In today’s economic environment, individuals with entrepreneurial mindsets are exploring new ideas for businesses that will not only survive in a recession, but will also thrive. The key to starting a new business is maximizing its resources while remaining lean in operations. Let’s face it: most people do not have $100,000 sitting in their pockets. So, how is it possible, then, to start a business with a minimal amount of capital? The good news is that there are literally hundreds of business concepts that can be created with less than $5,000 in start-up costs.

Businesses under $1,000

Yes, believe it or not, it is possible to start a business under $1,000. According to BusinessTown.com, there are 82 business categories that do not require more than $1,000 in start-up fees. For example, to become a Merchandise Demonstrator, start-up costs are estimated between $500 and $1,000. However, earnings can rest between $20,000 and $35,000 per year. This business requires a person who has garnered a network of business contacts to demonstrate products for one or more specific companies at trade shows and seminars. This business can be learned first by handing out samples at grocery stores, which typically pays up to $50 per day. By beginning here, the person has a launching point from which to establish relationships with larger corporations, with the ultimate goal of merchandising their products. Other examples of inexpensive businesses under $1,000 entail Lawn Care Services, Toy Cleaning and Repairing Services, Reminder Services, Professional Organizers, Motor Vehicle Transportation, and Roommate Referral Services.

Businesses between $1,000 and $5,000

The good news is that there are literally hundreds of business concepts that can be created with $5,000 or less. As reported by the aforementioned online source, 136 businesses cost between $1,000 and $5,000 in start-up fees. Most of these concepts only require a phone, desk, and a few other tools such as a list of established contacts and a passionate drive to build a steady pipeline. Some of the more interesting businesses that stood out include a Resume Service Provider, a Mobile Hair Salon, a Meeting Planner, a Mover, a Window Washing Service, a Vending Machine Owner, Flower and Tree Cutting and Trimming Services, and Speechwriting Services. Now, these are only eight of the 136 businesses listed, but are businesses that may appeal to a larger number of entrepreneurs, than the more concentrated, niche-targeted businesses such as an Adoption Search Service firm.

The antiquated notion that a business cannot be started without a large lump sum of money is no longer the reality. Many businesses today have flourished based off of lean operations and low start-up costs. Today’s world does not require every type of business to begin its first day in operations out of a 10-story office building with leather couches and a glitzy waiting room. Companies can start out of one’s home and see immediate results. Entrepreneurial expert Bonny Alpo, who has owned her own copywriting service since 2005, reports that the least expensive business concepts revolve around pet care, home care, and delivery and moving services.

There’s no excuse for not being able to start your own small business either as a full time effort or start off part-time until it grows.

In doing research for my next book project, I posted a question to a group of entrepreneurs. The question? “What is the biggest challenge you face in your small business?”

To be frank, I thought I would receive a variety of responses ranging from employee issues to cost control. One challenge is coming out loud and clear:

I don’t have time to work on my business (including marketing and lead generation).

This only confirms what I share in my free e-course - entrepreneurs are wearing too many hats.

The entrepreneurs must take the time to work on their business – to ensure its future, support the current business, and make the team as strong as possible. How do they do that?

There are three easy ways to have more time to work on your business:

1. Understand how you are spending your time. Keep detailed track of your weekly calendar – at least one week. At the end of the week, examine where there are opportunities to streamline your time. Examine the role you are taking in your business. Michael Gerber, author of The E-Myth Revisited describes entrepreneurs as three people in one: An Entrepreneur, a Manager and a Technician. The majority of entrepreneurial overwhelm comes from a strong focus on task – the “thing” you did when you started the business (e.g. copywriter, plumber, attorney, technology consultant). If your daily focus is on tasks, it is nearly impossible to work on your business.
2. Choose tasks to give up – and do it. Even if you are a solo-entrepreneur, there are tasks that can be assigned to a virtual assistant, freelancer, bookkeeper or a variety of other resources to free up your time. If you have a staff, take a serious look at how they are supporting your business. Are they being used to their greatest potential? Do you have the right people working for you? This exercise can open a bigger question – how is the structure of your business supporting you and your plans for the business? (This level of discovery can benefit from the help of a business coach)
3. “Plan your work and work your plan”. Now that you understand how you are spending your time and have “farmed out” tasks to internal or external resources, have a plan for that “new” time you’ve found. How will you generate new leads? What kind of marketing strategy do you want to implement? How about personal development – how can you work that into your plan to work on your business? Prioritize these activities and schedule them. “I’ll work it in” is the kiss of death – if you don’t commit to these actions (via a non-cancellable appointment with yourself), you know as well as I do that it won’t happen. You’ll find more “tasks” to fill the time.

What are some ways you can work on your business rather than in it? I’d love to hear from you.