How to Start a Business Without Spending a Fortune

A startup doesn’t have to drain your bank account.

Launching a business is a fraught endeavor. Aside from the possibility of losing money or losing the business outright, there is the high cost of creating a startup. Between labor for a website, labor to create a product, and the time involved, starting a new business can seem an impossible venture.

The Usual Costs of Starting a Business

Starting a business isn’t just a matter of paying for labor and time. You also have to factor in the necessary permits and licenses required in your area to legally start a business. Some of these fees are quite inexpensive, and some of them can grow exponentially, necessitating lawyers’ fees in order to establish your business.

Space is also a factor to consider when starting a business. You may need to purchase or rent a space for your venture, which incurs a significant monthly expense, not to mention a thorough vetting of your financial history.

Finally, you’ll need to factor in promotion. Whether you are sticking entirely to online marketing or creating print, radio, or video advertisements to grow your brand, promotion materials can add up quickly.

Circumventing High Startup Costs

To keep costs low, you’ll need to get creative with your space, workforce, and marketing materials. Creativity, fortunately, is not in short supply and can be a tremendous asset to running a business.

1. Marketing

To start, consider running all of your marketing platforms yourself. If you are unfamiliar with the most popular social media sites, view online tutorials and brush up on how to use them to your advantage. Hashtags, networking, and giveaways are all excellent ways to get your brand out and into the world.

2. Space

The simplest way to save on space is to operate out of your home. If you live in an apartment, this can get tricky; many apartments have rules against operating a business in the walls of your building. To avoid possible legal issues, clear your plans with your landlord.

If you cannot use your own space, call in a favor from a friend or family member. Ask after unused basements, wide open backyards, or long-forgotten guests rooms, and use one of these areas to operate your business.

3. Labor

Rather than hiring professional labor that could cost you upwards of $40 per hour—per person—hire amateurs whose work you admire. You can find graphic artists, photographers, and creators who will work for a fraction of the cost of a professional. To do this successfully, make sure you thoroughly examine all of your potential workers’ portfolio information and receive mock-ups before hiring.

Source: Small Business AssociationThe BalanceEntrepreneur

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