Millions of people launch their startups in the USA every year. They dream of building solid ventures that will bring profit but in reality, it’s easier said than done. Many businesses and startups don’t survive within the first years of existence. According to the Census Bureau, more than 4.3 million applications for startups were submitted in 2020. But not all of them were able to remain financially afloat due to financial problems. This is the major reason why so many startups fail. If you are looking for the best ways to get success and launch a new business, keep on reading to learn about borrowing options and top startup ideas for under $1000.
Borrowing Options for Startup Funding
If you are a freelancer, a sole proprietor, or a young entrepreneur willing to launch a startup, you may need additional financing. Not many people can utilize cash from their saving accounts for this purpose. So, they look for alternative borrowing options tailored to their needs. Here are the top ways to fund your startup and get the necessary funding. Choose the most affordable solution.
1. Get a Personal Loan
If you don’t want to tap your emergency fund and when you need money today, you may benefit from taking out a personal loan. You won’t be able to obtain a business loan straight away as you need an established business credit for this. Young entrepreneurs and freelancers who don’t have solid business credit may use their personal credit rating to qualify for decent interest rates. More than that, it is an unsecured lending solution so you don’t need collateral to secure debt if you turn to online creditors or alternative places.
2. Borrow From Your Retirement Fund
If you have a retirement account or an employer-sponsored retirement account, you may borrow some funds from it. Such funds as 401(k) and 403(k) can help you obtain financing for your startup. It is possible to borrow up to 50% of your account balance or up to $50,000. Such loans come with lower interest rates due to the fact that they are secured against the client’s retirement fund. Thus, it is also an affordable option for many business owners.
3. Ask Family and Friends
If you have all the documents and a business plan in order but still have no funds to launch a new business, you may ask your family member and friends for support. Several people may lend you some cash to start a new venture with low or no interest rates. If you can’t qualify for a personal loan or don’t want to use your retirement savings, it may also be a decent solution. However, you need to remember that this money shouldn’t be taken for granted as you may risk losing good relationships with your relatives.
Low Cost Business Ideas for Under $1000
When you are strapped for funds, you may have limited options. Yet, there are plenty of startup ideas for under $1000. Here are the best low cost business ideas you may utilize today to set up a new company and earn money.
1. Niche Virtual Assistance (VA) Business
You may launch one of the virtual assistance ventures. It’s important to have decent virtual financial assistants in many spheres and industries. The financial sphere is just one of the options. You may need to spend $50 for a website if you do it yourself or about $500 to get it done for you. Inline advertisements will cost you $250 and a business license is $150.
2. Employment Program Developer for Seniors
Not every retired person actually wants to become retired and stop working completely. You can help them by crafting local employment programs for such people. You will need to pay a management fee, a business license of $150, the organizational system for seniors’ files of about $70, and business cards and printing of $50.
3. Remote Employee Satisfaction Service
This is another useful idea for your startup if you want to help people work from home. You will set up the software and other resources for employers. Startup costs include remote workforce training for $145, SSL remote access VPNs for $55, business cards and printing for $50, and a business license for $150.
4. Home Cleaning Company
This is another widespread low-cost startup idea that is popular in many countries. You may face competition in this sphere but it’s worth trying. You may even need to agree with cleaning homes yourself in the beginning until your business becomes popular and your marketing starts working. Startup costs include a business license for $150, cleaning supplies for $300, and insurance for about $50 a month.
5. Drone Aerial Photography/ Video Business
People who can’t afford helicopter shots may benefit from using the power of modern drones. This is a great business idea for many companies. You may partner with other photographers and videographers to gain expertise and drive some leads. Startup costs include buying a high quality drone for about $600, a business license for $150, creating a website for $150, and printing business cards for $50.
6. Website Setup and Email Hosting Services
Almost every company requires a website and email service these days. They have to be hosted somewhere and you can launch a startup offering your hosting services. The startup costs include a business license for $150, a website for $150, servers for $500, and business cards for $50.
7. VR Video Development Company
The world is already taken by virtual reality and this topic continues to be popular in many countries. Your videos will even be ranked higher in YouTube and Google which will benefit the companies and businesses that do online marketing. You can start with free resources and materials online or invest $200 for a professional course on a VR development platform. Your startup costs will include a business license for $150, a course for $200 (of free materials), a 360-degree camera for $350, a website for about $150, and printing your business cards for $50.
8. Affiliate Marketing Website Business
The startup costs include a business license for $150 and a website for $150.
9. Social Media Manager
People keep on using social media for reaching new clients. Consumers spend many hours on social media each day. You may become an independent social media manager and select your own niche. The startup costs include a business license for $150, a computer/ laptop for $500, and special software for about $150 a month.
10. Mobile Auto Repair Service
Are you good at fixing cars? Or do you have a team of people who are aware of these services and can help you? You may establish a mobile car repair company for under $1000. The startup costs include a business license for $150, necessary tools and equipment for about $600, and a website for $150.
