Many businesses start with something simple: baking, fixing bikes, tutoring, selling crafts online. You do not need a big idea or a lot of money to begin, but you do need to test the idea and understand the numbers.
This article is the reading companion to the free Mondosol lesson Money Matters: Start a Small Business, part of the Money course. Read it, watch the videos, or press play and listen first, then practise in the lesson.
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In this article
Start with a problem to solve
The best small businesses solve a real problem for real people. Before you spend any money, answer these questions:
| Question | Why it matters |
|---|---|
| Who is my customer? | You cannot sell to “everyone” |
| What problem do I solve? | People pay to save time, money or effort, or to enjoy something |
| Why would they pick me? | Price, quality, speed, local, personal service |
| Can I do it with what I already have? | Start small before you buy equipment |
Test it before you build it
Find your first three customers before you buy lots of stock or build a website. Ask friends of friends, post in a local group, or offer a trial. If people say no, ask why and change the idea. This is cheap and fast, and it saves a lot of money.
The numbers: price, cost and profit
Profit is what is left after you pay your costs. Two types of cost matter:
- Variable costs change with each item you sell, such as ingredients or packaging.
- Fixed costs stay the same however much you sell, such as a market stall fee or a website.
Invented example: you sell homemade cookie boxes at a market.
| Item | Amount |
|---|---|
| Price per box | 40 kr |
| Cost to make one box | 15 kr |
| Profit per box | 25 kr |
| Fixed cost (stall fee for the day) | 500 kr |
| Break-even point | 500 ÷ 25 = 20 boxes |
Until you sell 20 boxes you are losing money. From box 21, each box adds 25 kr of profit. Always calculate your break-even point before you start.
The official first steps (Norway as an example)
The rules depend on the country, and on your age. In Norway, you register a business through the joint register notification (Samordnet registermelding) in Altinn. The most common starting forms are:
| Form | Who is responsible | Good to know |
|---|---|---|
| Sole proprietorship (enkeltpersonforetak) | You are personally responsible for the business’s obligations | Simplest to set up |
| Limited company (aksjeselskap, AS) | Owners are not personally liable beyond the share capital they paid in | Minimum share capital of NOK 30,000 |
Once your taxable sales are above NOK 50,000 (excluding VAT) over a 12-month period, you must register in the VAT register, according to the Norwegian Tax Administration. If you are under 18, ask a parent or guardian, because extra rules apply.
Check the official pages at Altinn and Skatteetaten before you decide, because rules and limits change.
Keep records from day one
- Keep every receipt and invoice.
- Use a separate account for business money, so you always know what is yours and what belongs to the business.
- Write down income and costs weekly, even in a simple spreadsheet.
- Set money aside for taxes as you earn.
Reading about money habits? See Financial Goals to plan your first milestone.
Watch: planning and bookkeeping basics
Two videos cover writing a simple business plan and keeping your books. Laws and tax rules differ by country, so use them for the method.
Video: “How to Write a Business Plan – Entrepreneurship 101 | Gillian Perkins”, on YouTube.
Video: “The Bookkeeping Basics for Beginners | LYFE Accounting”, on YouTube.
Take it further
Reading is a good start. These options help you go from knowing to doing.
All courses, live coaching sessions and members-only events, with a 30-day money-back guarantee. See the plans
A live session on Google Meet to turn this topic into your own plan. Book a session
Frequently asked questions
How much money do I need to start?
Often less than you think. Many service businesses start with almost nothing. Begin with what you have, test, and reinvest the first income.
Do I need a business plan?
A short one-page plan helps: who your customer is, what you sell, your price, your costs and your first goal. Banks and investors may ask for a longer one.
Sole proprietorship or limited company?
It depends on your risk, your plans and your tax situation. In Norway the main difference is personal responsibility versus the NOK 30,000 share capital for an AS. Ask an accountant; this is not legal or financial advice.
Can I start while studying or working?
Many people do. If you have a job, check your contract and any rules from your employer first.
Will my business succeed?
Nobody can promise that. Small experiments, careful numbers and listening to customers raise your chances.
Keep learning
- Course: Money
- Lesson (Practise it): Money Matters: Start a Small Business
- Read next: Financial Goals and Risk and Reward
- Related: Make Money: Taxes Made Simple
Educational, not financial or legal advice. Figures were checked against the Norwegian Tax Administration and Altinn on 15 October 2026 and can change. The example numbers are invented. This post contains no affiliate links.
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