft. For a standard wedding souvenir, production cost ranges between Rp 1000-Rp 2500 each with selling price ranges between Rp 3000 and Rp 10,000 a piece.

If an average wedding needs 500 pieces of souvenirs, profit calculation will be as follows:

Sales      @Rp 6500 x 500           = Rp 3.250.000
Production cost @Rp 1750 x 500 = Rp 875.000 -
Net income                                   = Rp 2.375.000

With the calculated profit, you will get your return on investment in one production. Keep in mind that handicraft and souvenir business is really based on market demand and very subjective, even though it is also influenced by trends. You need to pay attention to consumers’ demand to be able to satisfy them and keep your business running. Who knows, the satisfied customer might recommend your product to his or her friends in the future.

After reading these 20 home businesses,  are you confident to start one of your own? Firstly, make sure that your finances are not in the red when you are starting a business.

Read also: Cost of Setting up an Online Business

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