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.

We all know the value of hard work, especially in one’s own ventures. There’s a slippery slope to avoid with it too, and that’s where hard work becomes more than just something to keep you up at night, it becomes an Art form. I spend a significant amount of time consulting and restructuring business plans to whittle down and refocus clients so they don’t spin their wheels.

One of the first things you can do to prevent yourself from falling into the cycle of never ending roadblocks is to separate what you need to do right now verses what you think you’ll need in the future. It sounds easy enough, but most people zoom from step 1 to step 7 without really considering what step 1 entails.

Say you want to open up your own pub; you’ve got your own recipes that you know people love. You know where you want to open up shop, you know what equipment you need, and you know how many people you need to manage it. You know how long it will take to break even, and how long it will take to become profitable. Now all you need is financing to pay for it all. Stop there. Now can you answer this question with a definitive “yes”: Do you have any beer right now?

If the answer is “no” because your product is contingent on getting the financing to get equipment to brew, then you’ve got to reassess your step 1: Make beer now, immediately. Not thousands of bottles, but enough to put it to a small market. To make your beer, you’ll need to borrow some equipment, preferably with some of your existing contacts in your industry who can lend you some time and space to do so. Yes, you’ll be paying out of your pocket to buy bottles, labels etc. Prove that you can sell your beer, calculate your results and make your business plan from there. At that point, you have proven that your own efforts, capital, and team have produced something that brings revenue. Step 2 then becomes making a plan to borrow your own equipment. Now you’re in a much better position to go through the trenches of capital raising instead of grasping for investors who are angelic enough to believe that the recipe scrawled on a piece of paper in your pocket will return millions of dollars after some theoretical time as passed.

For some people it’s hard to get past the idea that your business plan which you probably spent an inordinate amount of time crafting can’t be funded the way it is. Funding doesn’t happen because you think you can, it happens when you can prove you can. Proving it is your step 1. The feedback you get from your product at this stage becomes the groundwork for the rest of your business plan.

I once knew a person who spent 4 years making a business plan; it was magnificent, detailed and excruciating to review. He had spun his wheels for all those years without addressing the first step: make your product. The craft of planning goes beyond the ideas floating in one’s head, the craft involves execution at every stage. Remove yourself from the bigger picture just for a moment, and look carefully at your first required step. It’s not a chore; the ability to take a step back is an art.

In an interview in BtoBObline, Marcy Shinder, VP of Brand Strategy and Marketing at American Express OPEN, offered up these tips (in a different format):

• A downturn is a good time to identify ways to transform a company.
• A lot of companies look at delivering better customer service as a differentiator. (For service organizations, this can be a challenge since your competitors are likely to be trying the same things. Instead, think about what improvements would deliver the most value.)
• Companies need to stay relevant. (In other words, think about the problems customers buy from you, and make sure that what you provide truly solves their problems.)
• Provide tangible value. (We have a client with a fascinating vision of the future of technology in their sector, but we’ve advised them to make that game-changing vision a secondary message because their first goal is to sell product. So they need to focus on ways they provide real value to their customers. A compelling vision of what’s to come is good, but that doesn’t always help customers when deciding to buy now instead of putting off the purchase for later.)
• Companies need to market differently from the day of the 30-second spot. They need to provide insight, inspiration and advice during every customer interaction.
• Companies need to answer what they can do for their customers.

Some good common sense advice, yet I’d bet a lot of companies don’t follow up on this. Check out the complete article, “American Express’ Shinder on marketing to small businesses.”

When people think about marketing activities they usually think of tactics like having an ezine, direct mail, sending an email, networking, holding a teleseminar, and so on.

But I think the one marketing activity that weaves its way through all marketing tactics is the activity of creating connection.

Connection is the glue that holds together your marketing plan and really, your business.

If you are not building connection with your prospects, clients, affiliates, joint venture partners, peers, assistants, referral partners and vendors - then you’re not going to gain their like, trust and respect.

They won’t join your list, subscribe to your ezine or newsletter, buy your products, sign up for your teleclasses, attend your workshops, or become a member of your mastermind circle.

If people don’t feel a connection with you, they won’t tell other people about you, share their questions and concerns with you, invite you into their business via the telephone or email, want to partner with you or make joint ventures together.

So you see, creating connection is the number one marketing activity in my experience because everything else will follow from that connection.

Think about that the next time you sit down to craft a sales page, write an email, draft an outline of a new product, create a new service, write an article and any other marketing activity you do.  Focus on creating connection and you’ll do just fine!

As consumers, we get offered upsells all the time:  the car rental company offers upgraded insurance packages, the furniture retailer suggests scotch-guarding the fabric, the fast food joint wants to super-size your meal, the electronics store offers extended warranties, and so on.

So why do most small business owners cringe when it’s suggested that they should be utilizing upsells in their day-to-day interactions with their customers?

Many of us tend to think we’re being pushy salespeople or we’ll make our customers angry at us for wanting more of their money or time.

It’s all in how you approach it.  If you have created products and services that truly help people, then telling them about something else (an upsell) that could increase their satisfaction or help them faster or easier is almost your duty.

Unless you’re upselling in a really obnoxious or annoying way, most people will either upgrade and say thanks for the great offer or just say “no thank you”.

Of course, only some clients will take advantage of the upsell offer but if you don’t let people know about it, then you’ll have no one buying your add-ons!

Take a look at all the different components of your marketing strategy to identify areas where it makes sense to let the customer know about an upsell product or service:

• the thank-you page in your shopping cart can list other products people may want to buy
• the email to people providing the download link to an electronic product they’ve purchased can have a suggestion for the next ebook that would most benefit them
• an insert in a workshop/seminar binder telling them about some products and services they may find beneficial in implementing what they’ve learned at the seminar
• a thank-you email after purchase, telling people about a membership club or teleseminar series they may benefit from as well
• a flyer inserted in the monthly newsletter mailing informing people of an upcoming seminar or teleseminar

Don’t be afraid to upsell your customers - just do it in a helpful, non-pushy and authentic way, and watch your revenue increase.

I remember when my business coach talked about creating products and services that would be ongoing and provide recurring revenue.  At the time, I was just starting out and getting one little ebook created and off of my plate was proving to be an arduous task.

The thought of doing something on an ongoing basis scared the heck out of me!

But now that I’ve gotten some marketing tactics running consistently and smoothly (well, most of the time!) and have a few products and services to offer people, I’m re-looking at the thought of ongoing services to offer.

Who doesn’t get excited when you hear the words “recurring revenue”?!  Especially for us small business owners who have experienced the whole “feast or famine” nature of doing business at some time.

But it’s not just the money that gets me excited; it’s the fact that I would have loyal, stick-around clients and customers that I could really have a meaningful, rewarding business relationship with.  To me, it’s always been really satisfying to see people progress and learn over a period of time, and get to share in their triumphs and missteps and really see them grow.

There are many examples of ways that you can “sign up” clients for a lifetime:

• set up a members’ only blog or forum
• send out a CD every month
• sell a subscription to your monthly newsletter
• have a membership program
• have ongoing coaching calls
• have a “book of the month” type of program
• have a teleseminar series

There are many ways to offer ongoing help and assistance to your prospects and customers - you’re limited only by your imagination and your target audience’s needs!  So start brainstorming today and reap the rewards of recurring revenue and an ongoing connection with people.

Having an information product is the best way to do something once and get paid for it over and over again.  It’s the way smart business owners and solo-preneurs stop trading time for money and start trading all that great, valuable knowledge in their heads for money!

So where do you start?

Here are 3 ways for you to inexpensively and quickly create an info-product:

1)  Offer a teleseminar or teleclass

• record it using audioacrobat
• offer the MP3 or burn some CDs and offer it with a transcript if you want

This is a good choice if you are starting from scratch and aren’t already doing any training or workshops.

2)  Use an existing training program or workshop

• record the training or program and offer with or without the transcript
• if you already have a recording, then just package up with an introduction and sell as an MP3 or CD, or as a higher end product that included both the transcript and audio
• if you’ve only got the written version, record it yourself using audioacrobat

Choose this one if you are already delivering some content to people and you can take advantage of an existing program or booking.

3)  Re-purpose existing articles, reports and blog posts

• collect the best ones, add an introduction and sell as an ebook
• record some of the articles and add an MP3 or CD to charge more

This works well when you have lots of existing content (i.e. articles and blog posts) that is still relevant and “fresh”.

As you can see, creating info-products - especially “beginner” ones - can be inexpensive, quick and painless!  Take a look around you and see what opportunities you can take advantage of to make simple, yet valuable, information products that you can offer to your prospects and clients.

Many businesses and salespeople concentrate all their energies on the really “hot” leads - the people who want something right now and are willing to pay for it now.

I believe this is a big mistake.  ALL of your leads are valuable.  Just because they aren’t customers yet, doesn’t mean they won’t become one later on when their circumstances change or their need is more acute.

There are many reasons why prospects may not be willing to engage your services immediately:

• they are dealing with more pressing things at this time
• they do not have enough information about your product or service
• they are not ready to make a decision
• they do not yet feel comfortable or trust you enough yet
• they are comparing information from other companies and trying to determine the best choice for them

By following up repeatedly with prospective customers, you have a better chance of getting the sale when they are ready to buy - because you’ve remained top-of-mind by providing valuable communications with them.

When you keep in contact with your leads - warm or cold - you are sending them a powerful message: that you believe they are important and worth cultivating a relationship with - even if they haven’t bought anything yet.

So be a smart marketer and treat all of your leads - wherever they are in your marketing funnel - with the same level of respect and importance.  Remember that today’s leads are tomorrow’s customers.

If you are a business looking to grow your lead volume, consider Resource Nation’s vendor program.

I know that many businesses feel that their main purpose is to make a profit and provide for their family and employees.

But I would say that your prime purpose is to give as much as you can to everyone you meet during the course of your business.

Many people wait until someone becomes a paying customer before they start adding value to that person’s life.  I think that’s short-sighted thinking and definitely not in line with the idea that we are all connected, and that prosperity and abundance flows amongst us.

To be successful within our businesses and our lives, we need to start giving.  Giving of our time, our expertise, our opinions, our strategies, our mistakes, our triumphs, our ideas, our money, our credibility and on and on.

I believe that at the heart of each of us, we have a deep desire to make a real difference with our businesses - that’s where the passion and fuel comes from that sustains us through shaky beginnings, down times and expensive mistakes.

Try to approach you business for the next few weeks in the frame-of-mind of giving.  Add value to anyone and everyone you run across in the course of your business day.  Not only will people feel good interacting with you and get an amazing experience, but you’ll have a great day practicing abundance with everyone.

Some ways you can add value are:

• gracefully acknowledge the comments people give you via your blog or online forums/discussion groups, and give them an extra tip
• when people register for a course or teleseminar, always give them a bonus report
• after people buy something, have an extra little goodie they can access on the shopping cart page
• surprise people with discounts on your products and services at unexpected times (everyone gives on their birthday and around Christmas)
• pop a great article into the mail to a client you know would get something out of it
• send a cool link or uplifting video to your list - just make sure it’s something that would be of value to them
• offer special deals and VIP pricing to your top clients
• have a contest for your prospects and offer 3 months in your membership program free for the winner
• pass along a great marketing opportunity you’ve come across to your peers and similar companies
• give a new person in business a break - support their launches with a bonus product, share a business or marketing idea, introduce them to your list

There’s many ways that you can give in your business - try to cultivate opportunities to give value to everyone you talk to…you’ll not only boost your good feelings, but boost your success.

There are tons of different marketing tactics that are available for you to use and you get inundated with many “new” opportunities every week.  How do you figure out if you should do a specific marketing activity or not?

Below are a few questions to ask yourself when confronted with a great, new, one-of-a-kind, stupendous, money-making, guaranteed marketing opportunity!

1)  Will this marketing strategy actually reach your target market?

It goes without saying that any marketing you do needs to be aimed at your target market.  That being said, we can still get wooed by a great talking sales rep!  You want the marketing vehicle to be as specific as possible in targeting your target.

That’s why you need to really think hard about advertising in more broad-based mediums like magazines and newspapers.  For example, you maybe don’t want to reach all financial planners but only those that specialize in legacy and inheritance issues.

Try to get into special supplements, inserts or sections that are particularly focused at your segment of the readership.  This is key with these broad-based media vehicles because they also are usually quite expensive.

2)  How frequently will your message be seen by prospects in your target group?

This is an important consideration when choosing any marketing activity because we’ve all heard it takes anywhere between 7 - 11 exposures to your message before people will react.

If you can only afford to run an ad in the newspaper, magazine or ezine once then it’s most likely not the best use of your money.  Of course, you need to weigh the perceived credibility of the marketing vehicle and how much “bang you’ll get for your buck”.  For example, one ad during Super Bowl may make sense if you’ve got the money - because of the number of people you’ll reach and the prestige of being one of the advertisers during the Super Bowl is priceless.

So maybe you’ve got a great one-time opportunity to advertise in a big-name person’s workshop binder or new book they’re putting out.  Just make sure that the value and exposure to your target group make the one-time price worth it.

Try to use marketing tactics that allow you to keep in contact with your prospects and clients frequently.  That’s why email marketing and having a newsletter are such cost-efficient and effective marketing strategies.

3)  Is this marketing tactic something you can do consistently?

One of the worst things people do with their marketing is to start something, do it for a little while and then abandon it when something else grabs their eye.  To reap the most benefits (read: profits and great relationships) you need to choose marketing tactics that you can do consistently and in that way build the relationship with your prospects and customers.

When evaluating a new strategy figure out if you’ve got the time, money and sometimes most importantly - the interest in doing it on a consistent basis.  For example, don’t start a weekly ezine unless you can dedicate an hour each week to writing it.  You don’t want to send a message to your prospective clients that you can’t be reliable and “stick” with something.

Next time you’re told about THE newest, best marketing activity that you MUST try, step back and take a few minutes to ask yourself these 3 questions.  It will make marketing easier and less stressful for you and also for your prospects!