How much money does it take to start a business?

Many people think that starting a new business takes a great deal of money. Realistically, many do.

You can’t start a trucking business without a fleet of trucks. And you can’t build a freestanding restaurant without a lot of time and money.

I have two primary goals at ThinkSelfEmployed.com. The first is to help people start a business with as little money as possible. I define little “as little as” as a couple hundred dollars.

So, by definition, these are not going to be businesses that require substantial infrastructure such as purchasing a McDonalds franchise, becoming a manufacturer of military armaments, or opening a retail store in a major shopping mall.

My second goal is to help them start a business that produces revenue sooner than later – because people who are unemployed need money now. That means no pie-in-the-sky business ideas that could take months or years to develop… and no going back to school to get a degree in a new field… no jumping into something you know nothing about.

By default, service businesses are traditionally the easiest to start because they require a small upfront investment.

If for example, you worked as an accountant within a large corporation, it doesn’t take long for you to realize that you could provide accounting or bookkeeping services as a consultant… or serve as an outsourced CFO to smaller businesses. Business cards, a phone, a computer, and a willingness to talk to lots of people are all that is often required.

Anyone who has worked in an industry for any length of time develops skills and knowledge. In many cases, that qualifies them instantly to be a consultant or coach.

Retail businesses used to mean brick and mortar. That gets to be expensive. But in today’s technological world it’s easy to sell online… through eBay. In fact, you could set up an eBay store within a few days. You need a source for product and a place to store things. That’s about it. And the way the world works today, you might not even need to hold the inventory.

And don’t forget flea markets. I knew a business owner in New York many years ago that imported leather tote bags from Korea. He sold these to retail stores throughout the country. But on the weekends, he and his partner went to area flea markets within 100 miles of New York City. He once confided in me that they made more money on the weekends at the flea markets than they did as a distributor for their leather tote bags.

Now, you may not find these two stories particularly inspiring at this moment. But remember my second goal: To help you generate revenue as quickly as possible.

One more note. In their lifetimes, most entrepreneurs start more than one business. The one you start with now isn’t necessarily the one you’ll operate and live with for the rest of your life. Starting “simple” – as per the examples above – helps you accomplish the second goal (generating revenue) while it helps you learn how to operate a business successfully. When the time comes for you to start your second business, you are better prepared for success.