Published On: Tue, Feb 2nd, 2016

Is It Possible to Start a Business on a Low Income?

A lot of people, regardless of their income level, want to start their own business to follow their dreams so that they can finally be their own boss for a change. This is especially true of low income individuals who simply do not want to have to deal with low or stagnant wages from employers who do not seem to care about their wellbeing.

But can you really start a new business even if you have a low income and just a little bit of money saved? The simple answer to this question is, yes, you can. Continue reading to learn more if you have always dreamed of running your own company but did not think that you had the money to do so.

Consider Low Cost Business Ideas First

When considering the type of business that you can start, if you have a low income, you should stick with low cost business ideas first. These will be easier to launch than business ideas that require higher startup costs, and there are actually many different and exciting low cost business areas that you can enter into.

Some good places to start include investing in low-cost franchises, or starting a business online on your own, such as a freelancing business if you have a talent for art or technology. You can even start an e-commerce store or create online courses that you can then sell on some of the most popular online educational websites.

Get creative and use the resources that you currently have to put something together. You may be surprised by all that you can do with a small amount of money and some helpful technological tools.

Get a Free Cell Phone

Many new business owners opt to get a new cell phone, plan, and phone number that is completely dedicated to their new venture. In this way, they can put this new phone number onto their business cards and other promotional materials so that customers can contact them or people can call and ask for more information. This is a great alternative to a landline, as it allows a businessperson to always stay connected to vendors, clients, and customers even while on the go.

The problem, however, is that cell phones, particularly smartphones that business owners would need to conduct business efficiently and effectively, are quite expensive. Also, the plans that go along with these cell phones are pricey, especially when you factor in the cost of data. As a fledgling entrepreneur, it may be extremely difficult to purchase a cell phone and the necessary service plan at the beginning stages of a startup.

However, the good news is that there are many government programs available to help those who have low incomes. A great example is the one that provides free government phones to people who can’t afford to purchase a cell phone and a solid service plan.

Therefore, if you are planning on starting your own business, you can try to apply for this program. If you qualify, you can then use this cell phone to get things done, and once you start making enough money, you can get off the government program and purchase a new, modern smartphone and data plan.

Get a Small Business Loan

Even if you have a low income, you may still qualify for some great small business loans that can give you the funding that you need to get your new business idea off the ground.

Non-profit lenders, in particular, are helping to remove the usual barriers that people would often find when applying for loans with a low income. Community development lending is a great way to get your business going, so seek out loans from these types of providers if you have had trouble getting other traditional business loans.

As you can see, it certainly is possible to start your own business even if you are on a low income. Just be wise with your money, use your resources in an intelligent way, get help wherever you can find it, and then put all of your energy into your new business venture so that you can ensure its success and start making more money doing what you enjoy.