One of the greatest myths in the business world is that it costs a lot of money to get a business off the ground. With the right kind of planning, you can get a business started for less than $10,000 and build it into something you can be proud of.
The hours are long when you are starting a business, but starting a business inexpensively means more room for profit later on. The good budget habits you learn in the beginning of your business will make it easier to keep your business successful as it grows.
What Every $10,000 Business Needs
When you start planning for your $10,000 business, there are some essential elements you will need to be successful. The primary elements you will need are:
- Business Plan
- Location
- Resources
- Marketing
The simplest way to take care of all of these elements is to find a business for sale that already has these all in place. Let’s take a look at each element and see how these become the building blocks for your $10,000 business.
Business Plan
Whenever you are trying to do something on a tight budget, you need a good plan. A business plan is a comprehensive guide to how you will fund, run, and grow your business. You spend months working on your business plan so that you know exactly how you will handle every situation you are faced with as you grow your business.
What does a business plan have to do with starting a business for less than $10,000? Your company budget and spending plans are included in the business plan and they will become your guide to financial success.
Location
One of the stumbling blocks to starting a business for under $10,000 is the location.
For example, it can be a challenge to find a retail business space that will allow you to make money and not cost a fortune every month. If you want to keep your business under budget, then you need to get creative with your location.
If you are not a retail business, then work from your home. If you need to meet with customers, then rent a small conference room somewhere or sublease one from a business that is not using theirs.
If you are a retail business, then you have a couple of options. Can you get your home zoned for a commercial business and do a little remodeling to create your shop? You may be able to start your business in your garage and use your driveway as a parking lot.
Another retail option is to sublet space from an existing store and save a lot of money, while still getting the foot traffic you need to be successful. In either case, you will need to do a lot of grassroots marketing to be successful and we will discuss that in a moment.
Resources
Do you need to hire a graphic designer to make your marketing material, or can you use a website to make them for you? The inexpensive resources you need to make your business successful are all around you; all you need to do is find them.
For example, you should consider using independent contractors instead of employees as you get started. You will get the help you need at a fraction of the cost.
Marketing
New business owners often feel that they need to spend thousands of dollars on marketing a business to be successful. Word of mouth is one of the most effective forms of advertising available and all it takes to create good word of mouth advertising is some hard work and good product.
Utilize social media on the Internet to get your company out to people all throughout your area, and try to buy some advertising on the websites of local companies as well. Have business cards and informational flyers printed up and get them out to people throughout your area. The time you spend networking with potential clients will result in sales and cost you almost nothing.
You should also work with friends and relatives to try and get a grassroots marketing campaign going. This is when people start talking about your business to everyone they can and create a buzz. Grassroots advertising takes time and a lot of work, but it is inexpensive and effective.
Hard work and determination mean more to a start-up business than anything else. If you are prepared to put in the work, then you can easily start a successful business for less than $10,000.