Starting a New Business for Less Than $250

Starting a business for less than $250 is certainly doable, if you know what you are doing. I recommend any business owner to keep fixed costs as low as possible (that is your recurring monthly expenditures, i.e., rent, utilities, etc..). If your fixed costs are too high, you may not be able to weather downturns in your business which is the reason why so many businesses are closing their doors.

I am going to assume that if you are reading this, you have a computer. All businesses need a working computer with an internet connection, that is a given. A service business is usually the best to start on a dime. Why? Because with a service business, you don’t have any inventory or any goods to stock or purchase wholesale. Plus, with a physical product you may have to deal with patents, product insurance, costs of transporting and storage, etc…

So, here are a 3 main factors in starting a great business on a small budget:

1. Go with what you know. Intellecual capital is Queen! If you have a certain expertise, you can monetize it by sharing your knowledge to others who need it.

2. The days of the linear relationship between work and pay is over! Meaning, going to work for one hour to receive one hour worth of pay is an archaic way of making money. What you want to do is leverage that same hour of work and have one hour of work keep paying for itself over and over again. It’s the power of leverage! Let me put this is simple terms. Say a nail tech see’s 3 clients an hour and makes about $70. There is only but so much time in a day and only but so many people she can see. So her income, by default is limited. But, if that same nail tech taugh others how to break into the business and provided her intellectual capital (see point #1) to help others succeed then she can experience the power of leverage. How? Well, she could author an ebook that explains how to break into the beauty industry, she could hold seminars and workshops, she could become a consultant or coach. Really,the sky is the limit! I could go on and on with this one.

3. What do people contact you for? There is something that people always ask you about or seek your advice on. Clearly, this is something you possibly have a competitive advantage on. Make a list of your best attributes and weaknesses and seek a business that leans on your best points and seek strategic partnerships to enhance your weaknesses. Okay, so now that your wheels are turning on what type of business to start. Let’s get to the really good stuff. Minimizing start up costs and starting your biz for less than $250. A SOHO (small office home office) is what you want to start in order to get the most bang for your buck. All you need is a computer and some basic equipment. Your Presence This is actually one of my favorite things to talk about, but I will try to keep it short and sweet. Every business will need:

  • A Website
  • Business Cards
  • Communication Services (phone and fax)

Read the rest of this post here: