What can you do for $100?

In another life, I worked in radio.  We had those free-money promotions during the ratings period or as we called it, “During the Book.” You know the ones— where you could win $100 three times per day, once during morning drive, once during middays and once during afternoon drive.  Then on Thursdays, the day the Arbitron diaries were due, we gave away $1000 or a vacation or something like that.  All you had to do was mail in your postcard and wait to hear your name called!  (And now you know a little about radio and why they give away what they do, on what day!)

To help build excitement on the air, our program director had us all come up with things you could buy for $100 and we hung the huge list in the studio so we’d have talking points for what YOU, the listener out there in radio land, can do with that free money. 

Some items on our list were:
-Buy a CD box set from your favorite artist
-Go to a spa for a massage and a pedicure
-Take a bus trip to New York City
-Go for a nice steak dinner
-Pay a utility bill
-Take a date to a concert

Do you want to know what was NOT on the list?  Starting a business. 

I am not trying to come down on anyone’s idea or dream, but as the first person many future e-commerce business owners talk to, I must admit I get a little frustrated when I get calls from people looking to start a website business for $100.  This happens every now and then, and it happened again last week.  I finally wanted to speak up about it.

So– $100.  Sure, there are templates available for that price or maybe a freelancer who will work for a few bucks an hour and can put something together for $100.  However, what can you REALLY expect to get in return for investing $100 into your new business?  What about branding?  Marketing?  Being different? I know that to a lot of people, $100 is a lot of money, but when it comes to starting a business, think of it this way.  If you were to open a brick and mortar store, even a kiosk stand at the mall, rent could be more than $1000 per month.  Then think about remodeling the storefront to fit your needs- even just the cost of paint.  Then think about buying/leasing a cash register.  Think about how much your sign will cost.  What about your occupancy permit?  As you can see, there is a lot to think about.

I think many people get the misconception that starting a business online is cheap and easy.  There certainly is often times a lot less overhead than opening a new brick and mortar store (but when an e-commerce business gets really big, not really…) The three realities of e-commerce I came up with the other week- are this: 

1.  It takes time.
2.  It takes work.
3.  It takes money.

And that’s the truth!  So if you have an idea and $100, great.  But you aren’t ready.  Here are some ideas that can be done alone or combined: Create a business plan.  Save up.  Enter a business plan contest.  Find a partner.  Find a business loan.  Get a business credit card.  Find a venture capitalist.  Sell off something. Apply for a grant.  There ARE ways out there to fund your business.  But the bottom line is, if you are serious about starting a business on or off-line realize that the more you invest and the better  foundation you build, the more success you are going to have.  

Oh, and there is one more idea.  You could always enter a good old fashioned radio giveaway.

P.S. For those on a budget, we do have a solution: Rapid Start.