7/20/2012 7:35 PM ET|
Start a business for under $1,000
You may have heard it takes money to make money, but that's not necessarily true. Here are 3 kinds of businesses you can start without a lot of cash.
The key to a building a business without losing your life savings is to make sure you choose the right type of business to start.
Many people want to run their own business, but most never take the leap because they assume they need a lot of money to get started. That's a shame, because you don't have to spend much to build a successful business. Here are three examples of how you can do just that.
1. Build an events-based business. Running any type of event -- classes, clinics, conferences, seminars, races and so on -- is a great way to build a profitable business for cheap.
This is because everyone is used to paying for tickets to an event beforehand. This means you get paid upfront and you can use the money you make from ticket sales to pay for the event itself. If you don't make enough, then refund everyone's money and try again.
Here's a real example. Tough Mudder is a 10- to 12-mile race where contestants climb over obstacles, jump over fire pits and splash through the mud and muck. It's an alternative to triathlons and marathons.
The founders, Will Dean and Guy Livingstone, decided to promote the first event using Facebook ads. The race sold out in 35 days. In total, 4,500 tickets were sold for $100 each before the event was ever held.
Two years later, Tough Mudder was a $70 million business.
As Tough Mudder's organizers did, you could use a platform like Facebook to get your message out to the world . . . or you could pair up with local organizations, businesses or clubs to spread the word.
2. Offer freelancing, coaching or consulting services. Starting a freelancing, coaching or consulting service is another way to build a successful business on the cheap. This strategy appeals to writers, designers, life coaches, business experts and anyone else who can provide a useful service.
A frequent complaint of freelancers and consultants is that it's hard to find customers. But if you structure your business the right way, you can often avoid this issue.
For example, when Tom Reed decided to start his business consulting business, Velocity Consulting, he didn't know how to attract customers. So instead of trying to do it on his own, he partnered with a larger, more established company as a subcontractor.
This savvy move saved him the hassle of finding new clients and almost immediately turned his business into a six-figure consulting practice.
This approach of creating mutually beneficial partnerships where you bring a skill and the other side brings paying customers is what I call The Remora Method. This method seems to work for anyone who wants to offer a product or service and it makes it much easier to build a profitable business from scratch.
More from U.S. News & World Reports:
VIDEO ON MSN MONEY
The MSN homepage pic shows a guy loading pies into a van. That I can do. Thought this article would offer some serious advice on something concrete, not whimsical.
I am not a consultant or a writer and as far as an event coordinator is concerned, seems as if voodoojimiman and hello it is time's comments (from almost a month ago, don't you love how MSN recycles these worthless articles) have that covered.
I have never seen an article so useless in my life...did MSN really pay for this?
Good lord my toddler neice can come up with better than that...get an event together, no mention you have to pay for the entertainers up front! Spend all kinds of time and effort in figuring out the entertainment getting the venue together place, time, bla, bla, bla and it has to be paid for not to mention permits have to be paid for and pulled way ahead of time...If you don't sell enough tickets you have to spend a huge amount of time and energy making calls to return money to them!!! REALLY?? I don't think this writer really thought any of this threw, teachers teach because they can't do...writers write because they can perform...obviously
My thought was this (what a country we can be when we put the BS aside) We as Americans can do anything. We do not need either party to help us. Us Americans can start our own business's. I did and failed yet tried again and failed. And am currently trying again. It was people from all backgrounds that built up themselves in spite of conditions. They established that in our country anyone can succeed.
That dream is still alive at least in me. The naysayers will always doubt and blame others. If you have a dream chase it and conquer it. That is the American way.
This article was so lame and poorly done. It only seeks to take you down for more than you already have. So lame that only 3 useless ideas could be conceived. The reality is if you fail to prepare then prepare to fail and this article took that to the limit where it failed to prepare you for a business start up or uselful small business idea. Might as well tell you dump all your money into lottery with no methodology and hope you get a win. MSN should recall its money for a flopped event which did not have much consulting intelligence with absolutely no writers sense and substance. Two thumbs down.
Both parties (Dems, Rep) are responsible for the situation we are in right now. And of course the Federal Govt. itself for giving the banks the leeway to do what ever they wanted. People stop relying on the Govt. for anything ! Better yet, stop relying on anybody ! Stop creating obstacles for yourself and go out and get yours. Im not saying its easy,but instead of being negative , like 1 posting that I saw practically complaing about having to do certain things to open a business like opening a bank account,having to get permits etc tc... You gotta hustle, it just doesnt come to you just waiting around. I wish all of you the best !!!!! PEACE
This rocket scientist could only come up with 3 under $1K business ideas?
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