|
|
|
|
We have tons of info here. Use our Search function to find it
fast....
|
|
|
Article added or updated:
01/26/2009 |
Businesses You Can Start For Under $5,000
|
Eight years ago, Texas resident Cynthia Ivie, a 43-year-old sales rep
for Newsweek, struck out for Chicago with no more than a business idea
and a 1989 Toyota Corolla packed with clothes, books, a vacuum cleaner,
a stereo and a cocker spaniel named Buckley. Ivie's big moneymaking
idea: organizing the apartments and offices of busy people.
|
|
|
Today, Ivie's company, White Space, offers "clutter control" services to
hundreds of clients across the country, many of them recently relocated
by big companies like the Walt Disney Co. and Exelon. White Space now
has five full-time and eight part-time employees; Ivie expects revenues
to top $1 million in 2007. "I knew the business would take off if I
could survive long enough," she says. "I had a lot of gumption--and
probably a little naiveté that kept me going."
Gumption, naiveté and very little cash. Ivie couldn't afford a cellphone,
so she bought a pager and a voicemail system for $200--"I knew where
every pay phone in Chicago was," she claims--and scraped together
another $1,000 for brochures and business cards. For six months, she
slept on a futon mattress in her friend's basement. Eventually, she
moved into her own home office, outfitted with two hand-me-down
computers ($107) and two desks made out of hollow-core doors laid across
cheap file cabinets ($20) from Office Depot. Total startup costs: around
$1,500, including gas.
There are plenty of Ivies out there. And a lot them didn't have--or
need--gobs of green to launch their businesses.
|
|
| Indeed, there are
myriad ways to preserve precious cash while starting and building a
business. Our special report, called "Small Business On The Cheap,"
offers plenty of helpful tips--from slashing marketing costs and telecom
bills to cutting health care bills and travel expenses.
Like Ivie, fledgling entrepreneurs can save a bundle by selling services
rather than products. "It's really hard to start any product-based
business for under $5,000," says Richard Stim, co-author of Whoops! I'm
in Business: A Crash Course In Business Basics with Lisa Guerin. In
general, he says, there is less overhead for service-based businesses,
which don't require large outlays for equipment and inventory.
The best services to choose from are those that people don't want to do
themselves. Think yard work or preparing legal documents. Educational
services such as teaching yoga, ballroom dancing or how to take the SATs
are attractive, too. Better, still, if you can help people avoid or
solve a problem--say, by inspecting homes for water quality or
environmental safety.
There are some startup costs, of course. But when it comes to service
businesses, the nice thing is that many don't require expensive
technology, save for maybe a computer and an Internet connection. If you
want to start a child-care facility, for instance, you'll want to spend
a few dollars on toys and perhaps some childproof locks.
In some cases, as with child-care providers or real estate agents, you
may need a state license or other certifications to set up shop.
Child-care licenses run up to $100, depending on the state; you'll also
have to be certified in first aid and CPR (maybe $50 all in) and you'll
need some liability insurance (say, $450 per year).
A service startup's biggest expense is probably marketing, be it
printing brochures and business cards or placing ads in local
newspapers. (Check out VistaPrint, which specializes in low-volume runs
for smaller shops.) Setting up a blog can be a cheap way to get your
message out, and it's a lot less expensive than maintaining a Web site.
The best--and cheapest--advertising, however, is word of mouth. Offering
free initial consultation meetings is a good way to get people talking.
When Ivie landed in Chicago, she sent postcards to 30 local business
people, promising three hours of organization services for free. "People
snapped it up, tried the services, liked them, referred me to other
people and the business started to grow," she says.
In smaller markets, getting on friendly terms with the competition also
can be good for business. If one piano teacher has too many students,
she might sluice the spillover to you.
Whatever you do, though, remember to be patient. "If you're looking to
get rich quick, forget about it," says Stim. "Instead, try to make a
profit, enjoy what you're doing and make it something that can keep
going and going."
|
|
As always, please check with your tax professional,
CPA or lawyer
prior to acting on any advice found here. We do NOT dispense advice on
any articles contained here.
Legal Disclaimer
© Copyright 2003-2009
Please do not reproduce or copy without written permission.
SelfEmployedWeb. All Rights Reserved |
|
|
|
