This article explores the best low-cost small business ideas you can establish in 2022. The list of these businesses or side hustle you can establish, operate and work from home. If you are wondering how to make money or what type of business do you need? probably this article is for you. We bring you ideas to make money along with the best logo ideas that can accommodate the businesses listed here. So no matter what business you choose to establish, we are here with a huge variety of ready-made logos for you to choose from.

What do we mean when we talk about small businesses?

Here is what we mean when we talk about small businesses, let’s dig deep.

What is a Small Business?

Any privately owned corporation, sole proprietorship, or partnership with few employees and relatively less annual revenue than a regular-sized business is considered a small business. Besides, they cannot apply for government support or qualify for preferential tax policy (varying city or country).

Small businesses have fewer human resources. Moreover, they also face challenges when it comes to building an up-front capital dedicated to quality initiatives.

Types of small business

The 5 most common small business structures are;

Sole Proprietorship

This is the most common and most accessible business structure to establish. You are solely accountable for profits, losses, debts, or any liabilities.

You only have to obtain the necessary permits and licenses.

Partnership

A partnership is when a single business has two or more shares of ownership. The partners share the profit or loss and contribute equally, whether skill, capital, labor, or property.

Partners sign a legal partnership agreement which includes all the claws that all the partners have agreed to build up a partnership. It is not compulsory to make a legal partnership agreement document, but it is advised to prevent any complexities in the future.

Types of small business

 Corporation

A corporation is an independent legitimate body owned by several shareholders. In case of any legal actions, the corporation is held responsible and not shareholders.

This small business structure is a little complex compared to others as it tends to have complex tax, legal requirements, and administrative fees.

Limited Liability (LLC)

LLC is an amalgam kind of legal building. This offers flexibility in terms of the partnership that is also operational. This partnership can contain one or more people.

Cooperative

Cooperative is a people-centered structure that is run by and operated to benefit the people using its services. It is common in restaurants, healthcare, agriculture, retail, etc. Instead of earning profit for investors, the cooperative focuses more on benefiting its members.

What are the characteristics of small businesses?

Usually, we dream of starting as an entrepreneur and turning it into a business empire sooner or later. We also look for creative ways to make money ideas. But, some small businesses operate best on a smaller scale for years. They serve local communities and focus on generating sufficient profit for their owners.

Further, there are specific characteristics of small businesses that set them apart from their competitors.

Low Revenue and Profit

As compared to large businesses, their revenue is low. Approximately it can generate $21.5 million per year depending on the type of business. But, it does not mean they are not profitable; small businesses’ costs are also low compared to leverage businesses. Take a look at some great small business revenue per year statistics.

Less Number of Employees

Depending on the type of business, the number of employees in small businesses is low. In most cases, it is under hundred people.