As someone who went from working at headquarters to my own company, I have seen the challenges and triumphs first hand. There are entrepreneurs from all walks of life that I have met who have ambitions to start their own business. The common question among all of us? Which company can I start and how much money do I need? I suspect you are too!
I am a big believer in money pouring into a new company. Whether you want to drive a food truck or run a blog, upfront capital can ease the stress of starting a business. If you are a budding entrepreneur check out these companies, you can start with different levels of cash.
Which company can I start without money?
Consult, contract or freelance
There are several ways to start a business without money. Look no further than what you already do for your full-time job.
An administrative assistant can easily pick up virtual assistant performances that require a similar skill set. Make appointments and travel for managers? Edit the same skill. Contact your network and let them know you are available.
Start a YouTube channel
Do you like video? Talk to a camera? All you need is a camera and internet access to start a YouTube channel.
Many YouTubers had humble beginnings with nothing but an iPhone to start with. Note that om generate income on YouTube, you must have 1,000 subscribers and watch 4,000 hours in the past 12 months.
Start a blog
Okay, so maybe you can’t start a blog without money, but there are plenty of inexpensive options to get started.
First, you need a domain and a place to host your website. Web domain costs can be as low as $ 0.99 to start via GoDaddy.
Web hosting services, such as Bluehost, can start from as little as $ 2.75 per month. You could start a blog for less than $ 5 dollars!
Which company can I start with $ 1,000?
Software developers can use their skills to build their own web app for $ 1,000 or less. All you need is some start-up money for server costs, a domain name and marketing campaigns. According to Daxx researchthere were 23 million software developers in 2018. That number is expected to reach nearly 28 million by 2023.
Kyle Bumpus, a software engineer and blogger from Seattle says it’s easier than you think to get started.
‘It is cheap to put an app on the internet. If you have programming skills, that’s all you need, “Kyle said.
Today, millions of native and web apps are available to users.
“The biggest benefit an app maker can have is the money they can spend on marketing and user acquisition,” said Kyle.
A thousand dollars would come in handy, at least to get you started.
Which company can I start with $ 5,000?
If you want to take advantage of a business with just $ 5,000, consider purchasing your real estate license. Andrew Herrig, blogger at WealthyNickel, and his wife Emily decided to pay about $ 3,000 so that Emily could become an authorized broker.
“We also invest in real estate. My wife obtained her real estate license with the intention of also using it to save commissions on our own personal transactions, ”said Andrew.
To get a real estate license, you must take a course. Courses can be taken online or in person. Courses usually only last a few months. In a year, Emily made over $ 17,000 through six real estate transactions. “It’s a very part-time job right now because she stays with our kids, so the flexibility is nice,” said Andrew.
Expect to pay around $ 3,000- $ 4,000 per year in dues, subscriptions, and education to stay current with your license. As long as you continue to network and sell houses, this can be a profitable business.
Which company can I start with $ 10,000?
Entrepreneurs with significant capital can venture into the food industry. For $ 10,000, you could start your own shaved ice cream business. Scott Morrison, owns Shoed Ice from SnoMo in Orlando, Florida, has spent approximately $ 10,000 to launch its shaved ice cream parlor.
“Our store is a food trailer that is set up in one location. The first $ 10,000 bought the trailer and supplies, ”said Scott. Surprisingly, there were not many shaved ice cream companies around Orlando and Scott took his chance. In addition, with a small trailer, Scott doesn’t have to worry about renting a retail space, keeping his overhead costs low.
Scott was able to recoup its initial investment within a few months of opening. He was also adamant about involving children in the company.
“We have five children and we use SnoMos to teach them about entrepreneurship and work. In addition, we wanted to provide teens with a local place to work,” said Scott.
Which company can I start with $ 20,000?
Investing in real estate can be lucrative, as long as math works to your advantage. Just ask Avery Breyer, author and real estate investor. She and her husband decided to deposit $ 20,000 for a down payment on a newly built apartment. The property was purchased in 2008 for $ 216,000. Today, they have approximately $ 95,000 in equity.
“We bought this property with the aim of building equity that would one day become part of our retirement nest egg,” said Avery.
They eventually refinanced at 3.39% in 2013. The property is worth approximately $ 280,000 today. Here’s how the math comes out every month:
|Monthly costs for rental properties||Cost|
|Mortgage payment||$ 928|
|Real estate tax||$ 276|
|Condo costs||$ 227|
|Rental charges||$ 1,580|
|Take advantage of rental properties||$ 149
Avery says she puts the rental’s profit aside for maintenance or unexpected events. “It is a fairly new apartment, so there is not much to expect in repair costs. However, we keep track of things so that the costs don’t add up,” Avery said.
If you want to start a real estate investor, look for houses that require less work, like Avery and her husband did. Keep in mind that this type of real estate investment is a long-term game. Note new construction in a trouble-free neighborhood. It can help you earn a steady income over time.
Whether your business is virtual, on-site or in a real estate, you can encounter hidden costs. Once the entrepreneur’s height decreases, you will see that there are several expenses you have to pay for, including:
- Create an LLC or S-Corp – These costs can vary depending on where you live. An LLC costs $ 300 if you register in the state of Texas or $ 70 if you register in the state of California.
- Business tax certificate – The same goes for a DBA and business tax certificate so you want to check your state’s business application programs.
- App and software plans – App and software plans can run from $ 100 to several thousand. If you expect to use a teleconference software like ZoomBasic plans are free up to $ 20 per month per host for larger companies. Even an accounting software, such as Quickbooks, has a monthly service charge.
- Payment gateway cost – Think of Stripe or PayPal. If you plan to sell items, keep in mind that Stripe and PayPal charge a gateway fee. PayPal fees a fee of 2.9% of online transactions plus a fixed fee based on currency.
- Self-employment tax – The self-employed person tax rate is 15.3%. Note: you can deduct the employer equivalent from your self-employed tax when calculating your adjusted gross income.
- Legal advice costs – Legal advice costs can range from a few hundred to several thousand. LegalZoom his services start at $ 79, and you can expect higher costs with individual CPAs and attorneys.
- Conferences and Travel – Conferences and travel can also be part of your business expenses. While a conference ticket can cost a few hundred dollars, don’t forget to consider transportation costs, hotels and meals, and other expenses.
Of course, maybe know that you have to pay for these expenses, but they are creeping up while you are making something great or having important business conversations. Legal setup costs can add up quickly if you’re not careful.
I started my first business as a marketing consultant and needed a contract that I could send to clients. I had a small business lawyer to make the contract with the right language to protect myself. That document eventually cost me $ 500, a cost I certainly wouldn’t have foreseen when I started.
Things to keep in mind before starting a business
Before you go into the unknown with your company (cue Frozen 2), you should know that there will be mistakes. There will be grief and difficult days.
And when those tough days come, remember why. Why did you start a business in the first place? If you just want to make money, you’re in the wrong business.
Choose a company that does something that you would do for free. I initially started my personal YouTube financial channel – not because I wanted to make a lot of money, but because I really love to make personal financial videos. The money came after a lot of fuss!
Remember that when you decide which company to start.
How to keep the costs of starting a business low
Use free banking
There are plenty of free business bank accounts, so you don’t have to pay high costs to keep your money safe. An account that is currently causing a furore is Novo.
Novo is completely free, has no hidden costs and you can open an account in minutes. Novo is an online bank, so you can do everything from your laptop or Novo’s easy-to-use mobile app. Their goal is to make corporate banking easy – which is exactly what they do.
Use accounting software
Once you’ve decided which company to start, keep overhead to a minimum. Regular accounting can help you see what money comes in and out every month. I personally use Quickbooks for Self-employed to track transactions.
Don’t forget to budget for your business
In addition, I keep a budget spreadsheet in Google Drive so I can really feel those transactions. It makes me think twice about accepting another business lunch meeting (did you know that for tax purposes you can only deduct 50% of the meal).
Consider a business credit card
Cash is a great way to start your business. If you are a responsible credit card user, I recommend applying for a business credit card. It keeps your business transactions separate from your personal transactions (you should never combine them!).
A great option for a business credit card is the American Express® Blue Business Cash Card, which has no annual fee. You earn 2% cash back on all eligible purchases with a maximum of $ 50,000 per calendar year. After that you still get 1% back.
A great feature of this card is its extensive buying power, which allows you to spend above your credit limit depending on your creditworthiness, payment history, card usage and more.
Additional benefits include loss and damage insurance for car rental and access to the Global Assist Hotline. When on a business trip, these are useful in case of an emergency. You also get purchase protection up to 90 days after purchasing a product if it is stolen or damaged, along with an extended warranty on purchases, which can extend the warranty for up to one year.
Starting your own business can be exciting and terrifying. Cash up front can reduce stress when starting a business, so you can focus on growth rather than impending costs.
Expect costs such as company registration, website hosting, legal fees and more. When you start a business with a passion and not just about generating income, you can get through the hard days.