Have you struggled on how to get money to start an online business? In my early days of internet marketing, I came across a lot of great business ideas but no capital to start them. Some of these ideas were Shopify dropshipping, Amazon FBA, affiliate marketing, starting a YouTube channel, and so on.
I finally got fed up with not being able to take action. So, I looked into some ways to quickly earn money to start a business. Let’s go deeper to explore the solution.
Sell Your Extra Stuff
This is one of the fastest ways on how to get money to start an online business. Studies have shown that the average American household has over $8000 worth of “junk” they never use.
This is a lot of cash just lying around for the taking.
Think of all those past holidays you saw an awesome sale of something you just “needed to have”. What happened? You ended up using said item for a week and then it started collecting dust in your basement, *cough* exercise equipment.
What I suggest doing is go through one room of the house every day. Sort out the stuff that you want to sell, throw out, donate, and keep. Unless it’s a necessity like clothes and such, if it’s been sitting for at least 1 month and you haven’t touched it, don’t keep it. Either put it in the sell, donate, or trash pile. Ask your friends before you donate.
Once you’ve finished organizing everything, it’s time to start listing your items online. There are many great websites to list your items on. Kijiji, Craigslist, eBay are all great places to get the best dollar for your stuff.
Whatever you do, DO NOT sell your stuff to a local pawn shop. These places are for people who are extremely desperate for cash because they’re horrible at managing their money. You’re lucky if you get 25% of what they’re going to sell it for.
Start by listing your most expensive items first. That way, when some sales start to come in, it motivates you to keep going. For auction sites like eBay, I’d recommend listing your items as buy it now. There’s nothing worse than listing a $100 item starting a $0.99 and only getting $30 for it.
When listing on Kijiji or similar here are some important tips to have a smooth experience.
List your item for 80% of the average selling price of that product on the platform. Ex. a used iPhone SE is listed for $100 on average, so you list it for $80.
If your item doesn’t sell at the end of the week, at first play around with the description. If it’s still not selling, each week, lower the price by 5%. Remember, never go lower than the lowest price you’re willing to accept for the item.
Meet in a public place. Few they are, but there have been some horror stories related to people selling stuff from their homes. Meet in front of a mall, or better yet in front of a police station. Many cities have an “internet exchange” location that is usually in front of a police station.
Flip Items For A Profit
This is likely to be the most lucrative method of how to get money to start an online business. Retail arbitrage and similar hustles have become really popular recently. Take a trip to your local dollar store/Walmart. Keep an eye out for products you feel are underpriced. When you’re there scan the barcodes on eBay to see what the items are going for. This is a surefire way to grab some quick and easy cash. Remember to subtract 13% in fees.
You can also do this purely on eBay itself. For example, Pokemon cards exploded in 2020. There are plenty of opportunities to purchase PSA graded cards for well under market price and flip them for a sweet profit. I will be making an in-depth post on this in the near future.
Stop Eating Fast Food
It’s common for people to get fast food on their lunch break. This can really add up and if saved instead can help create some startup cash. We’ll use $7 as the average combo price that includes a main course, drink, and a snack. You can make a similar meal at home for likely around $2.
Spend your Sundays batch cooking/preparing your meals for the week. If you’re not able to manage your time wisely like this, how do you expect to run a business? This $5 per day saved totals in at $150 per month.
There are a lot of businesses that cost less than $500 let alone free to start because of the internet. This method alone would only take you 3 and ⅓ months to save the amount you need for a beefy startup. You’ll get there much faster if you sell some old stuff too.
Negotiate Lowering Your Bills
The average household can save around $200 on their monthly bills. Look up some guides on YouTube on how to best negotiate down your bills. In short, you call and state you’re considering canceling one of your services. Ask to speak with retentions. There you can explain to them that you’re considering switching to xyz company for this better deal.
You can find loads of better deals online to compare to. They’ll then check what current loyalty plans they have available. Always consider going lower with what you already have too. I don’t know how many people I’ve come across that don’t even use half their data.
Also, if you still have a landline and cable…why? Your cell is plenty fine. For cable, switch it out with an Android box. You pay once and never have to pay again.
Hold Onto Your Receipts
It’s always best to know where your money is going. Yes, holding onto your receipts can be a drag. But, to make a change, you likely only have to keep them for 1-3 months. Seeing what you spend your money on each month is a real eye-opener.
There are likely some pretty excessive things on there that you can easily substitute with cheaper alternatives. I know some banks also feature online how much you spent at what store. This can be a good general guide, but it doesn’t show you exactly what you bought which is the most important stat.
Also, consider paying with cash. Paying with plastic is too easy, you insert or tap, and poof, your money is gone. When paying with cash you actually feel the money leave you.
Set up Automatic Savings
The simplest way to get money to start a business is an automatic savings plan. With online banking, you set how much you want to transfer from one account to the other. I’d recommend setting the timeline to reflect your payday structure.
Also, the money you’re transferring out of your chequing mustn’t be just going into savings within the same online banking account. Seeing your savings on the same screen will be too tempting to transfer it back and spend it.
Because of this, I’d strongly recommend opening up a 2nd no-fee online bank account. My personal favorite is EQ Bank which offers a 2.35% interest rate. This keeps up to inflation which is great because most banks only pay out around 0.10%.
All in all that list should secure you a very nice chunk of change. While I push free online business ideas, having extra cash can really save a lot of time and stress. Your extra cash can be put towards website hosting, Facebook ads, affordable courses, and so on.
I hope learned how to get money to start an online business. If you enjoyed the post please share it with your friends and family. I’m sure they’ll find as much value in it as you did.