Let’s call out some myths today…start your six-figure business today with a $0 investment.
We have all seen the posts, heck I am guilty of this too (we live and learn). Yes, technically you can start a profitable business with very little cash upfront. But what can this business actually accomplish for you? The results vary.
No one would try to start a franchise restaurant business without upfront investment.
No one would try to start an Etsy shop without upfront investment.
Why are we trying to convince people to start an online business without an upfront investment?
The only thing we have accomplished is bringing in a bunch of people who are unprepared to invest in their business and learn the skills necessary to succeed. So these people ‘tinker’ with their business for a few months, and then decide it is a scam, or it is not with it and they bail. So they end up leaving thousands of dollars on the table because they were told you do not need to invest to succeed.
Let’s be real you have to invest your hard-earned money to grow ANY business.
I started as an affiliate marketer with under $30 in investment. And I made some quick commissions, but it was not sustainable and I knew it. I knew the only way to grow my business was to reinvest. I chose to purchase a higher ticket educational program that had group coaching attached to it. That program changed how I think about my business and taught me very valuable skills (copywriting, lead generation, mindset shifts). Now my goal is to keep making commissions so I can reinvest. I need a paid mentor next. Knowing that this is how I take my business from financially successful but fragile to stable and booming.
I am not recommending you go out and drop $5,000 on the first online course you see (there are a lot of scammers out here). But I want you to know that you can absolutely start your online business on a shoestring budget, but once that money starts coming in you need to think about how you are going to reinvest in your business and continue to scale.
It is absolutely possible to change your life forever by building an online business. But just starting an online business does you no good. You have to build it! So after you research a business model and decide what kind of business you want to build, write out a business plan. I like 12-month goals that are broken down into quarterly and monthly goals, but whatever works for you do it!
In that business plan, you will identify your target market, your traffic source, the products you are selling, your profit margins, and your expenses. Any sustainable business has business expenses that increase over time proportional to the revenue increase you are seeing as you gain traction.
Here is a simple example of a concession stand business.
Target Market: parents and fans at the local sports park
Traffic Source: handwritten signs and word of mouth
Products: candy bars and soda- purchased in bulk from Costco
Product Cost: candy bar $1 each and bottle of soda $.50
Sales Price: candy bar $1.50 and bottle of soda $1.50
Profit Margin: candy bar $.50 and a bottle of soda is $1
If I started a concession stand selling candy bars and soda my upfront investment would be low, maybe just $100. I could buy 50 candy bars and 100 bottles of soda. The profit once I sold out would be $125. That isn’t bad for a small business venture. But now I know what is selling, I adjust my products and listen to my customers. I learned that they want more than just candy and soda. They actually want chips too. Perfect, I add chips to my business and reinvest my profits to purchase new products. Wow, people love this concession stand and now they want hot food as well. I decided to start cheap and easy with nachos and frito pie. Now I am really making a profit and realize that I have the beginnings of a food truck business.
See how reinvestment happens every day in businesses across the world?
No one would ever stop you from reinvesting in a brick-and-mortar business even if it starts out as a small concession stand.
So we need to change how we think about investing in an online business. You can absolutely start out with low upfront costs, but eventually, you will need to reinvest. Since you do not always need product inventory your reinvestments will probably be in the form of software, tool, educational course, or mentor. That is okay! That is how you grow. Do not be afraid to delay a huge payday to set up a long-term business.
So if you are starting up on a shoestring budget here are my must-have tools:
Domain Name ($6 per year)
Funnel Builder/Autoresponder (Free)
Introductory Educational Program ($7)
IF you are ready to reinvest in your business and scale to large numbers take a look at these products:
Elite Educational Program ($1,497)
Funnel Builder ($97 per month after a 14-day free trial)
Autoresponder (starting at $19 per month, free option available)
Copywriting Tool ($49 per month after a 7-day free trial)
These are the tools and educational programs that I have found to be most beneficial for me. Everyone is going to have their own learning curve and have different tools and software that work best for them. Don’t be afraid to try things out and see what works for you. The best tip I can give anyone in this business is to take advantage of free trials. These trials allow you to test out the tools, software, and systems without putting your hard-earned money on the line immediately. If you are worried about forgetting to cancel a trial and getting charged (we have all been there!) set a reminder or appointment in your calendar to cancel the trial a day or two before you are supposed to get charged. This allows you to test out the free trials with peace of mind.
Whatever you decide, get out there and start working! Starting a business does nothing for you, building a business can change your life.