1. Build an events-based business. Running any type of event — classes, clinics, conferences, seminars, races and so on — is a great way to build a profitable business for cheap.
This is because everyone is used to paying for tickets to an event beforehand. This means you get paid upfront and you can use the money you make from ticket sales to pay for the event itself. If you don’t make enough, then refund everyone’s money and try again.
Here’s a real example. Tough Mudder is a 10- to 12-mile race where contestants climb over obstacles, jump over fire pits and splash through the mud and muck. It’s an alternative to triathlons and marathons.
How optimistic are small-business owners?
Two years later, Tough Mudder was a $70 million business.
As Tough Mudder’s organizers did, you could use a platform like Facebook to get your message out to the world . . . or you could pair up with local organizations, businesses or clubs to spread the word.
2. Offer freelancing, coaching or consulting services.Starting a freelancing, coaching or consulting service is another way to build a successful business on the cheap. This strategy appeals to writers, designers, life coaches, business experts and anyone else who can provide a useful service.
A frequent complaint of freelancers and consultants is that it’s hard to find customers. But if you structure your business the right way, you can often avoid this issue.
For example, when Tom Reed decided to start his business consulting business, Velocity Consulting, he didn’t know how to attract customers. So instead of trying to do it on his own, he partnered with a larger, more established company as a subcontractor.
This savvy move saved him the hassle of finding new clients and almost immediately turned his business into a six-figure consulting practice.
This approach of creating mutually beneficial partnerships where you bring a skill and the other side brings paying customers is what I call The Remora Method. This method seems to work for anyone who wants to offer a product or service and it makes it much easier to build a profitable business from scratch.
http://money.msn.com/personal-finance/start-a-business-for-under-1000-dollars-usnews.aspx