We did it back in 2002, but here is how we’d do it again in 2008 on a shoe-string, bootstrap or sandal-thong budget.

Let’s assume you are starting a company because you’ve either been laid-off, had it with the boss or decided to pursue your dreams. My guess if you are like most Americans then you likely won’t be able to give more then $1,000 to the cause. Let’s be real, you are likely not going to receive a bank loan anytime soon.

1st.
Pick a company name and register your business with your State’s Secretary of State. I’d recommend using LegalZoom to setup an LLC, especially if you have business partners. The LLC let’s you get up and running quickly with minimal costs. As your business matures, then decide if another corporate suffix is better for you. You’ll be able to afford fancy lawyers at that point.

Cost $149

2nd.
Find a domain name. Good luck with this one! It’s the main reason why you see so many companies with funky, misspelled names these days. If you aren’t the most creative person use a services like NameBoy to toss around word variations. Once you find one which works, register it on GoDaddy.

Sure I’ve ranted about GoDaddy in the past but their service is still pretty darn good.

Cost $20

3rd.
Buy a Synology NAS with two 1TB internal drives. If there is only one thing I would suggest you spend money on, it’s this. The Synology NAS will give you RAIDed network file storage which can be shared with other co-workers as your company grows. It’s especially nice because the Synology NAS allows for FTP services for those co-workers which are connecting to you remotely. I’m figuring you haven’t closed on that fancy first office just yet.

Bonus: Synology can run FTP, SSH, DDNS and Apache so you can use it to run your web site while you start figuring out your business plan.

Cost $550

4th.
Using GoDaddy as your DNS server, point your email hosting to Google Apps and run your domain name using GMail. You’ll get a free email service which kick the crap out of spammers.

Google Apps also contains Google Docs and Spreadsheets but there is just something nice about having files on your a Synology NAS as opposed to in Google. Once Google develops a way for me to download a backup of the data then I might reconsider this.

Cost $0

5th.
Download and install OpenOffice. I don’t care if you are running Mac, PC or Linux. The OpenOffice team deserves a lot of respect for building a kick-ass free alternative to Microsoft Office and this desktop download won’t disappoint. It will allow you to create spreadsheets, word docs, presentations, drawings and simple databases. You might even consider keeping it as you grow.

Cost $0

6th.
Setup chat, AIM, Skype and any other of the plethora of instant messaging tools. This will help you resist the need to purchase land-lines from the blood-sucking telcos.

Cost $0

7th.
Setup YouMail. This service will give your cell phone some class. I’m guessing it’s going to play double duty between your home life and your new business identity. YouMail takes your cell phone voicemails and emails them to you as MP3s. It also let’s you personalize the voicemail greetings so you can filter the call for a more professional greeting depending on which client or prospect is calling in. Goodbye generic voicemail messages!

Cost $0

8th.
Purchase a real accounting package like Quickbooks. Yes, I know there are tools like BlinkSale and others which you can generate invoices with, but Quickbooks is time-tested and at the end of the year your accountant will thank you.

Cost $180

9th.
Lastly, use BaseCamp to setup a collaborative environment between your internal team and your customers. BaseCamp is free to manage your first project on, after that you’ll have to pay a minimal fee to add more projects and features.

Cost $0 (at first)

There, that’s it! This is how we’d do it again in 2008. The combination of these tools and services will give your new start-up the legs it needs to move forward as well as a polished image which will hide the fact that you are poaching wireless internet and working in a nearby coffee shop.

Good luck and don’t let this shitty economy get you down!