Even if you’re doing the smart thing and forming an LLC (or similar), you’re still going to have to use your personal credit to secure the funding needed to start your own business.  This means that you’re probably not going to qualify for quite as much money as you hope for to get things up and running (even if you’re eligible for a significant amount).  Plus, it’s going to be a while before you really start earning enough money to pay the bills.  What this amounts to is a rather lean time for your business, which can be a real hardship when you’re learning the ropes, making mistakes, developing an understanding of the market, and trying to make your vision into a reality.  For these reasons, keeping your overhead low is absolutely essential.  But how do you accomplish this task?

Cutting costs is no easy feat, especially when you’re just starting.  Down the road, you can haggle for the price of goods (especially if you’re buying in bulk), streamline your processes, minimize redundancies, get deals on shipping, and perform a whole host of other money-saving devices that will keep you in the black.  But right now you’re just trying to figure everything out.  Add in the fact that you have certain ideas about how your business should be (and you’re determined to get it right) and you are probably already over-spending.

But if you’re willing to make a few concessions, it’s not as hard as you think to toe the bottom line.  For starters, you may want to consider a business model that supports telecommuting, at least initially.  If you’re plan is for a storefront, think about starting your business online instead and then expanding later.  Or if it’s an office setting, just have employees communicate through IM or video conference.  Even if you have to equip employees with smartphones, it’s probably going to save you a lot over a lease and the additional costs of running a brick-and-mortar location (utilities, security, etc.).  Although not all businesses can run this way, it’s a viable solution for anyone who plans to have an online presence anyway (and it can cut costs significantly).

Your staff is going to be another big expense, but you really do need head count if you’re going to get the work done.  So think about hiring contractors.  You’d be surprised by the number of people you can find who are willing to work on a contract basis.  This is best if you’re doing business solely online, but it can also be viable for physical locations (although you will have to hire them on as employees if you plan to keep them more than a year).  You may have to pay a little extra for freelance workers (unless they’re new to it), but you won’t have to pay the employer portion of taxes or social security and you can also avoid the outrageous cost of health benefits.  This is going to translate into a huge savings where your overhead is concerned.  If you have a storefront, you can also hire only part-time help and just avoid benefits.

There are about a million other ways to save smaller amounts of money as time goes by, and you will likely discover most through experience.  But if you really want to start off on the right foot and get your enterprise going for less money than you planned for, a few simple adjustments could make a world of difference where your overhead is concerned.

Emma Martin writes for Plexpack which offers continuous band sealer, shrink packaging machinery and many other items for your e-commerce and other packaging needs.

• Ebay.  This one will not get you immediate cash, as every auction lasts 7 days, but once you get even one bid, your item is guaranteed to sell.  If you’re new to ebay, you also have the option of finding an experienced seller to list the item for you.  You may have to share a small cut of the profit, but in certain circumstances, connecting with a trusted seller with a lot of positive feedback is the best way to go for the best selling price and the quickest bids.
• Craigslist.  This one is semi-similar to ebay, but it’s absolutely free to list your item.  You are more likely to deal with local buyers, too; just beware of scammers.  It’s best to insist on a cash only payment or use PayPal for this reason.
• Rummage sale.  If it’s that time of year in your area and you’ve got enough items waiting around to sell, set up shop at your own home and sell to your neighbors!
• Sell your jewelry.  You have a couple options on where to sell, too.  If you’re comfortable with it, you can use the mail-in companies that have been advertised a lot lately, such as Cash4Gold.  Otherwise, shop your local jewelers to see who will give you the best price.
• Resale shops.  If you have old videogames, DVDs or CDs, books, or even musical instruments that are collecting dust, there are resale shops that will pay you immediate cash for them.  You won’t get what you spent on them, and you may not get as much as you would on ebay or Craigslist depending on the item, but if you need money today rather than in a week, this option is worth checking into.

Advertise to your friends and work colleagues, too, that you have items that you’re trying to get rid of.  Word of mouth can help you connect with the person that’s looking for what you’re selling, and before you know it, you’re in the money!

It’s important not to focus too much on the word “home.”  No matter your location, you’re starting a business, and you need to be prepared to work.  Your success is directly tied to the amount of time and effort you’re willing to put forth.

Choose the Right Home Business

Examine your options fully before you begin.  Have you chosen a product or service that you’re passionate about?  There’s nothing wrong with selling something purely because it’s a guaranteed money-maker, but if you’re excited about it, too, that can make it easier to keep up with your business goals, especially during the startup phase.  Would you still be willing to put in all the necessary effort while things are slow?

Who Will Buy Your Product?

Are people willing to buy your product or service?  Great.  Now dig a little deeper—are they willing to pay a price that will be affordable for them but help keep you in business?  If it doesn’t seem possible to turn a decent profit with the going rate, you may want to consider a different idea.  Decide if you want to run your business full- or part-time.  That will make the difference in knowing whether your expected profits are acceptable enough for you to invest in the business.

Cover Your Business Expenses

You’ll have a lot of expenses to consider, and you want to be prepared for them ahead of time.  You’ll have start-up costs—know how much you’ll need to invest up front so you can include that when determining how long it will take you to start collecting a profit.

Research your insurance options.  Of course, you’ll have to find your own medical and dental benefits, and that can be expensive on your own.  Can your business help cover your costs?  You’ll also need extra insurance to cover your actual business; homeowner’s insurance may not cover you if a customer has an incident on your property while conducting business.  Make sure to acquire any necessary licenses before your apply for insurance.

It’s also a good idea to seek out a good accountant and tax advisor (unless, of course, that’s your profession and your home business idea…then it’s up to you!).  Especially once your business takes off, you want to feel confident that your finances are being handled correctly and efficiently.

Create a Business Plan

Plunging in can be a little easier if you create a business plan.  You will definitely need one if you’ll be applying for a business loan, but it can be helpful even if you’re not.  You’ll be able to see all of your goals in writing, and doing so will force you to spell out every last detail about your business, from marketing research to your mission statement to your future projections.

Treat your home business like an off-site one.  Determine the best hours for you to work and make sure you actually work during them.  There’s no one to tell you what to do and where to be—that’s a definite perk, but it really means that you have to be able to push yourself.  Be committed and do your research and you’ll have a better shot at success.

For some home business ideas and resources, check out Entrepreneur.com.

• Freelance your talents. Whether you’re a writer, a photographer, an accountant, a web designer, there are companies looking for your services. They might not have the right people available to complete the projects they need to have done, or they’re looking for a cheaper alternative to hiring a full-time employee. You can be the answer for them, and you can search for as many or as few opportunities as your schedule can handle.
• Do you enjoy organizing? Start a cleaning or organizing service. Many people don’t have the time or energy, or they just plain don’t like the chore. You can offer the help they’ve been waiting for.
• Become an antiques expert. Search rummage sales and attend auctions. You can pick up plenty of items on the cheap that are worth a decent amount of money. Do research to determine if what you’ve found is valuable as is or is worth being refurbished, and sell them in your own booth at an antique store, on eBay, or at local fairs.
• Design t-shirts. If you’ve got clever ideas, you’ll get people’s interest. T-shirts can be fairly easy to design and can turn a good size profit for you. Think wisely about whether it’s better for you to print the t-shirts yourself or use a third-party. Your own talents and potential selling opportunities can help you make the decision.
• If you enjoy working out, why not get paid for it and become a fitness instructor? This one will require some time to take classes and become certified, but once you’re ready, you’ll get paid to help others reach their goals while keeping fit yourself.
• If not much else seems like it would work for you, there’s always good old traditional babysitting and pet-sitting! This might be especially good for you if you already have children or pets, or simply enjoy playing with them and taking care of them. If you keep your services cheaper than average day care costs, you’ll have eager parents knocking down your door.

Anything you choose can have the potential to become a full-fledged business.  It depends on your motives and your time commitment.  If you want it to remain a part-time business simply for some extra cash, you can definitely keep it that way.  Your best bet for fun part-time businesses is to find something you love to do and figure out how you can get paid to do it.  Sometimes taking it into your own hands can be the easiest and fastest way.

• Sell your stuff! Take a good, honest look through anything you might have hidden away or not used in a long time. If you decide you can get by without it, sell it! If you’ve got a decent pile of unwanted items, go ahead and set up a rummage sale. You can even try coordinating with your neighbors and advertising in the paper to help draw more potential buyers your way. If you only have a few items, try listing them on craigslist or eBay. (Note: if you choose eBay, do your research on what you’re selling. Make sure that what you can sell it for will make up for the fees you’ll be charged. Check completed auctions on your item to make sure people are buying it because you’ll still have to pay listing fees even if it doesn’t sell. Check out this eBay Millionaire does it.)
• Offer to do yard work for your neighbors. Plenty of people don’t have the time to do all the yard projects they’d like to do, and they certainly can’t afford an expensive landscaping service. Maybe they’re physically unable to do simple tasks like mowing and trimming. They’ll welcome your ability and reasonable prices.
• Donate plasma. Most often, you’ll be compensated for this donation. Some people say that’s because it’s painful. Others say it doesn’t hurt, it’s just complicated. If you can handle either one, you’ll walk away with some extra cash.
• Open a new bank account. Search your local banks and find out what kinds of offers they have on new accounts. You might find one that will deposit, say, $25 or $50 into new customers’ accounts. Sometimes it’s as simple as opening one up. Other times there may be conditions, but you might be able to meet them easily, such as opening the account with a certain amount of money or signing up for direct deposit right away.
• Tutor students. Take a look at schools near you and offer your expertise in your favorite subject. Not only will you make extra money, you’ll be helping someone else succeed.