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.

Good news for small business owners: The American Recovery and Reinvestment Act of 2009 was signed into law by President Obama in February 2009, which is the first step in mending an ailing economy. The benefits of the bill will provide $730 million to the SBA to reach out to small businesses in need of funding in order to stay afloat or begin operations. The bill’s funding includes a number of lending and investment programs that will enable small business owners to flourish in an economy that lost 2.6 million jobs in 2008. The programs provided by the bill entail:

• $375 million for temporarily eliminating fees on SBA-backed loans and raising SBA’s guarantee percentage on some loans to 90%
• $255 million for a new loan program to help small businesses meet existing debt payments
• $30 million for expanding SBA’s Microloan Program, which is enough to finance up to $50 million in new lending and $24 million in technical assistance grants to micro-lenders
• $20 million for technology systems to streamline SBA’s lending and oversight processes
• $15 million for expanding SBA’s Surety Bond Guarantee Program
• $25 million for staffing in order to meet demands for new programs
• $10 million for the Office of Inspector General

The Small Business Administration (SBA) (www.sba.gov) offers a variety of assistance through its website to provide business owners with the help they need in order to succeed in their journey. Among the top lending programs include debt financing (loans), equity financing, and surety bonds. Although the SBA does not provide grant money, which typically is given to non-profit entities, it does provide a multitude of helpful resources to obtain or apply for a grant. A grant may be something to consider in the future, but for any business that is in the process of commencing operations first needs financing in order to move forward. Loan programs such as “equity financing” and “surety bonds” may sound like a foreign language, but can be easily understood by visiting the SBA website or reaching out to a well-versed business mentor or coach.

SBA loan applications must obtain the following documentation for a loan request evaluation: a business profile, loan request, collateral, business financial statements, and personal financial statements. No need to panic – there are plenty of helpful avenues for assistance. Visit www.sba.gov, www.score.org, and www.recovery.gov to learn more and to begin the process of procuring capital for your business.