Do you like organizing cluttered garages? Do you make mouth-watering cakes? Do you love to make jewelry? Are you good at planning special events? If you've been thinking about starting a business as your next career, now could be a great time to turn one of these hobbies into a thriving small business -- even on a bare-bones budget.
Starting a business on the side is a smart way to get your feet wet as an entrepreneur. Look first at the services and goods you already provide for free to friends and family. "The best way to start a business for less than $500 is to figure out how to get paid for what you love to do," says Clyde Anderson, a financial lifestyle coach and CNN contributor in Atlanta. "It's crucial for anyone who's looking to start a business to determine what gifts and talents they already have and to convert them into an actual business."
Here are 7 cool businesses to start on a shoestring.
1. Baker
Cakes and cupcakes are the highlight of any party, and reality foodie shows such as Cupcake Wars have made baking a popular new business idea. Brooklyn blogger and cupcake expert Nichelle Stephens says you can start a cupcake business for $500 or less, as long as you aren't trying to open a storefront. "You spend more time than money when starting a baking business," says Stephens, who shares baking and business tips on her blog. "You need to find a neighborhood where there is a limited number of baked goods available and identify your niche." Once you get your mixer, the next expense is quality baking pans and cooling racks. Use your co-workers as your test market and promote your business in the groups you belong to, especially if you have children. Other parents are a great potential customer base. Keep in mind it's illegal in most jurisdictions to bake and sell food from your home. Here's a website where you can research commercial kitchens in your area.
Related: Are You a Connector?
2. Mobile Notary Public
Despite technological advances, documents such as property deeds, wills and loan papers still require an official signature and stamp by a notary. Some banks and real estate agents have a notary license, but the current trend is using notaries who come to your home or business on call. Setting up this kind of business has strict rules: Most states require you to take a course to learn the notary business and pass an exam, and all require a state license. Check with your state for regulations and costs, and visit the National Notary Association for materials and more information. It's important to put out the word to friends, family and co-workers about your new notary business. Set up a professional website with search engine optimization so that your business can be found locally. "Pick a niche," says Dany Victory, owner of mobilenotarypublic.com in Southern California. "I specialize in loan documents, and it's helped me earn referral customers such as realtors and title companies." As a mobile notary, your costs are low and there are fringe benefits: You can drive around, meet interesting people and charge a premium for providing door-to-door service. "My income is higher because I charge travel fees on top of the standard notary charge of $10 per signature," says Victory.
3. Personal Trainer
Many people's New Year's resolution is to lose weight, and many of these same individuals are looking for professional help to shed those unwanted pounds. If you are a fitness buff or avid runner, you may be able to make a living by teaching others what you've learned. You can be a general fitness instructor or specialize in marathon prep, yoga or Zumba. The first step in launching a fitness business is to become certified as a personal trainer. You also may need some basic equipment such as a portable CD player, exercise ball, stair step and mats. To launch your training business, start by telling your own weight loss story. Don't be afraid to share your before and after pictures on your website and Facebook page. To find clients, try to build relationships at the gym you already attend. Inquire about becoming a trainer on staff to learn the business. Reach out to friends and colleagues who either don't have time to go to a gym or feel embarrassed in a room full of people running on treadmills. Fitness enthusiast John Leber of Paramus, N.J., became a trainer in retirement. Leber studied, took a workshop and an exam, and within months got his personal trainer certification from the National Academy of Sports Medicine (NASM). "I worked for a large fitness chain gym for 18 months, and it was like your first job out of college, but after I left that company, my old clients started calling me for services," says Leber, who is 63." He specializes in working with clients 50+ and with people recovering from injuries. Here's more on how to become a personal trainer.
4. Personal Organizer
Clutter is stressful for everyone, and you can make a living helping people get their homes, offices and lives in order. Professional organizing is a perfect business for people with a knack for neatness and developing systems. You can charge hourly or set half-day and full-day flat rates for your time. Not all clutter is the same, so it's a good idea to choose an area of specialization, such as cleaning out garages, helping people plan for moving or downsizing, or assisting professional women with busy lives. Devise a system for how you will approach new client projects. Some organizers interview prospects; others ask for a tour of the space that needs organizing; some just throw everything on the floor and start from there. Philadelphia-based professional organizer Debbie Lillard, author of Absolutely Organized, wanted to work part time after years as a stay-at-home mom. She launched her business by contacting old friends who were stressed by the disorganization in their lives. She created business cards and flyers and distributed them in grocery stores in affluent neighborhoods. "I wrote a sales letter explaining who might need an organizer and sent it to everyone I knew, which landed me my first clients; from there, it was all word-of-mouth referrals," Lillard says. Within a few months, she also launched a do-it-yourself website. Lillard went on to write two books about getting organized and shared organizational tips during media appearances, which helped her business grow. Collecting before and after pictures and client testimonials are good ways to promote a business as a professional organizer. For people interested in this business, consider joining the National Association of Professional Organizers, which provides education and training for new business owners in the field.
5. Social Media Marketing Assistant
The social media world is growing, and most business owners don't have time to keep up. You can create a business as a social media marketing assistant or strategist if you have strong writing skills and a working knowledge of the major social media networking sites. Copy editing skills also are in demand for customers with blogs. Prior experience in public relations and marketing can also set you apart from those who just know social media tools. This business involves helping clients develop a social media strategy, build blogs, and set up Facebook Fan Pages, Twitter accounts, LinkedIn profiles and Google+ accounts. lf you know how to set up and maintain WordPress websites (they're free), you can specialize in that service and charge a higher hourly rate. Cathy Larkin of Web Savvy PR in Aston, Pa., shows her small-business clients how to make social media marketing less intimidating. She provides strategies and shortcuts to keep her clients up to date online. "The first thing I did was learn the tools; then I picked a niche for the kind of customers I wanted," Larkin says, "Be willing to work for free at first, just to prove you know what you are doing and get some references." A low-cost way to quickly sharpen your social media skills is to attend a social media conference such as a PodCamp, which are held all over the country. The key to being successful as a social media marketing assistant is keeping your skills updated and making sure you stay on top of the constantly changing features on the social networking sites.
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6. Jewelry Designer
People like handmade, one-of-a-kind jewelry, and this hobby is a good choice for a home-based business. Settle on your signature style or specialty -- whether you'll create pieces with bead design or design molds for silver and goldsmithing or stainless-steel items. Then you need to name your business, create samples, produce high-quality photos and start developing marketing materials. Patricia Miller, owner of the Velvet Box in Flint, Mich., got hooked on the craft while helping a friend with her holiday jewelry orders. Miller launched her own business with small orders for bracelets, and then she began doing home shows. Later she created an online shop at Etsy.com, which makes it simple for crafters to display and sell handmade goods. "Ninety-eight percent of my business has come from repeat customers and word-of-mouth referrals," says Miller. Jewelry sellers also should look into setting up booths at craft fairs, flea markets and community events. Try partnering with local art galleries, hospitals and boutiques to sell higher-end pieces in your catalog. Don't forget to wear your own jewelry everywhere you go -- you are your best advertisement.
7. Image Consultant
Are you the person everyone stops and says, "Wow, you look great! Can you go shopping with me?" You are not just a trendsetter; you also may have the skills to be an image consultant or visual branding specialist. "Both women and men need to present their very best to the world. I help people reinvent and update their look," says Tracey Reed, who runs a Philadelphia image consulting firm, Tracey Evelyn Beautiful You. "I do everything from color analysis to make-up lessons and personal shopping." If you want to start a business as an image consultant, you need to have an understanding of color basics, textiles and clothing silhouettes. Reed, who has a master's degree in theater make-up and costume design, suggests taking courses in color theory and retail merchandising to sharpen your skills. She started out in the beauty business as a licensed aesthetician and later expanded her services to include wardrobe and image consulting. Potential clients include professional women too busy to shop, brides-to-be who want makeovers, and men who want to sharpen their images to get ahead at work. Having a personal network is key to building your initial clientele. Set up a blog to share style tips, and then use Facebook and other social media to attract new customers. You also can use your website to post special packages, share testimonials and feature before and after photos of clients. It could be your best sales tool.
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All of these are great businesses to start, but keep in mind that you still need a marketing plan and business plan to get your fledgling enterprise on track. Start with a free version of business plan software at enloop.com to get rolling and later invest in a business plan course at a small-business development center or local community college. Business plans help make sure your budget and costs are something you can measure as your new business grows.
Do you have other great startup ideas for under $500? Please share your comments.
Keep reading: 12 Tips for Trading Places in 2012
This originally appeared at SecondAct.com.
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Comments:
I am so sick of reading these ridiculous lists of businesses you can start for under $500. Have these authors ever researched starting a business let alone ever run a business? Have they ever heard of insurance? You couldn't even insure yourself/business as a baker for $500. And how will you advertise it? Print advertising is extremely expensive. The woman they interviewed for this article suggested selling to your friends' kids etc. Not a very realistic way to make enough money to survive.
an engineer by profession...I am frustrated as ever with the corporate life... each time i think to start up something on my own...i have the same questions in my mind.."do i have the guts?"..."what kind of money will be involved?"...n the million dollar question.."what m i good at?" Friends love what i cook...bake...grill...they always take recipes of my inventions... Like many these days, i too hv started clicking....nothing great though..but get appreciated a lot (mainly on social networking sites).. Whatever new ideas i came up with while decoration by rooms....others have complimented and asked me if they can copy the same... Recently started painting on framed canvas...no matter how amateurish they are, the feeling of creating something is great and encouraging...especially when get some good reviews.. I guess i have the 'Jack of all trades' syndrome...a problem of lost focus...hence i have to live with the incompleteness and dis-satisfactory feeling...any comments to boost up my confidence level or ego is most welcome! Thank God i have found some place to vent out my feelings!
Image consultant sounds unique and seems workable however this may not really present opportunities elsewhere, what works in one clime might not elsewhere but good initiative anyway.
I had exactly the same feelings. This caused me to delay my business start up for over 2 years. Its like diving in the pool, the first time is the hardest one. After that dive, I've been able to start numerous other small ventures. Just dive dude.
Hi Kris, Re your response, which I received to my email also. I hope what I say here can help you. First of all, are you already in some kind of business or you are looking for some kind of right opportunity. As regards your confusion, you need to be more clear about what kind of business you want to have, are passionate about and will devote all the time and efforts to build. Further, you also have to give yourself a target about the kind of income you need to generate and then work towards your goals and targets. To cut the long discussion short, once you respond to the above, we can discuss further in case you may be wanting to consider the opportunity that I have been working with. You can communicate with me directly to my email id harishddb@yahoo:disqus .com
I've been really interested in starting a business for about a year now. My core problem is that I can't decide what exactly I would like to start. Part of the problem is that I keep getting these thoughts like, "If it won't make you millions, it isn't worth the effort," which I know is ridiculous but affects my motivation at times. The ideas I keep dancing around relate to personal coaching, small business start up and marketing assistance and public speaking on a variety of topics. Need to focus!
No business idea is perfect, but it could be perfect for someone. The point is to find a business that works for you and work it.
Hi Patrick, I think what is missing is not the monetary resources but the right mindset and a plan. Coaches like me help small business owners do that and if there is a will there is always a way!
While these are businesses you can start for under $500, research show 69 percent of all new businesses need less than $10,000 to get started and 70 percent of the people on the street say they would like to start their own business, why don’t they?
These are ideas but how and where do you implement them. How many people need an image consultant when they can ask a friend for an opinion..personal training market is flooded and doesn't pay handsomely.. all of these have flaws.. I think T-shirt printing should be on here though it takes a bit of research and creactivity
Almost any business idea has a big (expensive) version, and a smaller (inexpensive) version. You just need to think outside the square and tailor your strategies accordingly. If you can't afford to start your ideal business now, don't use it as an excuse not to start at all! Just ask how you can modify the idea today, and work towards the ideal version tomorrow...
Great Ideas, I found them very helpful. I have a jewelry business. Thanks for the article
I do not think my comment was approved for unknown reason. But if you'd like to get details, I can share my experience with you Email: yana@intervolga.com
Great list! Start ups are so intimidating and so many get turned off by the idea of a huge initial investment. It's encouraging to see a list of such affordable start ups.
Hi, I'm looking to start a website in the near future..what would you say is the best way to go about it? Go Daddy? I thought the price for a good website was going to cost way more than what you said. Any advice would be greaaaaatly appreciated.
Thanks for sharing these great ideas for starting a business.
These are very helpful and wonderful ideas,how about showing how to get started specially the mobile notary which is a very interesting business and very inovative.
Many states have cottage bakery laws now which prohibit selling baked goods over the internet, but allow face to face selling. So this would trump any local laws about baking and selling from your home kitchen.
These are wonderful ideas on what services a person could offer in their new #business but for under $500 the internet business is the one which requires less upfront capital.
You do not need a commercial kitchen to start the business - as the business expands you buy equipment. That was the point of the article, minimize start up costs.
do tell more
Every new venture has its own 'how to's' and 'what not's.' One must first decide what is it that they want to do. Not only they have to be passionate, but also (more importantly in my opinion) be more realistic / practical. At the end of the day, the idea must sell and make money.
Some of these are inspiring. I just wish there was more detail on the how to. How about it?
Awesome article! Gives credence and hope to people to pursue their dreams, but no amount of money can replace vision, wherewithal, and persistence. "There is nothing more powerful than an idea whose time has come." - Victor Hugo
Great article! You can also launch your own soap or beauty line for $500 or less. I would love to contribute to a future article!
Very true. However, not easy. I started by laundry business for under $500 over 2 years ago. Today, My last month's billing topped $2,000 per month. Here's the catch; it was out of the US. Dollar value is much greater at most parts of the world. I wish every new entrepreneur loads of success and the capacity to bear failure, because there will be many.
I was able to start a custom jewelry business for only $199. Kelly.OrigamiOwl.com It is fun and not a lot of risk. Yea!
It sounds great. Are you trying it. I have to go back and listen to the presentation later because it was longer than I anticipated.
amazing artilce. Thank you for sharing!
very interesting list, thanks for sharing!
It's not possible to start a baking business for under $500, storefront or no. I'm currently starting a cookie business, and it was $100 just to file the DBA & publication. It'll be another $1000 -$4000 to the commercial kitchen, plus just under $1000 for the liability insurance. That doesn't even touch on health permits, supplies, packaging, or time (which, as we all know, is money, too). I'm actually about to start chronicling all of that on my cookie blog, http://kpcookies.wordpress.com.
There are plenty of business you can start with that $500. For me, I will use it building a good site and earn from that.
Find out what we thought about these business ideas over at Brokepreneur dot com
That's not true. In states like NY, you can have an inspection in your home or wherever your kitchen is located.
Very interesting article. There are tons of businesses that you can start for under $500. I think it is important to stress to readers that this article is intended as a starting point for someone wanting to enter the world of business ownership. A side business can definitely be started with a very limited budget. As a matter of fact, time is typically the biggest investment with any new company.
Personal organizing is addressed - but what about photo organizing. This is an untapped service industry. Joining the associations affiliated with photo organizing is www.appo.org is a win/win because it provides you with a vast amount of resources, your own webpage, and marketing materials. You still need to deal with local business fees, business cards, ect...but it is not too far from the $500.
Great article to encourage small business start ups. I'm loving every minute but do find it is much more expensive then $500 to meet the marketing, networking and association memberships needed to integrate quickly into the community. I want to encourage other people to take the leap but be prepared with a cash savings.
Well you can start an internet business for less than $50.
Starting a business for $500 is cool, but you have to have money saved up to live off of until you can make a 'living wage'. Remember you have a hobby until you make a profit. Also be prepared to work at least 40-80 hours a week on your new business, but if making money was easy everyone would do it!
Opportunities galore - let's stop whining! Let's do a little "Tebowing" = believe and go for it!
Most people spend more working IN their business, then ON their business. Starting a business is the easy part, running a profitable, ongoing, sustainable entreprise is another, having said that, I find running our businesses to be the most rewarding thing I've ever done, first with my parents, who set great examples of working & living together, and now with my wife.
Actually there are commercial kitchens opening more and more across the country that allow companies to rent and temporarily use them for their cooking or baking needs. Check out Chef Roble' & Co (reality show) on Bravo for an example of this. His business is home-based but he primarily uses a commercial kitchen to cook/bake for his catering.
You only need access to a commercial Kitchen. I know some one that does it legally in a local churches kitchen.
great article, i sure its a quite useful to all small business owner.
You cannot legally bake and sell the products, without a heath department inspection which means you can't do this without a storefront
I agree with you on this. The suggestions are a good start but if you are tech savvy enough, go online. You can go outsource products and resell them. And it can be done with 500 dollars.
Maybe I missed it, but I don't see anything for licensing, permits and other fees. Those add up.
I have a coaching client that started a baking business from originally baking for friends and family members. Now they are picking up contracts with national restaurant chains to feature their baked goods. Nice!
You are generally correct that growing your business will involve more expenses, but this article was about getting started. There are also plenty of effective strategies for marketing your business that don't involve money as much as time. Social media, relationship marketing, word of mouth generally, are all very powerful strategies for creating awareness. You can now build a professional, credible website for free and a combination of that with making the right connections can quickly build enough business for you to take the next growth step with a larger monetary investment in your business.
What would be a fair hourly rate for WordPress services?
"All of these are great businesses to start, but keep in mind that you still need a marketing plan and business plan to get your fledgling enterprise on track." This line from the last paragraph is the reality of all new businesses. You may be able to start a business for $500, but unless you are counting on getting business from hanging signs on electric poles, expect to pay $thousands in marketing.
Surely setting up a niche e-tailer would also qualify. 25 dollars per months for a service like Shopify, more than 400 left for marketing in the first couple of months. See the Snowalypse T-shirt story http://news.ycombinator.com/item?id=2173155 or our reasonably successful story http://www.arcticstartup.com/2011/02/10/care-for-some-underwear
need only internet , phone and creativity to start business or to be self employee
Don't confuse 'Business with Self-employed'. Baker, Personal Trainer etc are great hobby business ideas however they are non-leveraged and very time consuming. The internet creates with it an enormous opportunity to create passive, leveraged, residual income streams through online businesses. This is what the budding entrepreneur should be looking for in todays information seeking society. Online never closes, takes a day off, calls in sick, or cares that the Sun is up on the other side of the planet etc...
Things I've considered that may run me less than $500 for start up -- Green cleaning, pressure washing, bamboo crafts ;)
not sure if possible, any business needs a budget or an intelligence as added value to run it properly
It's never been difficult to start a business. Sustaining the business is another matter. Too many people fail to plan adequately particularly when it comes to finding customers and managing cashflow. Tip #1: don't open a business on your own. Get a mentor or advisor who will tell you those things that maybe you don't want to hear, but need to just the same.
Baking business and personal organizer sounds good. but baking really got my attention. Thank you for the list by the way.
marketing, word of mouth,live breathe whatever you are selling. gorilla marketing works but its hard work. volume is the key talk to everyone you see, do it more often and stay at it longer.
Yeah, good luck with starting that jewelry business. I'd like tips on how to increase my sales in this economy instead of the decrease they've taken.