What Business Can I Start With Rm5000

by Ibrahim Agunpopo
220 views 4 minutes read

Eager to start a business on a shoestring budget? With some strategic planning and a great idea, it’s entirely possible to kickstart an enterprise in Malaysia with just RM5000 capital or less. This comprehensive guide explores a diverse range of profitable business models that can be launched on a micro budget.

From online businesses you can run from home to food startups, services, retail arbitrage, wholesaling and more – we break down feasible ideas across different industries and provide actionable tips to get each business up and running. With lean startup practices, you can go from idea to execution without needing major funding.

Read on for a detailed overview of business ideas you can realistically start in Malaysia with RM5000 or less.

#1: Online Businesses

The digital age has opened up countless low-cost business models that can be launched online from the comfort of home. For less than RM5000, consider these options:

Ecommerce Business

Selling products online through your own ecommerce store allows you to start a business easily without needing physical retail space. You can get started by:

  • Finding a low-cost ecommerce platform like Shopify, Wix or WooCommerce. Shopify offers a free trial and paid plans start from $29/month.
  • Registering a domain name and web hosting for your site (~RM200-300/year)
  • Sourcing affordable products to sell from suppliers like SaleHoo, Doba, Chinavasion etc. Focus on light, non-bulky items to save on shipping costs.
  • Driving traffic to your store through social media marketing, SEO, email marketing etc. No upfront costs needed.

Total startup costs can be kept under RM2000 for inventory, web hosting fees and software expenses.

Dropshipping Business

Dropshipping allows you to sell products online without holding any inventory. You act as a middleman between suppliers and customers. When you get an order, you purchase the item from your supplier who then ships it directly to the customer. This saves warehouse and operational costs.

With dropshipping, your main expenses will be:

  • Ecommerce platform subscription fees
  • Domain name and web hosting
  • Digital marketing costs (though you can rely on free methods initially)

You can easily start this with less than RM2000 capital. The profit margins per item are smaller but this is offset by the low overheads.

Social Media Marketing Agency

With over 28 million social media users in Malaysia, businesses are keen to advertise on platforms like Facebook, Instagram and TikTok. You can tap this demand by starting a social media marketing agency. Offer services like:

  • Managing clients’ social media accounts and posting content regularly to grow their follower base
  • Creating and running ads campaigns on Facebook/Instagram to get more engagement and conversions
  • Developing social media marketing strategies for businesses
  • Analyzing data and creating reports on ads performance using the analytics tools provided by the platforms themselves

As a freelancer or micro-agency, you can run this business completely online. No physical office space needed. Startup costs will mainly be limited to a laptop, internet connection and productivity software.

Freelance Services

Freelancing allows you to offer professional skills and services to clients worldwide while working from home. With just a laptop and internet connection, you can get started immediately. Some freelance business ideas include:

  • Content writing – Offer blog, website content and SEO articles for businesses.
  • Graphic design – Create logos, ads, marketing materials for clients. Can use free software like Canva initially.
  • Web design/Wordpress – Design and develop websites and blogs for small businesses on platforms like WordPress.
  • Data entry – Provide data entry or administrative services to offshore companies.
  • Transcription – Convert audio and video files to text documents.

You can find freelance jobs on platforms like Upwork, Fiverr and Freelancer.com. Sign up is free and you earn attractive hourly rates.

Affiliate Marketing

Affiliate marketing gives you the opportunity to earn commissions by promoting other companies’ products. For example, you can become an Amazon affiliate and place ads or links to Amazon products on your website. If any visitor clicks and buys the product, you will receive a percentage commission.

With affiliate marketing, your main startup costs are:

  • Building a website – Domain name, basic Wordpress site. Can be done for under RM1000.
  • Digital marketing expenses – Using both free (blogging, social media) and paid (Google/Facebook ads) strategies to drive traffic to your site. Can start with free methods first.

As you don’t need to hold any inventory, it’s easy to begin affiliate marketing with minimal capital.

Influencer Marketing

Build an audience on social media through a personal account or blog in your niche (food, fashion, travel etc). Once you have a sizable following, you can earn money from:

  • Paid collaborations with brands relevant to your niche. A travel influencer can partner with an airline.
  • Affiliate commissions promoting products used by your audience. A food influencer can recommend kitchen tools.
  • Sponsored posts and content marketing partnerships with brands.

With just a smartphone and creative content skills, you can start building your influencer presence from scratch before pursuing paid partnerships.

#2: Food Business Ideas

Food is an essential product that will always be in demand. With RM5000, consider starting:

Home Bakery

Capitalizing on the growth in homemade food businesses, you can startup a home bakery selling cakes, cookies and other baked treats. To begin you’ll need:

  • Basic baking equipment like stand mixer, weighing scale, oven, utensils etc (RM1000-1500)
  • Packaging supplies – boxes, labels, plastic containers etc (RM500)
  • Ingredients for first few production batches (RM1000-2000)

You can sell online via WhatsApp/Facebook and also supply to local cafes and stores. As your customer base grows, consider renting a commercial kitchen space for larger production.

Catering Services

Offer home-cooked catering for small corporate events, birthday parties and private functions. Catering can be done solo or by hiring 1-2 assistants depending on order size. You’ll need:

  • Cooking equipment – Use your existing kitchen equipment initially.
  • Food supplies – Ingredients, disposable cutlery etc.
  • Transport – A car or motorbike for food delivery.

Market your services through social media ads, flyers and by approaching companies directly. Offer promotions for new clients to gain traction.

Mobile Food Cart

Run a small food kiosk or cart selling items like keropok lekor, nasi lemak, cendol, popsicles etc. Locate your cart at high traffic spots like near schools, colleges or office areas. You’ll need:

  • Cart – Custom made stainless steel push carts cost RM2000-3000. Or convert used car into a food truck.
  • Cooking equipment – Use commercial kitchen for prep.
  • Ingredients – Focus on 1 or 2 signature items to minimize inventory costs.
  • Permits – Approvals from city council and health department.
With strategic location and quality affordable food, you can build a steady clientele.

Homemade Snacks

Selling Make snacks like keropok, kuih-muih or kek lapis at home and sell to offices, schools, cafes etc. Requires:

  • Basic cooking equipment and utensils
  • Ingredients and packaging supplies
  • Product testing and recipe refinement
  • Marketing to local businesses

RM5000 could be just enough for this businesses, you might need to start with 1 or 2 popular snack items and expand your product line once demand grows.

#3: Service Business Ideas

Offering services to meet every day needs can also present lucrative startup opportunities with minimal capital. Consider these options:

Cleaning Services

Start a home and office cleaning service with just basic equipment like brooms, mops, vacuum cleaners, chemicals etc. Market your affordable services through flyers, Facebook ads and directly pitching to property managers.

As demand grows, take on assistant cleaners to service more clients without compromising on quality.

Tuition Services

If you have teaching skills and expertise in academic subjects, provide home tuition services to school and college students needing extra help. Subjects like Math, Science, Accounting, Languages etc are highly sought after.

You can start this business with zero capital – simply market your classes through your network and online channels. Charge affordable hourly rates to attract students.

Freelance Photography/Videography

Offer budget photography and videography services to SMEs and individuals needing coverage for events, functions, product shoots etc. With just a DSLR/mirrorless camera and editing skills, you can start immediately.

Build a portfolio and market your services on social media to gain clients. Expand to hiring assistants as you take on more projects.

Resume Writing Service

With jobs scarce, a professional resume can give applicants an advantage. Offer specialized resume writing services to job seekers looking to revamp their CVs. Help with content, formatting and optimizing their resumes for ATS systems.

Minimal startup costs involved. Market your services on LinkedIn, at colleges and via recruitment firms.

Mobile Auto Services

Provide car maintenance services like detailing, washing, small repairs etc door-to-door. Requirements are a vehicle, basic equipment and mechanical skills.

Offer services to car dealerships, workshops and directly pitch to residential areas. Competitive pricing and convenience can attract customers.

#4: Retail Arbitrage

Retail arbitrage involves buying products cheaply from wholesale suppliers or discount stores, then reselling at higher prices online or to other retailers. For example, you can buy generic electronics and accessories from Mr DIY for cheap and resell them on Lazada/Shopee for 2-3x the price.

With just ~RM1000 capital, you can get started by:

  • Finding wholesale/clearance stores that offer the best deals on products in demand like mobile accessories, home appliances, travel/gym equipment etc.
  • Setting up accounts on ecommerce platforms like Lazada, Shopee, Facebook marketplace etc. Listings are free or very low cost.
  • Defining your pricing strategy – how much % markup you will apply before selling to customers.
  • Marketing your products online to drive visibility and sales.

This is a relatively easy retail business to begin on a small budget. As working capital grows, you can increase inventory and product variety.

#5: Import / Wholesale Business

Import affordable consumer goods from overseas and sell them locally at wholesale rates to retailers, dealers and even individual buyers. You can get started with RM5000 or just RM2000 capital.

  • Find manufacturers, ideally in China/Taiwan to import goods like hair accessories, costume jewelry, mobile accessories, home items etc. Use sites like Alibaba.com.
  • Import a small quantity of samples for product testing and marketing – see what sells well.
  • Sell to retailers/dealers for wholesale supply and directly to consumers online via Instagram, Facebook, Lazada etc.

Focus on small, high demand items that customers buy on impulse – cosmetics, hair bands, jewelry etc. Keep expanding your product range once the business gains traction.

#6: Multi-Level Marketing

Joining an established MLM company gives you the opportunity to earn commissions by promoting and selling their products directly to consumers. Reputable MLMs in Malaysia include Amway, Cosway, Avon etc.

RM5000 is enough to start this business. To get started, you typically need to pay a small registration fee (RM100-500) and purchase a starter kit or inventory (around RM500-1000).

Your main opportunity to earn money will be through:

  • Direct selling to consumers and realizing the retail profit margin.
  • Recruiting members into your downline network and earning commissions on their sales. This is where the ‘multi-level’ earning potential comes in.

While MLMs have a mixed reputation, they represent a low-cost way to gain business experience and supplement your income. But ensure you do thorough research before joining to avoid shady pyramid schemes.

#7: Other Ideas

Here are a few other small business ideas you can begin with RM5000:

  • Buy and rent out used furniture via Facebook Marketplace etc.
  • Resell in-demand products like power banks, USB cables, phone cases etc in bulk online/offline.
  • Teach skills like music, dance, arts & crafts from home.
  • Start a home-based daycare center for children.
  • Provide home-delivered laundry services for busy professionals.
  • Buy a second hand commercial espresso machine and sell coffee from home/office.
  • Become a Shopee seller by buying wholesale products from suppliers and fulfilling orders yourself.

In summary, capital should not be a barrier to pursuing your entrepreneurial aspirations in Malaysia. With creativity, lean startup strategies and an efficient business plan, the possibilities are endless for launching a profitable business with just RM5000 or less. Identify an idea you are passionate about, assess target market demand, execute it efficiently and grow your business, and RM5000 could be more than enough.

Image Credits: All images on this website are sources from Getty Images, Pexels and Unsplash.

You may also like

@2021-2023 Biztraction Consulting | Fixing business friction.