This is the first in a weekly series of lists with the aim of inspiring people to start their own business.  

The first list is a selection of business ideas that can be started with almost zero capital. 

20 Small Budget Start-Ups 

1. Assembly Service – If you are good with tools, provide a service that offers to assemble flat-pack furniture. Ask local furniture stores to hand out your business cards.
2. Pet Walker – If you love animals, taking other people’s pets for a walk or looking after them for some time would be a fun way to earn extra money. Distribute a flyer advertising your service.
3. Start a Website – If you have a subject that you are passionate about then start a website dedicated to it. Once you have a readership you can make money through advertising or merchandise.
4. Mail Order – Find a product to sell and offer it via mail order. Advertise your services online.
5. Parking Lot Pickup – Offer to clean the car parks of local businesses at the weekend or overnight. Charge an hourly fee or per lot.
6. Move-In Service – Partner with moving companies to offer a cleaning service that goes into a house that is about to be moved into and leaves it looking spotless.
7. Errand Service – Offer a general service that runs errands for anyone - from over-stretched small businesses to busy single parents.
8. Junk Disposal – Offer a service that removes unwanted items from people’s homes or gardens and disposes of them at the local recycling centre. This will be useful for anyone who does not have a car and needs to get rid of large items.
9. House Cleaning – There is always demand for cleaning services. Once you have generated good word-of-mouth about the work you do your customer base will soon expand.
10. Delivery Service – Work with small businesses to handle the logistics of a delivery service. They will likely not have one of their own and will be very happy to outsource it because it helps them compete with larger stores.
11. Sell Something – Find a product you want to sell at a wholesaler and concentrate on marketing it. There are numerous ways to sell products ranging from street trading to door-to-door sales.
12. Sell Something Online - Find a product you want to sell at a wholesaler and use online marketing techniques to shift large quantities of it.
13. Garage Cleaning – Many people have very untidy garages and lack the time to properly clear it out. You could offer a service that would do this for them.
14. Garden Services – If you are green-fingered offer a gardening service to clients which will cut lawns and remove weeds. You could even offer a landscaping service.
15. Concierge Service – Local businesses and community groups may need the help of a temporary concierge for special events. You could be responsible for organising a day out for a retirement home or arranging the travel plans of a busy small business owner.
16. Inventory Service – It can be important to make a full inventory of possessions for insurance reasons but many people do not have the time to do it. You can provide this service to people for a fee.
17. Boat / Car Detailing – If you have a love of automobiles or boats then you could start your own detailing business.
18. Holiday Decorating – If you have a passion for decorating you could offer a seasonal decoration service to small businesses
19. Meal Delivery – Many people would pay to have their food collected from local restaurants. Make sure that you are able to keep the food insulated somehow.
20. Vacation Filling – Some SME owners feel they can never take vacations because there is no-one to run the business while they are away. You could cover for the owner so that they can take a holiday and be available to answer the telephone and deal with emergencies.

This business caters mainly for young, single professionals moving to your local area in need of somewhere to live. Your clients will fill out a detailed form on your website and you will find them somewhere to live on the basis of their specifications. If you are in a big city or town there will certainly be demand for this type of service. 

Your income will come from referral fees from the rental office once the client signs a lease. There is a potential to make extra income by allowing classified advertising on your site as well. This could even take the form of a searchable database that would allow site visitors to sort through the advertisements. 

Skills needed: If you have a background in real estate this business would be ideal for you as a lot of liaising will need to take place with estate agents and property letters in your local area. Good communication skills are essential and you would benefit from some basic knowledge of Web publishing so that you can easily keep the website updated.  

Business environment and set-up cost:  If your business is successful there is potential for you to widen beyond the range of your local area. The only real international potential comes from people moving to your local area from abroad, so this is not likely to be lucrative. Aside from web design, there are very few costs associated with starting this type of business. The cost will rise based on the complexity of the website – for example, implementing a database will cost more but you could generate extra revenue. The overall cost will range from £500 to £3,000 (600- 4,000 EUR, 1,000-6,000 AUD / USD).  

Marketing Techniques:  

• Participate in the pay-per-click schemes of the popular search engines
• Place online links to your business at websites and directories relating to your geographic area
• Become actively involved in participating on message boards and mailing lists appropriate to your local area. Design an eye-catching signature linking to your website that can be attached to the end of your contribution
• Pay for banner advertisements on websites that someone moving to the area might be looking at - such as a site dedicated to the local nightlife
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: You may wish to form partnerships with or allow advertising from local businesses that can provide services for someone who has just moved into a new apartment, ranging from handymen to furniture stores. Local restaurants and bars may also be interested in attracting the custom of people who are new to the area.  

Notes: Your website must be kept updated constantly and once an apartment is let it should be removed immediately. It is important that rental offices do not just use your website as free advertising. Do not allow the exact address of an apartment or any contact details appear on your site unless some fee has been paid. If some of your business will be conducted through referrals with estate agents then you must have contracts in place to make sure you are reimbursed for your work.  

Online examples & resources:  

• Leasing Luxury – An example of this type of business
• Apartment Guide – A very large US apartment database

For previous SME start-up ideas, look through the archive here 

A common barrier that a lot of people feel prevents them from starting their own small business is how to generate enough capital to get things up and running. A large number of SME owners end up working two or more jobs because they cannot afford to give up their previous employment whilst their new business is in its infancy. Although this is a necessary evil, it can only harm the performance of their start-up if they are unable to give it their full attention.  

These are the most common methods of financing a start-up:  

• Personal Savings – The majority of entrepreneurs finance the bulk of the cost from their own savings. This has the benefit of needing no repayment but also could leave them without any further money to inject into the business
• Banks – Nearly half of all start-ups take some form of loan from a bank. In recent years, banks have been handing out money very easily but this looks set to change in the current economic climate. Borrowing money is probably best avoided at this time, but if you decide to then think carefully about which bank to choose. A bank will probably expect you to risk some of your own funds before they give you anything. A strong business plan will be crucial in securing a loan
• Friends and Relatives – Almost a third of start-ups have some contribution from family and friends. This group of people are - for some entrepreneurs – the only people who will have enough faith in you succeeding to actually invest. Their contribution may come in the form of a loan or possibly for some share of ownership. The main disadvantage to this sort of arrangement is that if your business fails it could also damage your personal relationships
• Individual Investors – There are people who are willing to take a gamble and invest in promising start-ups. About a tenth of new businesses have had contributions from outside investors, usually in exchange for some percentage of ownership. These agreements can sometimes be very flexible depending on the individual and may need only last for a fixed term i.e. until the money is repaid
• Government Loans – Although hard to get in the UK , it is common practice in many countries for Government’s to provide small business loans and grants to start-ups. This helps nurture the development of industries or can help re-vitalise one that is flagging
• Venture Capitalist Firms – A very small amount of new start-ups opt to receive financing from venture capitalists. They are unlikely to invest unless they are guaranteed a big return and will be extremely demanding

If you are still unable to generate capital through any of these methods it can be helpful to attend a business school. At the school you will get to know like-minded people and they may be interested in going into business with you. In addition, most schools run business plan competitions that award funding to the best entries. 

For the previous stages of this checklist look here 

Gift baskets are an excellent present for family or friends and are often sent by people who are unable to attend a special occasion or celebration in person. Offering homemade gift baskets online allows your customers a much greater level of customisation than they would otherwise get from a high street store. Besides the revenue from the basket itself, there is an opportunity to make extra profit from services that add value to your product, such as gift wrapping. You can also earn money by selling advertising space to firms that are targeting the same audience as you but are not your competition (e.g. wedding planners).  

Skills needed: It would be useful if you had some knowledge of online advertising techniques in order to generate high levels of traffic. The most essential asset you will need is an in-depth knowledge of all the products you sell so that you are able to deal with customer queries.  

Business environment and set-up cost:  The only restriction on your business trading globally lies with international customs laws that may prohibit certain items being imported. As long as you thoroughly research this there are no real trade barriers. In order to start this business you will need basic computer equipment and software plus a digital camera to photograph your products. This business is ideal to set up using OnlineOffice in order to develop a professional storefront on the web. You may wish to invest in mailing list management and web traffic analysis software – although these are both expensive they are invaluable in time saving and for using targeted marketing techniques. In addition, some money must be set aside to promote the website and to purchase stock. The overall start-up cost will vary from £5,000 to £10,000 (6,000-12,000 EUR, 10,000-20,000 AUD / USD).

Marketing Techniques:  

• Participate in the pay-per-click schemes of the popular search engines
• Place online links to your business at the websites and directories your target market will visit
• Launch an affiliate program to generate referrals
• Consider using banner advertising in relevant places like wedding websites throughout the year and targeting specific purpose websites like those dedicated to Valentine’s Day in the months leading up to the event
• Giveaways are a good way of generating repeat visits - so hold regular competitions
• Showcase a ‘Gift Basket of the Week’ in detail and offer a small discount on it – this could take the form of a weekly e-mail
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: You could offer a selection of the products sold in your baskets as separate items if there is enough demand for them  

Notes: Your main priority is to generate traffic to the site and this is where the majority of your workload comes from. In addition, you must carefully manage your inventory levels because offering a product for sale which is out of stock would ensure that a customer never returns.  

Online examples & resources:  

• Gift Tree – An example of this type of website
• 100 Gift Basket Ideas – Some ideas on gift baskets to add to your product range
• How to Make a Gift Basket – A guide to manufacturing a basket to sell

A small business quote a day keeps you thinking, inspired and entertained 

“Most large markets evolve from niche markets”

Regis McKenna (b. 1939) US marketing entrepreneur 

The main area of growth in Internet usage in the majority of developed countries is now amongst senior citizens. This group are nicknamed ‘Silver Surfers’ and they have an abundance of leisure time to spend learning, spending and planning their retirement. This business will aim to provide a knowledge base for senior citizens on a range of topics such as travel, entertainment, money and healthy living.  

The revenue stream from this business will come from online advertising with partners who are interested in targeting the lucrative senior market.  

Skills needed: It would be useful if you have previous experience in marketing and are knowledgeable about the interests and issues that concern senior citizens.  

Business environment and set-up cost:  Your website will be of interest to senior citizens from all around the world. The only costs you will incur at start-up are related to the design and development of your website, plus the on-going cost of hosting it. You may benefit from purchasing specialist software to aid with the management of your mailing list and to track where visitors are coming to your site from, as this will give you greater insight about which of your marketing strategies are proving most effective. The overall start-up cost will be between £2,000 and £5,000.  

Marketing Techniques:  

• Participate in the pay-per-click schemes of the popular search engines
• Become mutually linked with websites that are relevant to your target market such as leisure activities and healthcare
• Become actively involved in mailing lists and forums aimed at seniors, remembering to include an attractive signature file that links to your website
• Consider paying for banner adverts on websites your target market may visit (e.g. cheap travel)
• Make sure that you have a ‘What’s New’ page with all your latest articles and offers listed (also make this available as a mailing list). You can use viral marketing to spread awareness about your website by making each item easy for the visitor to e-mail to a friend
• Arrange regular product giveaways with some of your sponsors in exchange for some free advertising. This encourages repeat visits to your site
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: You could sell products from your affiliates aimed directly at seniors on commission through an online shop  

Notes: A website like this will require constant reliable updating with new content in order to get high traffic. You will need to pay for high-quality hosting to deal with serving a large amount of advertisements quickly because a slow website will turn off advertisers and surfers. In addition, your website must not appear too cluttered or confusing because many seniors are relatively new Internet users. You will need to make allowances for your target market to cater for them such as larger font sizes and unsophisticated navigation.  

Online examples & resources:  

• Silver Surfer Week – An annual event to help senior citizens get online
• Silver Links – A link directory for seniors
• About Seniors – An example of a popular Australian seniors website

A small business quote a day keeps you thinking, inspired and entertained  

“Is your company so small that you have to do everything for yourself? Wait until you’re so big that you can’t. That’s worse.”

Michael Bloomberg (b. 1942) US entrepreneur & Mayor of New York City 

Deciding upon the price of your goods or services is definitely one of the most important decisions you will make at the start-up of your small business. It will be essential that you sell at a price which is attractive to your target market or else you will really struggle. You must also make sure that the price you decide upon is adequate enough to cover the combined total of all the costs you incur (e.g. production and labour) or else you will lose money over the long-term.  

Things to remember:  

• The first step in deciding upon a price is calculating your break-even point – this is the price at which you would not lose or make money when selling your product
• Conduct a break-even analysis to work out your fixed costs (figures that will not change greatly such as rent, insurance etc.) and variable costs (figures that will vary based on output, such as having to pay extra wages to staff for the additional hours needed to finish a big order on time)
• Use this method to work out the minimum price you can charge without losing money on a sale
• Sometimes businesses sell products at below the break-even point for a short while in order to damage competitors
• With products that cost a large amount of money to develop and bring to market, the common practice is to charge very highly for them initially to re-coup the development cost whilst demand is high
• Some business owners (such as venture capitalists) may have a desired return on investment and will price their products accordingly to reach that profit level
• Use what your competitors charge for their products or services as a rough guide
• Be prepared to lower prices or offer discounts as part of your marketing efforts
• If you are selling a product with high perceived value such as luxury goods then your target market will be prepared to pay over the odds for it because they are purchasing a status symbol – this is known as the “price the market will bear”
• You can raise the perceived value of your company over an extended period of time by excelling in various aspects of your business, from the packaging of your product through to the attitude of your salespeople

In general, the best price for your product or service will fall somewhere between the break-even point and the price the market will bear  

In recent years there has been a far greater emphasis placed on the importance of living a healthy lifestyle. Many people wish to get fit and lose some weight and you may be able to help them do this whilst also earning some money. This will involve online weight loss coaching and setting up an extensive knowledge base that will serve as a point of reference.  

The knowledge base will be primarily motivational and should include success stories from your clients. It will be free to access and as such should be seen as one of your major promotional tools. Your income will come from 1-on-1 and group consultations which can take place through a number of mediums ranging from video conferencing to actually meeting in person. Extra income will be generated through affiliation with weight-loss products such as diet pills or videos that you endorse.  

Skills needed: You will need to have a background in personal training and nutrition or have experience of working as a fitness instructor. If you have a personal success story regarding your own loss of weight it will help immensely when selling yourself as a coach. Because you will be in direct contact with the general public you will need excellent communication skills and an approachable personality. In addition, you will need basic web publishing skills in order to update your website.  

Business environment and set-up cost:  There are no barriers to online international coaching other than language (although even this can be overcome by translation). This is a very low cost business to set up if you own computer equipment already as you will only need to pay to have your website developed and hosted. It would also be helpful if you owned a digital camera so that you could take pictures of some of your local clients throughout their weight loss regime. The overall cost will vary from £3,000 to £9,000.  

Marketing Techniques:  

• Participate in the pay-per-click schemes of the popular search engines
• Become mutually linked with as many websites as possible
• Offer a discount to clients who are able to convince their friends to become customers
• Launch a mailing list with a lot of regular dieting content
• Submit articles you have written about weight loss to online health magazines and forums and include a link to your knowledge base and services
• Use OnlineOffice to set up web-site, blog and online shop to promote your business online

Complimentary business ideas: If you are creative, design your own motivational T-shirts to sell through your online shop  

Notes: The main players in this market (such as Weight Watchers) require you to attend sessions at a physical location so you should focus on the niche of people who do not wish to or cannot do this (for example, through shame or busy schedules). You will need to have a legal agreement in place with all your clients because there are complications relating to weight loss that could potentially result in litigation against you.  

Online examples & resources:  

• David Lloyd – An example of the consultation provided by a top gym
• Web MD Health & Diet Center – A great source for diet advice
• Daily Strength – A diet support group community

I had an interesting conversation about my view that management control over employees is a myth. I have believed for some time now that an office is often a total waste of money and completely unnecessary. Most of the time I’m told it’s OK when you work by yourself, but not if you have employees, as they need to be supervised and somehow “controlled”.

I have now been working for almost ten years from home, and most of my staff works from home too. Apart from being an eco-friendly way to work, it saves people time and frustration to travel in and around London to come to an office, where we all sit in cubicles or offices. In the days of broadband internet, Skype and OnlineOffice, there is no need for an office, even to have meetings.

Offices, like cars are are often nothing else but status symbols - what other reason can there be for a small business to have an office? If that is true then how is the office helping with your business, it’s a big expense. Seriously, if you do not have clients coming thru your office doors several times every day, why have the office. Even if you have, do really all your people need to be in the office every day? I guess not!

We are in an economic downturn, what is more important - your ego or your business - ask yourself that every time you walk into your office. I’m sure there a good reasons for some micro businesses to have offices, even so I currently can’t think of any, but I’m convinced in most cases a healthy bootstrapping and outsourcing mentality would be more beneficial for your business.

Unless the first business goal is to feed your egomania, you need to have a good hard look at your cost structure to survive in these times. — ST.