6 Ways to Start a Business with a Small Budget

How to Start a Business with Minimal Funds 

If you’re thinking about starting your own business, one of your first concerns might be figuring out how to afford to get your company off the ground. Starting a business can be a costly endeavor, with entrepreneurs spending an average of $30,000 to $40,000 on startup expenses in the first year. 

However, plenty of people launch businesses with very little startup capital. Explore the strategies below to learn how to build a profitable business on a limited budget.

1. Explore low cost business models

To become an entrepreneur on a budget, you’ll need to either find a business model with low startup costs or figure out how to make your existing idea more affordable. Thanks to the modern digital marketplace, many business models don’t require much more than an internet connection. 

Here are a few options to consider:

• Dropshipping – Dropshipping involves marketing a manufacturer’s products and facilitating sales. The manufacturer produces and ships the products  to customers, so you don’t have to invest in inventory up-front—you can simply profit off your sales.

• Print-on-demand sales – Print-on-demand companies manufacture merchandise like t-shirts and tote bags with your designs. As the name implies, the company will print and ship your product once a customer orders  through your platform. All you have to do is create the design, decide what types of products to sell, and set up an online shop.

• Digital product sales – You can create digital products like e-books or stock photos without expensive tools, materials, and equipment. 

Once you select a business model, write a business plan to use as a roadmap. Even if you start with a free model, you may eventually want to evolve as your business becomes profitable.

2. Leverage your creativity

Artists and other creators can turn their hobbies into businesses by selling their creations. Although artisan products require supplies, you can start small with the materials you already have. You can also get creative by using upcycled or thrift materials. 

Many artists even use a commission-based business model to secure a deposit from clients first to help cover the costs of their projects.

3. Claim your business identity with a branded website and social pages

Work on establishing your brand before spending excess time and energy stocking inventory, hiring employees, and taking care of other big-ticket business items. 

Start by creating a business name (and even a logo through site builders like Wix). Once you decide on a business name, you can secure a personalized domain name and build a branded website. Name.com’s easy-to-use domain name search engine provides available domain names relevant to your business.

Then, you can use your business name to secure branded social media pages to stake your claim as a legitimate company and ensure you have the digital assets you need to expand your business online. 

Creating social media posts about your startup journey is a cost-free way to promote your business, build an audience, and find your target customers. 

When selecting a domain name, keep these best practices in mind: 

• Keep your domain name short, concise, and memorable
• Consider relevant domain name extensions like .store or .design
• Don’t include keywords that are easily misspelled 
• Avoid adding numbers or symbols 

4. Create content about your journey

Many people are interested in getting an inside look at the creation of their favorite products. Others are curious about what it’s like to start a business from scratch. 

Try creating social media content that documents and advertises your micro-business to market your offerings and generate additional income. You can then use that income stream to support your operating costs.

5. Reinvest in your business

Once you start making an income, reinvest that money back into your business. Any income you earn can significantly impact your future success when you don’t have startup capital. 

Additionally, consider opening a business account with no or low fees to keep your business income separate from any other sources of income and start saving for significant investments.

6. Crowdfund your goals

Using crowdfunding platforms is a popular way for business owners to connect with potential investors. By getting up-front support from your customers, you can start a new venture without going into debt. 

You can also use strategies like securing pre-orders to get the capital you need to cover your initial expenses.

Become an entrepreneur with Name.com

You can turn any idea into a profitable business with the right strategies. In particular, setting up a website with a branded domain name is a basic, low-cost investment that can make it easier for you to market your business, connect with customers, and secure sales—and name.com makes it even easier. 

Start with a domain name search, then create your website through Wix Website Builder. You can even bundle your domain and website with name.com’s email solutions for businesses to save money while building a strong brand identity.

Sources:
Small Biz Trends. How Much Does it Cost to Start a Business? https://smallbiztrends.com/2022/01/how-much-does-it-cost-to-start-a-business.html#:~:text=How%20Much%20Money%20on%20Average,up%20to%20millions%20of%20dollars.