When people think of startups they think of companies that
raise a lot of money to get started. While many startups raise
money during pre-seed and seed rounds of funding, you can
start a business today with less than $10k. We’re going to
take you through the process of starting your first company
with less than $10k.
We’ll cover how to start the company and register your LLC,
provide some ideas, and even show you how to maximize a
How to Start a Business
When you’re starting a business with less than $10k, it’s
important to know what you’re doing. Following the right steps
of starting a business will help you avoid costly mistakes.
We’ll take you through all of the steps necessary to start a
business with less than $10k.
According to the United States Small Business Association
(SBA), there are ten steps you need to follow to start your
business. We list these steps below.
- Perform market research.
- Create your business plan and put it in writing.
- Find funding for your business.
- Pick a location for your small business.
Learn about and choose a profitable business structure.
- Select a name for your business.
- Register your startup through the proper channels.
Obtain a state and federal tax identification number.
If you need licences or permits, make sure you apply for
- Start a bank account for your business.
Following these ten steps will help you start a business. If
you’re having trouble with any of the steps, use a service
like ZenBusiness or LegalZoom. These services will help you
get your paperwork in order, register the startup, and even
provide registered agents.
Examples of Businesses to Start with Less Than 10k
First and foremost, it’s important to understand the types of
companies that you can start for less than $10k. While several
businesses cost $50 to $100 thousand to start, this doesn’t
always have to be the case. Below we list five examples of
businesses to start with less than $10k.
One of the most common businesses to start with less than $10k
is an online store. The online retail space grew by more than
$4 trillion in 2019 and continues to see rapid growth. In
fact, the industry grew by more than 20% during the Covid-19
pandemic. With fewer people shopping at brick-and-mortar
stores, online businesses have never been more profitable.
Online stores also give you freedom and cost less than $1,000
to start. You’ll have to spend a little money on website
design and hosting but from there it’s up to you. Feel free to
explore your options and sell anything from t-shirts to
Affiliate marketing is another great example of a business to
start with less than $10k. Similar to an online store, you
only have to pay for website design and website hosting.
However, affiliate marketing is different because you don’t
need to sell anything directly. Instead, the goal of your
website is to drive traffic to places like Amazon for a
commission. The commission rate for most affiliate programs is
between two and five percent.
Getting started with affiliate marketing is challenging but
possible in 2022. Also, make sure you leverage social media
and email lists to drive more traffic.
Flipping is one of the more unique businesses to start with
less than $10k. A flipping business focuses on purchasing
items at a low cost and selling them at a high cost.
Typically, flippers sell items on online marketplaces like
eBay, Etsy, and Facebook Marketplace.
To start a Flipping company, all you need is some capital, a
niche, and items to buy. Finding items is challenging but one
of the most rewarding ways to stock your inventory is to visit
local yard sales. Still, feel free to take any route you want
with a flipping business and sell as little or as much as you
Social Media Management
Social media management is one of the fastest-growing
industries in the world – not just in the United States. The
reason for this growth is the growth of social media platforms
and online brands.
For example, Facebook has more than 4 billion active users.
Furthermore, LinkedIn reported more than 300 active users per
month in 2022. These users include people, businesses, and
influencer brands. Companies don’t always have the resources
to manage their profiles and most entrepreneurs don’t know how
to drive engagement. This is where you come in.
To manage a social media company you only need a few
inexpensive tools. You’ll have to invest in a good computer
and smartphone, which cost around $2,500 combined. From there,
we recommend investing in graphic design applications like
Canva to save you time. Resources like Canva cost less than
Keep in mind that scaling is subjective and depends on your
goals. While these business ideas cost less than $10k to
start, you can expand once they become profitable. For
example, you can use crowdfunding during the seed round of
funding to hire more staff and expand your operations.
How to Find Funding for Small Businesses
Starting a business for less than 10k is possible for almost
anyone. This is because most people who are starting a
business can raise $10,000 in capital. Ultimately, how fast
you raise that capital depends on where you look.
We’ll take you through the
best funding methods
to raise $10k for your new business. We list these methods
- Angel investors
- Small business loans
Angel investors are another great way to get funding for new
small businesses. An
is someone who invests in startups with their money. Unlike
venture capitalists, angel investors will invest in small
startups during the seed rounds of funding. In fact, some
angel investors will invest in the pre-seed rounds of funding.
That said, connecting with investors is never easy.
Fortunately, AngelMatch solves this problem by connecting you
with thousands of reputable angel investors. Even an
investment of $5,000 is enough to take your small business to
the next level.
Crowdfunding is one of the most common methods that startups
use to raise funding. However, many small businesses avoid
crowdfunding simply because they don’t know how to use it
properly. While many types of crowdfunding exist, the best two
options for small businesses are donation-based crowdfunding
and reward-based crowdfunding.
Donation-based crowdfunding is excellent for small businesses
because none of the money needs to be paid back. Plus,
donations vary in size and some might be bigger than others.
It’s best to raise donations from friends and family but
platforms like GoFundMe make it easy to find people willing to
Reward-based crowdfunding is the best way for small businesses
to raise capital during the pre-seed round of funding. This is
because you offer rewards for investors that aren’t shares in
the company. So, if someone wants to support your new business
they can invest and receive memorabilia like a t-shirt.
Small Business Loans
Another option you have to start a business with less than
$10k is to apply for small business loans. To apply, you’ll
need good credit and a valid business plan. Securing a $10k
loan is easier than securing one for $100k, so you shouldn’t
have too much trouble.
What makes a small business loan advantageous is that you
don’t have to worry about giving someone shares or the
company. Instead, you simply pay the loan back.
Start Your Business for Less Than 10k Today
Depending on who you are, $10,000 is a little bit of money or
a lot of money. While starting a business with $10k is more
affordable than starting one for $100k, funding is still
important. It’s for this reason that we always suggest
pre-seed and seed-round funding.
Even if it’s a small company, the right angel investor will
help you expand and reach new heights you never thought were
possible. The good news is that AngelMatch offers a database
of some of the best angel investors and venture capitalists
around. Explore our database today to see if AngelMatch is the
best way for you to connect with investors.