How to Start a Business for 200 Dollars
The idea of starting a business is certainly appealing for many people. Although the work is often harder than working for someone else, it's wonderful to be able to choose the type of work that you will do, set your own hours and do everything exactly the way you choose. Depending on what kind of business you plan to start, you may only need $200 for the initial costs.
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Instructions
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Brainstorm about the type of business you would like to run. What goods or services could you provide? With a budget of $200, you will probably not be able to buy much inventory, and you will probably need to work from home, or on location with your clients. However, you have many possibilities, especially in service industries.
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Decide whether you need to buy any equipment. With a budget of $200, you might be able to invest in a few important items. For example, if you want to run a home day-care, you might need to buy some baby-proofing supplies. At this point, stick to purchases that are necessary.
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Decide exactly what products or services you will offer and what your prices will be.
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Invest wisely in advertising. For most new small businesses, advertising is the single most important expense. This could mean anything from photocopying fliers to putting classified ads in local publications. Take advantage of free opportunities, too. Talk to all your friends about the new business you're starting. Consider offering free samples of your product or service, if it's within your budget. Think about where people who need your service might go, and post fliers or business cards there.
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Keep track of everything you spend on your business, and everything you earn. This doesn't have to be a fancy process when you first start a business, but you will need this information when you file taxes.
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Tips & Warnings
In general, there's no reason to legally register a small business as an official business entity. It's legal for any individual or partnership to run a small business as themselves, as long as the income is reported for self-employment taxes.
If your business starts to really take off, don't forget to set aside money throughout the year for tax payment, since these payments aren't being withheld by an employer. Consult an accountant if you're not sure where to start.
