[Sangetsu]

$20,000 is peanuts, and it won't be enough to pay for the paperwork involved in setting up a brick-and-mortar business. But it is enough to start an internet-based business.

All businesses are fundamentally the same; they sell products or services. You need to find something that you can buy cheap and then resell for enough money to pay for your overhead and then have something left over.

The first three rules of opening a small business are simple.
Rule number 1, Location.
Rule number 2, Location.
Rule number 2, Location.

In case it's not obvious, location is more important than the product or service you plan to provide. You can have the best product at the best price, but no on will buy it if they can't find it. Conversely, even junk can be sold for a profit if you are selling it from a good location.

Nowadays the internet is the most widely visible place to sell your products or services. There are plenty of ways and places you can promote your products, and using places like eBay or Yahoo is a great way to start.

I started exporting goods from Japan a couple of years ago. I began more or less by accident, and decided that I had found a good way to make a little extra money. In time I learned a little more about what I was doing, and I began to expand my range and market. A little more than a year ago the money I was earning from this business surpassed the income I was making at my job. This year I am making almost double my regular salary. Next year I will make more.

Were I to start over again, I would probably look more at importing goods to Japan rather than exporting. The current exchange rate is more favorable for imports, and the Japanese are as hungry as ever for anything which is made in America or Europe. I export mainly because of tax reasons. My business is based in America, and I get paid in dollars. I get pinched in the exchange rate, but I recover this from money saved in tax.

Opening and running a business is not hard. You just have to put in the thought and energy. At first it can be a little overwhelming, like swimming in the deep end of the pool for the first time. But, if you do things right, and are successful, you quickly gain confidence. The confidence and experience gained can be used to create more opportunities.

Good luck.