How to Turn a Cup of Coffee Into $160

“I have no money to start an online business.”

These are common words that ring true for a lot of people.  How in the world can I start paying online fees and buying product when I can’t afford to pay the rent?

Please pay your rent.  It would be much harder to run an online sales business if you are evicted.

So, this is not about a magic trick where the wand is waved and the coffee turns into a $100 bill.  It’s representative of changing your mindset to achieve what’s important to you.

That being said, if you can use the $5.50 it costs for a fancy Starbucks coffee or a Big Mac or even buying your lunch in the cafeteria, then you have a starting place.  Ask yourself what you can give up to start a business.  If you aren’t willing to forego the Starbucks run, then you’re not ready to make money online.  While it can be easier than you think, there are still choices that have to be made.

Here are 3 ideas to find the cash to start.

Or, better yet…do not buy that Starbucks coffee or Big Mac this week and use that $5.00 to start your business.

Now, I have to assume that you have a computer and/or a smartphone, and internet access.  (If you don’t there’s ways around that, too)

It’s all about choices. And if you choose to start a successful online selling business, your mindset will begin to shift on its own.  You’ll buy the 49-cent coffee at the nearest Racetrac gas station and invest the other $4.50 in selling products.  You’ll forego the steak and make some spaghetti for dinner, saving another $5.00+.  You’ll keep all the lights turned off in your house at night to save electricity, maybe another $20.00.  You get the point.  I can tell you that if you desire something bad enough, there will be no stopping how you get it (legally, of course).

How you ask?

Here is exactly what I would do if someone handed me $5.00…

I would spend the next Saturday morning going to garage sales.  There are a variety of reasons why people hold garage sales, but my favorite is a moving sale.  These sales are not motivated by making money, but by the need to get rid of as many items as possible.

What I would look for:

• Children’s clothing at 50 cents a piece or less, in excellent condition.  Look for all the same gender in all the same size.
• New or barely used toys, games and video games at $1.00 or less.
• Any new household items, small electrics, etc. at $2.00 or less.
• Perfume at $3.00 or less.  Not drugstore perfume, but high-end perfume which the owner didn’t use much of or maybe didn’t like the scent.  Bring your smartphone to check if you don’t know fragrances.
• Scrapbooking supplies (as a lot, or make offer for multiples)
• Sewing notions, fabric, patterns, yarn and craft supplies (as a lot, or make offer for multiples)
• Jewelry, preferably sold as a lot.  Vintage jewelry in large lots is in high demand.  If you think the jewelry is vintage, check the backs for designer signatures.
• Hardcover, vintage and textbooks at 50 cents or less. Again, use your smartphone to look up prices on Amazon or eBay.
• Old photos and postcards.

That’s just a start, but those items would give me enough to start earning.

So let’s say that I was able to buy the following:

• 4 little girls dresses, size 5 ($2.00)
• 2 vintage books ($.50)
• 1 used bottle of Guerlain perfume  ($2.00)
• 1 yard of cotton floral fabric ($.50)

Now it’s time take these items home, take pictures and upload them to eBay.  When posting starting prices to begin with, don’t get too greedy for the process to work.  Post them for a low starting price — if the public wants them, the prices will increase through the bidding process.  Here’s where I would start knowing they will most likely sell since I did some basic field price lookups:

• Set of Dresses: $12.00
• Books: $5.00 each
• Perfume: $9.00
• Fabric: $3.00

If each of these items sell for exactly what I listed them for, the net profit (after taking out what I paid for them & eBay fees) would be as follows:

• Dresses: $7.85
• Books: $3.50 each
• Perfume: $5.24
• Fabric: $1.51

TOTAL PROFIT:  $16.36

I would take this money and triple what I did the week before.  The following week, if all conditions were the same, I would make $50.  By reinvesting that the following week, I would make $160.

Rinse. Repeat.  You get the idea.

By the end of the month, I would have $160 if I devoted every Saturday morning to scavenging at garage sales.

Now that you’ve seen a very realistic example, there are certain factors to keep in mind:

1. Not all items will sell.  Be on the lookout for items that are in high demand to make sure you can at least get your starting price.
2. I mentioned it before, and I’ll mention it again.  Don’t get greedy with your starting price.  eBay buyers are looking for a perceived bargain, just as you were when you went garage sale hunting. Greedy = no sales.
3. If you stick to the above list when you are starting out, you will sell something.  BUT, as you begin selling online you will also be able to create your own list and become smarter as you dig your heels in and learn by doing.
4. Obviously the $160 is not a guaranteed amount based on what you are trying to sell.  If you walked away with only $80 at the end of the month with only a $5 investment, would you be happy?  I would.  It’s more money than you would make investing in a stock or bank account.  Small wins people.

By the way, the calculator I used to come up with the numbers above was a random app uploaded to my phone.  It’s called SaleCalc.  It is a simple calculator for eBay that allows variables such as Fixed Price vs. Auction, eBay store type (if any), and lets you calculate what your price should be if you need a certain ROI.  Fun tool.

So, if you skip that $5.00 cup of coffee today, how will you turn it into $160 by the end of the month?  Let me know in the comments.