How to Start a Business With Forty Thousand Dollars

Plan conservatively with your money to ensure the $40,000 covers all costs.

Starting a business requires a lot of planning and support. Many agencies and companies are set up to assist an individual who is interested in opening a business but needs input to make the right decisions. Having $40,000 to invest in a new business is great as long as the money is put to the best use possible.

Instructions

1. Research the type of business you would like to open. Factor in the cost of any supplies and materials you need to purchase, the cost of renting your space and keeping you afloat until the business is profitable, and the cost of any other expenses you anticipate.

2. Write a business plan. A business plan details your business goals. It should include all start-up costs, marketing plans and anticipated income. A business plan will be used to secure any additional business loans or funding you require.

3. Visit your SCORE office or Small Business Administration office. Both organizations are nonprofit and can provide you with input on your business plan, and answer questions regarding your planned business. Create a list of questions before your visit. The SBA can help guide you to start-up loans if your business may require additional funding beside your original $40,000.

4. Obtain the necessary business licenses and permits. The types of licenses vary by the state and type of business you are opening. Your Secretary of State's office is often the source for securing the proper licenses.

5. Secure your business location and prepare for opening day. This could include purchasing necessary supplies, advertising and marketing and hiring staff. For online businesses, you still have to put your marketing plan into action. Be conservative in your plans and make sure your $40,000 is going to last long enough to get business moving.

References

• Score: For the Life of Your Business
• SBA.gov: Managing a Business
• SSBA.gov: The Answers You Need Start Here