How To Get Money To Start An Online Business?
Have you always wanted to start working online. But, always wondered 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, Kindle Publishing, affiliate marketing, starting a YouTube channel and so on. I finally got fed up with not being able to live my dreams. So, I looked into some ways on how to get money to start an online business. Let’s go deeper to explore the solution.
Sell Your Extra Stuff
This is one fast way to earn money to start a business. The average family in a tier 1 country 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. You then used it for a whole 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 easy 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. This is likely the easiest way for you to discover how to get money to start an online business.
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. Keep in mind that eBay takes a 10% final price fee too.
When listing on Kijiji or similar, here are some important tips to have a smooth transaction.
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 10% each week. 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 home. 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.
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 to start because of the internet. The method alone would only take you 3 and ⅓ months to save the amount you need for your 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. New plugins are added monthly to this subreddit.
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 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. Also, you’ll eventually get sick of holding onto receipts which is a good deterrent to making frivolous purchases.
Set up Automatic Savings
The simplest way to earn 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. For yo
ur second bank account, I’d recommend a free option like tangerine.ca. (Feel free to use my orange key to get a bonus of $50 when you deposit $250 or more in the first 60 days – 42815108S142815108S1) Remember, this is just for temporary holdings so you don’t need all the bells and whistles. I’ve been with Tangerine for several years and they exceed my expectations.
Ask Yourself Why?
Honestly, when it comes down to it, ask yourself why you want to start a business. If it’s to have more money, fix your spending first. If you’re not good at managing money working a 9 to 5, then you’re not going to be able to manage a business. Then, maybe you won’t even have to start a business. Maybe, all you want is an extra $200-300 per month which you could find by cutting back bills and eating out. Hopefully, you’ll want to start a business because it’s something that you think you’d enjoy doing. Envision the end goal of what you dream to accomplish someday. Think of how great it will be to finally be financially independent. Use this as motivation to get your spending habits under control.
I feel like I’ve provided quite a great “how to get money to start an online business” post. If you have any further questions, I will try my best to assist you. Feel free to reach out to us through our contact form.
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