Best Small Scale Business Ideas South Africa
Are you looking to start a small business with a budget of 10k, 20k or 50k in South Africa? This article covers 30 great ideas for your consideration.
Don’t hesitate to reach out to us in case you need support or guidance setting up any of the business ideas, we provide free consultation.
Related: 40 Small Businesses to Start in South Africa with a Budget of R200 – R500
Top 10 businesses to start with R10,000 in South Africa
1. Start a website and graphic design firm
This is a great business to start if you have some expertise in web design and/or graphic design because the demand for such services has never been higher! Nowadays, with most things having an online presence, having eye-catching and well made graphics can make all the difference.
As a graphic designer you might be asked to design anything from a company’s logo, to their social media infographics, to designs for a line of merchandise.
If you’re interested then you can offer your services through online freelancing platforms like Upwork and Fiverr, and use your 10k budget to run online ads targeting people who are looking for such services. Your design firm can be run entirely from home.
2. Start an online consultancy business
With the growing number of small businesses in South Africa, consultation services are in high demand. Because many owners of small business are unsure about what their first steps should be, and look for guidance from fellow professionals.
A business consultant helps entrepreneurs set up frameworks and procedures to grow their businesses. They can also provide services like business registration and incorporation, employee recruitment, marketing, etc. There are several ways to easily find consultation clients online.
And keep in mind that as a consultant, one of the biggest things you can have at your disposal to land clients are testimonials from previous customers. Try to display those success stories on your potential website and social medias.
3. Drop shipping
Drop shipping is a type of retail business whereby sellers advertise products they don’t own. Whenever a customer places an order, they simultaneously purchase the product from a supplier and then ship it directly to them.
It’s a highly profitable business that doesn’t require much capital to start which means that it’s the perfect business opportunity for people who don’t like risk and reward ideas, because there’s essentially no risk involved.
Since you don’t need much capital, your 10k budget can go towards marketing the products on your e-commerce website.
4. Customer care and call center operations
With the rising number of businesses looking to outsource their operations, running a remote customer care and call center business can be very profitable. And depending on how many employees you have you could potentially be the call center for multiple businesses at once which could greatly increase revenue.
Your budget should be spent on things like potentially hiring employees to be able to answer more phones and care for more businesses, possibly providing these people with scripts and/or equipment, and of course marketing.
5. Sell hand crafts internationally on Etsy
Etsy is a popular marketplace for artisans and craftspeople who are looking to sell their work to an international audience.
If you are skilled at making unique hand-made crafts like wooden carvings and jewelry, or you know an inexpensive place to source them, then you can easily start selling on Etsy.
6. Food delivery to offices
Many offices don’t have on-site restaurants and food delivery can be a very convenient service. You could potentially even set up a daily delivery service for businesses that often hire you, and bring them food at a certain time on every workday.
You’ll be surprised at how many companies would like to hire you for this job but you need to have the proper supplies in place such as a vehicle to make these deliveries in. And you can’t forget about marketing because it will be your best friend in the early days of your business’s development.
7. Forex and crypto trading
The volatility of the cryptocurrency market has made day trading a very lucrative business opportunity. Traders look for opportunities to buy coins when their prices dip and then sell for a quick profit as soon as they hike.
The same thing can be done with forex trading.
The most popular crypto trading platform is Binance; you simply buy bitcoin using your local currency from Local Bitcoin, and then transfer it to Binance to begin trading. The most popular forex trading platform is IQ Option.
8. Real estate brokering
Real estate brokers link buyers and sellers of a property and then get a commission from the sale. The earning potential in real estate is astounding. The commission from just a single property can be enough to cover your bills for several months.
Your starting budget should mostly be used for marketing, because it might be difficult to get those beginning sales without much of a repudiation. But after a few successful deals, you’ll be well on your way to being a professional broker.
9. Publish an e-book
Although a lot of work goes into writing an e-book, once it’s published in platforms like the Amazon Kindle Store, you’ll keep earning from it perpetually without much work.
You don’t even need to write the e-book yourself, you can simply use your 10k budget to hire a ghostwriter. E-books are one the best ways to create a passive income stream.
Or if you do decide to write the book yourself, then you can use that budget to advertise it. Once it builds a name for itself, there will be virtually no need for continuous advertising but in the beginning it can be helpful.
10. Home day care
Childcare services will always be in high demand. You can easily fill in a need in your neighborhood by transforming your home into a daycare.
Arguably one of the best parts of this business is that it can be run from home, but you should probably block off areas of the home where you don’t want kids running around or areas that aren’t safe for them.
Your startup budget will be well spent on things like toys, other types of entertainment, food, decorations, first aid supplies, and marketing to get your business off the ground.
Top 10 businesses to start with R20,000 in South Africa
1. Pallet furniture
Pallets are the wooden structures used for support when transporting goods and containers. They are incredibly versatile, and can be used to create almost any type of furniture, including beds, chairs and tables. A lot of trendy restaurants like to use them as their theme.
The great thing about pallets is that they can be obtained very inexpensively from shipping companies, and the carpentry work can be outsourced.
2. Mobile saloon/barber
Mobile hair dressers and barbers offer services that can be booked online via an app or website, and the attendants travel to the clients’ locations rather than the clients coming to them.
3. Mobile massage services
A lot of people don’t like going to spas because of hygiene concerns. A mobile massage provides the services right from the clients’ homes, which eliminates those concerns, and can be booked via an app or website. Building that app or website would be an efficient use of your starting budget.
Another way that you could spend your starting money is to buy some basic equipment such as a massage table, some lotions and oils, and some complimentary bathrobes. The more spa-like the experience you give your customers is, the more likely they are to book you again.
4. Start a travel agency
If you’re a person that loves travelling and meticulous planning, starting a travel agency can be a great business for you. Your startup budget can go towards market research to identify the right niche, branding and online marketing.
Setting people up for their dream vacation can be extremely gratifying, so you might find that you have a real passion for this job. And you could always hire some travel agents to start taking some of the workload off of you after the business takes off.
5. Start an advertising agency
If you have experience in marketing, you can start an advertising agency to help other businesses create campaigns for whatever budgets they have.
Many agencies tend to focus on large corporations that have big budgets. Your agency can focus on the smaller businesses and startups that are often neglected.
6. Sell niche and trendy products
Niche products are great to sell because they generally don’t have much competition. Some examples include VR headsets, waist trainers, dash cams, drones, workout supplements, etc. You can easily sell such products on online marketplaces.
7. Real estate wholesaling
Wholesaling is a great way to enter the lucrative real estate business with a limited capital.
It involves identifying undervalued properties for sale, signing a purchase agreement with the seller for a fixed amount, and then finding a cash buyer willing to pay a higher price while keeping the margin as profit.
8. Sell Bonsai trees
Bonsai is an ancient Asian practice that uses cultivation techniques to produce miniature trees that have all the features of a fully grown tree.
Growing and selling bonsai trees can be a very profitable niche business. They have have very high demand all around the world. You can learn the cultivation techniques through online tutorials.
9. Start an events planning company
If you are a detail oriented person who loves organizing parties, then starting an event planning business might be for you. You can either choose to specialize in a specific types of event such as weddings and birthdays, or simply just go with all events.
This sort of career can really take off if the clients you’re working for start to suggest you to their friends and acquaintances. But if you don’t get enough business in this way, you could spend your budget on marketing to bring in more interest.
And don’t forget to snap some photos of events you’ve done, if you can. This will allow you to put together a portfolio of your successful parties.
10. Cleaning services
Cleaning is an ever green business that will always be in demand. A lot of organizations like to contract such services to third party companies.
You can offer your cleaning services to restaurants, hotels, corporate offices, commercial buildings, residential estates, etc.
You don’t need much to get started, just different types of cleaning equipment such as vacuums and carpet cleaners, and a small team.
Top 10 businesses to start with R50,000 in South Africa
1. Virtual reality game arcade
VR games take people through a journey inside a 3D world where they get to interact with the game as though they’re inside it.
A virtual reality gaming arcade lets ordinary people have such immersing gaming experiences without owning the VR equipment.
Buying the VR equipment and renting a building for the arcade is quite the investment, but you won’t have much competition with this business idea so if you do it the right way then there’s no reason why it wouldn’t take off.
2. Grocery store
Grocery stores are most people’s go-to source for food supplies. Although they can be found in almost every corner, starting a grocery business is one of the most reliable businesses you can start in South Africa with a medium budget that can guarantee a steady income.
You don’t need to run the business yourself, you simply hire a shop attendant and your job will just be the occasional supervision. As you make more money, you might even be able to start a chain of grocery stores in different locations.
3. Catering services
Catering is another profitable business idea that does not require much capital to start. And it’s a great job choice for anyone with a passion for cooking since it lets you do what you love for a living.
You can choose to run the catering business from your home to avoid unnecessary costs like rent, and use your 50k budget to buy second hand baking equipment.
And as the business grows and you make more money, you could consider renting a space at that point if you haven’t already. Another potential growth idea could be to hire some employees so you can take more contracts at once.
4. 3D printing
Commercial 3D printing can be a very profitable business to start in South Africa if you have the right targeting approach.
Some common things that can be 3D printed include toys, house designs, jewelry, spare parts, etc. You can specifically target companies that deal with design such as architectural firms.
5. Office sharing
Offices are fundamental for growing companies, however the problem is that they are often too expensive.
You can start an office sharing business in SA by leasing a large office and then dividing it into smaller work stations that can be leased individually. This makes it more affordable to small scale businesses.
You’ll make money through the rental income as well as by offering additional services such as WiFi, tea and coffee, etc.
6. Airbnb rental arbitrage
Rental arbitrage is the business of leasing a house, furnishing it and then subleasing to short-term guests on platforms like Airbnb.
If well managed, arbitrage can be a much more profitable business than the traditional rental practices, and a lot less expensive to start. It allows you to have rental properties without owning any one of them.
7. Invest in crowd funded real estate
Real estate crowdfunding is an alternative real estate investment strategy whereby small amounts of money are pooled from many people to finance the development of a property. As an investor, you either get equity or interest.
There are several platforms that you can use to find crowd funding projects, including Fundrise, Rich Uncles and Realty Africa.
8. Sell smart home solutions
Smart homes are modern houses that are equipped with appliances and devices that can be synchronized and operated from a remote device such a smart phone. For example, the lights in every room can be turned on or off from an iPad.
The demand for smart home solutions has been steadily growing in South Africa. You can sell the smart devices and appliances, as well as provide installation services.
9. Green screen photography studio
A green screen studio uses green screens as the backdrop for photographs instead of the standard still image backdrops.
Green screens are commonly used in movies and TV commercials to add special effects by changing the background and scenery into something more cinematic.
There’s a large demand out there for green screen studios because a lot of people want that level of professionalism and customization for their photos.
Getting the space rented, the place filled with green screens, and buying all the photography equipment could cost you a pretty penny. But if you really watch your money, then your 50k budget should suffice to get you started.
10. Courier services
Couriers help busy people send parcels from one location to another. You can focus your services in one city and then slowly expand to other locations as the business grows. Use your R50,000 budget to buy a cheap motorcycle for the deliveries.
A certain amount of patience would probably serve you well in this line of work due to the fact that work might be slow at first, but increase as you get a solid reputation built up. After all, people don’t trust their package with just anybody.
As you make a bit more money, you might also wish to add some branding to your delivery vehicles for a bit of brand recognition. And it could also serve as some passive advertisement.
