Tuesday, August 3, 2010

How to Start Your Own Business Affordably

Starting a business is not cheap. There are all kinds of expenses, particularly if it’s an offline company. Online, it can be done relatively affordably, but it can still be pricey.

So where do you get the money? Here are five tips that work:

1. Begin using free methods

The best free strategy for making money with an online business is search engine optimization. Once you are earning, you can slowly start advertising. The amount of visitors you can get to your site is virtually unlimited, and this can bring in a lot of money to fund your paid advertising.

2. Borrow money

If you need to start advertising immediately, consider getting money from friends.

3. Get a loan

If you don’t know anybody you can ask for money, get a small business loan. How do you qualify? In most instances you will have to show that your company has a profitable history. You also have to have good credit.

What if you haven’t made any profits? A lot of times having positive credit will still be enough to help you qualify. Check around and apply at a number of places. If one place rejects you, don’t give up.

To improve your chances of getting accepted, put up some of your personal assets as collateral. For instance, if you have a car that is worth as the loan amount, use that to secure it. This can dramatically increase your odds of getting the financing.

4. Get a personal investor

There are plenty of places you can find them online. There are lots of people looking to put up money for small businesses, in exchange for a share of the profits.

To convince them to put money in your business, you must have a detailed plan. Investors want specifics, so don’t try to wow them with lofty claims. They are savvy people, and can easily see through the hyped-up picture most businesses try to paint.

5. Start small

Begin testing gradually before going full scale with your advertising. There is no point in asking for a $5000 loan if you don’t know if your campaign will make money.

Start with $100 or so. Once you know your advertising is profitable on a small scale, than you can ramp up your efforts. The bottom line is, there are all kinds of ways to get the money you need for advertising. The most important thing is that you start gradually, and build up.

This is true whether you are going to be advertising immediately or not. If not, start making money with free methods, and build up more so you can reinvest.

If you are going to be advertising immediately, then begin with a small amount and make sure you will be profitable. This is how to ensure profits down the road.

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