Starting a business can be a challenge in many ways – most of the businesses that have to be started require a lot of capital to be invested upfront. But does that mean you should give up your idea of starting a business? No – I have spoken to successful businesspersons who started out with very little capital and ploughed back profits and gradually built up a company over time – without any bank loans.
So what type of company should you consider starting.
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Low cost business ideas
Service based companies (B2B Services) – such as book keeping, accounting, financial services, claims processing, event management, virtual assistant services etc require very little capital to start up you only need a lot of enthusiasm for the business and a plan and some experience about how to provide the service. Maintaining high standards and consistent standards will ensure that you get word of mouth publicity and you can also ask for referrals.
- Licensed or skilled services – such as bookkeeping, accounting and financial research etc are skilled licensed services that require very little capital to start up – these are ideal home based businesses. Tax preparation work is also popular in this niche.
- Sports, hobbies and special interests – can be businesses that can be started with very little capital but require a lot of passion. Remember to create a good business plan and find ways to monetize the services that are being provided.
- Creativity – you may be a creative person such as an expert in logos or graphic design there are many websites such as oDesk and eLance that you can sell your services and build your reputation and a excellent designer.
- Ace of sales – Can you sell ice to an Eskimo? – then the skies the limit – direct sales, eBay, classifieds, door to door sales, swap meet sales, gift baskets, drop shipping etc are just the tip of the iceberg and require very little capital for sales based business that can earn high commissions.
- Personal services – such as child care, elder care, tutoring service, wedding consultant, personal concierge and personal shopper.
- Form a partnership – if you don’t have adequate capital- you can start a partnership with some close friends and pool your funds to start the business. This is also a good proposition as responsibilities and duties can be shared among all. e.g. firm of lawyers, accountants, plumbers, architects, restaurant, cafe
If its still difficult to think up low cost business ideas I came across a wonderful treasure trove of low cost business ideas here.
Also take a look at my other article about how to find business ideas.