To some, $500 is like a fortune, to the fortune, it is mere pocket change. Certainly, it’s not that easy to build savings in the modern era. And, $500 can go a long way, especially when it comes to starting a business. There is a misconception that to start a business: you would need thousands of dollars as well as the know-how to actually do it. But really, there are three simple steps. Create a brand name, find a product or service you want to sell, and use web design inspiration to create a website – then you’re on your way. Keep reading to find out more.
Getting Started For Free
Believe it or not, you can start a business for free. Not only are there multiple business ideas that help you sell products without the need for an initial investment, but you can also create a name and website for free. Interestingly, a study found that the average micro business costs $3,000 to start, and home-based franchises sit between $2.5 and $5K. Once you have a name, you can begin your free business journey by using free website builders.
Website builders allow you to have creative control over your design whilst giving you the tools to create a flawless website filled with interactive features. And, it’s easy to do. Again, the internet is a powerful learning tool. You can follow website design tutorials on Youtube to guide you through the process. The only thing you will have to pay for is a domain name, which costs on average $10-15 a year, so you have $485 spare.
With your name and website in tow, you can now consider business social media as a free marketing tool. One study found 90% of people buy from brands they follow on Instagram, and it’s a great way to connect with customers, influencers, and other brands. Influencers are a powerful marketing tool, but you might need a bigger budget to partner with them. Although, some newbie influencers will promote a product for a freebie.
There are three easy steps to take to start a business for next to nothing.
Where The Money Comes In
A business will have to spend money at some point, and depending on your business idea, the initial costs are likely to be inventory, office equipment (even if it’s a new laptop you use at home), and products. A study by Shopify found businesses spend the most on inventory and product costs in the first year. Thus, you’re most likely to use your initial $500 on that.
Let’s say, for example, you start a sports clothing business. If you research, most online articles say that you need $500 to start a small clothing brand – perfect for our budget. So, let’s think about ways that you can cut that cost down and leave a bit of cash spare. The owner of GymShark, a massive online activewear brand, started his business in his garage, using a screenprinting operation in his garage.
To outsource, you’re looking at spending $500+ for less than 100 t-shirts, but you can do it from home using a lightbulb, pieces of sheet glass, and screen printing ink. There are always ways you can cut out the middleman, reduce costs, and start your business without needing to spend obscene amounts.
Demand And Supply
Another way you can keep costs down is to use the demand and supply method, differing from supply and demand because you need to wait for the order before you can supply. That is now what’s commonly known as dropshipping, and there are multiple ways of doing it. You can start dropshipping without needing a website or even a business.
People watch market trends and find products that are rapidly selling out, buy one or two, and then sell them onwards for a much larger fee because the demand is there, and people will pay for it. Take the PlayStation 5, for example. It sold out without hours, and people scrambled to find places to buy one. Many resorted to eBay, where some people were selling PS5’s for $1,000+. It’s feasible to start a business without calling it a business to grow your funds and create a bigger and better business. Plus, you’ll get a feel for supply and demand, buying and selling products, and how to procure products.
The Ideas This Can Work For
All of these ideas about starting a business for $500 are great, but what business ideas does it work for? Here are five you might want to try:
- Marketing services
- Personal shoppers
- Online courses or tutoring
- Personal wellness
Starting a business is exciting – although also daunting at the same time. Yet, as you can see from above, starting a small business is not as daunting as it seems. And, as your business naturally progresses, so will you. You’ll learn the processes of running a business slowly and pick up tips and tricks along the way.