Starting a Business on a Shoestring Budget
July 23, 2007
One of my favorite things about a service industry business is that it can be started on a shoestring budget. It usually doesn’t require much money or training. For example, in housecleaning, all you need is you and most often, you can get paid the same day for your labor.
I started my first maid service while I was just a nineteen year old a single mom on welfare in Florida and subsequently, I was able to get off welfare and grow my business to be one of the largest maid services in South Florida.
Years later, I was able to start from scratch again, this time I was homeless with five kids and my youngest was a newborn.
So where do you begin? First of all, decide what kind of service business you want to start. To do that you have to figure out what you like, what you are good at, and what you think you can be successful in.
Next, get yourself a sole proprietor business license from your state’s Department of Licensing. Those usually cost around twenty dollars. I recommend that you use your name as your business name because then you have the flexibility to do whatever kind of business you want and even change what services you offer without having to change your business name. You can always “do business as” another more specific name.
Then you will need to test the market and see if there’s a need. Of course if you are going to start talking to people about offering them a service, you need to be ready with prices so figure out what you are going to charge first.
Call up other businesses offering the same service and find out what they are charging. I recommend that you undercut the market a little bit just to get started, then, once you are established you can raise your rates up to current market prices.
Now you are ready to ask your friends, family, and people in your area, if they have a need for this service. Word of mouth is one of the best methods of marketing your new business and it’s free!
So there you have it, you are off and running. For the cost of a business license and whatever supplies you need to provide your service, you have yourself a business. Next post we will discuss marketing your business on a shoestring budget.
That’s all for now, remember to go do something good for yourself today!
Elaine
Last 5 posts by Elaine Gordon Evans
- Heading For Summer, Sun And Fun In Your Service Business - June 1st, 2008
- Launching your business with a conscience - May 7th, 2008
- Increasing Fair Marketshare When Times Are Tough - April 1st, 2008
- Running A Bussiness When Life Is Falling Apart - February 12th, 2008
- Service with a Smile - October 13th, 2007
Does that information only translate to an offline service business, or can it be translated to online, as well?
With an online service business, I’m not sure you have to have a State business license, at least not for what I’m considering doing where I live. I wish there were a website that would tell you WHAT you have to have a license for, and what you don’t.
While starting a business on a shoestring may be true for some service businesses, but it is not realistic for a gift basket business. I recently blogged about this to encourage newcomers to this business to do research and learn about the business first. As a result they’ll discover that capital is needed to buy the minimum supplies and equipment to get started.
Mara,
Every state has different requirements so what you need to do is go to the website of your state’s Dept. of Licensing to find out what your state requires licenses for. Also, contact your state’s Trade & Economic Development Office about free classes on taxes, interstate sales, and tax revenues. Another thing you can do is call other similar businesses, tell them you are looking to start a similar business and they may be willing to help you. I hope that helps!
Elaine ïŠ
Flora,
You are absolutely right, even shoestrings do cost something.(smile) Whatever business you start will require some money up front. But even for something like a gift basket service you can still begin on a shoestring by starting with simple baskets and being frugal and creative. You can start by buying your supplies at thrift stores and finding baskets at garage sales. Even things like old Christmas ornaments can make great decorations for your baskets. You can always work up to more elaborate creations later once more capital has come in.
Thank you for your insight!
Elaine
That is so true about some of the service based businesses. I started my VA business with just a website and that’s it.. cost me the hosting and domain name.
Of course I spent years trying stuff before that but it’s the most profitable thing I’ve ever started and I had clients and money very quickly once I got serious.
Angela Wills
http://www.StarVA.com
I’m with Angela - I started my VA business with a website and that’s it. Very cheap!
Angela,
Yes that’s so true. You put one foot in front of the other everyday and before you know it, everything falls into place. Thanks for sharing about your experience!
Elaine
Excellent! Good for you Tishia!
Elaine