If you want to secure another income stream during retirement, then starting a business might be a good option for you. Although it sounds daunting and expensive, it can be more cost-effective and easier than you think. Here are some ideas for you to start a business for under $5000.
Small Business Ideas for Under $5000
In addition to your Social Security benefits or planned pension revenue, owning a small business can provide a top-up income during retirement.
Many people thinking of braving into businesses believe they need large amounts of capital, but you shouldn’t be put off owning a business because you don’t have hundreds of thousands of dollars. Below are some ideas to start a business for under $5000.
1 Making Crafts
Depending on what you’re good at or what your interests are, a profit can easily be made from making crafts, because the raw materials can be cheap to purchase, especially if bought in bulk. If you have time on your hands and there are few expenses, really the only outlay will be your time.
To start a business in sewing, painting, jewelry design, essential oil making, candle making, and soap making, for example, you’ll need to think about your workspace. Your product line will influence how much room you will need, which could be in your home or an off-site studio.
If you can start making the crafts in your home, then your initial costs will mainly be supplies. Research to find the cheapest supply vendors and test their products. You can then sell your products locally in craft shops, markets, or online.
2 Vending Machines
Probably not at the forefront of everyone’s small business concept, vending machine ownership can provide an excellent regular income without having to do too much work.
An outlay of around $1,000 on one used machine could bring in over $2,500 per year. Buying a few machines to start your business will still keep you under your $5,000 budget. Profits largely depend on location, and your initial costs will depend on what stock you buy.
There will be costs for possible maintenance, travel, removal, permits, and utilities, but the best locations should provide a monthly profit. You could also hire someone to do the maintenance for you, so there is even less work.
3 Wedding or Party Rentals
People spend a lot of money on weddings and kids’ parties, so once you’ve purchased your stock, you can make a decent return on your investment, by hosting parties or hiring out products.
If you start a rental business, you’ll have to have successful advertising to bring in the customers, and social networking will be key.
Your stock will need a clean and dry storage space, but you don’t have to start with masses of items. Even one product being rented out locally or online will give you an income, for example, material chair covers.
If you want to expand, you could consider being mobile and setting up events at venues. If you have a big enough property, you could use your own home as a venue. Wedding venues charge tens of thousands of dollars so you could make your initial expenditure back very quickly.
4 Consideration When Starting a Business for Under $5000
If you don’t have $5,000 or don’t want to cut into your savings, there are other options. Raising funds in various ways can be successful. The obvious choice is to approach financial institutions to borrow money, but you’ll need a business plan with defined vision and growth. Crowdfunding online is not only a source for raising money but a platform to give you marketing and media exposure.
You will need to factor in the maintenance of proper financial records for tax purposes and what licenses or permits, insurances, utilities, etc. you might need.
Are you a small business owner? If so, what advice can you give our readers? Please comment below.