What Is a Good Small Inexpensive Business to Start?
A good small and inexpensive business to start takes a small investment and does not need significant involvement. It should be something that does not require you to hire employees. An example of such a business is a DVD kiosk, which requires little money and little involvement.
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Benefits
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Starting a DVD kiosk rental business has low maintenance fees. For example, you don't have to hire employees, which may create a large savings. Another benefit is that going into the kiosk business is an innovative idea. It is at the forefront of the entertainment industry. The DVD rental business has become taken over by easy rental services including kiosks and online rentals. Entertainment is a recession-proof business, which indicates low risk. For example, Entrepreneur claims that DVD rentals increased four percent in the fourth quarter of 2008. While people continue to spend money on entertainment, the kiosk basically pays for itself.
Location
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Having the kiosk in a well-trafficked area is important. The key to success is a convenient location, which makes the rest simple. People typically already traffic through the area where the kiosk is set up, which means that you do not have to market your product. Other businesses like your business because it gets people coming back to their grocery store, gas station, or fast-food restaurant. A few more examples of locations include large apartment buildings and convenience stores. The goal with owning your own DVD kiosk is to find an independent location that lets you start your business there. Many large companies have already laid claim to corporate locations for their DVD kiosks, which means you must be creative with your location.
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Product Description
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DVD kiosks carry predominantly new rentals, which keeps them in competition with other rental services including iTunes and Netflix. According to Entrepreneur, 90 percent of the DVDs in DVDNow Kiosks are new rentals. The kiosks also provide customers with video games, which some other major companies' kiosks do not have. They have the ability to rent Blu-ray disks, which might eventually overtake the DVD market.
Cost
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The cost of starting a DVD kiosk is relatively low compared to starting a restaurant or other major business. According to Seeking Alpha author Davis Freeberg, the average cost to start a DVD kiosk is around $20,000 to $25,000. While certain other business may cost less, you have the advantage of entering into what may be a recession-proof industry.
Making Money
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Similar to any entrepreneurial venture, you need to know that you should earn back the money you invested and make a profit. According to Franchise Genius, revenue comes from four places. You make money from the price of rentals and late fees. You also earn an income from the sale of used DVDs and the sale of advertisements in the DVD jewel case and onscreen. The main issue to focus on to earn money is the location, which must be far from major DVD kiosks. They might generate a majority of the traffic if you do not keep a safe distance from them.
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References
- Photo Credit dvd image by vashistha pathak from Fotolia.com
