There are certain rules to follow if you want to start a business with little money; here are just a few:

1. Do not rent a workplace - Start a "home-based-business." Renting usually means signing a lease which commits significant amounts of money for a long times. You might work from home or garage. your business might be one where you go to your customers' homes or businesses. Maybe you can sell at a flea market or fair. There you can rent a small space at a very low rate for the short period required.

2. Do not hire employees - Avoid fixed salaries and the paperwork involved. If you need help, you can start by using family members or "contractors.

3. Do not incorporate - Start as a proprietorship (you are the owner). Incorporating a business can be expensive and will cause more recording-keeping. In addition, you would be considered an employee of the corporation for tax purposes, and your tax records would be much more complicated. Later on, as the business grows, you may want to incorporate.

4. Avoid borrowing money - One of the purposes of a small business is to give you peace of mind about debts. If you must borrow, keep the amount to something you could pay back in time without too much hardship. Remember that while you should have a positive attitude, you should not take for granted that your endeavor will succeed. It may not.

5. Avoid excessive expenses for equipment - Select work based on equipment you own. For example, you can use your car. truck, tools, or personal computer. If you need equipment you do not own, consider renting until you can afford to buy. If you must but, wait until you have a job requiring the tool.

6. Control initial expenses - Avoid frills - use what you have. Do not spend money for fancy desks or furnishings. Buy only what you really need. Remember, many small businesses have been started on a kitchen table.

7. Avoid or limit inventory - Unless you can move inventory quickly, do not tie up your money on excess inventory.

8. Select cash-payment opportunities - Select a business when you get paid quickly in cash. If your work will take time to complete, get a partial payment at the start. Often, this will be enough to pay the job's expenses.

9. Go with what you know - Take advantage of your skills, hobbies, or work experience. Avoid lengthy learning or training periods unless you can afford to do it before you start the business.

10. Put a fair amount of profits back into the business - When you finally start making money, avoid the temptation to spend it for personal use. Keep some in the business to improve it and make it grow.

These rules are very important and will keep you from failing in the long run, if you stand firm on the principles. These rules apply when starting a business with limited money supply; many of these rules could change as you grow.

Though it may be a dream to own a business that requires a significant investment to start, consider raising money by starting a small. home-based business. Save as mush of your earnings as you can. Later, even if you cannot save enough, your savings record and work experience will help you to borrow more for the business you want.

Read on and learn how to Succeed and Not Fail in the continued series on starting a business.