How to Start a Small Home-Based Business on a Budget

Many small home-based business are succeeding having started on a shoestring budget. There are simple ways to cut costs and obtain free marketing to build your business. With the following tips and tools, starting a home-based business on a budget is easy.

Things You'll Need

• Computer and printer
• Telephone
• Paper
• Business cards

Instructions

Mandatory Costs

1. The first step in starting your new home-based business and establishing a budget is knowing what costs are mandatory. Begin by checking local, county and state requirements as to any business licensing or registration that is required. Depending on what type of business you are forming, the fee will differ.

2. Another mandatory cost is office supplies. Letterhead, business cards and envelopes are usually needed when operating a business. Rather than spending twice as much at the local office supply store, consider purchasing your office supplies at the local dollar store.

3. Most businesses operate with business equipment such as using the telephone for customer contact. To cut costs, you may simply convert your existing phone to your work phone. For a no-cost option for voicemail and fax, obtain a free phone number from efax.com.

Marketing and Advertising Costs

1. Advertising and marketing is by far the biggest expense for a new businesses. These no-cost to low-cost methods will save money.

   Local Strategies

   Door-to-door fliers. Print fliers offering your product or service and start distributing them to homes. To cut costs, divide one piece of paper into three separate door hangers. Cut each door hanger, staple a rubber band to each door hanger and place on the doorknob.

   Contact local radio stations. Here a free method of advertising your business: If you're selling a service and are knowledgeable in a certain area, offer a talk radio station your expertise. This will get your name out quickly. If you are selling a product, consider offering it for free. For example, if you own a home-based catering business, consider giving away two dinner entrees. The radio station will gladly announce this on the air and your business gets plugged for free.

   Business cards. Use business cards to your advantage and use the backside. Use a phrase such as "I Love Referrals." Also offer your customers something in return for referring other customers.

   Free classes. If you specialize in an area, offer a free class. Rent a building for a day, teach a class and distribute your marketing materials. Often you can rent community buildings for around $30 per day.

   Press release. For a good way to increase customers, write a press release. Distribute to local newspapers, radio stations and industry publications. For a low-cost method, fax rather than using regular mail.

2. Online strategies

   Email. Consider emailing rather than traditional mail. This method saves money. Begin promoting your business to your contacts, then rent a cheap mailing list to consumers that have agreed to receive promotional emails. The cost for such mailing lists is relatively inexpensive through infoUSA.com

   Website. You can buy a domain name for a few dollars at godaddy.com and it will give you a five-page website. After you have designed your new website, list your website address on your marketing materials. Then, start submitting your new website to the major search engines.

3. Network online. Sign up with Facebook and Twitter. Most business websites use Facebook and Twitter for effective communication.

References

• Small Business Adminstration

Resources

• eFax
• infoUSA