Starting an Online Business with 120 USD - Tips and Examples for Founders
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| Photo by Austin Distel on Unsplash |
Hanifmr.com - Startup with just 120 USD and then be able to live on it in the foreseeable future? Many prospective founders would like to see that.
In this article, I am looking into the question of whether you can set up a business online with just a few chapters, what is important for the business idea, and how to keep costs low.
There are also tips for implementation and some examples with numbers.
Start an Online Business with 120 USD ?!
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| Starting an Online Business with 120 USD - Tips and Examples for Founders |
It used to be quite normal that you had to have a lot of equity to set up a business. Or you took out a loan to open a shop, restaurant, or office.
But the internet has changed a lot and it is now possible to start your own online business with very little money. Nevertheless, many are still of the opinion that a lot of money must first be invested when starting a business. But is it like that?
This article is about the question of whether and, if so, which online business ideas can be started with 120 USD or less.
But first of all, I would like to point out that this only refers to direct investments in the business and not the cost of living. Rent, electricity, heating, food, and co. are of course important and you should make sure that enough money is available for them before starting a business. A part-time start-up is ideal here, where you finance your living from your job and take care of your own online business at the same time.
Another note concerns the period. Of course, you will not be able to implement a business for several years with just 120 USD. This is about the initial investment. After a relatively short time (a few months), further investments are often necessary, which then ideally can be covered from the first income.
Disadvantages of High Investments
But why should you set up a business with so little money at all? What speaks against taking a lot of money into your hands?
If you have a lot of money on the high edge and don't know what to do with it, then you are of course welcome to invest it in your online business idea. If you do this well, you will save yourself a lot of work and nerves with it.
The problem is, however, that most of them don't just have that much money lying around. Instead, they would have to take out a loan or otherwise borrow to be able to make larger investments in a startup. But that has disadvantages.
The biggest disadvantage is certainly that you run into debt with it and if the start-up is not a success, you go out of debt from the project and have to see how you can do it again. In addition, larger invested sums do not guarantee success. The opposite is often the case. Those who have little money at their disposal are much more conscientious and pay much more attention to ensuring that their business idea is profitable from the start.
Business Ideas Without Start-Up Capital
In his book Start-Up! the author Chris Guillebeau describes how you can start up with little money. He puts one focus on the business idea. This should be chosen very well to be able to be successful without large financial resources.
One way to do this is the so-called Lean Startup Method, which has already been described in an article here. The main focus is on business ideas that are simple, easy to understand, and can be implemented quickly. In addition, it must be possible to test these very early to invest as little work and money as possible in things that they do not work.
At first glance, there are sectors in online business that are suitable for a start-up with 120 USD. Own websites, virtual products, digital services, and similar areas do not necessarily require the use of large amounts of money.
This is of course different from physical products, which is why online shops, for example, are usually not suitable for being implemented with little capital. Even if there is such a thing as dropshipping.
It is also important with the lean startup method that you start small to be able to scale well over time and thus gradually build up the business.
What Does a Website Cost?
In an online business, one way or another, most of the time you will need a website. Be it as the central basis of your own business (e.g. blog) or as a marketing instrument (e.g. for services).
The main things you need for a website are:
Hosting / Domain
To bring a website into the network, you have to use the services of a host. There is a lot of it and with around 6 USD per month, you are already there. In many cases, this is completely sufficient to start with. With the domain, you don't have to rush into expenses anymore. Many hosting packages include at least one DE domain. If you want to start with as little money as possible, buying an existing domain is usually not an option.
A completely different alternative would be to do without an independent website, for example by operating a YouTube channel and/or relying on social media profiles. This saves costs, but has other disadvantages, as you then become dependent on these services.
Content Management System
Nowadays it makes sense in most cases to use a Content Management System (CMS). WordPress is very common here, but other CMS can also be used. Alternatively, you can also rely on website builders or, for example, on WordPress.com. This would eliminate the separate hosting costs.
Which variant you choose depends on the business idea. Having your WordPress website is of course much easier to customize and scale.
Design Having
an individual design implemented by a web designer costs a lot of money. Alternatively, you can use free or inexpensive design templates, which are available in large numbers in almost all content management systems. If you have certain skills in this area, you can of course create the layout yourself or at least adapt it. So I have continuously developed the layout of Self-employed in the net myself.
Content
Of course, the content also depends on which business model you pursue. It's just something completely different whether you create an info page for a service or run a full-time blog. As a rule, you should create the content yourself, otherwise, it can quickly turn into money. In addition, cheap text services are usually not available, as the quality is not sufficient for your main business website.
SEO
There is no success on the net without visitors. Even if Google has become better at recognizing good content over the years, you will not be successful without certain on-page optimizations and a certain number of backlinks. But you don't have to hire anyone for this either, there are good plugins, simple instructions, and many ways to get backlinks.
Marketing
Further marketing measures to increase reach are no longer a question of money either. The various social networks offer a lot of potentials here if you deal with them. Paid advertising (e.g. Google Adwords) can make sense in one case or another, but this is not necessary to be successful online.
Implement Quickly
A very important point when starting a business with just 120 USD is to be quick. This means that the business idea can be implemented quickly and thus quickly made public. Under no circumstances should one tinker with and work on details forever. Not only does it take time, but it also usually doesn't work the way you imagine it would.
The basic business idea should be tested as soon as possible. A simple and functional prototype of your website should be launched quickly and the feedback from the first visitors should be used to develop it further. It is cost-effective and time-saving if you use “ready-made“ components ”such as the CMS, designs, or similar that have already been mentioned.
However, the line between “fast” and “rushing” is fine. You should therefore always check whether the website, the eBook, the service, etc. at least meet the basic requirements of the target group. Under no circumstances should you bring out something bad.
Work Instead of Money ?!
There are 2 things you can invest in building your own business. That’s money or time. Conversely, if you only want to spend a little money, that means that you have to invest all the more time.
For many founders, this is fine and certainly a legitimate practice. However, one should be aware that this has advantages and disadvantages. In the long run, you slow down your growth because the time resource is limited, even for founders and self-employed people.
Therefore, after a certain time, when more financial resources are available, you should gradually exchange time for money and in this way advance the business.
Examples
In my opinion and experience, it is possible to start many online business ideas with 120 USD. Here are some examples.
Blog
I am mainly a blogger and can now make a very good living from it. Starting a blog is possible with very little money. You just need the hosting * and a domain. Then it can start. If you want to take it a little more professional, you might want to buy a premium theme.
Costs:
| Hosting and Domain (1 year) | 60 USD |
| WordPress CMS | 0, - USD |
| Premium theme | 50 USD |
| Start-up costs | 110 USD |
Niche/Affiliate Website
In recent years I have had a very good experience with niche websites, which have proven to be good sources of income with relatively little money and time investments. So it is not surprising that many beginners try it. But you can also start larger affiliate websites with little money. In addition to the costs for hosting *, the costs for a premium affiliate plugin such as AAWP * may also apply.
Costs:
| Hosting and Domain (1 year) | 60 USD |
| WordPress CMS | 0, - USD |
| Premium plugin | 50 USD |
| Start-up costs | 110 USD |
eBook
Writing and publishing your eBook is a lot of work. But for that, you don't have to invest any money. I just used Libre Office on my eBook to write and format/layout it. I used an image editing program for the cover, but here too there are cheap or even free alternatives.
To sell an eBook you can use platforms like Digistore or Amazon or a plugin for your website. The plugins may incur one-time costs.
Costs:
| Writing program | 0, - USD |
| FREE photo editor | 0, - USD |
| Possibly hosting and domain (1 year) | 60 USD |
| Possibly eCommerce plug-in | 120 USD |
| Alternatively via a sales platform | 0, - USD |
| Start-up costs | 0 to 199 USD |
Here, the start-up costs for selling the eBook on your website are slightly higher than 120 USD.
Video Course
Videos are becoming more and more popular on the Internet. You can earn money with videos on platforms like YouTube, but even more lucrative for many founders are platforms like udemy, on which video courses can be offered. The effort here is of course to record the videos, for which you need a camera, a microphone and a video program. You can use your digital camera as a camera, or you can buy a relatively cheap webcam. There are also free video editing programs, but you have to spend some money for a little more convenience.
Costs:
| Webcam | 60 USD |
| Microphone | 60 USD |
| Video editing program | 0 to 60 USD |
| Start-up costs | 120 to 199 USD |
Service
Anyone who offers services, whether online or offline, usually only needs a smaller website on which they are presented, references are available and customer testimonials are published. In addition, you may need some support through online advertising in the early days to find your first customers.
Costs:
| Hosting and Domain (1 year) | 60 USD |
| WordPress CMS | 0, - USD |
| FREE theme | 0, - USD |
| Possibly AdWords advertisements | 60 USD |
| Start-up costs | 60 to 120 USD |
Depending on the service, there may of course be additional costs for work equipment and tools.
Web Design
Even as a web designer today you don't have to spend a lot of money to get started. As a rule, a small website is sufficient, which of course you should design yourself very nicely. Graphics software is required as a tool, such as Photoshop Creative Cloud, which is available as a monthly subscription. You don't have to pay huge sums of money for it like in the past.
Costs:
| Hosting and Domain (1 year) | 60 USD |
| WordPress CMS | 0, - USD |
| Own layout design | 0, - USD |
| Photoshop CC | 15 USD per month |
| Start-up costs in the first month | 75 USD |
| Start-up costs in the first year | 240 USD |
Here the software is of course a cost factor, but as a web designer, you should get your first orders relatively quickly to have this initial investment back in quickly. At least one usually earns money faster here than when starting a blog, for example.
Office Equipment and More
The costs listed above only relate to the specific costs of individual business models, but what about the general costs of self-employment?
As a self-employed person in the network, you need a desktop computer or a laptop. However, if you want to do your own business on the Internet, you usually already have a computer, so you usually don't have to invest money here. This also applies to Internet access. For me, it was the case that I first used my private PC for my business.
Of course, you also need a lot of software. A mail program, editor, word processor, image processing, FTP tool, customer administration, billing software, and more. The good thing is that you can find free open-source solutions for every tool you need. So it is possible to get started here without spending any money. In individual cases, it can of course be the case that one prefers paid software, but this is often not necessary.
I started my own business in a room in my house and worked there until the end of 2014 when I moved to an external office. I think that for many “120 USD founders” a corner or a room in their own four walls is completely sufficient for the time being.
The same applies to office furniture, where you shouldn't necessarily buy something new right away. Only when it comes to chairs would I, as a “computer worker”, not necessarily save and buy a good quality office chair promptly.
Business records used to be imperative. Back then I bought stationery, business cards, folders, and more when I started my own business. Apart from the stationery, I don't need anything today. That is why the investments are also limited here.
Anyone who provides services to customers usually needs a car, although the private one is also doing here first. In many other cases, however, a car is not necessary and certainly not a large one.
Can You Start with 120 USD?
If you look at the 120 USD purely on the investment in your business idea, it is now quite possible to start with 120 USD or even less.
But even if it's 240 or 355 USD, it's a piece of cake compared to before. Self-employed people in the network can initially do most of the work with their workforce and the time invested. Large investments are often not necessary.
But you should be clear about 2 important things. For one, there is the cost of living that should not be underestimated. On the other hand, you should take money into your hand as soon as possible to further advance the business and to reduce your own time expenditure a little.
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