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How to launch your business on a lowcost budget!
How to launch your business on a lowcost budget! Big Bucks Ahead 50 Ways To Launch On A Shoestring!
Thanks to free resources, alternative financing methods and outsourcing, it is not only possible, but easy to start a small business on a shoestring budget.
Consider the possibilities: simple and accessible “drop and drag” web tools can help give your fledgling startup the look of a Fortune 500 giant. You have access to global experts via personnel hiring sites such as Odesk. You don’t need to hire a staff of employees. Hire experts—such as logo designers—on a la carte basis. Thanks to freelance help, you don’t need a large office or facility to handle a staff.
Local banks in your community are more willing now to offer loans. Get creative with fundraising. Crowdfunding through campaigns such as IndieGoGo can help you acquire the needed capital to grow your burgeoning business.
Crowdfunding has become a popular way to generate funds for those wishing to start their small business. The Internet is the source for entrepreneurs to launch their “crowd funding” campaigns. It’s a good resource.
According to dailycrowdsource.com, crowdfunding is asking a crowd of people to donate a defined amount of money for a specific cause or project in exchange for various rewards. Many entrepreneurs use it.
Crowdfunding initiatives could be: a nonprofit (to raise funds for a school or social service organization), political (to support a candidate or political party), charitable (emergency funds for an ill person or to fund a critical operation), commercial (to create and sell a new product) or a financing campaign for a startup company. Visit crowdfunding sites to learn more.
Crowdfunding models involve a variety of participants. They include the people or organizations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organization (the “platform”) that brings together the project initiator and the crowd.
Entrepreneurs who want to start a crowdfunding campaign can begin immediately. They select a platform, write up a convincing pitch to potential funders, or create a great video to describe what they want to do, and hope that enough interested visitors to the site will want to help them start the business. Visitors to crowdfunding sites contribute money usually in exchange for a gift, a product, a commemorative t-shirt or hat, or a mention on the company website.
Expert advice and mentoring programs are readily available to you from the United States Small Business Administration (sba.gov) especially from their SCORE.org program that can provide you with a free mentor to help you every step of the way.
In short, there has never been a better time to start a small business. You can turn your daydream into your dream day with tips, strategies and tools in this Shoestring Startup feature.
What does SBA offer to small business owners? The programs are many and varied, and the qualifications for each are specific. SBA can help facilitate a loan for you with a third party lender, guarantee a bond, or help you find venture capital. What SBA Offers to Help Small Businesses Grow
Understanding how SBA works is the first step towards receiving assistance.
SBA’s Role: SBA provides a number of financial assistance programs for small businesses that have been specifically designed to meet key financing needs, including debt financing, surety bonds, and equity financing.
Guaranteed Loan Programs (Debt Financing): SBA does not make direct loans to small businesses. Rather, SBA sets the guidelines for loans, which are then made by its partners (lenders, community development organizations, and microlending institutions). The SBA guarantees that these loans will be repaid, thus eliminating some of the risk to the lending partners. So when a business applies for an SBA loan, it is actually applying for a commercial loan, structured according to SBA requirements with an SBA guaranty. SBA-guaranteed loans may not be made to a small business if the borrower has access to other financing on reasonable terms.
SBA loan guaranty requirements and practices can change as the Government alters its fiscal policy and priorities to meet current economic conditions. Therefore, you can’t rely on past policy when seeking assistance in today's market.
Bonding Program (Surety Bonds): SBA’s Surety Bond Guarantee (SBG) Program helps small business contractors who cannot obtain surety bonds through regular commercial channels.
A surety bond is a three-party instrument between a surety (someone who agrees to be responsible for the debt or obligation of another), a contractor and a project owner. The agreement binds the contractor to comply with the terms and conditions of a contract. If the contractor is unable to successfully perform the contract, the surety assumes the contractor's responsibilities and ensures that the project is completed.
Through the SBG Program, the SBA makes an agreement with a surety guaranteeing that SBA will assume a percentage of loss in the event the contractor should breach the terms of the contract. The SBA's guarantee gives sureties an incentive to provide bonding for eligible contractors, thereby strengthening a contractor's ability to obtain bonding and greater access to contracting opportunities for small businesses.
Venture Capital Program: SBA’s Small Business Investment Company (SBIC) Program is a public-private investment partnership created to help fill the gap between the availability of growth capital and the needs of small businesses. The SBA does not invest directly in small businesses, relying instead on the expertise of qualified private investment funds. The SBA licenses these funds as SBICs and supplements the capital they raise from private investors with access to low-cost, government-guaranteed debt.
With these two sources of capital backing them, SBICs search across the United States for promising businesses in need of debt or equity financing. SBICs are similar to other investment funds in terms of how they operate and their pursuit of high returns. However, unlike other funds, SBICs limit their investments to qualified small business concerns as defined by SBA regulations. Visit sba.gov to learn more about the loans and grant programs offered by the U.S. Small Business Administration and how they can help your biz.
Pick a business that you are passionate about. If you pick something you love to do, you will enjoy working on it everyday.
Conduct your due diligence. This means you will research potential obstacles such as zoning, licenses, permits, etc. before starting the business. You will also look at the competition and make sure your region can support another business in that category.
If you are starting a business online, look at other websites in your field and see what they do and do not offer. Can you provide the service or product in a manner that is faster, cheaper or better?
Use the free resources online to learn about small business. Visit our website at sbomag.com for daily updates on features with successful entrepreneurs, strategies and guidance from experts on how to start and grow a small business.
Be creative. Barter for services that you need. If you provide the best homemade jams and jellies, trade them with a web designer who can create a great site for you. This is the art of bootstrapping.
The term bootstrapping dates back to the mid-1800’s. Tall boots may have a tab, loop or handle at the top known as a bootstrap, allowing one to use fingers or a boot hook tool to help with pulling the boots on. The saying “to pull oneself up by one’s bootstraps” came to mean performing a difficult task on one’s own without help or assistance.
Today, bootstrapping usually refers to the beginning of a self-sustaining process that is supposed to proceed without external input, such as starting a small business on your own with limited funds and help.
Shoestring or bootstrapping startups are also referred to as Lean Startups. Entrepreneurs do whatever they can to cut costs, eliminate waste while maximizing existing resources.
Launch Your New Enterprise Like A Guerrilla Marketer
Guerrilla Marketing Jay Conrad Levinson is credited with coining the phrase, “Guerrilla Marketing,” and has written books and developed a website to help entrepreneurs develop their own low or no budget marketing campaigns. The techniques of Guerrilla Marketing can help any bootstrapping entrepreneur launch their business on a shoestring budget.
Houghton Mifflin published the first Guerrilla Marketing book in l984. Today there are 58 volumes in 62 languages, and more than 21 million copies have been sold worldwide. The book is required reading in many MBA programs throughout the world. The author taught the topic at the University of California, Berkeley Extension Division. He lectures on it worldwide.
In the words of the Father of Guerrilla Marketing, Jay Conrad Levinson, this describes guerrilla marketing:
“I’m referring to the soul and essence of guerrilla marketing which remain as always – achieving conventional goals, such as profits and joy, with unconventional methods, such as investing energy instead of money. ”
Guerrilla Marketing started out a single volume and has since multiplied into a library of 35 books and counting, an Association, a lush website, an abundance of video and audio versions, an email newsletter, a consulting organization, an internationally-syndicated column for newspapers, magazines, and the Internet, and presentations in enough countries for us to consider forming our own Guerrilla United Nations.
The need for guerrilla marketing can be seen in the light of three facts:
1. Because of big business downsizing, decentralization, relaxation of government regulations, affordable technology, and a revolution in consciousness, people around the world are gravitating to small business in record numbers.
2. Small business failures are also establishing record numbers and one of the main reasons for the failures is a failure to understand marketing.
3. Guerrilla marketing has been proven in action to work for small businesses around the world. It works because it’s simple to understand, easy to implement and outrageously inexpensive.
“Guerrilla marketing is needed because it gives small businesses a delightfully unfair advantage: certainty in an uncertain world, economy in a high-priced world, simplicity in a complicated world, marketing awareness in a clueless world,” said Levinson.
Guerrillas Speak
The Language of Color
Colors speak loudly and clearly about your business. But they give forth mixed messages, says Levinson. Guerrillas know well the hidden language of color — and know that colors speak louder than words. They stimulate emotions, excite, impress, entertain, persuade. They generate negative reactions if you don’t understand them.
Lasting impressions are made within 90 seconds and color accounts for 60 percent of the acceptance or rejection. So don’t select the colors you love. Instead consider their meaning to prospects. Here is what colors mean to people in their emotions and in a business context according to Levinson.
Red evokes aggressiveness, passion, strength, and vitality. In business, it is great for accents and boldness, stimulates appetites, and is associated with debt.
Pink evokes femininity, innocence, softness, and health. In business, be sure you’re aware of its feminine implications and associations.
Orange evokes fun, cheeriness, and warm exuberance. In business, it’s great to highlight information in graphs and on charts.
Yellow evokes positivity, sunshine and cowardice. In business, it appeals to intellectuals and is excellent for accenting things. Too much is unnerving.
Green evokes tranquility, health, and freshness. In business, its deep tones convey status and wealth; its pale tones are soothing.
Blue evokes authority, dignity, security, and faithfulness. In business, it implies fiscal responsibility and security. Plus it is universally popular.
Purple evokes sophistication, spirituality, expensiveness, royalty and mystery. In business, it’s right for upscale and artistic audiences.
Brown evokes utility, earthiness, woodsiness and subtle richness. In business, it signifies less important items in documents.
White evokes purity, truthfulness, being contemporary and refined. In business, it enlivens dark colors and can be refreshing or sterile.
Gray evokes somberness, authority, practicality and a corporate mentality. In business, it is always right for conservative audiences.
Black evokes seriousness, distinctiveness, boldness and being classic. In business, it creates drama and is often a fine background color.
For more information on Jay Conrad Levinson, The Father of Guerrilla Marketing, visit www.gmarketing.com where you can subscribe to Jay’s newsletter.
Remember the fundamental tip of guerrilla startup entrepreneurs: don’t spend money you don’t have. Be savvy, resourceful, cheap and innovative. To get the inspiration started, here are fifty businesses you can start right away that require little or no startup money.
50 Bootstrapping Businesses
To Consider Now
Whether you want to pick up extra cash or start a full-time venture, a shoestring startup is for you! Here are our 50 suggestions that can be started on a shoestring budget for $500 or less. The shoestring startup businesses are listed in no particular order. Start small and win big!
1. Errand Service: There are plenty of businesses and individuals who need help with chores and errands and you can launch a service helping them get the jobs accomplished.
2. Gutter Cleaning Biz: Every homeowner dreads gutter cleaning. Combine this business with a few other seasonal offerings and you are on your way to success.
3. Concierge Business: You can start your own concierge service right from your home. Local businesses can use your service as well as tourists to the area.
4. Assembly Service: Have you mastered the little pieces from the Ikea box? Then you can start a business assembling furniture, gas grills, bikes, etc. for your customers.
5. Detailing: Boats/Cars/RVs: People like a clean machine but don’t have the time nor the inclination to get the job done properly. There are a number of products you can purchase to make the job an easy one.
6. Digitize Movies: That old video is fading fast and your customers will be delighted that you will transfer the treasured memories to a DVD or flash drive. Google the various ways you can do it and place an ad in your local paper today or via websites that cater to your market.
7. Just Weeds: Weeds are everywhere and there are a number of small business owners who make a living just pulling weeds.
8. Power Wash: If you have a power washer you can start a business cleaning homes, decks, etc. for your clients.
9. Personal Assistant: There are plenty of lawyers, accountants, small business owners, local figures and more who need help with their email, shopping, organizing, etc.
You can take on as many clients as you can handle.
10. Herb Garden: People love to cook with fresh herbs but who has the time to start a garden? You do, for money. Buy some pots and start growing. Set up the gardens for your customers.
11. Food Delivery: This is a good business in any community where there are senior citizens living or single parents who are too busy to get out and do the food shopping. You can also coordinate with local restaurants and diners to deliver their products.
12. Bed & Breakfast: If you live in a college town or resort area and have an extra room or two and a bath, you can rent it out. Find out what the going rate is and start your guesthouse business.
13. Baking Biz: Cupcakes, scones, cake pops, bread and custom-made cakes are popular items in any economy. Start baking and find your own recipe for riches.
14. Space Rental: Do you have extra parking space in your driveway for a commuter who can’t park at the local train station? Do you have extra space in your garage for that vintage car lover who doesn’t own a garage? Consider renting your space for cash.
15. Seasonal Pop-Up Shop: You can sell umbrellas when it is raining, watermelon on a hot beach, sunglasses when the snow is blinding, etc. Make sure you don’t need a local license to peddle your products.
16 Flower Arrangements: You can buy wholesale flowers and finesse them in fine style for local restaurants, doctor’s offices, and businesses. Create a photo portfolio and go around and book your clients.
17. Window Washing: We talk to local window washers who make six figures every year. They have to hire help to get all of the clients’ homes and businesses serviced. An enviable position.
18. Maid Service: Cleaning businesses always seem to prosper. You can specialize in residential or commercial. Charge what the market will bear.
19. Laptop Inventory Service: Every year people say they are going to make a video or a list of their home items for insurance purposes in case disaster strikes. You can carry your laptop and camera around, or just take your iPad, and prepare the documents for them.
20. Social Media Maven: Every business today needs to have a facebook account and a twitter account. Many don’t know what to do. You come in and start them on their journey to social media stardom. You can also help them make and post YouTube videos.
21. Tutor: Do you have a language skill? Are you good in math? Can you play a musical instrument? Congratulations, you can start a tutoring business. You can offer the class on your premises or in the home of your student. Combine a few students in one session and you’ll maximize your time.
22. House Painting: We know a retired fireman who makes more than $100,000 a year painting homes for six months a year. It’s a lucrative small business opportunity. Get a partner and have fun while you work.
23. Appointments Plus: There are many hours lost waiting for the cable guy, the plumber, the pool guy, etc. You can start a business arranging appointments for your clients and you’ll be the one to let them in and oversee the work.
24. Sell Personalized Products: Who doesn’t love a pen emblazoned with the name of their business, or a hat or bag with a favored logo? You can go online and Google various opportunities to help you get started. You can outsource the actual printing process so you just book the goods and deliver them to your customers.
25. Photographer: You don’t have to be a world famous photographer to book a lot of jobs. Many weddings today book a pro for the wedding party shots but want a fun photographer to do the candid shots. Couldn’t that be you? Research various opportunities in your community.
26. Sell Your Crafts: Etsy has made it easy for you to formalize and professionalize your jewelry and craft making into a business. Check out the site, build you own virtual store and start selling.
27. Move-In Service: Haven’t we all moved into an apartment or home rental and wished someone had come in right before us and cleaning out the refrigerator, the shower and maybe painted the hallways? Yes! You can start a service performing these tasks for landlords, property owners and new renters.
28. Scrapbooks: You can offer memory books for special occasions such as 50th wedding anniversaries, business celebrations, grand openings and more. Any party or special event is a potential moneymaker for your business.
29. Shuttle Service: Kids need to get to sports events. Pets need to go to the vet. Senior citizens need to get out to the store or go to a medical appointment. Beef up your auto’s liability insurance and see if you can establish this type of service business in your community.
30. Pet Biz: Pets are a $50 billion industry just in the U.S. alone! Shouldn’t you be grabbing a piece of this pie? Start a pet sitting/walking/furniture/clothing, etc. venture.
31. Gift Basket Business: Someone always needs to order something special, customized for a certain event. You buy the goods wholesale and then resell the end product at a large profit.
32. Organizer: Kitchen/Closets/Base-ments, etc. are your specialty. Charge by the hour, and get your clients’ homes and businesses in shape. Positive word of mouth will help you grow your business.
33. Handyman: We’re not suggesting you become a major contractor or homebuilder but there are dozens of tasks that home and apartment dwellers don’t want to tackle. Make a list of what you feel comfortable offering and place an ad in a local newspaper or circular. It would be a good idea to make sure you don’t require a special license to perform these tasks before you start.
34. Parking Lot Cleanup: It seems hard to imagine, but we know of an individual who makes more than $120,000 a year, sweeping up parking lots. Go around and book your clients. Return during off hours and pocket your earnings.
35. Organic Vegetable Gardens: You build Victory Boxes on the premises of your clients and establish an organic vegetable garden. Charge more if they want you to come back every week and care for it and harvest the crops.
36. Video Business: You can take your old Flip video camera or invest in a better digital camcorder and start making clips of sports events, local rock bands, events, small
business celebrations and grand openings, parades, local clubs, etc.
37. Sell Wholesale: Find a product that clicks with our culture and buy it wholesale: sell at a whopping profit.
38. Lawn Service: Americans love a green lawn but often can’t get results or take the time to care for it.
39. Window Displays: Every storefront has a window that could be your next moneymaking assignment. If you have a flair for design, consider offering this service.
40. eBay: Sell your wares on the online auction site.
41. Freelance Writer: If you have some talent as a writer, you can make money putting together anything from press releases, to web content for a wide variety of clients.
42. Tailor: If you have sewing skills you can make a mad mint hemming pants, taking in dresses or taking out an outfit. Work at home or piggyback on someone else’s facility.
43. Junk Removal: Plenty of people have junk around but don’t know how to get rid of it, or they don’t have a van or truck to haul it. This is where you come in and turn their trash into your treasure.
44. Delivery Service: Find a number of businesses in your community that don’t offer delivery and ask them if you can start a freelance delivery service. It’s a win-win.
45. Flea Market Entrepreneur: Become a professional flea market salesperson. You can keep your own job and just run your small business on weekends. Find an old table, and some goods to sell.
46. Blog for cash: You can visit blogger.com and start blogging today. Sell ads on your own site or blog for others for money.
47. Holiday Decorating: There are dozens of holidays throughout the year that offer decorating potential. Scope out restaurants, diners, and other small businesses to see if they’d be interested in your work.
48. Crowdfunding: Help other organize and run their crowdfunding campaigns on IndieGoGo, Kickstarter and any of the other 600 money-raising platforms. You take a percentage of what you help earn on the site.
49. Garage Sale Organizer: There are garages all over the United States that are full of items that could be sold. You sell it for the homeowner and pocket a commission.
50. DJ: A mobile disc jockey business is a very lucrative career. You can work your own hours and party your way to profit.
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connecting with free resources to help you start your own small business on a shoestring budget. •
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