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Low Cost Business Ideas

So you’d like to open your own business but with limited finances, you want to focus on low cost business opportunities. Well, you’re not alone…

Most of us have bigger business ideas than our bankroll will support but that still doesn’t stop us from pursuing our dreams. Many new businesses owners have had to invest more sweat equity than financial equity to get their small business ideas off the ground.

A number of successful startups, like Apple, Mary Kay Cosmetics and Hershey Chocolate, even initially operated their business in their garages.

In fact, a home business opportunity is one of the primary ways small business owners get started. By operating out of your home,

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you can not only save on office rent expenses but you will often be able to deduct part

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of your rent or mortgage as a small business home office deduction.

The low cost business opportunities that we primarily focus on are those that you can start with a relatively small amount of capital and your longer term operating expenses are also reasonable.

Keep in mind, however, that with low cost business ideas also often comes higher competition. Don’t get discouraged however (we’ll cover this briefly a little later in the article).

Low Cost Business Opportunities on a Budget

The most obvious reason to pursue low cost business opportunities is that you can do it easily and quickly. You don’t have to get a business plan approved for a bank loan, you don’t have to explain to Uncle Ed how you’ll repay him, and you don’t have to take a second mortgage or

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In other words, low cost business opportunities typically grant you greater financial freedom and flexibility since you’re not tying up as much cash.

Many low cost businesses require little more than a computer with Internet access and a cell phone (with a great calling plan). If you operate from your home then there is no rent, and there may also be some tax benefits to using a part of your home as an office. An affordable business allows you the chance to try a new venture.

If you find that the business doesn’t suit you, the financial investment is small. You may have spent your time, but that experience can

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be useful in planning your next business.

Challenges of Starting a Small Business on a Budget

Because it is easier and quicker to start a business that doesn’t require a great deal of financial investment, other people are going to be interested in doing it too. The barriers to entry are low, so your competition is likely to be high. Fear not, however – you’ll just have to get creative and learn how to differentiate yourself.

Determining what is unique about your business or product will be essential in differentiating yourself from the competition. Is it your superior customer service? Does your product provide something your customers can’t get somewhere else? How can you differentiate your services from other similar business in the same market?

Does your product provide an answer to a problem like no one else does? Making your product or service stand out will give you a leg up.

Although you may have a shoestring budget, you will need to spend money. Make sure you spend it where it will give you the most benefit. A good quality computer system with high speed Internet, e-mail and printer is not a luxury for most businesses; it’s a requirement.

In addition to your startup costs, you may also need to set aside a small amount of money for job materials. For example, if you’re planning to start a roofing business, you should set aside a few hundred dollars for materials to cover your first job.

Another example here is if you’re starting a repair business. You’ll need money to pay for tools and components. But it’s a balancing act…you want to purchase enough tools and parts to get your business kicked off professionally. At the same time, you’ll want to preserve as much investment capital as possible.

Reliable transportation is another necessity for any business that requires you to leave your front door.

Low Cost Marketing? Absolutely!

After you’ve made sure you have the essential equipment, the next smart place to invest is in your marketing. When you are trying to keep costs down, you may be tempted to hold off on marketing—but don’t. Marketing is necessary for growing your business.

For example, let’s say you’re interested in starting a landscape business. There are likely quite a few competing firms in your area. One way you must differentiate yourself is the quality of your services. The other way is through developing a unique marketing approach that helps your business stand apart from the crowd.

Look for word of mouth and other free forms of advertising, but also make sure you find other vehicles for getting the word out. Frugal, yet potent, marketing ideas are the name of the game with low cost business opportunities.

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a well thought out marketing plan, you can make the most of a low cost business, even on a budget.

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