Do you have $2,000 burning a hole in your pocket and dream of owning your own small business? Dream no more. Let’s start on the path to entrepreneurship.
There’s a lot of talk that another round of stimulus checks are practically already in the mail, and while many of you may well be buying the latest PlayStation or upgrading your bathroom, some of you may be seriously considering other ways to use this money. For example, maybe you can start a business.
It’s totally possible to start a small business with just $2,000 (or less), but you’ll need all your cunning, energy, and a bit of luck to truly make it a success.
Starting a $2,000 Business: Things to Consider
It’s easy for me to sit here and tell you you can do this or that and send you on your way, but I thought to make this a much more valuable read, I should give you a little small business advice. I’ve owned several small businesses and worked with dozens of others in consulting or marketing roles, and it seems like a little preparatory knowledge would help a lot of people succeed a lot faster.
So before you choose a small business to devote your life and soul to (and your stimulus check), I want you to ask yourself a few questions.
What are my current job skills?
It’s all well and good to decide you want to be a wedding planner, but if you’ve never planned a wedding — or even hosted a party — you might find that you’re not in high demand. This is why it is so important to carefully consider your skills, both technical and technical, and any training you have received on or off the job.
Anyone can throw $2,000 at a business and watch it disappear in pitch black, but someone with skills that give potential clients confidence in their ability to do the job will have a much better chance of to succeed.
Even businesses that don’t seem to require a lot of skills, like running a vending machine route, require intense organization, basic business budgeting, and an understanding of how to meet the needs of customers in your market. .
What tools and materials do I have on hand?
Your $2,000 will go a lot further if you can start with materials or tools you already have on hand, rather than having to invest heavily in equipment and supplies. A roofer who wants to go it alone and start a handyman service will need to invest a lot less in start-up capital than someone outside of the trades, because they already have a lot of the tools they will need.
Starting a business with such a small amount of money means you need to use that money as smartly as possible. Don’t buy anything you don’t need, as you can almost certainly use the money for other needs, like a bit of marketing or a trade assurance side order.
Who do I know who can help me?
This is the kind of question that tends to bring out the best and the worst in people. What you are looking for is not free labor or people who will give you freebies, but those who could help you get started by giving you a hand. I know a few people who make personalized birthday cakes as a side job, but due to health regulations they can’t do it legally from home.
So what are they doing? They call a friend who owns or manages a commercial kitchen and rents out that space when the kitchen isn’t open. To meet other needs, they may be borrowing giant sheets to make gargantuan sheet cakes until they can afford to buy their own. The thing is, it’s not a gimmick. It’s not free work. It’s a small boost to success.
But, of course, you don’t need to have a friend who owns a kitchen to help your business grow. Instead, your super outgoing friend who plays in a league every Wednesday might be willing to talk about your landscaping service, handing out cards to everyone he meets who dares to whisper the word “grass.” and generally help spread the word. out.
You’ll need all the help you can get when starting any type of business, but that’s doubly worth when you have extremely limited capital.
Types of businesses you can start with $2,000
Not all types of businesses will work on a shoestring budget, but if you’re looking for business ideas you can start with as little as $2,000 in hand, I’ve made a short list of some fairly common ones that people are interested in trying it out.
Remember that the business landscape changes all the time and what works well today may not work well tomorrow, so it’s important that you do a bit of groundwork and try to get an idea. what your industry and market looks like before you get started.
There are a ton of different businesses that fall under the “service-based” header. Think about the different people who help you through your year, such as shopkeepers, dog walkers, party planners, interior decorators, or even the hot dog vendor around the corner from your office.
All of these service businesses require very little cash outlay, provided you already have plenty of the tools you need (or are willing to rent until you can afford to buy).
As a service business, however, you will absolutely need to have something that sets you apart from the rest of the people in your industry until you have established your reputation. Since these are real brick-and-mortar businesses that have the potential to grow quickly, I recommend that you register your business immediately.
Craft or manufacturing businesses
There is a thriving market for new and innovative products, as well as cute and adorable products. If you’re more of an “object” type than a “people person,” a small-scale manufacturing business might be a better fit for you. This category can run the gamut, from 3D printing adorable keychains to using your woodworking shop to build custom cutting boards to more traditional crafts like crochet or macrame.
While I generally advise against turning a casual hobby into a job, there are times when it makes sense to take the plunge. So if that wood stove is begging you to spend more time with it, or if you really miss your everyday sewing machine, take a look at the markets where you might be able to sell your wares.
You might be surprised that there’s nothing quite like what you can already make available to your future adoring fans.
These days, starting an online business seems like a great way to take a little money and turn it into a lot of money pretty quickly. But unless you’re a programmer, keep in mind that you might need to invest heavily in technology to bring the idea you have in mind to life. But that’s not the end as there are many types of online stores that can be created from almost nothing.
Print-on-demand made it possible to offer a wide range of products without having to prepay for the merchandise or have a place to store it. You simply act as the lead designer, creating whatever you think is fabulous in categories like homewares, clothing, or wall decor, and use one of the many popular platforms to spread the love.
With SMEs, the sky is always the limit
There are absolutely no limits to the creativity of small business owners. You join an incredible group of dynamic people who shape and change industries simply by doing what they do best. Some of them will even tell you that they started their business with less than $2000 in your hands, so if you have a business idea that you want to try and you are really determined to make it a reality , you might as well try.