Starting a business doesn't always have to be expensive. In fact, it's possible to start a business with $1,000 and grow that grand into millions. This article will explore two major ways to go about this, based on the experiences of Ryan Daniel Moran, a successful entrepreneur who has started two businesses with $1,000 or less.
Think starting a business is only viable for rich, well-established entrepreneurs? It might blow your mind to learn that many people have launched successful companies with couch cushion change. Let's explore how you can build a profitable brand and create change in the world for only $1,000.
Ryan Daniel Moran did it TWICE—and so can YOU!
Plus, find out how we can coach you for FREE to start and scale a 7-figure business!
Ryan's Experience
When Ryan was 18, he had some graduation cash burning a hole in his pocket. But unlike his friends who blew their money on guitar amps and college textbooks, Ryan wanted to do something more significant with his. He decided to see if he could invest the cash and make it grow.
How much did he get in graduation gifts? Around $1000. And that was a big deal for Ryan. He recalls, "A thousand dollars was the most amount of cash I’d had up to that point."
Though, at the time, Ryan aspired to become a pastor, he also knew he wanted to grow a meaningful amount of money. So he spent his graduation money building a single website to sell products. And this was well before social media or even WordPress. Late nights turned into hand-coding marathons on a dial-up connection.
And it worked. But that wasn't Ryan's only low-entry business endeavor.
In 2013, Ryan started another successful business. But this time, he invested even less upfront—$600, to be precise. He used his money to order inventory: 1,000 units at $6 apiece. Ryan set up an Amazon storefront and created a basic, no-frills website. To this day, that company's success comprises more than half of Ryan's wealth.
What was his ROI? Ryan grew the business to $1M monthly revenues and sold at a $16M valuation only four years later.
How much luck do you need to start a business with $1,000 and end up with millions? It’s not luck. It's completely doable with hard work, determination, and a proven game plan. Here are two methods to start a business on a limited budget:
Only Have $1000? Use it to Generate Leads and Sales
Cash flow is the lifeline for any company. It's necessary to stay in business. With this method, you'll use your money to do one thing: make a sale. How do you generate leads who become customers? Spend your initial capital to get in front of your target audience.
But first, you’re probably asking, “What product should I sell?” There are two options to consider:
- A product of your own
- Somebody else's product
In Ryan's first business, he went with the latter and started an affiliate marketing website. He explains, "I was ranking for keywords that I knew people were searching for when they wanted to buy other people's products." Entrepreneurs still use this strategy today, but it takes a lot of time and energy.
Another option is to create YouTube videos. Start a channel, discuss your products, and document the customer's journey. It's totally free exposure. Then build a website with your $1000 to collect and follow up with your YouTube leads.
Ryan advises putting $100 into an account to collect email addresses. A few popular options include:
Generating leads and sales works for affiliate marketers and retailers. It's also effective if you sell insurance, real estate, or any product tied to a corporation.
Already Have an Audience? Use that $1000 to Perfect Your Product
The second method for starting a business on a tight budget focuses on perfecting your product. Spend your $1000 on building a solid prototype to show potential customers and investors. And a so-so prototype won't suffice. It needs to be top-notch. After all, customers want to buy amazing products, and investors want to work with innovative, high-performing companies.
Anyone can start a company. But Ryan reiterates, "You do need to have a great product. And that's where all of your focus and all of your capital should go at the very beginning."
What’s Your Job as an Entrepreneur?
The role of an entrepreneur is to build a distinct business vision. The vision should clearly communicate your business's purpose and the change you want to make in the world. Further, a well-focused vision drives investors, vendors, and even customers directly to you.
It's your job to bring together other resources to create a successful business. You don't have to do everything alone. That's why the most accomplished entrepreneurs don't cover all the bases themselves. Instead, they hire employees, use agencies, create partnerships, and rely on a board of advisors to make the next play. "Business is a team sport," Ryan stresses.
But what if you need more money? As an owner, you don't need to fund the business yourself. You can use bank loans and investors—not your own cash—to kick off your business. And if you still need to raise additional capital to buy inventory, you can crowdfund or presell. As long as you build the vision, all these pieces will fall into place.
An Abundance of Resources
Worried you don't have enough resources to start a business with $1000? It's time to change that perspective. "There's no lack of capital in this world. There's no lack of money in this world. There is no lack of ideas in this world. There's no lack of people in this world." Ryan states.
Further, the "right" amount of money, "right" idea, and "right" relationships simply don't exist. And if you keep waiting for everything to fall into your lap, you'll never get started. Instead, it's up to you to bring together all these resources to create a great business. You must have a willingness to be of service to the customer and all the stakeholders.
And guess what? When you do your job well, you'll attract everything you need. There truly is an abundance of resources available to you as you start a business—even on a limited budget.
Takeaway
So, is it possible to start a business with $1000 that grows into the millions? Absolutely, if you take the right approach and cultivate the right mindset. Ryan Danial Moran did it—TWICE! And some of our greatest success stories got started the same way.
Whether you focus on generating leads and sales or choose to perfect your product, the key is to be clear about your business vision and effectively bring together the necessary resources to make that vision a reality.
Inspired to take the first step in your entrepreneurial journey? Capitalism.com offers all the resources you need. Start by watching Ryan’s full video here.
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