Launching a business on a budget might sound like a tall order. But you can get the ball rolling for just $100 or less. This guide will walk you through the steps to turn your small investment into a potentially lucrative venture.
Step 1: Brainstorm and research (Cost: $0)
Every great business starts with a great idea. Focus on services or digital products that require minimal upfront costs. Consider what skills you have or can quickly learn, and research market demand using free online tools like Google Trends.
Key actions:
Identify your skills: What can you offer that people might pay for?
Market research: Look for gaps in the market that match your skills.
Make a business plan: Outline your business idea, including goals and strategies as well as the financial implications. Map out your finances and set goals to help you stay on track.
The cost here is your time. Spend it wisely to validate your idea before moving forward.
Step 2: Establish your legal framework (Cost: $0 – $20)
Think about what type of business structure will work best for you. Two common options are LLCs or sole proprietorships. There’s very little paperwork involved in setting up a sole proprietorship, but an LLC may suit your needs better. If so, it doesn’t have to break the bank.
Unlike a sole proprietorship, an LLC draws a legal line between you and your business. This separation not only protects your personal assets from business liabilities, but can also offer potential tax benefits.
Key actions:
Choose a business name: Keep it simple and descriptive.
Business registration: Find out what you need to do to register as a sole proprietor or LLC in your state. Online services like LegalZoom don’t charge anything to set up a basic LLC. However, registration fees can range from $50 to $300 depending on the state.
Open a business bank account: Many banks offer specialized accounts designed for small businesses, some even at no cost. These accounts can help you separate your personal and business finances more effectively, which is crucial for financial clarity and can simplify tax reporting. Check out our best checking business accounts.
