Conventional wisdom says that you have to have money to make money. While having a large sum available certainly doesn’t hurt, it is possible to start a home-based business on a budget. Here a few tips to get started.
Find the Right Idea
Operating your new business out of your home already gives you a leg up because you do not need to pay for a separate workspace. However, you will still need to make some purchases to get your business going. It will be much easier to stay within your budget if you pick a business idea that does not come with hefty startup costs.
Consider Buying a Fixer-Upper
Because you are operating out of your home, the house you buy will be your largest upfront expense. Finding ways to save money on your home purchase will go a long way toward making your business venture more affordable.
If you have the skills to do some repair work yourself, you can save a substantial amount of money by purchasing a home “as-is.” However, you need to make sure the home you are buying doesn’t have so many issues that it ends up costing you more money in the long run. Have the property you are considering buying professionally inspected.
Work with an attorney to do some research for potential warning signs in the land records. Estimate the cost of any repairs and modifications you will need to make to the home. Compare the total cost of purchasing the “as-is” home to buying a comparable home that is ready to move in.
Save Money on Your Home Purchase
If going the “as-is” route isn’t right for you, there are still other ways you can save money on your home purchase. If you are considering new construction, buying one of the first or last homes built in a new housing development can save you some money because builders are often willing to negotiate a discounted price.
Work with 30A Local Properties to find motivated sellers who may be willing to come down on their price to make a sale quickly. Consider purchasing a foreclosed property from a bank, but make sure you know what you are getting into. Shop for a home during the winter when sales are usually slower and prices may be lower. Negotiate a deal that has the seller paying part of the closing costs. Make sure you have your downpayment saved up and your mortgage pre-approval in place so you can act quickly when you find a good deal.
Cut Back on Startup Costs
One of the first things you will need to do when starting your business is to choose a business structure. Forming an LLC protects your personal assets, provides you with flexibility and has some tax advantages. However, hiring an attorney to help you sort out the laws in your state and get your LLC set up can be expensive. Consider using a formation service to save yourself some cash.
Next to your home, your largest startup expense will probably be the equipment you need to set up your home office. At a minimum, you need a business-class computer, laptop, or tablet. Look for discounts and purchase enough machines for your needs, but do not get carried away. You will also need some office furniture, such as a desk and chair. Shop around for a good deal and consider buying used or refurbished items.
Starting a home-based business on a budget is a challenge, but with careful planning, it is a hurdle you can overcome. These money-saving tips can help you get started without emptying your bank account.