As the founder and President of two startup businesses, I have found ways to start a business on a budget. I am a tutor broker, matching professional tutors with students in all grades and subjects in need of tutoring. Home Tutoring Business, was launched in September, 2005. It is a complete business package I have put together that teaches others how to begin a tutor referral service in their community and is for sale on the internet in the United States and Canada. I am home-based and my sales this year will exceed $500K.

I mentor others on how to begin a home-based business at a fraction of the cost of purchasing a franchise. Here are my money-saving suggestions:

1) Work from home if at all possible.

In the beginning, spend your money on advertising and marketing. Clear a space in your home for your computer, phone, desk, etc. As your sales grow, you can expand. I started in a hallway and loved being home so much that I took over our dining room, moved to the living room and recently added a small addition to our home to accommodate my office. Seek the advice of an accountant to determine how much you can deduct in expenses for your business. The savings are significant.

2) Find a good publicist/virtual assistant. It's important to get the word out about your new business. Hiring a Public Relations firm is pricey and not always worth the money. Go online and search for a Virtual Assistant and publicist. Many will offer you a three-month retainer at a lower cost than a fancy PR firm and the results can be extremely advantageous. Check out their references first and go with someone who has a proven track record. After the initial three months many VA's will offer you an hourly or monthly rate.

3) Develop your negotiating skills. Knowing how to talk to advertisers. Obtaining the best deals you can will pay off big-time, especially when it comes to advertising. Ask your sales representative to tell you about any special rate packages they offer. Quite often, you will not know unless you ask. Tell vendors you are a new business and ask if you can pay for big projects (like a professional website) with monthly payments. If you are dealing with small business professionals, most of them have been in your shoes and will be happy to extend a monthly payment plan to you.

4) Outsource, outsource, outsource! Small businesses don't have the capital to devote to entire payroll departments, legal departments, etc. Outsource to independent contractors whenever possible. In the long run it is cheaper and is definitely a smart business decision. There is no good reason to hire a full-time payroll clerk if your company is small and there may only be two or three employees for several months. Contract whenever possible, from graphic designers to IT specialists and 'pay as you go'. The savings are significant.

5) Teach yourself some new tricks. Can't afford a graphic designer? Go online and you will find several printing places that provide templates that you can use to design your own brochures, presentation folders, etc. You don't need to be creative, some online companies provide excellent customer service and will walk you through how to design your own materials. Need photographs for your ads? For $1.00 each you can download royalty-free professional photos from istockphoto.com, the best kept secret on the web in my opinion. Search the internet for just about anything you need and you are sure to find itcheap.

6) Network as much as you can.

Join networking groups comprised of individuals who are entrepreneurs or small business owners. Not only might you find some professionals that will help you develop and grow your business, it is also an excellent way to spread the word about your company. Local networking groups usually limit the membership to one person per industry, so you will not be competing with anyone else for referrals. I met my lawyer, accountant, IT support person, payroll person and graphic designer by joining a networking group. It pays off to reach out.