How to Start a Small Business and Make Big Money

If you want to be in business for yourself, avoid the most common mistakes many people make to increase your profit margin and make big money. Decrease your overhead.

Difficulty: Moderate

Instructions

1. Rent is a huge expense. Can you operate your business without renting a commercial space? Can you see clients at their location or use some portion of your home for your business?

2. Equipment can eat up your start up money in no time. Can you make do with your home computer, and tools that you already have or buy second hand?

3. Do you really need employees? I know plenty of electricians, plumbers, carpenters and other service people who carry a cell phone and answer it themselves. Even when they're busy, their cell phone is taking messages. That eliminates the need for a person to answer your phone. How about hiring a book keeper to come in once a week for a couple of hours instead of hiring a full time accountant. If you must hire employees, hire in your own family or from the teens and kids in your community. They cost less and you'll be giving them a head start.

4. Advertising is expensive! Think about how you can utilize some other promotional ways to get the word out.
   
   - Put a sign on your car or truck and leave it parked in a public parking lot in a busy area. Move it after a few days to another busy spot so you expose the maximum number of people.
   - Put fliers up on bulletin boards.
   - Contact the Chamber of Commerce and see if any up coming events need gifts or prizes donated and then donate your product or service - make a nice coupon for them to give the winner.
   - Create a contest sponsored by your business and advertise it on your local Craig's List section.

5. Don't borrow money or buy on credit or use a credit card if you possibly help it. When you buy on credit you're throwing a big percentage of your hard earned money to the wind as interest for that loan.

Tips & Warnings

• Start small, grow slow, and even though your gross income might not be so big, more of it will be YOURS.

[jsteele]

on 8/2/2009 As a person starting my own business which is a clothing line. I have to agree with everything you said 100% and then some. Thinking smarter and lowering all your exspenses is very important. People can also work with there local SBDC (Small Business Development Center) to utilize there free resources as well.