E-Commerce on a Shoestring: Launching an Online Business With Minimal Investment

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Many Americans dream of launching their own businesses, but some stop before they even get started because of expected financial hurdles.

Some may be deterred by the fact that small business expenses can add up quickly, but the good news is that you can launch a business with a shoestring budget.

Of course, there will be some out-of-pocket costs, but with the right idea and planning, you can start an e-commerce business without racking up debt on your business credit card . Here's how.

Pick a stand-out product

Estimated cost: Free

Most experts recommend taking some time to figure out a niche product, whether a digital or physical good, to sell online. In other words, don't just do the same thing everyone else does and expect to generate lots of sales.

For example, while dropshipping is a popular e-commerce business right now, starting this kind of business without a novel product will likely cause your business to struggle to stand out.

Building a brand around your product or service is one way to separate your business from the crowd. For example, if you're selling an online career course, you could focus your brand on your personal story of making a significant career change.

Come up with a plan

Estimated cost: $15 per month

Any small business owner will likely tell you that having an idea is just the beginning. You also need a plan on how to make your business successful.

Of course, you can't plan for every hurdle you'll encounter, and you won't be able to map out every win, but research shows you'll be far more successful if you have a game plan.

The National Federation of Independent Businesses says creating a business plan is one the most important things you can do to build a successful business. The business plan should include an executive summary, market research, competitive analysis, and financial projections.

Software like LivePlan and PlanGuru can help you create a business plan and even map out financial forecasting. The starting cost for some of these products is $15 per month.

Choose your platform

Estimated cost: $29 per month

There are endless websites where you can build your e-commerce, with varying customer bases built into them. For instance, if you're making and selling jewelry, you might choose Etsy's platform, where shoppers are looking for hand-crafted gifts.

Or, if you want to build your own following and keep most of your profits, you might build a website through a dedicated e-commerce platform like Shopify. Shopify is one of the best-known options, and its cost starts at $29 per month.

You could also build your own website. However, hiring a web designer and developer to create one will cost more money in addition to your web hosting costs.

Market your product

Estimated cost: $15 per month

Marketing your product or services is another critical step in launching a successful business. It's not enough to develop a great idea, build an e-commerce website, and expect everyone to find you.

There's no one catch-all marketing strategy for every business, but your business plan will help here. Ask yourself how similar brands communicate with potential customers and how you can get your product or service in front of potential buyers.

Once you've answered these questions, choose the right social media management software to help you create and schedule posts. For example, for just $5 per month, you can use Buffer to schedule your social media posts and track engagement. The platform is easy to use and even has a free plan with limited features.

There's no guarantee that launching an e-commerce business will be easy, but it is possible on a limited budget. Just make sure you have a business plan in place to keep you on course and do your homework ahead of time to find the right marketing strategy.

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