How to start a business with $1,000 in your pocket
Posted On July 2, 2021
A new business model has emerged that can help young people and those with little financial means start up their own businesses, according to a study.
“We have a lot of people who are getting into the online business, but they are doing it in a way that doesn’t provide them with a sense of financial security,” said Jessica Smith, founder and CEO of The Future Fund.
“When you get into that kind of a world, it can be overwhelming.”
Read moreAbout 10 percent of millennials in the U.S. are starting businesses with less than $1 million in their bank accounts, according the National Alliance for the Mentally Ill, an advocacy group for the mentally ill.
For those people, getting a business started can be tough.
“The biggest obstacle is the lack of financial literacy,” Smith said.
“When you start something and you have no idea where you’re going, how much money you’re starting with, it’s a big challenge,” she said.
Smith believes that her approach could help some young people get started.
“It’s really hard to find a way to make money,” she told Business Insider.
“There’s no clear path to it.”
It’s a concept that Smith is working on, with the Future Fund, which she cofounded in 2013.
The Future Fund helps people make a business plan and budget for the first year they run a business.
Then, the group helps them with funding.
For young people who have no bank account, Smith said, the process is much easier.
The group helps people set up a website and set up an email list, Smith explained.
For people with small businesses, it could be as simple as a website or email.
“I would tell them if you don’t have a website, go to the marketplace,” she explained.
“If you don-t have an email account, use the marketplace.”
Smith is one of many entrepreneurs who have embraced the concept of a “business plan,” or plan of action, as a way for young people to get started in the online and social world.
The plan can include basic business basics like the budget, marketing and sales strategies, and how to attract new customers.
The strategy can be tailored to meet individual needs, such as a person’s age, gender, job, disability, location, income and financial situation.
For example, Smith noted that a 30-year-old with a $50,000 budget might want to set up their business for a single person, instead of a couple.
“If you’re a 30 year old, you can’t be doing it as a business,” she added.
The future fund has been featured on CNBC, The Wall Street Journal, Business Insider and The Atlantic.