Everyone sits at work from time to time and imagines setting up their own business. That’s because we all love the dream of being our own boss and having the luxury of setting our own work schedule and being in charge of our own career path (and lives). In the twenty first century there is no longer such a thing as job security and the concept of jobs-for-life have gone the way of the dinosaurs. As such there really is very little point in dedicating your entire working life to one or two companies so that they can reap all the profits of your hard work. But how do you make the break? Most people have the will but not the means. The toughest obstacle that people encounter when they want to set up their own business is that they don’t realize just how much money it will take. Most businesses require a significant amount of start-up funds before they can even get going and with the economy in the state it is in at the moment there aren’t many banks and financial institutions willing to lend that sort of money. So how does someone go about raising that sort of money? Often they can do it by alternative methods or through the generosity of friends and family, but if it is not possible to raise a large amount of funding then it is often easier to look at the business model you wish to pursue and aim for a type of business that requires a lower level of funding:
Freelancing or Contracting– This is one of the cheapest business models of all as it can be very quick and easy to set up. In essence all you are doing is taking whatever job or skill you have trained to do and are employed to do for someone else and selling that service online (or through an agency) on a contracting or freelance basis. No matter what job you do, someone, somewhere will pay money for you to do it for their business. You can set up a simple website and portfolio online, but even easier still you can sign up with one of the many freelancing sites such as Virtual Assistant, Odesk or Elance. Once you are on these sites you have access to hundreds of thousands of jobs from people all over the world and can begin to run your own online business.
Other Online Businesses– Freelancing online is the quickest and easiest way to get a business started mainly because starting any businesses online is a lot easier than starting a business in the real world. The overheads are lower, the real estate is lower and you immediately open your doors to a much wider audience than your local neighborhood store might in the real world. As well as that, the internet keeps growing larger and more integral to our daily lives with each passing year whilst simultaneously stores on the high street are continually losing business. It doesn't matter what your specialty, there will be someone out there online who wants to hire you and your skillset.
Convenience Services– If the idea of working online doesn't appeal you could always look into providing a service that people are willing to pay for. That could mean anything from walking dogs to cleaning houses or doing laundry and from accountancy services to private tuition. Once you have built up a few customers you can then branch out and hire more and more staff and grow the business.
Network Marketing– Another way of starting a ‘real’ business with a small amount of capital is network marketing. This is simply a business model wherein you sign up with a company for a very small fee and then sell products on their behalf, assuming responsibility for your own income and your own sales. Essentially you are buying into a franchise and you get all the support that comes with a franchise whilst still setting out on your own.
A lot of people are put off going into business simply because they feel they don't have enough capital. Hopefully this article shows that there are plenty of career paths out there that will allow you to go into business on your own, with just a little bit of money and a willingness to jump!
Esther is a financial journalist and business blogger based in Chicago. She writes about all areas of business and personal finance affecting the consumer from tax relief to credit and store cards and from consumer rights to where to find good financing receivables.