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 the real world, we have to deal with facing down challenges that can’t be overcome simply with motivational catch phrases made famous by Tony Robbins or Dr. Phil. Lately, we’re all taking hits from the recession and the general depression that this has brought on our country. Nationally and locally, business are facing hardships that we as a country haven’t truly had to face in a few generations and we’ve done our best to persevere, but that doesn’t always keep us from being pushed to the mat and the breaking point. The world where business credit was easy to acquire, vendors were lax in their collections, and the consumer was hungry for new purchases is long gone and the small business owner isn’t getting any true encouragement on what to do next.

So what’s the secret? If it’s not a mantra or a chant or a psalm than what is the way to pull yourself off the mat if your prospects are looking bleak? Frankly, it’s remembering the facts about being a start-up. Keep those in mind, and you’ll be able to maneuver your way through Year One.

Negativity: Why be negative when faced with an obstacle? The website isn’t getting the requisite number of hits and you’re baffled about the SEO guidelines from Google. The logo you adore is apparently too similar to one that’s for a restaurant chain in Florida. The only merchant account that you can get wants a 5% fee per transaction. When faced with these sorts of obstacles one must never succumb to the easy way out: negative thinking. Common sense dictates that a “woe is me” vibe around your business will not solve any of the problems you’re facing. It’s just as detrimental as unrestrained blind optimism. Take a deep breath, re-evaluate, consult a mentor, use a magic 8-ball, whatever, but don’t let it ruin the day. Obstacles will always exist. Focus on possible solutions instead of the problem.

The Red is no longer the enemy: Everyone worries about being in the red in their first year. Guess what? You’re supposed to be. No matter how much pre-opening marketing you do, no matter how much buzz you create, you will most likely be in the red for at least the first six months of operation once you’ve opened. Depending on the industry you’re involved in, it could be longer. It’s supposed to be this way. The only way to build cash flow is to be open and gathering a client base actively and that will be a period of time spending working capital and having very little revenue coming in to pay for it. Anyone who shows you a business plan without a period of deficit at the beginning of operations is either walking into opening the business with a client base already established or is not being realistic about their first year. If it’s the former, then they’ve spent longer on pre-opening than the average start-up. If it’s the latter, then they most likely are drinking their own Kool-Aid.

A Few Good Men (or women): “If you’re not smart, surround yourself with smart people. If you’re smart, surround yourself with smart people that disagree with you.” I heard this quote on a television show ages ago and it’s stuck with me. This is what every entrepreneur should consider when building their management team. When you’re starting out, the last thing you need are “Yes Men”. Nothing will get done and there will be no debate when it’s required to enact a change in the strategy. Just as we don’t want one voice in government, we don’t want one voice in the boardroom. The people that work in your inner circle should be those with the requisite experience to help you in areas you aren’t knowledgeable or they should be there to encourage healthy debate in case the strategy needs too change.

Coaches in the locker room tell us what they think we need to hear to keep a positive attitude without much thought to the practical reality that we live in. Remembering the reality about the first year of business will pay off a great deal better than some mantra from a motivational speaker especially one that charges thousands to attend an alarming convention where you are shouted at. You will inevitably have a moment where you see the mat coming closer and closer as you’re about to hit it. As you’re falling, remember the facts and the solutions for how to pull yourself back up from it.

When you started your business, you likely had a plan. I am a fan of the one found here on Resource Nation.

You were eager, enthusiastic, and couldn’t wait to change the world! The business owners you met were as eager, enthusiastic and inspired as you were. You were thinking “business ownership must be amazing! Why didn’t I do this sooner?”

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As time went on, you put your plan in a drawer (or another similar place that you don’t reference often enough) and continued running your business. You knew what you wanted and where you wanted to go – you had your plan in mind, and were plugging right along.

Things went along fine. The business was functioning, money was coming in and work was getting done. Over time, you were so busy running your business that your wants, dreams and desires went on the back burner (I mean, seriously – how would you have time for yourself and to run your business?).

But that was ok, because the small business owners met were as tired, overwhelmed and disillusioned as you were. You were thinking “business ownership isn’t all it’s cracked up to be. Why did I do this?”

Sound familiar? Are you nodding along as you read, identifying fully with this scenario?

I am amazed at how many business owners know things aren’t working – they know it in their head, or maybe in their gut – but they don’t do anything about it. The result? Poor team morale, low productivity, unsatisfied customers. Not to mention the affect on the business owner, which can range from poor physical health to personal relationships that are deteriorating.

Here’s the Million Dollar Question – what are you doing about it? Here are some tips:

1. Go back to your plan. Remind yourself of the passion you once had. Find that old feeling that got stuffed in the drawer with the plan.
2. Write a new plan. What parts of the original plan are still working, and what parts need to be shifted? No, I don’t mean what parts should be changed to justify your current business situation.
3. Identify where things went off track. Be honest – you know where it happened. You felt it in your gut, but passed that feeling off as too much coffee.
4. List the things in your business that aren’t working. It’s okay to admit your baby isn’t as cute as you think. If you don’t acknowledge the areas that aren’t working, you can’t fix them.
5. Find support. A mastermind group, a trusted colleague, even better would be a business coach. It should be somebody who will hold you to task and support you through the changes you know you need to make. Even the best business owners/mentors/athletes have their own coaches. How do you think they stay at the top of their game?

Don’t bury your head in the sand. Don’t be afraid of the tough questions, of seeing your business for what it is, of having the difficult conversations and doing the hard work.

Get real – get to it. I know there is nothing you can’t do. Remember, you started a business and you loved it. You can again.